Credit card balance transfer deals a sign of healthy economy

The increasing availability of interest-free balance transfer deals on credit cards is a sign of the economic recovery, according to one bank .

MBNA says high charges were levied on balance transfers during the recession, and that people with lower credit ratings found it very difficult to get the good deals that were available, although the situation has now improved.

However, the bank warned that, despite significant interest-free periods, consumers could still be hit with high charges once their interest-free period is over, meaning they need to look around for the best offer.

Sandra Waldorf, from ThinkingMoney, said: With the recession easing, smart consumers will be able to secure a great deal if they shop around.

AA recently introduced a credit card that offers zero per cent interest on balance transfers for 12 months.

Santander also provides the Zero Credit Card, which also offers interest-free balance transfers for 12 months. There are also no charges for balance transfers with this card.