Christmas shoppers warned as best credit card deals withdrawn by Barclaycard and RBS
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CHRISTMAS shoppers have been warned of higher debt costs as major banks withdraw their best credit card deals. There has been a dramatic reduction in the number of banks offering 0% credit cards, meaning shoppers could be stung by interest rates. Consumers typically spend almost 30% more in December than any other month of the year, equating to an extra £740 at the checkout, according to the Bank of England.
![[Research has found credit card deals are less competitive than in previous years]](https://www.thesun.co.uk/wp-content/uploads/2024/03/close-up-shot-woman-using-864262481_9c2ebc.jpg?strip=all&w=960)
Unsurprisingly, this sees more than third of people use credit or finance to fund their festive splurges. But, experts at Fairer Finance have found there are far fewer 0% APR purchase credit cards available. And those remaining on the market are less competitive today than they have been in recent years.
In December 2022 seven credit cards offered a 0% APR introductory period for more than 20 months, including RBS, NatWest and Barclaycard. In November 2023 only Barclaycard offered a 0% deal for more than 20 months with the average time period for the rate falling to just 250 days.
With Barclaycard having now withdrawn this offer, this Christmas only Tesco Bank is offering a 0% deal for more than 20 months. Fairer Finance's researchers also observed a steady increase in interest rates. The average representative APR for 0% purchase credit cards has risen from 21.9% in 2022 to 24.9% today.
