0% balance transfer for 15 months available from Nationwide

Nationwide is to launch a new credit card balance transfer offer from 22 June 2010.

Customers who open a Nationwide Gold credit card will be offered:

0% on balance transfers for 15 months;
0% on all new purchases for three months;
Typical 16.9% APR variable.

With this new offer, customers could save £264 by transferring a balance to a Nationwide Gold credit card from another credit or store card.

Positive order of payments

Unlike most credit card providers, Nationwide uses a ‘positive' order of payments, which relates to the order in which payments towards a credit card bill are allocated.  For example, Nationwide repays cash advances (charged at higher interest rates) before non-promotional purchases (charged at lower interest rates), which in turn is before the introductory purchase and balance transfer offers charged at 0%.

Nationwide also pays off the debt from shorter term 0% offers before longer term 0% offers.  This means that any new 0% purchase transactions will be cleared before any 0% balance transfer (which means the balance transfer can benefit the customer for longer).

Paying off the most expensive debts and those debts with the shortest 0% offers first in this way could save customers up to £225 in interest repayments in the first year.

Other benefits

Nationwide's credit cards continue to offer competitive rates with an excellent range of benefits.  This includes:

Commission-free purchases abroad5;
Up to 56 days' interest-free credit;
Free purchase protection against loss, theft or damage to most purchases over £50;
Free 12 months' extended warranty on many gas or electrical goods;
Peace of mind for all cardholders with Nationwide Fraud Watch.

Chris Rhodes, Nationwide's product and marketing director, said: "Our new interest-free balance transfer offer for 15 months means you get even better value from your Nationwide credit card.  What's more, unlike most other providers, Nationwide operates a positive order of payments.  This can save you money because any more expensive debts - such as cash advances - are repaid before the 0% balance transfer offer, leaving customers to enjoy the 0% rate for longer."

The current offer available to new Nationwide Gold credit card customers of 0% on balance transfers for 13 months with a balance transfer fee of 3% (£5 minimum) will be withdrawn at the close of business on 21 June 2010.