Resurgence in credit card use reported

The credit card market is looking brighter, with news of a surge in credit card deals and greater competition among providers. With the market problems associated with the squeeze on lending and financial turmoil appearing over, recent analysis from financial website Moneyfacts.co.uk has revealed that a 450 per cent increase in the amount of interest-free credit cards that offer at least 10 months on purchases, as compared with the same period last year. At that time, there were only two credit cards that offered these terms, whereas there are 11 on offer today.

There has also been a rise of 20 per cent in zero per cent balance transfer credit cards offered in the same period. In 2009, there were 60 difference balance transfer credit cards that had an introductory offer of at least 10 months, which has now gone up to 72.

At the same time, some providers, such as Egg and Barclaycard, have also issued new rewards credit cards, which has again given more choice to consumers.

Michelle Slade, spokesperson for Moneyfacts.co.uk, said As the recession took hold credit card companies cut back on offering cards to new customers. While a few competitive deals were on offer, very few customers appeared to be able to successfully apply…Competition has returned to the credit card market and card providers are actively trying to attract new business.