Halifax has re-launched its popular One Card this month, and is providing it with some innovative new features, such as a 0% APR anniversary offer - a first for high-street banking.
Much like its predecessor, the new-look card features the same introductory offer of 0% APR (annual percentage rate) for nine months on both balance transfers and purchases.
Many card providers take an 'either/or' approach to 0% deals, and Halifax estimates that the offer of 0% APR on both balance transfers and purchases could save a typical card user more than £58. However, it should be noted that the standard 3% balance transfer fee is one of the highest on the market.
The new card differs to the original by including a further 0% APR for six months on new balance transfers made from the start of the calendar month immediately following the first anniversary of the card. Halifax believes that this new feature will provide a unique way to reward customers for their continued loyalty.
This incarnation of the Halifax One Card features a standard APR of 13.9% once the 0% periods have expired. It also provides customers with cover against online fraud for purchases made on the internet, free card replacement and the ability to manage the card online.
"Customers have told us they want to be rewarded for their loyalty and we have responded to this," claimed Ken Stannard, head of Halifax Credit Cards. "The new-look One Card means not only do you get a great up-front deal but you can also get rewarded a year on.
"It is a best buy product which combines a low typical APR with both an introductory and anniversary 0 per cent offer. This is yet another high street banking first from the Halifax," he continued.
Criticisms
However, Michelle Slade, a personal finance analyst at online finance search engine Moneyfacts.co.uk, explained: "The new terms of this card place the Halifax deal in a competitive position, but it is by no way a market leader. Moneyfacts.co.uk best buy charts are nominated with 0 per cent deals of 12 months or longer. The balance transfer fee of three per cent is the highest on the market and standard rates lower than ten per cent can still be found."
She explained that the new feature on the card, which allows customers to transfer a further balance on the anniversary of the card at 0 per cent for six months with a fee of three per cent, promoted "a spending pattern which should not be encouraged".
"While paying off your existing balance transfer deal, you should not create another debt on a second card, which can then be 'bailed' out by a second balance transfer deal a year later," she explained.
"Credit cards should be used as a short term borrowing option, ideally to manage any cash flow mismatches, not as a longer term, hard core borrowing choice."
The new Halifax One Card is now available from all Halifax branches, over the phone and via the web.
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