Battle for credit card supremacy breaks out - Credit cards - News - Moneyfacts


Battle for credit card supremacy breaks out

Battle for credit card supremacy breaks out

Category: Credit cards

Updated: 19/07/2011
First Published: 19/07/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A war appears to have broken out in the credit card market with the winners set to be the borrowers who are struggling to pay off their debts.

Barclaycard has increased the interest-free balance transfer deal on its Platinum Extended Balance Transfer Visa from 20 to 24 months, seemingly in response to the recent launch of a 20-month interest-free credit card by Halifax.

"At 0% for 24 months, the new deal from Barclaycard is the longest balance transfer deal ever offered on the market," said Michelle Slade, spokesperson for

"In the last year the number of longer term balance transfer deals has soared as competition has returned to the credit card market."

Ms Slade said Barclaycard has been leading the way for customers looking for interest-free balance transfer deals, by topping the best buy charts for the last few months.

She added that Barclaycard was already offering the longest interest-free balance transfer deal on the market, but said the increased term had now put the card 'head and shoulders above its competitors'.

Amongst its other rivals, MBNA and Virgin Money are currently offering 0% for 19 months.

Barclaycard customers also benefit from a reduced balance transfer fee of 2.80%, down from 3.20%, while £20 cashback is available to those who transfer over £3,000 and apply through a price comparison website such as

Despite the welcome news, however, Ms Slade had a final warning for people about to get carried away with their spending.

"If customers want to fully utilise a balance transfer deal they should refrain from spending on the card," she cautions.

"The average interest rate on credit cards stands at 18.7%, meaning any new purchases will accrue interest at a much higher rate."

Find the best credit card rates - Compare credit cards

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

It’s looking to be a credit Christmas

We are now less than 70 days away from Christmas, and with 70% of people admitting they haven’t started saving yet, millions will be needing to play catch-up - and plenty planning to turn to credit for some Christmas spending relief.

Can no credit score be as damaging as a bad one?

Debt is becoming an increasing problem, which is why those who have no credit commitments often feel pretty smug about it. However, while not relying on credit is admirable, having no credit score can actually be just as damaging as having a bad one.

Know your credit score – key to better borrowing

We all know how important it is to be credit savvy. It’s the only way to make credit work, which is why it’s so concerning that so few people know their credit score – and some don’t even know how much they’re borrowing.