Fee-free balance transfer credit cards disappear from the market
The number of credit cards which do not charge for transferring balances from one account to another are on the brink of extinction, according to one expert.
Customers wanting to take out a credit card which allows them to transfer balances without being charged a fee are slowly being taken off the market by lenders, according to one industry figure.The Daily Mail's financial expert James Coney wrote in the newspaper that with Barclaycard and Citibank both making their fee-free balance transfer credit card options unavailable in recent weeks, there is now only one provider to go to.
Royal Bank of Scotland/Natwest's Gold Mastercard offers 8.9 per cent and no charge for moving money from one credit card to another.
According to Mr Coney, these credit cards only became popular when zero per cent deals started to dry up and it worked out cheaper to pay the interest as fees were so high.
He added that there are still other options: "Halifax Easy Rate Mastercard charges a low purchase rate and balance transfer rate of 8.9 per cent - but this is variable and so could increase at any time.
"Barclaycard does have a low rate card, the Simplicity Visa, at 6.8 per cent. But according to financial data experts Moneyfacts, you have to be careful because there is no guarantee the rate will stay at this level," he added.
Credit card holders who do not use their plastic for a period of time could now face more charges on the products after American Express announced fees for dormant accounts.
The firm recently said it is to apply a £20 annual charge to any customers who do not use their Platinum cashback credit card for over 12 months in order to cover administration fees for the accounts.
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