Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Balance Transfer Fees Fall to Lowest Level in Over a Decade

Personal_Finance / Credit Cards & Scoring Dec 18, 2017 - 03:28 PM GMT

By: MoneyFacts

Personal_Finance

The quarterly Moneyfacts UK Credit Card Trends Treasury Report (recently published), which studies the UK personal finance market, highlights that the average balance transfer fee has fallen to reach the lowest level seen in over a decade.

At a time when the length of interest-free balance transfers faces scrutiny, it appears that providers are finding alternative ways to entice borrowers. As a result, the average balance transfer fee has hit 2.03%, down from 2.11% in September and 2.29% a year ago. The current average is the lowest seen since it hit 1.82% in October 2006.


The last quarter has shown some stagnation in the interest-free balance transfer terms, with the average days remaining at 643, but the report highlights a downturn in the number of interest-free days available on interest-free purchase cards. The average number of interest-free days on purchases has fallen from 375 in September to 347.

Rachel Springall, Finance Expert at Moneyfacts, said:

“While it is positive to see the cost of making a balance transfer fall, it’s worth keeping in mind that the most alluring balance transfer cards on the market have interest-free terms of three years or more, but their fees can be as much as 3.49%.

“Although 52% of credit cards on the market offer interest-free balance transfers, this is the lowest percentage recorded since 2006 and in addition, only around half of these cards today will charge consumers 2.50% or less as a balance transfer fee.

“There are still some fee-free balance transfer cards around, but only nine of these have an interest-free term of over a year. Therefore, it’s much more likely that anyone applying for a balance transfer card will be charged for the privilege. This means that any borrower who leapfrogs from one deal to another to get an interest-free offer will be paying out in charges each time.

“As we head towards the New Year, it can be an expensive time for borrowers who might be using a credit card to cover the cost of Christmas. These shoppers will be actively eyeing up the credit card market to find a new deal to spread the cost of the festive season. Consumers would be wise to compare not just the longest interest-free balance transfer cards, but also take note of those with the lowest fees.

“Consumer debt in the UK is rising at a frightening pace, so much so that the average UK household owes over £7,000 in credit cards, personal loans and other borrowing not secured against their property. At the same time, over a third of households have no savings whatsoever* – a worrying statistic, should families continue to struggle with the rising cost of living and need to somehow cover life’s emergencies.”

*According to research from The Money Charity – December 2017

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in