Credit card deals making a comeback

Credit card deals making a comeback

09 June 2010 / by Rachael Stiles

The credit card market is having a resurgence following the tightening of the lending market over recent years since the financial crisis.

The credit card market is once again "open for business" according to market analysis from Moneyfacts.co.uk, which has seen a marked improvement in competition.

For example, there has been a 450 per cent rise in the number of interest-free credit cards offering at least 10 months on purchases, compared to the same time last year.

A year ago there were just two credit cards offering at least 10 months interest-free on purchases, rising to 11 on offer today.

Zero per cent balance transfer credit cards have also become more widely available, with the number charging no interest for at least 10 months rising 20 per cent in the same period.

A year ago, consumers could choose from 60 difference balance transfer credit cards with an introductory offer of at least 10 months, which has risen to 72 today.

Some providers have increased competition in the market by launching new rewards credit cards, including Egg and Barclaycard.

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."

© Fair Investment Company Ltd