Good introductory deals still on the table
Despite the credit crunch, credit card companies continue to offer some attractive introductory deals, though the best are now available only to people with a high credit score.
There are fewer 0% balance transfer offers about, but Virgin continues its high-profile 0% offer, now extended to 16 months because Abbey matched its previous 15-month 0% offer. As with many such deals, don’t make the mistake of using the Virgin or Abbey card for purchases, because the 0% offer on purchases runs for only 6 months, and after that any balance you’ve run up on purchases will start attracting interest - but your repayments will be used to pay off the 0% transferred balance before paying off the interest-bearing balance.
That trick is now a common one with 0% balance transfer offers, so it’s best to use one card just for a balance transfer and another for current purchases. Egg, Nationwide, Halifax and Barclaycard are others with 0% balance transfer offers for 12 months or longer.
Capital One and BT also offer a ‘life of balance’ deal at 6.9%, which applies until the balance is paid off.
The longest interest-free period on a card for new purchases is now 12 months from Tesco and 10 months from Marks & Spencer,
Among the good reward card schemes are Sainsburys (earn points to cut grocery bills), American Express (up to 5% cashback for 3 months) and BT (money off your telephone bills).
