0 Percent Balance Transfer And No Transaction Fee Card

New Nationwide 17-month 0% balance transfer deal

Nationwide has withdrawn its popular Gold credit card and launched the Nationwide Credit Card in its place. The new card offers a table-topping 17-month 0% deal on balance transfers, but comes with a complicated new charging system for overseas use.

New customers are offered a choice of 0% deal:

The old Nationwide Gold card charged no transaction fees for most purchases made within Europe, and a relatively low charge of 1% for purchases made in most other destinations. The new credit card replaces this charging structure with an 'allowance' system. Customers with an existing Gold credit card from Nationwide will not be affected by the change. 

Under the new system, you receive a 'reward' of a commission-free foreign allowance every time you make purchases in pounds sterling. For example, if you spend £500 on your shopping in. a month, you’ll be rewarded with £100 worth of commission-free allowance to use on purchases in a foreign currency. 

As a promotional offer, all overseas purchases are commission-free until 31 July 2011.

Which? credit card expert Martyn Saville commented: 'It's pretty easy to see why Nationwide has changed the overseas fee structure of its credit card - many consumers applied for the old Gold card just to use it abroad, maintaining a different, better-value credit card from a different provider for day-to-day spending in the UK.

'The new fee structure rewards those customers who regularly use the card in the UK, as well as on holiday. Those who only want to use the card abroad, however, will pay a much higher price than under the old system. Customers who do not want to plan their card spending to this degree will simply desert Nationwide in favour of simpler alternatives.

'Nationwide's unique selling point used to be that it didn't charge for card use abroad. With caveats now attached to its offer, many consumers will be better off getting a 0% on purchases or cashback credit card for use at home, and a second fee-free card for using on overseas holidays .

Low Interest Rate Credit Cards: Informing the Good from the Bad ...

There are several credit card companies that offer low interest rate credit cards. However, along with low interest rates, the best credit cards offer combinations that include low interest rate on balance transfers and purchases, 0% introductory APR for a fixed period of time, low or no annual fees, cash back percentages that vary from 1% to 5%, reward programs, and/or reduced cash advance fees. A good low interest credit card strives to keep the user’s cost of borrowing as low as possible. If a low rate credit card assesses a hefty transaction fee, it offsets any benefits that may have otherwise accrued to a cardholder.

The credit rating of an applicant is taken into consideration for deciding the time period of the introductory APR of 0% and the balance that it will be applicable to. People with excellent credit rating can avail the lowest interest rates that a company offers. The cash backs can be had at places such as supermarkets, drugstores, and gas stations.  

It is useful to compare the fixed/variable interest rates applicable with the various credit cards after the introductory period. Fixed interest rate credit cards often offer better value to the users. Factors such as the length of the grace period, late fees, etc. should be compared for low interest rate credit cards. There are several online resources that offer detailed comparisons and reviews of low interest credit cards. These should be referred to get an idea regarding the type of low interest credit card best suited to an individual’s requirements.

A good low interest credit card from a reputed credit card company is universally accepted. Low interest credit card offers from companies such as Discover, Chase, HSBC, First Premier, and similar companies are considered to be among the best.  

An important aspect to be aware of is that the simple interest rate advertised may not be the effective interest rate. The effective interest rate is a compounded interest rate inclusive of annual fees, if any. Also, it is important to ensure that the low rate of interest is not liable to change any time soon. In order to avoid signing up for a credit card that is not really a low interest credit card, it is best to read the fine print carefully and ask questions before submitting the signed application.

Switching to a low interest credit card can help save hundreds of dollars for individuals who are in the habit of carrying a balance each month. Credit cards that offer a 0% interest rate on balance transfers offer an excellent opportunity for settling credit card debt without having to pay interest on it.