Britons to transfer £3.2bn between credit cards

by Gill Montia

Story link: Britons to transfer £3.2bn between credit cards

Credit card tarts will have a busy start to the year, with Santander Cards estimating that over 4.5 million Britons will move in excess of £3.2 billion between credit cards in the first three months of 2010.

Research by the lender suggests that the number of people looking to take advantage of introductory balance transfer offers has risen by a third compared to this time last year.

However, the impact of the credit crisis and recession means that the total likely to be transferred will have fallen by more than half in the past 12 months.

Borrowers in the South East will be transferring the biggest balances, at an average £1,807 per cardholder, while those in the North East will typically transfer only £149.

The under 55s are most likely to make a switch, with 17% of this age group considering the move, compared with 5% of those aged 55 and over.

Santander’s Zero card was recently named Best European Credit Card in the Service Category at the 2009 Oscards, and the bank has plans to launch a Zero current account in the UK this month, to coincide with its rebranding of Abbey, Bradford & Bingley and Alliance & Leicester to the group name.