By myfinances.co.uk staff
The UK’s credit card market is “open for business” once more as providers are actively pursuing new customers with a range of competitive deals.
Analysis from Moneyfacts.co.uk shows that over the course of the past year, the number of cards offering zero interest on new purchases for a period of at least ten months has risen by 450%.
Meanwhile, there has been a 20% increase in the availability of zero per cent balance transfer deals lasting ten months or more.
Furthermore, the site said that providers including NatWest, Royal Bank of Scotland, Barclaycard, American Express, Egg and Sainsbury’s Finance have launched reward programmes for credit card customers.
Despite the increase in competition, however, interest rates have continued to rise for the products, with the average APR now standing at 18.7%.
Moneyfacts.co.uk spokeswoman Michelle Slade said: “Competition has returned to the credit card market and card providers are actively trying to attract new business.”
According to the latest figures from the Bank of England, credit card lending increased by a net £200 million during April.
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