Friday 5th January 2007
Financial information provider Moneyfacts says it anticipates a "war" of credit card balance transfers in the new year.
The expectations are fuelled by an increase in the number of companies offering extended interest-free periods for credit card balance transfers.
Both HSBC and Virgin Money have increased their interest-free periods to provide customers with no increase in credit card balance transfers for over a year.
Card holders for HSBC can expect to pay no extra on credit card balance transfers for 15 months, while Virgin Moneys interest-free period has been lengthened to 13 months.
Michelle Slade, personal finance analyst for Moneyfacts, said: "For any credit card provider looking to woo new balance transfer business, the post-Christmas spend is an ideal target."
"Dangling a big carrot can tempt customers, knowing that many will accept what is offered," she added.
However, Ms Slade noted that such special offers may not always be the exact deal required by customers.
Moneyfacts was founded in 1988 as a six-page financial data fact sheet and says it is now the UKs largest-selling monthly finance publication.
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