Credit card balance transfer offers decline

by Gill Montia

Story link: Credit card balance transfer offers decline

Consumers who make use of credit card balance transfer offers to keep their borrowing manageable are seeing their options eroded.

According to research by financial website, MoneyExpert.com, credit card firms have been withdrawing zero per cent balance transfer deals over the past 12 months.

This time last year, around 82% of card providers sought new customers by providing generous transfer offers but the proportion is now down to 75%.

Around 97 deals with balance transfer periods of ten months or more are currently available, compared with 103 in October 2007.

In addition, the average period of an introductory offer has shrunk from 10.1 months to 9.5 months.

MoneyExpert director, Sean Gardner, warns that figures should alert borrowers to the fact that the credit card merry-go-round is grinding to a halt and it will become increasingly difficult to refinance debt at zero per cent interest in the future.

However, the firm has nothing but praise for a new credit card launched by Abbey which offers cashback on “essentials”.

Customers can accrue up to £75 in cashback over a six month period, on supermarket and fuel purchases.