0% balance transfer and purchase deals at all time high
Anyone looking for a credit card is set to benefit from greater competition in the market with the length of promotional rates on balance transfers and purchases at an all time high, according to analysis by MoneySupermarket.com.
The average promotional length for 0 per cent balance transfers currently stands at 21 months, and the average length of a 0 per cent purchase card is the highest it's ever been at 15.4 months. This increase is down to the launch of the Halifax All In One Credit Card, offering a market leading 0 per cent on both balance transfers and purchases for up to 15 months. The card comes with a balance transfer fee of 3 per cent, and a typical APR of 17.95 per cent, although use the card to get cash from an ATM and you will be charged 27.95 per cent.
Kevin Mountford, head of banking at MoneySupermarket.com comments: "There is no doubt that a long term dual purpose credit card is a welcome addition to the credit card market as it allows consumers to spread the cost of shopping and debt consolidation. The appetite for lenders to attract new credit card customers continues despite the current economic climate.
"It is worth bearing in mind that although many customers will receive the 0 per cent offer for 15 months, this card is risk-based so if you have a less than good credit profile you are unlikely to get this specific deal and may be offered an alternative.
"As always, anyone transferring an existing debt on to a balance transfer card should aim to pay off that debt before the promotional rate expires otherwise you will be hit by much higher interest charges, likewise if you are using a purchase card to take advantage of the zero per cent offer. With an offer like this, it can be tempting to use the card regularly for all spending, however make sure you borrow responsibly so you are not left with debts at the end of the promotional period."