Zero per cent credit card numbers fall - Credit cards - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Zero per cent credit card numbers fall

Zero per cent credit card numbers fall

Category: Credit cards

Updated: 18/03/2010
First Published: 18/03/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The number of balance transfer cards is falling, credit card borrowers have been warned.

Earlier this week, Virgin Money announced that it has reduced the zero per cent transfer period from 16 to 14 months, following a trend that other credit card providers have adopted in recent months.

In fact, the number of credit cards offering zero per cent balance transfers has fallen by ten per cent since the outset of the credit crunch in 2010, figures from Moneyfacts.co.uk have revealed.

There are currently 152 cards available to consumers that offer such a facility, 140 of which charge no interest on the balance transferred for a set number of months.

In March 2008, there were 204 balance transfer cards were available, with almost eight in ten offering a rate of zero per cent.

Since 2007, the average zero per cent balance transfer period has remained relatively static, from 8.8 months to nine months.

Data from Moneyfacts.co.uk shows that the current top zero per cent balance transfer cards are offered by some of the sector's biggest names.

Following Virgin Money's cut, Santander and Barclaycard Platinum now lead the way, with cards offering zero per cent on balance transfers for 15 months and a typical APR of 15.9 per cent.

Virgin Money's 14 month card (16.6 per cent APR) is now the third best option, followed by Egg's card, which offers the same zero per cent period with an APR of 16.9 per cent.

"Transferring debt to a card with a better rate has been a popular choice with borrowers for a long time. With many providers offering zero per cent balance transfer periods, cardholders had previously been spoilt for choice," Louise Holmes, spokesperson for Moneyfacts.co.uk, commented.

"There were many opportunities to transfer to a better rate and pay off the outstanding amount before the zero per cent period expired.

"The main reason for this decline lies with risk. Providers are wary of attracting debt from customers who could default at any time, and have the possibility of unemployment and economic hardship hanging over them."

Compare 0% balance transfer credit cards and best seller 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

Credit card mistakes cost borrowers £948m

At this time of year, many people could be turning to balance transfer credit cards in an attempt to overcome their Christmas debt. However, many of these borrowers could get caught out in the year ahead, and they could end up paying for it.

6 of the best balance transfer credit cards

Does the thought of opening your credit card bills fill you with fear? If so, you're not alone! Christmas may be over, but unfortunately, many people will still be paying for it, after turning to credit to cover the cost of their festive spend.

Get a better credit score for the New Year

A new year means a fresh start, and one of the best things you can do is take a cold, hard look at your finances – particularly when it comes to your credit score.
 
Close