Introductory credit card offers better than ever
by Gill Montia
Story link: Introductory credit card offers better than ever
Interest-free introductory offers on credit cards were better than ever in July, according to moneysupermarket.com.
The comparison site reckons that across the top cards, renewed competition is responsible for extending the average interest-free period on a balance transfer to 15.4 months, almost three months longer than in July 2007.
The average period for 0% purchase cards has also risen, to 12.2 months, up from 10.8 months three years earlier.
Moneysupermarket’s head of banking, Kevin Mountford, comments: “This is clearly great news and consumers should jump at the chance to get the longest 0% deal available.”
However, he warns of a “sting in the tail” with some providers financing their market-leading offers with higher standard interest rates.
The typical standard rate across the market is now 17.32%, figures from moneysupermarket.com show, up from 17.19% in May.
Mr Mountford cautions: “When it comes to borrowing money either through a balance transfer or purchase card, consumers must therefore be extremely disciplined about payments and realistically plan their budget for repaying the debts they owe.”