CONFUSED.COM COMMENTS ON CHANGES TO BALANCE TRANSFER MARKET

MBNA launch a new best buy balance transfer credit card while NatWest and RBS restrict their leading balance transfer deal to existing customers Last week MBNA launched a new Platinum Plus credit card, topping the best buy tables as the new market leading balance transfer credit card. With 0% interest on balance transfers for 16 months and a 2.9% handling fee, it offers customers a great way to save money by transferring existing borrowing from credit cards accruing interest. The 16.8% typical APR is competitive and the card also benefits from a positive payment hierarchy meaning the most expensive debt will always be paid off first. Chris Griffiths, head of Credit Cards at Confused.com, said: “This move signals MBNAs intent to attract new customers. It’s great for consumers looking to reduce interest payments through consolidation to see another provider launching a long term 0% deal. It will be interesting to see how this move influences the acquisition strategy for other providers, particularly Virgin who have historically competed aggressively in this space and whose credit cards are issued by MBNA. “Conversely, NatWest and RBS’s appetite for new customers in this space has waned. Having reduced the introductory period previously from a market leading 16 months down to 15 months, they will now only be accepting applications from existing current account customers. This mirrors the strategy of other high street lenders, such as HSBC and Halifax, who also only offer their leading balance transfer credit cards to existing customers. “Whether Barclaycard, who is currently offering their 16 month balance transfer product to all customers, or any other high street lenders follow suit remains to be seen. Providers such as Egg, MBNA and Virgin who don’t currently offer current accounts will have to continue to offer their products openly if they want to keep growing their customer base. “Customers looking for a balance transfer deal should shop around, consider what cards they currently hold and where they are looking to move a balance from as this will influence the options available. Customers also need to make sure they protect their introductory period by staying within their credit limit and ensuring at least the minimum required payment is paid off each month” ENDS For further information please contact Confused.com press office: pressoffice@confused.com 02920 494393