press releases

Press Release - 04/01/06

MONEYNET DELIVERS VERDICT ON THE BEST - AND WORST - OF THE BALANCE TRANSFER CARDS FOR 2006

Online financial information service highlights best credit card transfers – and recommends the ones to avoid

Halifax, Mint and the Post Office have all emerged at the top of the credit card balance transfer list – while Tesco, Morgan Stanley and Hilton all get a thumbs down from Moneynet, the online financial data comparison service.

As the credit card bills begin to roll in for millions of consumers, Moneynet research highlights some of the better deals available in the highly competitive balance transfer arena.

“The balance transfer market is enormously important to credit card firms, and there are currently some excellent deals out there,” says Moneynet chief executive Richard Brown.

“For consumers wanting to spread the cost of this traditionally expensive time of year, switching debt to a zero interest card can make sound financial sense – but some cards offer better terms than others, so it is important to get it right at the outset.”

Moneynet research shows that there are some genuinely advantageous deals currently available. Top of the list is the One Card from Halifax which allows a very comfortable 12 months interest-free period for balance transfers and the bonus of 0% on purchases for three months. Mint is not far behind with 10 months interest-free and a lower standard rate whilst the Post Office proves a good option with six months interest-free and – rare these days - no fee.

Much less helpful to the debt-laden consumer is Tesco’s offer of a five month interest-free period, an uninspiring standard rate and a fee.

Credit Card Balance Transfer Offers

Three to consider

Provider	Card	Intro Rate	Period	Std Rate	Balance Transfer Fee
Halifax *	One Card	0%	12 Months	15.90%	2% Min £2 Max £50
Mint **	Gold Card	0%	01/11/2006	14.90%	2% Min £5 Max £49
Post Office ***	Standard	0%	6 Months	14.90%	No Fee

Additional Benefits

* Intro rate of 0% available on purchases for 3 months
** Intro rate will again be available until 01/07/2007 for balances transferred in January 2007
*** Pre-approved personal loan for balances of £500 to £2000 at 6.8% for max of 12 months

Three to avoid

Provider	Card	Intro Rate	Period	Std Rate	Balance Transfer Fee
Hilton	Platinum	0%	6 Months	15.90%	2% Min £5 Max £50
Morgan Stanley	Gold	0%	6 Months	15.90%	2% Min £3 Max £50
Tesco	Visa	0%	01/05/2006	15.90%	2% Min £2 Max £45

“It’s easy to see which way to jump on this one,” said Brown. “A whole year of 0% interest from Halifax is the escape route to take. Once you’ve made the switch you don’t want to have to go through the whole process again in a few months’ time. Alternatively, take 10 months interest free with Mint and then next January you can transfer Christmas spending from other cards and get 0% for a further 6 months.

“Some prudent research now can prevent consumers from slipping back into the mire of credit card debt before the festive season looms again.”