Related Credit Card Article

"Reduced number of 0% balance transfer deals on market"

By admin | December 18th, 2008 | Balance Transfers

0% balance transfer credit cards have become increasingly popular over recent years, and many people have saved a small fortune in interest by transferring their existing high interest credit card balances onto an interest free balance transfer credit card. With these 0% balance transfer cards consumers are able to enjoy an extended period of interest free credit on transferred balances, and providing the total transferred balance is repaid within the interest free period no interest is charged on the debt.

With Christmas coming up and the January sales to follow many people may decide to try and get a 0% balance transfer credit card to transfer their balances after going on a spending spree over the Christmas and New Year period. However, there could be some difficulties in store for those looking to get a good deal, as many industry officials claim that the number of 0% credit card deals on the market are now dwindling and this means far less choice available for consumers looking to transfer their balances and avoid interest.

At present just 75% of credit card companies offer 0% balance transfer credit cards, but a year ago this figures stood at 82%, showing how much the 0% balance transfer credit card market has declined in the wake of the global credit crunch. The tighter credit conditions that have come into place are making it increasingly difficult for many consumers to get their hands on a 0% balance transfer credit card and get rid of their high interest credit card debts.

One industry official stated: ‘These figures should send a clear message to borrowers that the credit card merry-go-round is grinding to a halt. In the coming months, it’s going to become increasingly difficult to refinance your debt at 0% interest. This trend away from extended balance transfer periods underlies a shift in the industry which is increasingly cautious about the people it lends to and is far more interested in the profitability of its customers. A year ago there were dozens of cards with overall APRs of little more than 10%, but today the most competitive cards offer rates of 16% or more.’

Tags: 0% balance transfers, Credit Cards

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