A new balance transfer deal has sparked a huge credit card war in the UK.  Barclaycard have announced the longest ‘interest free’ balance transfer credit card deal in history, with other lenders expected to improve the terms of their interest free deals to follow suit.

Record breaking credit card balance transfer deal

Barclaycard have launched a balance transfer deal offering 24 months of interest free credit for cardholders.  The move came in response to Halifax’s recent announcement that they were launching a card with a 20 month interest free period.

Barclaycard are the UK’s largest credit card provider and their Barclaycard Platinum Extended Balance Transfer Visa carries a fee of 2.8 per cent of the sum being moved on to the card.  It also offers £20 cashback for customers who transfer a balance of more than £3,000 directly through the Barclaycard website.

Michelle Slade from financial analysts Moneyfacts told the Daily Mail: “At 0 per cent for 24 months, the new deal from Barclaycard is the longest balance transfer deal ever offered on the market.

“In the last year, the number of longer term balance transfer deals has soared as competition has returned to the credit card market.”

Concerns over how many people will benefit from the new credit card

While many people have welcomed the competition in the credit card market, others have expressed concerns about exactly how many applicants will end up being agreed for the deal.

Stefan Maryniak, personal finance expert at a leading price comparison website, said: “Barclaycard’s previous 20-month balance transfer proposition proved hard to get for customers without a squeaky clean credit rating. Having now stretched the balance transfer period to a staggering two years, it remains to be seen just how many of those who apply for the card will actually be accepted.

“This begs the question whether the new card is just for show or whether consumers will really get to benefit.”