Halifax vs Sainsbury's Bank A WARNING

vinylmusic

This morning I received a letter from Halifax credit cards offering me a low interest rate of 4.98% for the life of the balance when doing a balance transfer if done within a certain time
I almost jumped on the offer but then noticed a 2% charge
That can be a huge amount and I suspect that they count on us not doing our sums
For my £5000 that I would need to transfer that would be £100 charge to add to my debt

Sainsbury's bank however are offering 5.94% and no mention of any transfer fees. A much better deal I think

I advise anyone tempted by such offers to read them through thoroughly and do their sums before jumping in

grumbler

I am pretty sure that in long-term (roughly more than 2 years) outlook 4.98% p.a. + one-off 2% is better than 5.94% p.a. I can prove this with figures if you post your plans of repaying the debt.

vinylmusic

Doesnt that depent on how quickly you pay it off?

Robert_Sterling_3

It does depend on how soon you pay it off.

e.g. If you pay it off immediately then £100 in day one charges is a complete waste.

There is a period when one card is best , A period when the other is best and there is a break even point.