Credit card interest free period bucks trend

Tuesday, December 20, 2005

Following the extension of the zero per cent interest rate offered by the Sky credit card, comparison website Moneyfacts.co.uk has commented on the deal that appears to be contrary to the current credit card trend.

The SkyCard announcement at the end of last week that it was extending the length of its introductory deal was surprising to some, but at the time the credit card issuer rejected the current trend of withdrawing such deals.

And Moneyfacts.co.uk's Andrew Haggar has commented on this: "It is certainly a surprise to see SkyCard bucking the current trend by offering a 12 month zero per cent deal on credit card purchases and balance transfers."

Mr Haggar said that due to current conditions and credit scoring methods only people with a "near perfect" credit rating would be accepted for the card, and that even then, they might face a nasty little fee.

"A 12 month zero per cent balance transfer deal is obviously good news to those 'rate tarts' running out of places to move their balances to, however they should be aware that the fee for making a transfer is 2.5 per cent and it is uncapped – so transferring a £5,000 debt will cost you £125," Mr Haggar said.

Recently, credit card issuers such as Capital One and HBOS have changed their introductory deals, shortening the length of their interest free periods.

Find credit card offers here:
http://www.europinions-finance.co.uk/credit-cards/credit-cards/