17 May 2007
Following the popularity of the Halifax One Card, which is now only accessible through an online limited availability, the lender has announced that it is to issue a new card with 0% on balance transfers and new purchases for the first nine months.
Available in branch or by phone only, the card offers consumers who stick with it for a year an anniversary perk of an extra six months' worth of interest-free balance transfers.
However, the One Card isn't necessarily as consumer friendly as it first appears, since the APR when it does kick in is currently placed at 13.9% - 4% higher than the card's predecessor.
Careful planning will be required for consumers to get the full financial benefit of this card, with users needing to make sure that they have cleared the entire balance of transfers and purchases by the end of the nine months introductory period.
The consumer must also ensure that they make no further purchases as this will guarantee that the cash saved on the anniversary balance transfers at 0% will not be wiped out by interest charged on purchases.
Personal Finance Expert at the price comparison and switching website uSwitch.com, Mike Naylor, commented: "The credit card market can be a complex place so consumers should shop around to make sure they get the right deal for their individual needs."
Mr Naylor also dismissed the theory that there was "one-credit-card-fits-all deal", highlighting that if researched correctly, consumers could save themselves over 220 in interest in 13 months' of use.