July 7, 2006

Price comparison site Moneyfacts has commented on the recent changes in the credit market regarding two major providers – Halifax and Virgin Money.

Michelle Slade, personal finance analyst at Moneyfacts, pointed out that Virgin has raised its balance transfer (BT) offer from nine months to a market leading 12 months.

Halifax, however, is focusing on a different area of the market, according to the comparison service, and has increased its zero per cent period on introductory purchases from three to nine months.

This places it in third place in the list of 'best buys' below Sainsbury's and GE Money, which offer ten months and 12 months interest free respectively.

There have been other changes, however, Ms Slade points out, such as Halifax reducing its zero per cent BT period from 12 months to nine months and increasing its BT fee from two to three per cent.

Similarly Virgin has decreased its zero per cent interest offer from five months to three months, removed the £50 cap on its BT fee and increased its annual cash rate from 20.9 to 24.9 per cent.

Ms Slade concluded by saying: "These recent moves only further reinforce the message that consumers should regularly review their financial products to ensure they are continuing to get the best deal.

"Particularly in the case of credit cards, it may be wise to use different providers/cards for different spending habits."