Credit card debt levels for UK households are expected to average out to around £2,241 per home according to estimates from Experian. The Money Charity went on to calculate that a customer with this balance, paying the minimum monthly payment of 3 percent (£67) with an APR of 20.9 percent, could be saving around £34 per month if they were to transfer their balance.
After taking a 1.85 percent transfer fee into account, it could result in an overall saving of £865 over 25 months.
Despite the economic turmoil, Experian detailed financial providers are continuing to lend and there are now 41 credit cards on their own comparison sight, with three being exclusive to them and 26 have a zero percent balance transfer promotion.
In early December, Experian announced that the rise in consumer eligibility over the last lockdown period in November meant people’s chances of being approved for a credit card is now 35 percent higher than at the start of the first UK lockdown in March.
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“The good news is our data shows consumer eligibility rising, and that lenders are continuing to bring products back to the market.
“To give people even more certainty when choosing a balance transfer credit card, we even have some lenders that will confirm if their new credit limit will cover the balance they need to transfer through our credit limits feature.”
Amir went on to recommend a number of tips for those thinking about applying for a credit card: “Check your credit score and eligibility for free on sites like Experian.
“This will enable you to see what condition your finances are in and whether you are eligible for a credit card.
“If this option isn’t for you then you may want to think about other types of card, such as 0 percent purchase cards, rewards cards or credit builder cards.”
According to the latest analysis from Martin Lewis, the best zero percent new-cardholder balance transfer credit cards can be found with the following: