The 0% credit card for every occasion

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If you’re looking to demolish debt and avoid interest on your Christmas treats, Halifax offers the market-leading ‘all-in-one’ credit card.

For several months, Barclaycard had offered the longest 0% deal on both balance transfers and new purchases with 14 months.

However, Halifax has now secured a spot at the top of the tables with its All-In-One credit card.

What’s good about it?

This product is certainly an attractive option for those with an existing credit card debt who still wish to spend further.

With 15 months at 0%, borrowers who took out the card this month would not have to pay interest on balance transfers or new purchases until March 2013.

Based on its 0% purchase period alone, the Halifax offer would be a market-leader. With 15 months interest-free, the deal is matched only by Tesco and Marks & Spencer.

Will I definitely be accepted?

When marketing this product, Halifax states the majority of customers will receive its 15-month offer.

Inevitably, however, this market-leading deal will be restricted to those with the highest credit scores.

Those who miss out on the 15-month interest-free period may be accepted for a less competitive deal of 13 or 11 months. Although neither of these 0% deals is at the top of the best buy tables, they are competitive nonetheless.

What to watch out for

Whenever you take out a card with a 0% promotional offer, it’s wise to ensure you can clear the balance before the interest-free period ends. Otherwise, you will start paying interest on your debt. In this case, Halifax charges a representative APR of 17.9%.

If customers aren’t diligent with this credit card, Halifax may remove its promotional 0% offer. It could therefore be a costly mistake to exceed the credit limit or miss a repayment.

If you’re planning to transfer a balance onto this card, bear in mind there is a fee of 3%, which equates to £30 on a debt of £1,000.

What are my other options?

A card that offers 0% on new spending and balance transfers may not be appropriate for all borrowers.

For instance, anyone with a large credit card debt might prefer to find the longest possible 0% balance transfer period. As the market-leader, Barclaycard offers 22 months interest free on balance transfers.

Borrowers planning to spend significant amounts this Christmas (and pay off their balance each month) could consider a rewards credit card.

The Capital One World MasterCard pays 5% cashback in the first three months – up to £100. Alternatively, Santander’s 123 Cashback Credit Card offers 3% on fuel, 2% in department stores and 1% at supermarkets. However, there is an annual fee of £24.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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