Spotlight on: Nationwide's new credit card

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The Independent Online

The deal

Nationwide building society is offering 0 per cent on balance transfers for 17 months or 0 per cent on purchases for six months.

The good points

You can't currently get a longer 0 per cent balance transfer deal, and 0 per cent on purchases for six months is competitive too. You can also earn commission-free purchases abroad. The bad points

The balance transfer fee of 2.95 per cent means being forced to pay a hefty £59 upfront if you transfer £2,000.

After the introductory period, the rate climbs to 15.9 per cent, not the most expensive on the market but more than many. Take cash out on the card and the interest charge climbs to a shocking 27.9 per cent, plus a 2.5 per cent "handling" fee.

Conclusion

Like all 0 per cent balance transfer deals, you have to weigh up the total costs. If you're already on a lower standard rate then it may end up costing you more to switch.

However, if you use travel frequently, then the chance to earn commission-free purchases abroad could prove attractive with £1 foreign allowance for every fiver you spend.

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