The Balance Transfer Battleground
September 27, 2008
The future of the balance transfer fee looks set to spark a battle between the credit cards that are on offer by many of the providers at this current time.
With companies such as Virgin and Capital One offering new customers 15 months interest free deals, other providers are now also looking into alternative methods of inticing new business towards their deals. The future way to gain new customers would be by cutting the balance transfer fee that has been getting more expensive over that last few years.
Barclaycard were the first to introduce this method by taking their 3% transfer fee down to 2.5% on their OnePulse card and along with this they have maintained a lengthy 14 months 0% interest free period on the balance that has been transfered into the bargain.
Money Experts, Sean Gardner said “With 75% of the market currently offering a 0% deal on balance transfers, however, providers are now looking for new incentives to pull in business, and lower transfer fees are a clear solution.” He also added ” ‘The best-buy tables have been dominated over the last couple of years by cards offering lengthy 0% balance transfer deals, but there inevitably comes a point when trumping the pack becomes impossible.”
It all seems good news for the consumer, who, in the current climate need to be saving anything they possibly can. For people who are looking to transfer on a new deal, because their current one has expired and they are now on a high APR%, then the lowering of the transfer fee on the new deal is welcome news.
Recent Additions :
- Visa to Launch the Green Credit Card
- Barclaycards Planning to Change
- Barclaycards Takeover of Discover Financial Services
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