Relief for “rate tarts” as new 0% APR balance transfer card arrives
Those looking for a good credit card rate will be relieved with HSBC’s announcement that its new credit card will offer 0% APR. Balance transfers will be kept at zero per cent interest for the first 12 months allowing cardholders a better chance to reduce the cost of their borrowing.
The interest free period for balance transfers has actually been doubled by HSBC, who are now in the minority of providers currently offering zero per cent interest on balance transfers for a full 12 months. This latest deal also gives cardholders the chance to use their cards for the first three months without incurring any interest charges.
Interest will only be charged from the date a transaction arrives on the account, rather than the day the transaction is made, giving cardholders a few more days grace. Along with the interest savings, HSBC can also offer customers advanced fraud detection services which keep an eye on any unusual activity on cardholders’ accounts.
Commenting on the new market leading balance transfer deal, HSBC head of consumer cards Spencer May said “At HSBC we continually look for ways in which we can help borrowers better manage their debt and we recognise that people are becoming more careful with their credit card borrowing. This is evidenced by recent reports which show UK credit card borrowing falling in four out of the last six months.”
Those with multiple credit cards who find that their 0% balance transfer deals are coming to an end could consider consolidating their debts with a secured homeowner loan. Repaying borrowing over a longer term will however increase overall interest charges.
Related posts:
- Less than than ¼ of transferred credit card debt paid during 0% interest periods
With less than a quarter of transferred credit card debt...
- Perk-less plastic used by half of credit card holders
A recent study from Goldfish credit card shows that more...
- Credit transfers on the cards for over 3 million Brits
According to new research conducted by Abbey, over 3 million...
- Brits suffer £9 billion summer holiday hangover
Research from moneysupermarket.com has highlighted the growing bill British holidaymakers...
- New Year, newly organised finances
According to Halifax credit cards, 32 percent of Brits planned...
