Written by Karen Bryan
If you are looking for a credit card which offers 0% on new purchases and balance transfers, it’s worth looking at the Halifax All in One Credit Card. This card offers 0% interest on purchases for up 15 months and 0% interest on balances transferred from other credit cards (excluding Halifax or Bank of Scotland credit cards) for up to 15 months. However there is a balance transfer fee of 3% of the value of the transfer. This would mean if your balance was £1000, you’d pay a fee of £30.
Before taking out this card you have to be sure that you will be able to pay off in full all you new purchases, as well as the balance at the end of the 15 month period, or you’ll end up paying a lot of interest. Some people may assume that they’ll just transfer the whole balance to another 0% deal, when the current interest free period ends. However, you can’t be sure what deals will be on offer then and if you have a change in your financial circumstances, you may not qualify for the best deals available at that time. Of course if you have set aside the funds to pay off your full balance at the end of the interest free period, there’s still the option to go for the best deal then.
However, the alternative of paying around 17% interest for 15 months on a current outstanding balance is not very attractive.
Below I’ll illustrate the plan I’d adopt to make sure I got the most out of the Halifax All in One Card.
I’d divide my balance transfer by 14, so say if my balance transfer was £5000; that would be £357 a month, and then add to that what I’d spent that month on new purchases. I’d have to make a minimum payment of 1% of my total balance by direct debit. Remember that to keep your promotional rate, you must meet at least the minimum payment by the due date and stay within your credit limit.
Then I’d deduct that 1% minimum payment from the £357 + the total of any new purchases made that month and put that amount in my savings account
If I kept applying this formula every month, I’d have enough in my savings account to pay off my total balance before the 15 months are up, and even make a few pounds profit in interest from the savings account.
You can see that you have to be very self disciplined and put aside the full amount of each month’s new purchases (minus minimum payment) and a 1/14 of the balance transfer to make sure that you don’t pay any interest on the balance transfer or new purchases made on the Halifax All in One Credit Card.
The APR and length of the promotional offer are dependent on your personal circumstances.
Read more about how to use credit cards to your advantage.
This article is based on my personal research and understanding of the product. Please carefully read all the terms and conditions of the credit card before signing up. I will receive a commission if you sign up and are accepted for a Halifax all in One Credit Card through the link in this article.