Balance Transfer Credit Cards

Sainsbury's Finance estimates that some 716,600 people will try and transfer around £1.1 billion a month between credit cards, but it warns that of the 80 or so cards providing 0% APR on balance transfers, around a third offer a period of just six months or less.

This time last year there were around 200 credit cards offering 0% balance-transfer deals. Now there is half that number, and of those only two dozen are genuine 0% balance-transfer cards.

Sainsbury’s Finance, which has increased its interest-free period on balance transfers from 10 to 12 months unveils new research that reveals 4.30m people intend to transfer a total of £6.68 billion between credit cards before July, which equates to £257.15 million per week or £36.74 million a day.

Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk, comments on the 0% balance transfer deals and how this market has changed: “It was way back in 2004 when balance transfer fees first started to raise their ugly heads on 0% credit card deals.

Michelle Slade, personal finance analyst at Moneyfacts.co.uk, comments: “Virgin Money already holds the top spot of the charts with its 13 month 0% balance transfer deal, and by extending this to an impressive 15 months, its certainly pulling away from the pack of 12 month deals offered by its competitors.

Commenting on Virgin increasing its 0 per cent offer on balance transfers to a market leading 15 months, Robert Kenley, head of credit cards at moneysupermarket.com, said: “Where will this end? It seems interest rate rises are having no impact on credit card issuers as they continue to introduce longer 0 per cent balance transfer introductory offers.

Commenting on two new credit card balance transfer offers, Stuart Glendinning, managing director of moneysupermarket.com, said: “Barclaycard's launch of a credit card offering 0 per cent on balance transfers until July 1, 2008 follows closely behind a similar offering from Capital One.

Commenting on the move by Yorkshire and Clydesdale Banks to waive the credit card balance transfer fee, Rob Kenley, head of credit cars at moneysupermarket.com, said: “This is the first move of its kind, and may spur a tactical rate war amongst providers.

Balance transfer fees are being waived until 28 February for new credit card customers wishing to transfer their credit card balances to a six month 0% introductory deal with Yorkshire Bank or Clydesdale Bank.

M&S Money urges borrowers to look beyond short-term interest free deals unless they are confident of repaying their debt during the initial period.

Borrowers feeling the strain after Christmas are being tempted by zero per cent credit card balance transfer offers with nearly 70 per cent of standard cards now offering special deals, analysis by MoneyExpert.com shows.

Michelle Slade, personal finance analyst from Moneyfacts.co.uk comments: “For some time the industry has been predicting the death of 0% deals, and with rising bad debts and falling revenue streams the evidence is again stacking up in favour of its demise. The last year has seen fee-free deals almost disappear, with many providers increasing balance transfer fees and many more uncapping them.

Virgin Money is planning to help extend the Christmas cheer by launching a new credit card deal with a market leading 13 month interest free period for balance transfers*.

Around one in four credit card holders have transferred debts to other cards in the past 12 months as they bid to cut costs, new research from MoneyExpert.com reveals.

If they’re not careful, Brits funding Christmas with a credit card could face debts that hang around long after the decorations come down.

More than 4.2 million credit card customers have still not cleared debts run up paying for last Christmas, shock research from MoneyExpert.com shows. Nearly one in eight credit card holders admits to still having debts on their cards from last Christmas as they gear up for this year’s spending spree.