As discussed in a previous post, loans are currently at fantastically low interest rates (thanks in part to the historically low bank interest rate and the increasing competition in the market). However, it is possible to get an even cheaper “loan” by using one of the current long-term 0% balance transfer offers on credit cards. Currently the longest one available is a jaw dropping 42 months. Granted it comes with an initial 4% fee but when you work out the effective APR over the 42 months, this is considerably cheaper than the equivalent best loan.
Check out the current best picks:
CARD | 0% LENGTH | FEE |
Sainsbury’s – requires Nectar card | 42mths 0% (18.9%) | 4% (min £3) |
Nuba – You may get fewer 0% months | Up to 41mths 0% (20.9%) | 3.49% |
40mths 0% (20.9%) | 1.99 | |
Lloyds – you may get fewer 0% months | Up to 40mths 0% (18.9%) | 2.39% |
Barclaycard – You may get fewer 0% months | Up to 32mths 0% (18.9%) | 0.68% |
32mths 0% (18.9%) | 1.4% (min £5) | |
Halifax – May get fewer 0% mths | Up to 25mths 0% (18.9%) | NO fee |
24mths 0% (19.9%) | NO fee |