Spenders warned over zero interest credit cards

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Spenders warned over zero interest credit cards

Spenders have been warned that a new breed of "zero interest" credit cards is blossoming in the UK.

Certain providers are now charging interest on purchases even when balances are cleared every month, financial product comparison service MoneyExpert has warned.

The usual practice is to not charge interest if customers clear their balance every month, with the average interest free period currently at 53 days.

However experts believe that the zero interest free period practised by Halifax's Flat Rate Visa, Lloyds TSB's Advance Mastercard and Bank of Scotland's Little Black Visa could be starting a new trend.

Moneyexpert.com chief executive Sean Gardner said: "Credit card companies are struggling to make money thanks to the so-called 'rate tarts' who switch from special deal to special deal.

"So it's no surprise that firms are coming up with ways to ensure they make some money at least out of their customers."

However he said the new trend did not mean that cards with no interest-free period were worse than others. The cards should suit people who regularly carried a balance on their cards, he explained, since the rates were "among the better" on offer.

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