Zero per cent credit card deals on the decrease
(01 December 2005)

Prospective credit card users remain on precarious ground after the withdrawal of the Platinum Capital One credit card, a long-running interest free deal launched in September this year.

The card had offered a 15 month zero-interest service for balance transfers until 2007, but the current climate – with interest free deals said to be costing the industry £600 million each year – is dictating that more and more of these offers are being withdrawn.

With cheap interest deals dwindling in number, it's increasingly important not to leap head-first into the credit card market. This is where a short-term loan could help you – your immediate cashflow worries can be solved with a loan of between £80 and £1000, which could be in your account within 24 hours.

This way, you can take your time in finding the ideal longer-term solution to your situation by taking advantage of a payday loan service that has no hidden charges and will not require any long-term commitment.

Andrew Britchford, personal finance analyst from Moneyfacts.co.uk, said: "At the beginning of 2005 there were 114 credit cards offering zero per cent deals with a term greater than five months; this number is now down to 91 and likely to fall further. During the same period the number of credit cards charging a balance transfer fee has increased from 12 to 41.

"Capital One will certainly not be the last big card player to withdraw from the zero per cent war, and…providers will be looking at alternative ways of reducing their share of the £600 million annual cost of providing this 'free money'."


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