August 15, 2006

By Peter Kenny

The credit card industry has had a fair old battering this year from reported security breaches for Chip and Pin to the OFT demanding a reduction in default charges.

Many financial experts looked into their crystal balls and forecast that this could herald the beginning of the end for 0 per cent introductory deals for credit cards.

Quite the reverse has occurred with 0% introductory deals getting better. A number of the main credit card players have upped the ante in the credit card game and right now the new deals on offer are quite frankly the best they have ever been.

• Earlier this year Marbles increased their 0 per cent balance transfer credit card offer from six to nine months while at the same increasing their standard APR from 14.9% to 15.9%.

• In May GE Money launched two new credit cards that set a standard that the rest were frantically trying to match. Their Transformation card arrived on the scene with a fantastic offer of 12 months 0% balance transfers and 12 months 0% on all purchases with a very good standard APR of just 12.9%. The GE Money Everyday card gives cardholders up to 3% cash back on purchases, at the time beating the closest contender who’s best offer was 2%.

• MBNA Europe was next to act with their MBNA Platinum Plus, Points and Virgin and Sony credit cards. The 0 per cent balance transfer offer was increased from 9 months to 12 months with a new 0% deal on all purchases thrown in for good measure.

• The latest credit card to increase their introductory offer is HSBC who have doubled their 0% balance transfer deal from 6 to 12 months and added a 3 month 0% introductory deal on all purchases for good measure.

Spencer May, head of consumer cards at HSBC, said “At HSBC we continually look for ways in which we can help borrowers better manage their debt and we recognise that people are becoming more careful with their credit card borrowing. This is evidenced by recent reports which show UK credit card borrowing falling in four out of the last six months.”

“It is for this reason that we have decided to extend our latest interest free offer on balance transfers. As a result cardholders will see their existing credit card debt reduce more rapidly and save themselves hundreds of pounds in interest.”

Some of these offers are the best the credit card industry has seen especially the GE Money cards.