Advantage Barclaycard in the credit card ‘promo' battle

There has been a flurry of activity in the UK credit card market with a number of providers vying for top spot in the best buy tables for balance transfer deals. In February, Barclaycard launched the UK's first 18 month zero per cent balance transfer offer, but today it took its march for the top spot to a new level, launching the first ever 20 month deal.

Barclaycard's launch is in response to moves this week by MBNA and Virgin Money, who both increased their promotional balance transfer deals to 18 months, taking them to the top of the best buy charts by virtue of lower balance transfer fees.

Analysis from moneysupermarket.com shows that the average promotional length for balance transfer deals on the top five credit cards is now a staggering 17.8 months. In March 2010 the average balance transfer length was 15.2 months. This difference equates to a saving in interest of approximately £90 on a £3,000 card balance.

Kevin Mountford, head of banking at moneysupermarket.com, said: "In February, we saw providers launch a number of attractive credit card deals which well and truly showed their appetite to lend has returned. However, Barclaycard has taken this competition to a new level with the launch of the UK's first 20 month BT card. I wouldn't be surprised to see other lenders react accordingly by launching similar deals, but with so many vying to go top of the best buy tables, we could see even longer deals emerge.

"This competition is welcome news for those consumers who are in a position to take advantage of this price war and consolidate any existing credit card balances on to cheaper deals. However, consumers need to be aware that most lenders are giving these deals to customers who have excellent or good credit histories. If you fall outside of this category then you may find your options are more limited. Before applying for a credit card, consumers need to check their credit profile and make sure there is no adverse information that would jeopardise their chances of being accepted.

"Despite these great offers, cardholders still need to make sure they use their cards wisely and aim to pay off the balance by the end of the promotional period. It is also worth looking at the small print at the balance transfer fees as these vary by provider."

For anyone looking to take advantage of these new offers, moneysupermarket.com has a personal credit profiling tool that helps people search and apply for the most suitable credit card based on their personal circumstances. The tool maps the consumer's credit file against the all the credit cards in the market for which they will most likely be accepted - without leaving a mark on their file.