Martin Lewis tip for Barclaycard, Mastercard and other users as 'you can't afford not to'
The money-saving guru shared his thoughts on how to bring down credit card costs.
Martin Lewis has issued a warning to all credit card users such as Barclaycard and Mastercard as there is a vital check you need to make.
He said for those who pay interest on credit cards, "you can't afford not to check" if you can get a better deal, in an article on his Money Saving Expert (MSE) site.
Mr Lewis said the key tool card users should look at is the 0 percent balance transfer, which allows you to get a new card paying off any existing cards.
This means the debt is transferred to the new account but it remains interest-free for a set period. Mr Lewis explained: "This way more of your repayments clear the actual debt, not just mostly cover interest."
He urged people to first do a check using the MSE eligibility calculator to find out which of the best cards you will likely be able to get.
Doing the check is a soft search so although you will be able to see it on your file, lenders can't use it to assess you.
When choosing a deal, Mr Lewis urged to go for one with ample time to clear your debt. He said: "Longer balance transfers usually have a bigger one-off fee to transfer.
"So if you've a choice and can clear your debt quicker, go for a shorter deal to minimise fees. Unsure? Play safe, go long."
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He listed these top 0 percent balance transfer deals for those with a better credit score:
- MBNA - up to 29 months 0 percent
- Tesco Bank - 27 months 0 percent
- NatWest - 13 months 0 percent
He also suggested some deals for those with a poorer credit score, warning that for these the APR that applies when the 0 percent ends is much higher, in many cases around 30 percent.
These deals include:
- Virgin Money - 16 months 0 percent
- Fluid - 9 months 0 percent
- Capital One - 7 months 0 percent
Mr Lewis warned those doing a balance transfer to make sure they meet the minimum monthly repayments, or they could lose the 0 percent rate.
He also said those with a poor credit score doing a transfer may want to see this as a sign to be more careful with their finances.
