Clydesdale and Yorkshire banks launch a new zero per cent credit card deal for people wanting to transfer existing balances this week.
From Tuesday borrowers will be able to apply for an introductory offer of 0% interest on balance transfers for 16 months on the banks' Gold Mastercard. In line with a majority of other 0% credit cards, cardholders will also pay 0% interest on purchases within the first three months.
The interest rate will change to a competitive 16.9% APR after the 0 per cent deal end. Credit card holders will get up to 59 days interest free on purchases, provided they pay off the credit balance in full each month.
Andrew Hagger of product comparison website Moneynet.co.uk says thedeal is the longest 0% offer available right now. Virgin Money's card is the next best, with the card charging 0% for 14 months, with a balance transfer fee of 2.98%. NatWest's Platinum card charges 0% on balance transfers for 15 months, but this is only available to NatWest current account holders.
"The market has really picked up since last August. I wonder if the banks are more optimistic now with a bit more appetite for new customers."
But Steven Jackson of beatmydebt.com had a word of warning. "Zero percent balance transfer deals are a great way of getting credit card debt under control and paying it off without incurring large interest charges. However, you have to make sure the card is not used for additional purchases". he said
Defaqto recently reported that 48% of the 12.5m credit card applications made between January and October 2009 had been rejected, a 6% increase on the same period in the previous year.
