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By Rachel Preece
Staff Writer, 23 July 2008
AS summer gets underway in the UK, the balance transfer market is also turning up the heat, with some fantastic new deals on balance transfer credit cards.
There are now over 40 credit cards offering 0% on balance transfers for periods of 12 months or longer, and the launch of Capital One's new credit card has pushed the previous limit up to 16 months.
0% balance transfers for 16 months
Capital One has just launched its 'Capital One Balance Transfer and Purchase credit card', offering 0% on balance transfers until 1st November 2009.
That's up to 16 months of 0% balance transfers if you act quickly and transfer a balance in July. Meaning Capital One really is leading the pack when it comes to balance transfers.
This launch has meant that Capital One now offers the longest 0% period for balance transfers, beating Virgin's deal of 15 months at 0%.
Best buy on combined 0% balance transfers and purchases too
As for 0% purchase offers, Capital One has just stolen the title for the best buy 0% purchase credit card as well, with their re-launched Capital One Platinum credit card offering 0% on balance transfers and purchases until 1st October 2009 - at 15 months in length, that's 3 months longer than anyone else has ever offered on purchases.
The new Capital One Platinum credit card is also the best buy credit card for combined 0% balance transfers and purchases. If you want to transfer and spend on the same credit card at 0%, equal length deals are necessary, so that you don’t get caught out with astronomical interest rates.
The allocation of payments clause is a clause listed in the terms and conditions of every credit card, and determines the order in which payments to your account will be applied. Cheap or 0% balances are usually repaid before higher rate balances, and this could leave you with enormous interest rates to pay back, if the 0% purchase and balance transfer deal isn’t for the same length of time. See http://credit-card-comparison-online.co.uk/faq/0-balance-transfer-purchase/allocation-of-payments-clause.html for more information.
Virgin's had no time to lick its wounds
Virgin had been heavily advertising its card as the 'best buy balance transfer', and with Capital One's new launch, Virgin has had to promote offers and discounts as the new big draw to the Virgin credit card. With the Virgin credit card, the big pull now for customers is the offer of discounts with Virgin services... 10% off Virgin trains, a month free with Virgin Media, half price Virgin hot air balloon flights, and many more special offers.
With competition to be the 'best buy' credit card in the comparison tables so hot between credit card issuers, what is the future for 0% deals? The credit crunch may have caused problems for the mortgage and personal loans markets, but the balance transfer market looks set to flourish.
As a result of the tightening of lending criteria, banks are looking to attract customers with only the most gleaming credit profiles, and consequently, there are many fantastic deals on offer for those with an excellent credit history.
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