According to a recent report credit card customers are continuing to face hurdles when it comes to finding a suitable 0% balance transfer credit card, with tighter credit conditions creating difficulties for many people that like to switch their balances on a regular basis. According to a recent study there are now only nine credit card providers that offer a 0% period of ten months or more on balance transfers, whilst there were over two hundred just a year ago, before the global credit crunch took a hold in the UK.
One official from Sainsbury’s Finance said: “Although there are a number of credit cards offering introductory 0% on balance transfers, there is a considerable difference in their duration, so people need to choose carefully. Also, when choosing a card for a balance transfer, it is worth considering what else it offers. For example, we offer zero interest for a whole year on Sainsbury’s purchases as well as earning Nectar points equivalent to 2% cashback.”
An official from Moneyfacts said: “When looking for a new provider to take over your balance, there are two hurdles to jump. Firstly you cannot transfer balances between cards backed by the same provider, or which is part of the same banking group. For example, not only does MBNA issue its own cards, it also backs Virgin Money and Alliance & Leicester cards, to name a couple.”
She added: “Secondly, most deals are only available to new customers, so you can’t afford to complete the circuit of card providers too frequently. Typically your account will need to have been closed between 12 and 24 months before you can be considered a new customer again.”
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