Spotlight On: Halifax clarity credit card

The deal

From tomorrow Halifax is offering a balance transfer credit card deal charging 2.9 per cent a year for 16 months but with no transfer fee.

Good points

Most balance transfer deals charge around 3 per cent up front. That would mean, for instance, a charge of £90 for transferring £3,000. The Clarity card also gives £5 monthly cashback to qualifying current account customers.

Bad points

If you don't pay the balance off within a year you'll end up paying more. Once again you need a calculator to work out which is likely to be the better deal.

Conclusion

I've long criticised balance transfer deals which tempt people in with zero interest and then whack them with a high transfer fee. Is this any better? If you are diligent about paying off your balance it should work out cheaper. But only if you avoid using the card in the meantime.