The Era Of Zero Percent Credit Cards Coming To An End
Zero per cent transfer deals on credit cards are coming to an end according to a price comparison website. It is getting more difficult for online users to find the best credit card deals due to the sheer number of offers now available.
Research by a price comparison website found that one in ten Brits have been unsuccessful in applying for a credit card in the last year as a result of the recession.
And to make matters worse, with the average interest rate on credit cards increasing to 17.3 per cent APR, current credit card customers may find themselves in deeper debt as those coming to the end of their special deals see their repayments soaring significantly.
On Thursday, the Government proposed a “Better Deal for Consumers” White Paper to improve the credit card industry.
Yet according to experts, the regulations could mean that the number of zero per cent balance transfer deals will fall further.
Louise Bond, the personal finance expert at the website, said: “We can’t ignore the fact that the country is in economic turmoil.
The knock-on effect for credit card customers is that those with a less than perfect credit history could find themselves being turned down for the next-best zero per cent deal, forcing them to pay interest. This is a huge problem for switchers as these people have accumulated debt based on the fact they do not have to pay interest on it.”
