The number of credit cards available offering consumers fee free balance transfers with a zero per cent interest free period is on the decline, cardguide.co.uk reveals.
Consumers can use zero per cent balance transfer credit cards to spread the cost repaying their transferred balance without racking up interest.
However, the lender misses out on the revenue accrued in the interest and because capped penalty fees are causing them to lose even more money, it is thought that card issuers are withdrawing the offers as a result.
Of the many zero per cent balance transfer credit cards still available on the market, most charge borrowers a fee for transferring other credit card balances onto the card.
The fees charged by card issuers tend to vary but is usually a percentage of the total amount being transferred.
However, although the cards are becoming less common, the BusinessCreditCards.cc and BalanceTransfer.cc websites suggest no fee balance transfer credit cards are still hugely popular.
Steve Brown, BalanceTransfer.cc and BusinessCreditCards.cc owner, said: "Zero per cent intro APR balance transfer credit cards that don't charge a fee for transferring balances have been the most popular products recommended at the BalanceTransfer.cc site for many months now."
Find out more about a balance transfer credit card
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