There has been a flurry of activity on balance transfers in the credit cards market this week, with MBNA and Barclaycard both launching attractive new products.
MBNA has launched a new credit card that promises no handling fee on balance or money transfers made within the first three months of the account being opened.
The product comes with an introductory offer of 1.9 per cent for 12 months, while the standard rate for purchases is 16.9 per cent.
MBNA's new card is also environmentally friendly, with accounts set up to be paperless by default and customers able to keep track of their transactions online.
The provider is hoping that it will appeal to those looking for a short-term solution for clearing debts, thanks to the fact that there is no handling fee on transfers.
Will Curly, head of European card services at MBNA parent company Bank of America, said: "We know this product will appeal to many of our customers, particularly those looking to pay down their debts over a short period with lower fee."
At the same time, Barclaycard has ensured a spot on many best-buy lists thanks to its decision to extend the interest-free period on balance transfers to 16 months on its Platinum card for new customers.
The credit card sports a handling charge of 2.9 per cent on balance transfers and also boasts interest-free purchases during the first three months, with typical interest set at 16.9 per cent APR.
Customers will be able to use the Platinum card's contactless technology to pay for small transactions without entering a Pin at a number of retail outlets and transport hubs.
The new card has been welcomed by experts, many of whom are recommending it for consumers whose primary function will be balance transfers.
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