Best Cards To Transfer Balances To No Interest

Two market leading credit cards spells great news for borrowers

There has been a flurry of activity in the credit card market this week which includes two market leading promotional offers launched by Barclaycard and M&S Money.

These moves mark a significant shift in the market with the average promotional length on both balance transfer and purchase credit cards at an all time high, according to analysis by moneysupermarket.com.

Barclaycard is offering 0 per cent on balance transfers for 18 months, with a 2.9 per cent BT fee and if you apply before the end of February you will also receive £20 cash back on the fee for transfers over £3,000. The M&S Credit Card is launching tomorrow offering 15 months interest free credit on purchases.

Barclaycard's launch marks the first time a card provider has offered an 18 months interest free deal on balance transfers. As a result the average promotional length on the top 5 balance transfers credit cards has increased to 16.6 months, the longest on record. The average promotional length on the top 5 purchase credit cards is now 13.2 months, also the longest on record.

Kevin Mountford, head of banking at moneysupermarket.com, said: "With a number of regulatory changes hitting the credit market at the turn of the year, many people predicted the end of zero per cent offers. However, the opposite has actually happened, with a number of providers looking to take the top spot in the best buy tables. This demonstrates an appetite among lenders to attract new customers, which is great news for anyone looking to consolidate their existing debts or make large purchases. We can only guess what will happen next, but you would imagine some of the other main providers will respond with similar or better deals. Cardholders will need to make sure they understand any associated BT fees on these products as they do vary.

"However, despite this renewed appetite, it would be wrong to say that banks are opening up these offers to all customers. In reality, most lenders are giving these good deals to customers who have excellent or good credit histories. If you fall outside of this category then you may find your options are limited. Before applying for a credit card, consumers need to check their credit profile and make sure there is no adverse information that would jeopardise their chances of being accepted.