Like other financial sectors in the UK the credit card market has suffered since the onset of the global credit crunch, which swept across the nation last summer squeezing the life out of the financial industry. Whilst the worst hit area seems to be the mortgage sector, the credit card sector has not escaped unscathed, and credit card providers have tried to protect themselves by increasing stringency when it comes to lending criteria, reducing credit limits, withdrawing certain products, hiking up rates and charges, and even withdrawing credit card facilities from some borrowers.

It therefore came as a pleasant surprise to many when the Abbey recently announced the launch of a new credit card called the Zero credit card. This credit card offers a range of benefits to those that qualify, and this includes six months interest free credit on both balance transfers and new purchases. In addition to this customers that decide to transfer a balance will not be charged any transfer fee, which could save them a small fortune depending on how much they are transferring.

These are not the only benefits, however. The Zero card also offers no cash advance fee for the first six months, as well as no foreign exchange fee. Officials from the Abbey have said that this is the first card to have eliminated all of these fees at the same time. However, what do the industry experts think of the Zero card? One official from Money Expert, Sean Gardner, commented.

He said: “With the credit card market so competitive these days, when a new product comes along you have to ask what makes it stand out. In this case the best that can be said is that this is the only card, which won’t penalise you for taking out cash abroad, so your best bet is to use it for summer spending. The interest free credit on purchases will also mean you can stave off the interest bills until Christmas if you splash out while on holiday.”

He went on to state: “If you are looking for a fee-free card then Capital One and Norwich & Peterborough both match Abbey’s six months interest free on balance transfers with no charge. But with no fees on foreign exchange Abbey’s looks like the best option with summer approaching. Abbey’s Zero card isn’t a best buy on purchases or balance transfers. So if you’re one of many looking for a lengthy balance transfer or you’re about to make a big purchase then you’re probably best to steer clear, despite the lack of fees.”

He also added: “Around 80 per cent of credit cards offer a lower standard APR on purchases compared to Abbey’s Zero card. And its standard balance transfer rate of 18.9 per cent is among the highest go-to rates on the market - only thirteen cards have a higher rate of interest if you choose to transfer a balance after the introductory rate expires.”