0% Credit still available in spite of credit crunch
Posted May 28th, 2009 In spite of the global economic gloom, it seems it is still possible to get a good deal on credit, with many companies offering 0% interest rates. Financial advisory organisation Defaqto has thoroughly researched this topic and here is a summary of their findings.
Personal loan interest rates remain high, with even the lowest interest rates still being around 8% , so they don’t present a particularly appealing or good value for that matter.
However (as you may have suspected) Defaqto have discovered that there are many good bargains to be found through credit cards, indeed 69% of credit cards offer an introductory 0% offer, with the average amount of time being 9.7 months.
The Virgin Card and the Bank of Scotland All-In-One card are two of the strongest credit cards on the market offering 15 and 12 months interest free respectively, plus a host of other great features. Check out our reviews to find out more.
The caveat is that not all customers get the best offer, Defaqto spokesperson David Blacksaid:
“An individual’s credit report, employment and property status, affordability, indebtedness, financial behaviour and usage are all part of the mix in the lender’s decision making process,”
The other major caveat of this activity is that most balance transfers incur a fee of on average 2.85%
So, if you’re looking for a small to medium amount of credit, your best bet is to look for a credit card. Just be conscious of the fact that your credit rating will effect the cost of the credit.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. |
39.9% APR variable | 39.9% | 39.9% | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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