CREDIT CARDS

Credit Card introductory balance periods double in 5 years

New research has found that 0% introductory rate offers have become more generous.

Independent financial research company Defaqto has revealed that the average credit card APR has increased from 15.8% to 18.4% in the last five years, but the introductory offers are more consumer friendly

Defaqto are urging consumers to take advantage of the current deals available from many of the leading lenders.

"The credit card market abounds with some very attractive offers but it remains the case that the best deals are aimed at new customers.

Therefore, those with good credit ratings have a real incentive to change their credit card on a regular basis and should ensure that they choose a card that matches their likely usage,” said David Black, Defaqto's Insight Analyst for Banking.

"In addition, it is unusual to find one credit card that offers the best deal for all types of usage.

“For this reason, people able to get credit cards may find it beneficial to have more than one credit card and use each for a specific purpose to take advantage of the best features of that card. Clearly an individual would need to be disciplined to do this.”

"Against this backdrop, it is important to remember that as an individual's

credit blemishes increase it becomes increasingly difficult to get the credit

cards with the most attractive standard interest rates - because of the

widespread use of personal pricing - and, as credit records deteriorate further,

even to get a credit card at all."

The research has found that cards offering the longest 0% introductory rate for

purchases for 15 months include the Marks & Spencer Credit Card and TESCO CARD.

The longest 0% introductory rate for balance transfers are from:

-Barclaycard Platinum with Balance Transfer: 0% on balance transfers for 24 months with a 2.8% balance transfer fee

-Halifax Balance Transfer Card: 0% on balance transfers for 20 months with a 3% balance transfer fee

-Barclaycard Platinum with Balance Transfer (19 months): 0% on balance transfers for 19 months with a 2.4% balance transfer fee

-Virgin Credit Card: 0% on balance transfers for 19 months with a 2.49% balance transfer fee

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