The Santander Everyday Long Term Balance Transfer Credit Card offers a compelling solution for those grappling with substantial debts on high-interest credit cards. With a 0% APR balance transfer deal for an impressive 26 months, this card allows users to focus on paying down their debt without accruing interest charges during this period. This feature makes it an attractive option for individuals looking to manage their finances more effectively.

Key Features

• 0% APR Balance Transfer for 26 Months

The standout feature of this card is its 0% APR on balance transfers for 26 months. This means that any payments made during this period go directly towards reducing the principal amount owed, rather than servicing interest charges. It’s important to note, however, that this offer applies only if the card is not used for additional spending.

• Balance Transfer Fee

A 3% balance transfer fee applies, which is a crucial consideration for potential users. This fee means that transferring a £10,000 balance would incur a £300 fee. If you can pay off your debt sooner, it might be worth considering balance transfer cards with no fees.

• Post-Promotional Interest Rates

After the 26-month promotional period, the card’s standard APR of 23.9% kicks in. This rate can make the card less appealing if the debt is not fully paid off by then, underscoring the importance of a solid repayment plan.

• Cashback Offers

The card also offers up to 15% cashback with selected retailers, providing an additional incentive for users to keep the card after the balance transfer period ends.

• Application Process and Limits

Balance transfers can be requested during the application process, which are processed automatically once the card is activated. Users can transfer up to 95% of their credit limit, which is set based on Santander’s assessment of the applicant’s financial status. It’s important to note that transfers from existing Santander or Cahoot cards, as well as personal loans, are not allowed.

Pros and Cons

• Pros

– No Annual Fee: There is no annual or monthly fee, making the card cost-effective for long-term use.
Extended Interest-Free Period: With over two years of 0% APR, cardholders have ample time to reduce their existing card debt.
– Good Customer Service: Santander is known for its customer service, which can be a valuable asset when managing finances.

• Cons

– Balance Transfer Fee: The 3% fee can add up, especially for large balances. It’s advisable to compare this card with no-fee balance transfer options if paying off the debt quickly.
– Minimum Income Requirement: Applicants must have a minimum annual income of £10,500, which could be a barrier for some.
– Limited Use for Balance Transfers: Only balances from non-Santander credit cards can be transferred, limiting its utility for some customers.

Detailed Product Information

– Issuer: Santander
– Network: MasterCard
– Representative APR: 23.9%
– Annual/Monthly Fees: £0
– Balance Transfer Rate: 0% for 26 months, then 23.9%
– Balance Transfer Fee: 3% (min. £5)
– Purchases Rate: 0% for 3 months, then 23.9%
– Interest-Free Purchases Period: Up to 56 days
– Cash Advance Rate: 29.9%
– Credit Limit Range: Minimum £500, maximum subject to status
– Additional Cards Available: Yes, up to 3 additional cards

– Introductory Rewards: Participation in a travel voucher draw for transactions made abroad in local currency between June 18 and September 15, 2024.

– Cashback and Rewards: Santander Boosts offers cashback, vouchers, and prize draws from selected retailers. Customers must be registered for online and mobile banking to qualify.

Fees and Charges

– Minimum Monthly Payment: 1% of the outstanding balance or £5, whichever is higher
– Foreign Usage Fees (EU and Rest of World): 2.95%
– Cash Advance Fee: 3% (min. £3)
– Late Payment Fee: £12
– Over Limit Fee: £12
– Duplicate Statement Fee: £0
– Dormancy Fee: £0

Eligibility and Application Process

– Minimum Age: 18
– Minimum Income: £10,500
– Residency: UK resident
– Availability: New customers

The approval process considers your credit status, and the representative APR is offered to the majority of successful applicants. It’s crucial to check the terms before applying, as APR and other conditions can vary based on personal circumstances.

Repayment Options

– Manual Payments: Through the Santander app, online banking, or by phone.
– Direct Debit: Setting up a direct debit can ensure timely payments and help avoid losing the promotional interest rate. For those aiming to pay off their debt within the 0% APR period, calculating a fixed monthly payment amount can be beneficial.

Using the Card for Cash Advances

Cash advances, such as ATM withdrawals or cash back, should generally be avoided due to the high fees and interest rates associated with these transactions. The cash advance fee is 3% (min. £3), and the interest rate is 29.9%, which applies immediately without the benefit of a grace period.

Managing Old Credit Cards

Transferring a balance does not close the old credit card account. It is advisable to close the account if it carries an annual fee or to avoid the temptation of further spending. However, keeping it open might benefit your credit score by maintaining a lower credit utilization ratio and a longer average account age.

Using the Card Abroad

The card charges a 2.95% fee for non-sterling transactions. For example, a €200 purchase would incur an approximately £4.98 fee.

Minimum Payment Requirements

The minimum payment is 1% of the outstanding balance or £5, whichever is greater. Paying only the minimum can prolong the debt and increase the likelihood of carrying a balance past the 0% APR period.

Conclusion

The Santander Everyday Long Term Balance Transfer Credit Card is a robust option for those looking to manage high-interest credit card debt. The 26-month 0% APR period provides ample time to pay down balances without incurring additional interest. However, the 3% balance transfer fee and potential high post-promotional interest rate require careful consideration and planning. It’s a straightforward and practical choice for disciplined users committed to debt reduction.

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