The global credit crunch that swept across the nation last summer has had long term adverse effects in all areas of the money markets, and consumers looking for good deals on loans, mortgages, and credit cards have seen their choices – and their chances – dwindle fast over recent months. A recent report has suggested that consumers looking for a good deal on a 0% balance transfer credit card may still experience difficulties and hurdles, as lenders still have tight lending conditions in place and the cost of credit cards has been rising.

One official from Sainsbury’s recently stated: “Although there are a number of credit cards offering introductory 0% on balance transfers, there is a considerable difference in their duration, so people need to choose carefully. Also, when choosing a card for a balance transfer, it is worth considering what else it offers. For example, we offer zero interest for a whole year on Sainsbury’s purchases as well as earning Nectar points equivalent to 2% cashback.”

Another industry official said: “When looking for a new provider to take over your balance, there are two hurdles to jump. Firstly you cannot transfer balances between credit cards backed by the same provider, or which is part of the same banking group. For example, not only does MBNA issue its own cards, it also backs Virgin Money and Alliance & Leicester cards, to name a couple.”

She went on to state: “Secondly, most deals are only available to new customers, so you can’t afford to complete the circuit of card providers too frequently. Typically your account will need to have been closed between 12 and 24 months before you can be considered a new customer again.”

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