The latest quarterly Moneyfacts UK Unsecured Lending Trends Report, which studies the UK personal finance market (Credit Cards, Personal Loans and Overdrafts) and is due to be published later this week, reveals providers continued to reassess their interest-free card offerings both for balance transfers and purchases.
- The average interest-free balance transfer term on credit cards has dropped to its lowest level in five years, now at 520 days (518 days on average in May 2015).
- The number of 0% balance transfer offers increased over the past quarter but only slightly, as there are now 60 deals compared to 57 in September, but this is down by 15 offers year-on-year from 75 in December 2019.
- Shoppers looking to take advantage of an interest-free purchase offer will find the time to repay has fallen to 278 days, the lowest seen since April 2016 (also 278 days), and down 29 days compared to 307 in December 2019.
- Interest-free purchase offers are also down year-on-year, from 68 in December 2019 to 56, despite a slight rise of three deals over the past quarter.