Are there still any 0% credit card deals?

With the credit crunch making lenders unwilling to lend, are there any 0% credit card deals left?

You may be surprised to hear, that yes, and more than at the start of the year.

Data from MoneyExpert shows there are now 112 cards offering 10 months interest-free credit on balance transfers – up from 105 in January.

A total of 26 cards now offer 13 months 0% interest on balance transfers.

The credit crunch, it seems, has increased demand for low rate credit.

However, lenders are more picky about who can qualify for the deals. Also you need to be aware of the fees.

Balance transfer fees of between two and three per cent mean you are not getting 'interest fee' transfers, but it is cheaper than the standard rates on cards or personal loans that are around.

Data from Moneyfacts.co.uk show the best buy 0% balance transfer credit card is from Virgin Money. It offers 0.5 for 15 months with a transfer fee of 2.98 per cent. The APR on purchases is 15.9 per cent.

Barclaycard OnePulse and the Tesco Personal Finance Online Bonus cards both offer 14 months interest-free with 2.90 per cent

"0% transfer deals remain popular and we are lending slightly more than before the credit crunch," says Andrew Bond at Barclaycard.

Getting a deal

Although 0% balance transfer deals are available, the credit crunch means lenders are more meticulous about who can qualify.

Sean Gardner, director of MoneyExpert, explains: "Switching credit cards used to be commonplace and being a rate tart was seen as a sign of being savvy with your cash. But getting a credit card is much more difficult now."

However, Barclaycard maintains its levels of rejection are unchanged in the last year – with one in two applicants being turned down.

Scott Mowbury at Virgin Money adds: "We don't go giving out credit cards willy-nilly. We have a robust credit check policy in place and our acceptance rates are with trend."

Credit record

One problem with applying and applying for new credit cards and being turned down is that it will leave a black mark on your credit record.

"There are a number of reasons why people are turned down," says Mr Bond at Barclaycard.

"A company could judge you to be overextended with your current credit."

He advises those turned down to check their credit record – which should cost just £2 – to see if there is some problem holding you back.

You can also get back to the credit card company if you feel you have been turned down unfairly.

"It might not be black and white why you are turned down, so it is worth giving a credit card company a call and have them give a second glance," says Mr Mowbray at Virgin.

Although you may be desperate to grab hold of a 0% deal, blanket applications in the hope one provider will accept you is ten turn you down could be counter productive.

It is estimated some three million credit card applications were rejected in the last six months – so playing it cool with balance transfer deals is the best option.

Also as old 0% deals run out make sure the next is lined up or you could be in for a shock.

"Unless you've paid off your debts you could be stung with very high interest rates on your remaining balance once your 0% deal ends," warns Sean Gardner at MoneyExpert.

Mr Mowbray at Virgin adds with large balance transfers – if you are using them as a cheap alternative loans, it pays to divide up the sum and repay it while the deal lasts.

"Although this is easier said than done!"

Daniel Barnes