Longest balance transfer Barclaycard 26 months after Tesco move

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Those struggling with credit card debts can now buy themselves 26 months of time to pay back what they owe without accruing any extra interest.

Barclaycard has once again outstripped the competition by increasing the 0 per cent interest period on its Platinum balance transfer card by an extra month.

It wrested back the mantle of 'market-leading 0 per cent balance transfer card' from Tesco Bank, which held it for a matter of hours yesterday when it revealed a 25-month 0 per cent period with a lower fee than Barclaycard's on its Tesco Clubcard Credit Card.

Balance transfer: Barclaycard is offering its longest-ever interest-free balance transfer period at 26 months.

Barclaycard's 26-month card comes with a 3.5 per cent fee, meaning you would pay £35 to transfer over £1,000 from other credit cards. Any amount you transfer must not exceed 90 per cent of the credit limit on the card.

Tesco Bank's comes with a 2.9 per cent fee, or £29 on £1,000, but you are allowed to transfer up to 95 per cent of the credit limit.

  More... Need a balance transfer card? Use our card finder Check your credit score More choice than ever to pay down debts with 0% balance transfer cards

Tesco also offers a more generous interest rate of 16.9 per cent Representative APR once the interest free period ends, with Barclaycard offering 18.9 per cent. Using the Tesco card also builds up Clubcard rewards.

Barclaycard however is offering six months zero interest on purchases, rising to 18.9 per cent Representative APR thereafter, whereas Tesco Bank only offers this for three months, albeit with 16.9 per cent APR.

Michael Ossei, of uSwitch.com, said: 'The battle in the credit card market is heating up.

'While the 3.5 per cent fee is hefty, Barclaycard's market-leading deal signals that it means business in the credit card arena.

Clubcard: Tesco credit card customers can build up Clubcard rewards.

'Six years ago, the longest 0 per cent balance transfer offer lasted 12 months. Today, this has more than doubled, with Barclaycard becoming the first provider ever to launch a balance transfer card with an interest-free period of 26 months.'

Despite Barclaycard being the market leader, Mr Ossei believes that supermarkets could be gearing up for a serious assault on the market.

He said: 'Tesco has a unique advantage over its rivals – it is able to tap into a base of over 16 million loyal Clubcard customers. With clear insight into consumer shopping habits, Tesco is gearing all of its financial products and services around what the customer wants.

'With this in mind, I would not be surprised to see Sainsbury’s Bank step up its credit card offering, using its base of Nectar customers.

'While Barclaycard remains the frontrunner in the balance transfer space for the time being, supermarkets and high street brands are now finding their footing.

'Market leading rates and products could soon become the norm for these new players as they start using data and customer insights to develop more appealing financial products for their customers.'