Could balance transfer fees be on the way down?

17 September 2008

Financial website predicts balance transfer admin fees could be reduced soon

Financial website MoneyExpert has predicted that balance transfer fees could soon be on the decrease because the market has become saturated with 0% interest offers.

The site said that the fees, which are normally around 2.5-3%, were likely to be the new feature for credit card providers to use to compete for business.

The group said that Barclaycard had already started the predicted trend by reducing the balance transfer admin fees on its OnePulse credit card from 3% to 2.5% even though it is still offering 0% on balance transfers for 14 months. Other card providers are predicted to follow suit.

During the past 18 months balance transfer fees, oterwise know as admin fees, have gradually gone up from an average of 1.7% in January 2007 to 2.4% today.

However the group said that because 75% of the market is currently offering a 0% balance transfer offer, providers are going to be looking for new ways to attract custom.

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