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
PROMOTED VIDEO
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Compliance Assistant

    £13000 per annum: Recruitment Genius: This Pension Specialist was established ...

    Ashdown Group: Market Research Executive

    £23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

    Recruitment Genius: Technical Report Writer

    £25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

    MBDA UK Ltd: Indirect Procurement Category Manager

    Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...

    Day In a Page

    Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

    Isis hostage crisis

    The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
    Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

    Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

    Maverick artist Grayson Perry backs our campaign
    Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

    The runaway buccaneers and the ship full of gold

    Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
    Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

    Assisted Dying Bill: 'I want control of my life'

    This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
    Move over, kale - cabbage is the new rising star

    Cabbage is king again

    Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
    11 best winter skin treats

    Give your moisturiser a helping hand: 11 best winter skin treats

    Get an extra boost of nourishment from one of these hard-working products
    Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

    Paul Scholes column

    The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
    Frank Warren column: No cigar, but pots of money: here come the Cubans

    Frank Warren's Ringside

    No cigar, but pots of money: here come the Cubans
    Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

    Isis stands strong as its numerous enemies fail to find a common plan to defeat it

    The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
    Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

    Virtual reality: Seeing is believing

    Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
    Homeless Veterans appeal: MP says Coalition ‘not doing enough’

    Homeless Veterans appeal

    MP says Coalition ‘not doing enough’ to help
    Larry David, Steve Coogan and other comedians share stories of depression in new documentary

    Comedians share stories of depression

    The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
    Has The Archers lost the plot with it's spicy storylines?

    Has The Archers lost the plot?

    A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
    English Heritage adds 14 post-war office buildings to its protected lists

    14 office buildings added to protected lists

    Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
    Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

    Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

    Scientists unearthed the cranial fragments from Manot Cave in West Galilee