Higher or Lower-Fees Hold Key to Playing Your Credit Cards Right

Higher or Lower-Fees Hold Key to Playing Your Credit Cards Right 
LONDON, UNITED KINGDOM -- (Marketwire) -- 02/06/13 -- More people
looking for balance transfer credit card deals would prefer shorter
term zero interest offers to longer term deals with higher fees,
according to new research for Nationwide Building Society(1).  
One in five (20 per cent) credit card holders who would consider
transferring their balance would be more likely to opt for a
shorter-term 0 per cent interest deal with a lower balance transfer
fee (around 1 per cent) on their new card. This compares to 17 per
cent who would choose a longer-term 0 per cent interest deal with a
higher balance transfer fee (typically around 3 per cent). 
Yet almost a third, 32 per cent, said they would be influenced by
other factors, not the balance transfer fee or the term of the deal. 
Credit card holders can opt to move their balances as a means of
managing debt already built up, reducing interest payments over a
specified period and saving money in the process. By minimising the
fee on balance transfer arrangements, credit card holders could save
substantial amounts of money. 
Anyone now opening a Nationwide Credit Card or Select2 Credit Card
online via the Nationwide website will benefit from a 50 per cent
discount on the balance transfer fee, reducing it to 1.55 per cent(3)
for the introductory offer of 20 months at 0 per cent interest on
balances transferred within 3 months(i). 
So, on a balance transfer of GBP 3,000 and with 0% interest for 20
months, new Nationwide credit card holders would pay a fee of GBP
46.50, compared with GBP 90 for deals with a fee of 3 per cent. 
Paul Carvell, Nationwide's head of credit cards, said: "More and more
credit card holders are opting for a smaller fee over a longer term
because it can save a considerable sum, but they are evidently also
looking beyond the cost of fees or length of the zero interest term
for a better all round deal.  
"Nationwide offers the best of both worlds, with a lengthy, 20 month
zero interest offer but with a reduced fee of 1.55 per cent. 
"Other factors that card holders may consider when looking to
transfer credit card balances to a new card include cashback offers,
rewards such as commission free foreign transactions or shopping
benefits, l
oyalty points and discounts and excellent customer
Notes to Editors:  
Representative example - Nationwide Credit Card  
15.9% APR representative (variable). Based on an assumed credit limit
of GBP 1,200 and a purchase rate of 15.9% p.a. (variable). 
Representative example - Select Credit Card  
12.9% APR representative (variable). Based on an assumed credit limit
of GBP 1,200 and a purchase rate of 12.9% p.a. (variable). 
(1 ) All figures, unless otherwise stated, are from YouGov plc. The
total sample size was 2,222 adults, of which 1,194 have a credit card
and would consider transferring their credit card balance. Fieldwork
was undertaken between 19 and 21 December 2012. The survey was
carried out online. These figures have been weighted and are
representative of all UK adults (aged 18+). 
(2) The Select Credit Card is available to any members who use their
Nationwide FlexAccount as their main current account or hold
Nationwide's FlexDirect current account. 
To qualify as a main FlexAccount holder, you have to hold a
FlexAccount with a Visa debit card (not a cash card+) and: 

--  Have paid in GBP 750 or more each month (excluding internal transfers)
    for the past three months, or: 
--  Agree to complete an Account Transfer from an account (non Nationwide)
    using our Account Transfer Service or have done so in the past four

(3) Offer may be withdrawn at any time.  
(i) Balance transfers at 0% must be made within three months from
account opening and are subject to a fee of 1.55%. Balance transfers
made three months after account opening are subject to a fee of 3.1%
(minimum GBP 5). If you already hold a Nationwide credit card or have
closed one in the last 12 months you will not be eligible for the
introductory offers (including 50% off balance transfer fees). 
About Nationwide Building Society  
Nationwide is the world's largest building society as well as the
second largest savings provider and a top-three provider of mortgages
in the UK. It is also a major provider of current accounts, credit
cards, ISAs and personal loans. Nationwide has around 15 million
Customers can manage their finances in branch, on the telephone,
internet and post. The Society has around 15,000 employees.
Nationwide's head office is in Swindon with administration centres
based in Northampton, Bournemouth and Dunfermline. The Society also
has a number of call centres across the UK. 
Nationwide credit cards are available to those aged 18+ and are
subject to circumstances.  
Nationwide subscribes to the Lending Code.
Media information:
Nationwide Building Society
Jill Parsons
01793 655064
Nationwide Building Society
Mike Pitcher
01793 657 225
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