Barclaycard goes from zero to credit hero

After pressure from consumer groups and the media, Barclaycard announced last week that it is scrapping its confusing "0 per cent for ever" deal.

After pressure from consumer groups and the media, Barclaycard announced last week that it is scrapping its confusing "0 per cent for ever" deal.

This promised 0 per cent on transfers for the life of the balance - but only if customers spent £50 on the card each month and didn't repay the bill in full. New spending was charged at a typical rate of 14.9 per cent, and could not be paid off until the balance transfer had been cleared.

The Office of Fair Trading forced Barclaycard to withdraw advertising for the deal last year. But from June, Barclaycard is making amends by launching a much more straightforward and competitive offer. Indeed, it will send Barclaycard to the top of the "best buy" tables - not somewhere it is generally seen. New customers will get a 12-month interest-free period on balance transfers and new purchases, with no catches.

The current market leaders, Halifax and Mint, offer 0 per cent on balance transfers and new purchases for shorter time spans - nine and eight months respectively.

"The credit card market is already competitive but this is going to make it even more so," says Stuart Glendinning, marketing director at moneysupermarket.com. "There are still millions of customers with credit cards charging high rates and offering few benefits. This is another call to action: people should overcome their inertia and get another card."

Getting a 0 per cent card doesn't mean you can afford to rest on your laurels, though. Where Barclaycard customers will lose out, compared with those at Halifax and Mint, is if they have an outstanding balance at the end of the first 12 months. After their introductory periods, Halifax and Mint customers move to a typical standard rate of 9.9 and 10.9 per cent respectively; but Barclaycard customers will pay around 13.9 per cent.

Clever customers won't be affected, however. They will shop around for another 0 per cent card a couple of months before the end of their introductory deal.

The only real fly in the ointment with Barclaycard's new offer is that existing customers don't qualify for the 0 per cent introductory period, although this is often the case when a card provider launches a new deal. But Barclaycard hasn't totally forgotten existing customers: they will get 2.9 per cent on balance transfers, which isn't bad.

Suggested Topics
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Mortgage Administration Team Leader

    Negotiable: Recruitment Genius: This company prides itself on its ability to p...

    Recruitment Genius: Mortgage Advisor

    Negotiable: Recruitment Genius: This company prides itself on its ability to p...

    Ashdown Group: Solvency II Project Manager - 10 month contract - £800 p/d

    £800 per day: Ashdown Group: A highly successful, global financial services co...

    SThree: Trainee Recruitment Consulant

    £20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250...

    Day In a Page

    A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

    A Very British Coup, part two

    New novel in pipeline as Jeremy Corbyn's rise inspires sequel
    Philae lander data show comets could have brought 'building blocks of life' to Earth

    Philae lander data show comets could have brought 'building blocks of life' to Earth

    Icy dust layer holds organic compounds similar to those found in living organisms
    What turns someone into a conspiracy theorist? Study to look at why some are more 'receptive' to such theories

    What turns someone into a conspiracy theorist?

    Study to look at why some are more 'receptive' to such theories
    Chinese web dissenters using coded language to dodge censorship filters and vent frustration at government

    Are you a 50-center?

    Decoding the Chinese web dissenters
    The Beatles film Help, released 50 years ago, signalled the birth of the 'metrosexual' man

    Help signalled birth of 'metrosexual' man

    The Beatles' moptop haircuts and dandified fashion introduced a new style for the modern Englishman, says Martin King
    Hollywood's new diet: Has LA stolen New York's crown as the ultimate foodie trend-setter?

    Hollywood's new diet trends

    Has LA stolen New York's crown as the ultimate foodie trend-setter?
    6 best recipe files

    6 best recipe files

    Get organised like a Bake Off champion and put all your show-stopping recipes in one place
    Ashes 2015: Steven Finn goes from being unselectable to simply unplayable

    Finn goes from being unselectable to simply unplayable

    Middlesex bowler claims Ashes hat-trick of Clarke, Voges and Marsh
    Mullah Omar, creator of the Taliban, is dead... for the fourth time

    Mullah Omar, creator of the Taliban, is dead... again

    I was once told that intelligence services declare their enemies dead to provoke them into popping up their heads and revealing their location, says Robert Fisk
    Margaret Attwood on climate change: 'Time is running out for our fragile, Goldilocks planet'

    Margaret Atwood on climate change

    The author looks back on what she wrote about oil in 2009, and reflects on how the conversation has changed in a mere six years
    New Dr Seuss manuscript discovered: What Pet Should I Get? goes on sale this week

    New Dr Seuss manuscript discovered

    What Pet Should I Get? goes on sale this week
    Oculus Rift and the lonely cartoon hedgehog who could become the first ever virtual reality movie star

    The cartoon hedgehog leading the way into a whole new reality

    Virtual reality is the 'next chapter' of entertainment. Tim Walker gives it a try
    Ants have unique ability to switch between individual and collective action, says study

    Secrets of ants' teamwork revealed

    The insects have an almost unique ability to switch between individual and collective action
    Donovan interview: The singer is releasing a greatest hits album to mark his 50th year in folk

    Donovan marks his 50th year in folk

    The singer tells Nick Duerden about receiving death threats, why the world is 'mentally ill', and how he can write a song about anything, from ecology to crumpets
    Let's Race simulator: Ultra-realistic technology recreates thrill of the Formula One circuit

    Simulator recreates thrill of F1 circuit

    Rory Buckeridge gets behind the wheel and explains how it works