Balance Transfers Increase In Popularity

17th October 2007

Credit card customers in the United Kingdom are planning on moving over £11 billion between different credit cards in the next year, according to a new survey which shows that around 6.5 million people plan on moving their existing balance to a new credit card in the coming year, an increase of 5% on last year.

The survey conducted by Abbey, polled 1051 people, with 51% saying that they changed their credit card company to take advantage of an introductory interest free period on balance transfers. One third of people polled said they wanted a new card which had an offer of cashback, while 29% said they were interested in an interest free offer on new purchases.

One in five of people polled said they would be taking out a new card to benefit from a lower APR rate and some 6% claimed they wanted a card with more kudos.

Introductory balance transfer offers have risen over the last year and now most balance transfer credit cards offer at least 12 months interest free and some up to 15 months, although balance transfer handling fees are now almost always charged.