Application deadline looms for 'market-leading' credit card deal

Application deadline looms for 'market-leading' credit card deal

The Halifax said this week that it will stop accepting applications for its "market-leading" One Card at midnight on May 13. This card offers 0% on balance transfers and purchases for nine months. After that, the interest rate reverts to a competitive 9.9%. One Card has featured regularly in the Moneyfacts best buy tables.

If you are one of the many people with an existing balance on your credit or store card, you should seriously consider transferring it to another provider offering a better rate. There are dozens of cards on the market offering 0% interest on balance transfers, allowing people to consolidate other card debts and then pay no interest on the money they have moved. But there is usually a time limit on how long the special offer debt transfer rate is available.

Among the companies offering cards boasting 0% interest on balance transfers for at least 12 months are:

Barclaycard Flexi-Rate card offers 0% until July 1 2008. It also offers 0% interest on purchases for three months, but applicants must have a "good" credit history. The rate reverts to a typical 14.9%.

Virgin credit card offers 0% for 13 months and 0% on purchases for three months. After that, the rate rises to a typical.....continued below

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Tesco Bonus credit card and Clubcard credit card offer 0% for 12 months, plus 0% on purchases for three months (0% on Tesco purchases for 12 months). The rates revert to a typical 14.9% and 16.9% respectively.

HSBC credit card (online only) offers 0% for 12 months, plus 0% on purchases for three months. After that, the rate rises to a typical 15.9%.

Abbey Balance Transfer credit card offers 0% for 12 months, plus 0% on purchases for three months. The rate reverts to a typical 15.9%.

Like the vast majority of card companies, all of the above charge a fee for balance transfers of between 2% and 3% of the debt moved over (the Halifax One Card imposes a 3% charge). This might not sound much, but it is an up-front charge, based on the entire balance. Providers that do not charge a balance transfer fee include Marks & Spencer Money and Sainsbury's Bank.

Many credit card holders pay off their bill in full each month. But if you are one of those who does not, then a decent rate on purchases is important. HSBC is running a branch and phone-only offer which gives new cardholders 0% on purchases for 12 months, and 4.9% on balance transfers until January 31 2012 (with a 2.5% fee). Thereafter, the rate reverts to a typical 15.9%.

And then there is Rupert Murdoch's Sky Card, which is offering a decent combination - 0% on purchases until March 1 2008, and 0% on balance transfers until the same date (with a 2.99% fee), with the rate then moving to a typical 16.9%.