Credit card firms fight for customers

COMPETITION in the credit card market is picking up as the leading providers unveil more new deals.

There has been a 450 per cent rise since last June in the number of cards charging no interest on new purchases for at least ten months and the number of cards offering zero per cent on balance transfers has increased by a fifth, according to Moneyfacts.

But the average interest rate charged on cards has risen to 18.7 per cent after significant rate hikes since January from providers such as Barclaycard, MBNA and Capital One.