Halifax Turn Up the Heat on Rivals With Launch Of New One Card

Next week will see Halifax’s latest foray into the UK credit card market with the launch of the Halifax One Card, which will offer a 0% interest rate on both balance transfers and purchases for nine months.

A further bonus for customers of the new card will be the low rate of 9.9% that the card will revert to once the introductory period has expired.

Halifax claim that customers of the new One card could save as much as £262 in their first twelve months with the card compared with the typical rate of 16.9% of most UK credit cards.

One slight drawback is that the One card levies a 3% fee for balance transfers as opposed to the typical market fee of 2%.

However, the benefits of the card appear to outweigh any negatives as the card does not charge an annual fee and also offers free cover to protect against online fraud as part of the package.

Ian Larkin, head of Halifax credit cards, said: “ many providers will offer zero per cent on either balance transfers or purchases. We’re offering both, coupled with a market leading typical APR.

“ No other high street provider has such a strong overall offer.”

As with the leading UK credit cards, the Halifax One Card also offers its customers interest-free credit on all purchases as long as the balance is cleared in full each month.

The UK credit card market is one of Britain’s most fiercely competitive personal finance markets and is subject to the major players constantly vying for consumers’ custom by offering aggressive offers. The Halifax typical rate of 9.9% represents excellent value when compared with several of the markets leading credit cards such as Barclaycard (17.9%) or Natwest (16.9%) for example.

However, customers should always shop around when considering credit cards as different cards are aimed at different people all with various circumstances. While one particular card may suit one person, it may also be totally unsuitable for another.

One thing is for sure, no matter your personal circumstances and finances, with the plethora of credit cards and deals on offer in the UK, there will be a card that suits your needs as well as your pocket.

Alisdair Milton
19th July 2006

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