The credit crunch is here - it's big and it's munching its way through the financial sector like some kind of fiscal Godzilla. If you are feeling the strain then taking on a new credit card may seem like the most ridiculous thing on the planet right now. Most people have heard about credit card companies freaking out, lowering credit limits without warning, and desperately trying to get rid of risky customers. However, many people have begun to notice that some card companies are in fact improving their services. Despite everything, some credit cards are actually become better value for money. This means that contrary to all logic, for some people - and bear in mind that doesn't mean all people - it is in fact a good time to get a new credit card.

At the moment, because of the credit crunch, 20% more people are being declined credit, loans and mortgages than in the past ? clearly an indicator that banks and other lenders are being more stringent in their lending criteria. Before you apply for a new credit card it is vital that you look at your credit rating. This will determine whether you are accepted for a card or not. If you know that you have a bad credit rating then it is better to work on improving your credit score rather than apply for a card straight away. Being rejected for a credit card may have a negative impact on your credit rating. The best way to ensure that your credit rating is good is to make repayments for the correct amount and on time.

The majority of those looking to change cards are doing so because they want to take advantage of 0% on balance transfer offers. In many cases this reduces monthly repayments and means that you can avoid paying interest on the amount you have borrowed, if only for a limited period. One way that card companies are attracting new customers currently is by making these 0% balance transfer offers more attractive. Some of the newest offers are highly competitive and, in some cases, even better than they were a few months ago.

Specific details of balance transfer offers vary from card to card. The lowest interest free period on balance transfers is around 5 months whereas some offer as much as 15 months. Other cards are offering free periods until a specific date (for example, 1st August 2009.) Of course, the cards offering a set date are designed to encourage people to apply sooner rather than later in order to make the most savings. Most cards also come with a balance transfer fee of around 2.5% although, once again, this varies from card to card. This means that if you transfer 2000 onto the card you will be charged 50 to do so.

One interesting result of the credit crunch is that some cards are getting rid of these balance transfer fees. In the past all cards came without fees and people changed cards on a regular basis. The credit card companies got wise to this and introduced fees to try and stop people from changing too often. Now in order to attract new customers some cards are once again getting rid of this charge. Some lenders are scrapping other charges such as cash withdrawal fees and foreign exchange fees. Whether other card companies will follow suit has yet to be seen.

If you are thinking of changing your credit card, perhaps to make savings on 0% balance transfer periods, it is wise to do so as soon as possible. As the credit crunch worsens it may become even more difficult to be accepted for new cards. There is no way of knowing how long the crunch will last or what will happen. Financial experts suggest that once you transfer a balance onto a new card you should focus on paying the balance off and not use the card for any other purpose. In reality this may be difficult as you may need to use the card in an emergency. However it is wise to try pay off the balance in full as soon as you can.