Wednesday 15th August 2007
While many credit card balance transfers carry periods of six months, long-term deals can be of more use, according to Equifax.
The financial intelligence service notes that interest-free balance transfer offers are becoming harder to find for many "rate tarts".
And making multiple applications in a short period of time could be seen as an indication of bad debt or fraudulent transactions, impacting negatively on the consumers credit rating.
"Its crucial that consumers plan for the future and not just the short-term," advises Neil Munroe, external affairs director at Equifax.
"Lenders are becoming more selective about who they offer zero per cent deals to.
"So its important that consumers have the best possible credit score for their circumstances so they dont get caught out with a huge balance and nowhere to go."
In July, a number of lenders introduced long-term credit card balance transfer offers.
Barclaycard launched the Long-Term Balance Transfer Platinum Card with no handling fee for balances brought across from other accounts during the first 60 days.
While there is a lifetime 5.9 per cent imposed on balance transfers, a ten-month introductory period allows for new purchases to be made with no interest incurred.
The financial services providers Platinum Card with Balance Transfer, meanwhile, charges a 2.5 per cent fee but offers 12 months interest-free with three months of no interest on new purchases as well.
But Virgin Money currently operates one of the longest true interest-free offers on its MasterCard.
While the fee for transfers is higher, at 2.98 per cent, the long-term interest-free balance transfer period, at 15 months, topped the charts in a recent analysis of the market by impartial information service Moneyfacts.
Tesco, Abbey and Halifax were also listed as worthy contenders with balance transfer offers of 12 months and interest-free periods of 56 days or more on all new purchases.
©
Before choosing your credit card make sure you read the Know Your Money Credit Card guide.
Search and compare different credit cards and criteria with the
Know Your Money Credit Card Wizard.
