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New Halifax credit card jumps to the top of the fee-free 0% balance transfer table, but what does it mean for the market?

06 July 2016

Gocompare.com’s head of money Matt Sanders comments on Halifax’s new fee-free balance transfer card

A new balance transfer card launched by Halifax offers 0% on balance transfers for 24 months with a 0% fee and is the longest fee-free balance transfer offering in the bank’s history and puts the bank on par with the AA’s market-leading card.

Matt Sanders, head of money at Gocompare.com, commented: “Just a few years ago it seemed unlikely that we would be talking about fee-free, 24 month 0% balance transfer cards. However, this latest announcement from Halifax is indicative of how competitive the credit card market currently is, which is good news is for consumers.

“Over the past couple of years, we’ve seen providers compete to offer increasingly longer 0% periods on purchase and balance transfer cards, with some cards on the market offering a staggering 0% period of 40 months on balance transfers.

“Halifax’s latest offering now means it shares the top spot of both balance transfer cards, and fee-free balance transfer cards and suggests a shift in the market.

“In recent years providers have been competing for customers with ever-growing 0% balance transfer periods. While Halifax has been one of the most aggressive credit card providers for a while now and offers a balance transfer card which is one of the longest on the market at 40 months (with a 2.49% fee), opting to extend the length of its fee-free balance transfer card demonstrates a change in tactic that could have serious implications in a market where a ‘longer is better’ mentality has ruled.

“While this is exciting news for consumers, it’ll be interesting to see what the rest of the market will do in response. When providers first began launching 40 month balance transfer cards, many assumed it was the end of the balance transfer battle, however this latest twist suggests that it is far from over, and if other providers do indeed start to raise their game in the fee-free balance transfer space; it could be good news for customers.”

See Gocompare.com's dedicated guide for more information on balance transfer credit cards.

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