Credit card purchase deals fall to three-year low

Time could be running out for customers to secure 0% purchase rates as credit card deals fall to a three-year low, new analysis from monva has revealed.

The new AI powered comparison service – launched by former senior executives from MoneysuperMarket, MBNA and Virgin Money – found that 0% purchase periods have fallen across the board, with the longest length currently available sitting at 26 months, a four month drop year-on-year from 30 months in 2019.

The analysis also showed the number of cards on the market with 0% purchase periods has also fallen, dropping by 50 over the past three years, with monva revealing there are just 87 cards on the market as of April 2020, down from 137 in 2017. The past three months alone have seen 5 cards pulled from the market.

On average, monva’s analysis found the current length of 0% introductory purchase periods is 9.4 months, down from 11.5 months from their peak in 2018, as deals begin to shrink across the board.

monva CEO, Steve Wiley, acknowledged that there are still options available to customers, but that the market is beginning to “shrink rapidly” as lenders become “more cautious”.

“This means it’s likely we’ll see introductory purchase periods continue to fall even further over the upcoming months, which could spell bad news for consumers, many of whom may be considering an emergency credit card,” Wiley commented.

“Getting a credit card is a big decision that needs to be thought through properly, especially when it comes to being able to afford to pay back what you have borrowed. However, we are starting to see deals begin to creep down, which means that those who are in the position to take out a new card, but haven’t gotten around to it yet, should consider acting quickly.

“While, balance transfer cards haven’t seen as dramatic of a decline, it’s likely these will also begin to decline in the near future, so if your existing period is coming to an end, or you’re paying interest on credit card debt, it may be well worth considering a switch.

“Remember, any applications for credit can impact your credit score and impact your chances of getting credit in the future. Before applying for credit, be sure to use a service with a ‘smart’ or ‘soft’ search that can help you find the right card for your needs, without impacting your credit score.”

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