When looking for a credit card to suit your financial needs, the proposition of a fee-free balance transfer is becoming a “dying breed”, a financial analyst has said.
The three credit cards that do not charge a balance transfer fee are currently the Britannia BS Classic Intro Visa, Britannia BS Platinum Intro Visa and Sainsbury’s Advantage Visa.
However, Michelle Slade of Moneyfacts has said that although they do not charge a flat fee, they offer the shortest interest-free periods on the market.
“The question we need to ask is whether avoiding paying the balance transfer fee really offers a cost saving in the long-term,” Ms Slade suggested.
Depending on the amount of time the customer is looking to repay their debt over is an important factor, she added, commenting that “the most suitable and cheapest card will be very different for those looking for short-term or longer-term finance”.
The Office of Fair Trading offers ten top tips for borrowing money, one of which suggests shopping around for the best deal and taking time to compare credit cards. It also warns potential borrowers to watch out for extra changes that could be incurred by using the card.
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