 |
 |
By David Stevens
Personal Finance Correspondent
Wednesday, 29 October 2008
|
AS expected, Egg credit card has made it clear it wants to stay top of the balance transfer best buy tables, by extending its interest free balance transfer period by a further month.
The change – amongst others – is due to kick in on the 1 November.
No interest until 1 Feb 2010
From the start of November, customers transferring a balance to the Egg credit card will not pay any interest on the transferred amount until 1 February 2010.
This effectively gives the Egg credit card a zero percent balance transfer period of 15 months, thus keeping it in the top 3 balance transfer credit cards.
Best balance transfer credit cards
The three best balance transfer credit cards, listed by length of zero percent balance transfer period are:
The Egg credit card also offers additional 5 months of zero percent on balance transfers in 2010 and again in 2011 (both with a 2.5% transfer fee).
For the initial balance transfer however, the 3% balance ransfer fee will remain, leaving the Virgin Money credit card the only card offering a longer transfer period and better balance transfer rate – albeit marginal.
0% on purchases – but beware
Other changes to the Egg credit card, also to kick in on 1 November, include zero percent on purchases until 1 February 2009 – exactly 1 year shorter than the balance transfer period and, some critics believe, a cynical ruse designed to trick users into spending on the card before they’ve paid off their balance transfer in full.
Egg credit card does not allow purchases to be paid off until any transferred balance has been fully paid off first, potentially trapping many users into paying interest on purchases they intended to pay off sooner.
The APR remains at 16.9% for purchases, and 24.9% for cash advances.
|
review of Egg credit card