Lloyds Bank 0% Purchase and Balance Transfer review
- Representative example:
- Representative 24.9% APR variable. Based on assumed borrowing of £1,200. Rate of interest 24.94% p.a. (variable).
- 0% interest on balance transfers
- 21 months
- 0% interest on purchases
- 23 months
- Account fee
- £0
Our verdict
Take a breather from interest with a long 0% purchase and balance transfer periods.Trying to both clear up old debt and handle an unexpected expense at the same time sounds like your worst personal finance nightmare, but actually, there’s a whole category of credit cards that were thought to help you out in a similar situation. They’re generally referred to as “balanced” or “matched” credit cards, and this Lloyds card is one of them.
It gives you 23 months to clear up both your old balance and the cost of any new purchases, which isn’t the longest you can get in the overall credit card market, but it does come close.
Ideally, this card is more suitable to people who don’t have a big balance to repay (and maybe are more interested in the purchase side of the deal). That’s because the 2.99% balance transfer fee will amount to a comparatively big sum if you have a chunky balance to transfer.
The revert rate is pretty average, so do your best to clear up your balance before the deal expires. Once that happens, you may want to consider switching to a different card - for example a low interest rate credit card may be more suitable if you anticipate you will have to carry a balance on it from time to time.
As well as a long interest free period from both purchases and balance transfers, there's no annual fee to worry about. Not much to say in terms of rewards and perks, but because the card is on the Mastercard network, you can also enjoy access to Priceless Cities experiences.
Pros
- Customers report excellent customer service when dealing with Lloyds Bank
- Almost 2 years of 0% interest to focus on reducing existing card debt
- Almost two years to spread the cost of purchases
- Earn points on day-to-day spending
- No annual fee
Cons
- Applicants with low credit scores are unlikely to be eligible
- Don't forget that balance transfer fee! If cutting the interest on existing card debt is your main reason for considering this card, check out no-fee deals first
- A punishing fee of 5% on cash withdrawals (you should avoid using a credit card to withdraw cash in any case)
Details
Product Overview
| Issuer | Lloyds Bank plc |
| Network | Visa |
| Annual/monthly fees | £0 |
| Balance transfers | 24.94% |
| Balance transfer fee | 2.99% |
| Purchases | 0% for 23 months |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 24.94 |
| Cash advances | 24.94% |
| Maximum credit limit | Subject to status |
| Additional cards available | 3 |
| Additional Rewards Info | Everyday Offers - Earn up to 15% cashback from selected retailers when shopping with a Lloyds Bank credit card. Customers must be registered for Online Banking. |
| Potential costs | 7.3Great |
| Extras | 9.5Excellent |
| Overall Finder Score | 9.6Excellent |
Fees and charges
| Minimum monthly payment | Greater of: 2.5% of the underlying balance plus the month's interest and any applicable fees and charges; £5; or the outstanding balance. |
| Annual/monthly fees | £0 |
| Balance transfer fee | 2.99% |
| Money transfer fee | 5 |
| Foreign usage charge (EU) | 2.95% |
| Foreign usage charge (rest of world) | 2.95% |
| Cash advance fee | 5 |
| Late payment fee | 12 |
| Replacement card fee | £0 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £0 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application Requirements
| Minimum Age | 18 |
| Minimum income | £0 |
| Availability | Available to new customers |
The Lloyds Bank 0% Purchase and Balance Transfer is issued on the Visa network (used by a whopping 4.2 billion cards), so you'll be able to use it at more than 100 million merchant locations across more than 200 countries and territories.
How does this card compare with similar cards on the market?
Finder Score for credit cards
To make comparing even easier we came up with the Finder Score. Costs, perks and suitability across 120+ cards are all weighted and scaled to produce a score out of 10. The higher the score the better the card – simple.
Read the full methodologyRepayment options
You can make manual repayments through Lloyds Bank's app by logging in to your online banking or over the phone (0345 602 1997). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee (12) or losing any promotional rates as a result. You could use a fixed-amount direct debit to ensure you've cleared your debt before the 0% period expires – simply divide your outstanding balance by 21 to see what you'll need to pay each month (this assumes you don't use the card for additional spending).
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | |
|---|---|
| Fixed amount | |
| Fixed percentage | |
| Full amount |
How to apply
If you've compared cards and settled on the Lloyds Bank 0% Purchase and Balance Transfer, completing the secure online application form takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you'll need to make the process as straightforward as possible.
Frequently asked questions
Can I withdraw cash using the Lloyds Bank 0% Purchase and Balance Transfer?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.
The cash advance fee on the Lloyds Bank 0% Purchase and Balance Transfer is 5%. For example, if you withdraw £150, you'll incur a rather painful fee of £7.50.
The interest rate on this part of your balance will be 24.94% (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
What should I do with my old credit card after transferring the balance to the Lloyds Bank 0% Purchase and Balance Transfer?
Transferring a balance doesn't automatically close your old account. In most cases, you'll want to close the old account(s) straightaway, especially if they have an annual/monthly fee or if you might be tempted to use them in the future. There is an argument that you should keep the old account open to help your credit score. That's because doing so keeps your "credit utilisation ratio" lower (that's a measure of how much credit you're using compared to what's available to you) and helps the average age of your credit accounts. However, unless you're just about to apply for a new mortgage, it's probably fair to say that most people would prefer to have no more bank accounts open than was truly necessary.
How much does it cost to use the Lloyds Bank 0% Purchase and Balance Transfer abroad?
Non-sterling transactions are subject to a 2.95% charge (which is very standard). For example, if you spend 200 euros (£175.75), it'll cost you around £5.18 in fees.
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