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Credit card balance transfers better value than personal loans

February 1, 2008 by admin  
Filed under News, News-Credit-Cards

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Consumers looking to take out a personal loan may want to consider a credit card balance transfer instead, claim financial experts.

According to research from everyinvestor.co.uk, a borrower requiring £10,000 could save over £1,000 over a four year term if they choose to transfer their credit card balance rather than applying for a loan.

Chris Gilchrist, editor with the consumer advisors, said that lenders have raised interest rates on personal loan rates sharply in the past six months.

“Credit card companies continue to offer lengthy zero per cent balance transfers and even though you may pay balance transfer fees, this still works out well below the interest you would pay with a personal loan,” he added.

Industry commentators have predicted the end of the zero per cent interest balance transfer for the past 18 months according to the experts.

However, credit card companies are expected to continue to offer the rate in a bid to attract more customers.

Meanwhile, new research from Fool.co.uk has revealed that up to one in eight credit card holders in the UK have had their credit limits cut.

Tags: debt, year, interest balance, interest rate, loan, industry commentators

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