Defaqto credit card report reveals 0% interest terms extended
Introductory rate offers on credit cards have become more generous in the past five years, despite the average APR rising.
That is the finding of independent financial research and software company Defaqto, which revealed zero per cent balance transfer periods have doubled in length since July 2006.
Meanwhile, the average credit card APRs have increased from 15.8 per cent to 18.4 per cent over the same period.
The longest zero per cent rate for purchases following a balance transfer is currently offered by the Marks & Spencer Credit Card and Tesco ClubCard Credit at 15 months.
David Black, Defaqto's Insight Analyst for Banking, said: "The credit card market abounds with some very attractive offers but it remains the case that the best deals are aimed at new customers.
"Therefore, those with good credit ratings have a real incentive to change their credit card on a regular basis and should ensure that they choose a card that matches their likely usage. If someone always repays their entire balance every month then it makes sense to opt for a card that gives rewards," he added.
Mr Black went on to point out that it is unusual to find one credit card that offers the best deal for all types of usage, suggesting borrowers have more than one and use each for a specific purpose.
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