Halifax bows out

The days of the pure 0 per cent credit card deals may be numbered

The rate tarts who jump from card to card often taking their outstanding balance with them cost the industry an estimated £600 million a year. Some lenders have brought in balance transfer charges, and most of them are making their offers look a little less good to be true. Halifax is the latest to act.

The bank will continue to offer 0 per cent on purchases, but only for three months instead of the generous 12 months it has offered until now. Once the time limit is up, Halifax customers will pay more for their borrowing, as the APR has gone up from 12.9 per cent to 15.9 per cent on purchases.

The move means that the bank drops out of Moneyfacts' best buy table for introductory offers. But the bankers are probably quite relieved to kiss goodbye to their league position. It has been one of the best buys for 12 months, attracting customers who don't intend to give it any money at all.

The move follows a report by PwC, the consultants, which suggests that lenders will start to charge an annual fee for cards, disgruntled as they are by the rate tarts' ability to avoid paying any interest. If you want a 0 per cent credit card to fuel a Christmas spree, act with unseasonal greed and haste.