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Credit card borrowers looking to transfer their debt onto an interest-free balance transfer card will be disappointed to find that the number of deals available has fallen year-on-year.
Research carried out by Moneyfacts.co.uk has found that in four years, the number of 0% balance transfer credit card deals has fallen by 66, from 126 available in February 2017 to just 60 available this month. As well as this, compared to a year ago, there are now 18 fewer 0% balance transfer deals available in the credit card charts, as during February 2020 borrowers had 78 deals to choose from.
In addition to the fall in deals available, the average number of interest-free days being offered on deals has also fallen. Four years ago, borrowers could get an average of 669 interest-free days in which to repay their credit card debt, whereas during February this year, the average number of interest-free days is 528.
Credit repair cards
The first four categories are reviewed together and are listed under the best five- and four-star personal credit cards. In addition, we also rate credit repair cards as a separate category.
We look at the credit cards and assess their product features and the scale of any penalties or fees associated with the cards. We also assess their additional services and ongoing benefits.
Those with the widest range of features and benefits will be awarded a top rating of five stars, with those that are close, but with a little more to do, achieving four stars.
How does a star rating help to find a credit card?
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Whether a new year goal is to clear debts or to make home improvements, many consumers will be looking to take out a personal loan this January to fund their 2021 goal. But research carried out by Moneyfacts.co.uk has found that the average rate on borrowing a small sum of £3,000 has increased year-on-year, so this may not be the best option for consumers looking for the most cost-efficient way to borrow money.
The research has found that the average personal loan rate on sums of £3,000 has increased from 14.6% a year ago to 15.4% today. Saying this, consumers looking to borrow through a personal loan should compare deals on our personal loan chart as there are deals offering much lower rates when borrowing £3,000 over a three-year period.
Last year was tricky for many. With the coronavirus pandemic causing havoc in mid-March, many were furloughed or lost their jobs.
It might have resulted in a struggle to make ends meet and turn to credit as a result - or maybe extending the debt they were already in.
Around three in 10 Britons have been negatively financially hit by the pandemic, with around £10billion of personal debt built up as a result according to StepChange research.
Out of the red: This is Money has revealed how Britons can get themselves out of debt in 2021
Rachel Springall of Moneyfacts said: The impact of the pandemic on consumers may well have prompted them to take a step back to reassess their financial health and find ways to improve their situation.