Best Financial Markets Analysis Article The credit card market has seen a resurgence in recent months as card providers once again put the ‘open for business’ sign in the window.

In the last year the number of cards charging no interest on new purchases for at least 10 months has increased by 450%.

In the same period, the number of cards offering 0% on balance transfers for at least 10 months has increased by 20%.

Number of cards offering 0% for 10 months or more:

Other providers have launched competitive reward schemes including American Express, Barclaycard, Egg, NatWest, Royal Bank of Scotland and Sainsbury’s Finance.

However, interest rates charged on cards continue to increase, with the average credit card rate today standing at 18.7% APR. Since the start of the year the following providers have increased rates for new customers:

Barclaycard – rates increased by up to 2.0%
Capital One Bank – rate increased by 5.0%
Egg – rate increased by 1.0%
MBNA Europe Bank – rate increased by 1.0%
Sygma Bank – rate increased by 2.0%

Michelle Slade, spokesperson for Moneyfacts.co.uk commented:

“As the recession took hold credit card companies cut back on offering cards to new customers. While a few competitive deals were on offer, very few customers appeared to be able to successfully apply.

“Credit card companies have taken time to assess the market and now feel comfortable with doing business in the current economic environment.

“Competition has returned to the credit card market and card providers are actively trying to attract new business.

“Customers looking to make new purchases can find cards offering no interest for a year. Customers needing to repay existing debt can find deals charging no interest for 16 months.

“Most card providers currently make significant revenues from having a negative order of repayments, but following an OFT investigation card providers have until the end of the year to amend this.

“MBNA Europe Bank is the first provider to react to the announcement and joins just Nationwide BS, SAGA and The Co-operative Bank in offering a positive repayment order.

“Unfortunately for customers interest rates continue to rise and are only likely to increase further as providers are forced to lose revenue from moving to a positive repayment order.”

Intro Purchase Best Buy

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.

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

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.