The game of easily transferring balances from card to card to obtain indefinite interest free credit could be nearing the end with the announcement by Egg plc that they are to introduce a fee for every balance transferred.

Although Egg have increased their 0% period to 9 months, they have also introduced a charge of 2% of any balance transferred, with a maximum limit of £50.

While most people would still save money by transferring a balance, the introduction of a charge is seen by many as a sign that the credit card industry is looking for ways to curb a practice that is estimated to cost them around £1bn a year in avoided interest charges.

If other cards follow suit, then the balance transfer fee will become one more factor to weigh up when trying to see which cards offer the best value for money.

This entry was posted on Tuesday, May 3rd, 2005 at 9:45 pm and is filed under Balance Transfers, Fees and Charges. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.