Have we seen the last of free balance transfer deals?

October 13, 2006

The days of jumping between credit card providers without incurring fees on a 0% balance transfer deal are long gone according financial comparison site, moneyfacts

Michelle Slade (a personal finance analyst at moneyfacts.co.uk) said, “In the two years since Barclaycard started the trend of balance transfer fees, almost all providers now charge an upfront fee for their 0% balance transfer deals. Today there are only three cards without a fee-Britannia BS Classic Intro Visa, Britannia BS Platinum Intro Visa and Sainsbury’s Bank Advantage Visa.”

It is now very common practice for card companies to charge a fee. Experts cannot see this changing in the foreseeable future and since many fees are uncapped, they are in all likelihood going to continue to rise.

Consumers should ask themselves if a free balance transfer fee will actually save them in the long term. Often the answer depends on how and when they plan to pay off their debt. The quicker they repay their debt (for example six months or less), the more suitable this offer will be. However if they choose to pay over a longer period of time it may be worth considering a fee with a lower interest rate overall.

Each individual must do what will work best for their own needs and with over 300 credit cards to choose from there is definitely something to suit everyone.