Balance transfer offers 'on the increase'

By Sarah Engle, Tue 9 Feb 2010 - Published in Credit Cards

There has been an increase in the number of credit cards offering zero per cent introductory deals, it has been revealed.

Research by MoneyExpert.com found that there are currently 72 credit cards on the market offerinh zero per cent interest for the first 12 months, growing from the 64 per cent available products in November 2009.

In addition, the study showed that the average introductory interest-free period has risen from 9.3 months in November to 9.6 months.

However, the report noted that the balance transfer market is still less competitive than it was two years ago, when 176 credit cards used a zero per cent introductory deal for an average period of ten months compared to 143 today.

Pierre Williams, head of research at MoneyExpert.com, commented: "The market is yet to recover to pre-credit crunch levels and lenders are understandably cautious with their new lending commitments."

Recent figures from the Bank of England showed the sum borrowed on loans, credit cards and overdrafts during December was higher than the amount being paid back.

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