No let-up in credit card best buy scramble

The recent move by Virgin Money offering a 0% balance transfer card for 36 months has triggered the expected response from its competitors.

Halifax and Lloyds Bank both increased interest free terms from 34 to 35 months with balance transfer fees of 2.80% and 3.00% whilst Sainsbury’s Bank upped its game to 34 months and 2.89% fee.

The latest move came from MBNA last week with an improved 35 month deal and 2.79% fee putting it within touching distance of the top.

With the Financial Conduct Authority in the middle of a study of the UK credit Card market amid concerns that it isn’t working in the best interests of consumers, these interest free offers may not be around for ever.

If you’ve got a squeaky clean credit record and are financially disciplined then zero per cent plastic can be a smart way to borrow.

However too many people sign up only to end up being late with a monthly payment.

As a result their interest rate is immediately hiked from 0% to 18.9%, so ensure you play by the rules or you could pay a heavy price for a minor slip up.

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