The number of 0% balance transfer credit cards that is on the market is said to be falling, just at the time when many borrowers may be thinking about getting one of these credit cards so that they can transfer their existing credit card debts after Christmas and enjoy an extended interest free period.
A year ago around 82% of credit card providers offered 0% balance transfer credit cards. However, this number has now fallen to just 75%, and officials have said that this shows how the number of cards on the market are falling, as lenders continue to struggle through the global credit crunch and financial crisis.
Many people have found 0% balance transfer credit cards to be a useful tool in the New Year, as many transfer the debt that they have clocked up on high interest cards and then enjoy a long period of interest free credit within which to repay the transferred balance.
One official stated: ‘These figures should send a clear message to borrowers that the credit card merry-go-round is grinding to a halt. In the coming months, it’s going to become increasingly difficult to refinance your debt at 0% interest. This trend away from extended balance transfer periods underlies a shift in the industry which is increasingly cautious about the people it lends to and is far more interested in the profitability of its customers. A year ago there were dozens of cards with overall APRs of little more than 10%, but today the most competitive cards offer rates of 16% or more.
