New credit cards that could help to ease the pinch

Since the onset of the global credit crunch all we seem to have heard in the financial news is doom and gloom, with report after report about how difficult credit conditions have become and how expensive it has become to get any sort of finance.

However, whilst many lenders, such as mortgage firms, have certainly had to scale back on their lending and cut back on their products, there are some sectors of the finance industry that are managing to weather some of the effects of the global credit crunch.

Whilst credit card companies have certainly tightened up on their lending criteria in the same way as other lenders have there are also some credit card firms that have launched various new products.

Of course, like any financial product it is important for consumers to check any new product before making any commitment to ensure suitability, but some of the credit cards that have recently been launched by a number of banks and card providers could benefits consumers in a variety of ways. Below are a few of the recent credit cards that have been launched:

Abbey’s Zero credit card

The Zero credit card from the Abbey has been welcomed by consumers and many industry officials. This credit card offers six months interest free credit on balance transfers and new purchases, six months of free cash advances with no fees, and no foreign exchange fees, which is ideal for those heading off abroad. There is also no balance transfer fee charged, which could save some people a fair amount, as the usual fees is on average between 2-3% on most cards.

One official recently stated: “The launch of this card is fantastic news for consumers. Not only will those looking for a short-term balance transfer deal benefit but also those who are about to embark on their summer holiday. In a world where rates and charges are increasing on credit cards its good to see a lender bucking the trend and removing some of these charges.”

However, this card may not suit everyone, as another industry official pointed out: “Around 80 per cent of credit cards offer a lower standard APR on purchases compared to Abbey’s Zero card. And its standard balance transfer rate of 18.9 per cent is among the highest go-to rates on the market – only thirteen cards have a higher rate of interest if you choose to transfer a balance after the introductory rate expires.”

“Around 80 per cent of credit cards offer a lower standard APR on purchases compared to Abbey’s Zero card. And its standard balance transfer rate of 18.9 per cent is among the highest go-to rates on the market – only thirteen cards have a higher rate of interest if you choose to transfer a balance after the introductory rate expires.”

The Halifax All in one card

The recently launched All in One credit card from the Halifax stormed onto the scenes boasting ten month’s worth of interest free credit on both balance transfers and new purchases.

Industry officials said that whilst many may be able to benefit from the equal interest free periods on balance transfers and credit cards, there were longer interest free periods available from other providers if the consumer were to take out a balance transfer card and a purchase credit card separately.

One official stated: “Halifax’s All-in-One card looks like a pretty generous offer in a market where as many as five million of us are struggling to make repayments and some credit card companies are either looking to dump customers or reduce the credit limits of certain customers.”

He went on to state: “Savvy consumers with a strong credit record can do better however if they’re after a balance transfer card. Halifax’s 10 month balance transfer period looks pretty small when compared to the Virgin Money 15 month offer and the 14 months Barclaycard are offering on two of their cards. Similarly, if you’re looking for the longest possible introductory purchase rate, then you can expect a full 12 months with the HSBC MasterCard.”

The Saga credit card

A credit card was also recently launched by Saga, and one of the main benefits that this card offered was a fairer repayment order, where repayments are allocated to the most expensive debts first rather than the other way around, which is the case with most credit cards.

Officials from Saga said that this could save some consumers a lot of money in interest if they tend to spread their repayments. Again, this credit card offers 0% interest on balance transfers and new purchases for the first six months,

A Saga official said: “This is another product from Saga which puts the customer’s needs first. Not only does it offer 0% Foreign Currency charges when using the card within Visa Europe, but also offers a fair order of payments, and 0% Balance Transfers and Purchases for the first 6 months.”

The American Express card

Credit card giant American Express launched a new credit card last week that enables cardholders to accrue points to use towards travel related purchases. The card offers one point per pound spent, and points can be redeemed against a range of travel related products and services, such as flights, train travel, car hire, hotels, and package holidays.

An Amex official said: “Our strategy is to reward Cardmembers on an on-going basis for their spending with us. We are continually looking for innovative ways to reward our Cardmembers. We are expecting this Card to appeal to leisure travellers, who are not only looking to get best value for their travel expenditure but also want added safeguards to ensure their journey is a smooth one.”