Credit Cards & Loans
Warning over 0% balance transfer credit cards
Research firm Consumer Intelligence is warning credit card customers of the dangers of being seduced by zero per cent balance transfer deals.
A study by the firm found that one in ten people applying for zero per cent balance transfers in the past two years have been offered a shorter introductory period than they expected.
Stiff competition has seen zero per cent balance transfer offers soar to as long as 30 months.
The study also found that of those successful with applications, 11% have not been allowed to transfer the full amount they requested.
While card firms are legally obliged to offer their advertised APR to at least half of all successful applicants, they are not obliged to offer the full length of the 0% deal to every successful applicant, the report said.
David Black of Consumer Intelligence said: “The balance transfer wars between credit card providers with card firms competing on length of zero per cent offers and even balance transfer fees has been great news for borrowers.
“However, applicants need to be aware before applying that the best deals are only available to those with good credit histories and that they may not receive precisely what they are applying for.”
Consumers are also being reminded that frequent applications for credit cards and loans will likely leave a footprint on the applicant’s credit report, which can later negatively affect future applications for credit.
