Are you looking for a low rate credit card deal?
If so, now could be the perfect time to find one. Thanks to fierce competition within the credit card industry, providers are currently offering some of the best deals ever seen in the UK credit card market.
‘Record’ balance transfer deal
The Financial Times reports that ‘credit card users can now pay 0 per cent interest on transferred balances for a record 17 months’. Barclaycard has launched this record breaking deal on its Platinum card and it is perfect if you are looking to transfer a balance from another credit card. It carries a one-off 2.9 per cent fee (reduced by £20 for transfers over £3,000).
The FT also reports that ‘other card firms that already offer interest-free periods as long as 16 months, including MBNA, are expected to improve their transfer terms in coming weeks.’
Buoyant credit card market as people deal with their Christmas ‘debt hangover’
Santander anticipates that 1.5 million people will undertake a ‘balance transfer’ in the first quarter of 2011, many of whom will want to save money on debt left over from Christmas. The bank estimates that ‘leftover’ credit card debt from the festive period stands at £1.1 billion.
Fierce competition within the credit card industry is resulting in these superb deals, even though card company profits are falling. Brits continue to pay off their credit card debts thanks to concerns about the economy and job security whilst new repayment rules mean that consumers are set to save millions of pounds in interest payments.
The Financial Times reports that ‘as of January 2011, payments to credit cards must automatically be used to reduce the most expensive debt first, under a change to so-called “payment hierarchy” rules.’ This means that any payments you make to your credit card will go towards paying the most expensive debt first, potentially saving you a significant amount.