Balance transfer market shows new signs of life

The credit crunch may have squeezed the life out of the mortgage and personal loan market, but the 0 per cent balance transfer credit card market is surging ahead with even better deals for the consumer.

Data from price comparison site moneysupermarket.com has revealed that there are now 40 credit cards offering 0 per cent balance transfers of 12 months or longer.

The credit crunch has made a bloody casualty of the mortgage market but consumers can get some great deals on credit cards as a result.

Steve Willey, head of credit cards at moneysupermarket.com, said: "Virgin, Capital One and Barclaycard have long been regarded as the fore-runners in the balance transfer market and again they are leading the pack, with 15 and 14 month 0 per cent deals, albeit with balance transfer fees of around three per cent.

"Already, this month we have seen Capital One launch a 14 month Balance Transfer and Purchase offer. This week sees Barclaycard launch a 17 month 1.9 per cent balance transfer offer with a slightly lower fee of 2.5 per cent and Capital One further strengthen its position with a 15 month 0 per cent BT offer, although this is only available via moneysupermarket.com.

"All of this is great news for consumers looking for a new credit card to transfer a balance. However, the recent tightening of lending criteria by many lenders means all but those with the most gleaming credit profiles are accepted. As a result, the battle for the ‘best' customers means that credit card providers are having to work harder to attract and retain them."