Abbey has attracted a great deal of attention with the launch of its new Zero credit card, which offers 0% on balance transfers and purchases for six months, as well as 0% on foreign exchanges and cash advances. In the current financial climate this is a very attractive prospect and if you are planning to use it for holiday spending it is ideal. Experts however, warn that for longer term use it could prove more costly.

"We promised the market that we would continue to innovate and that is exactly what we've done. The Abbey Zero card is the first ever card to eliminate all these fees at once,” comments Roger Lovering, Managing Director of Abbey Credit Cards. “"With no balance transfer fee and six months interest free, it's the perfect card to transfer a debt you want to pay off quickly and has clear advantages for the summer too.  No foreign exchange fee makes holiday spending less expensive and Zero also has no cash advance fee for those rare times you might need cash in an emergency."

Michelle Slade of Moneyfacts has welcomed the card:"The launch of this card is fantastic news for consumers. Not only will those looking for a short-term balance transfer deal benefit but also those who are about to embark on their summer holiday. In a world where rates and charges are increasing on credit cards its good to see a lender bucking the trend and removing some of these charges."

Sean Gardner of MoneyExpert.com agrees it is perfect for holidaymakers. "In this case the best that can be said is that this is the only card, which won't penalise you for taking out cash abroad, so your best bet is to use it for summer spending. The interest free credit on purchases will also mean you can stave off the interest bills until Christmas if you splash out while on holiday.”

However he says if you are looking at longer term use other credit cards may be more suitable.  After the six months interest free period the Abbey Zero APR on all purchases will be 18.9% and 25.9% APR on cash advances calculated from the day of withdrawal. A £12 fee will be applied to all late payments, exceeding the credit limit, returned cheques and returned direct debits.

"If you are looking for a fee-free card then Capital One and Norwich & Peterborough both match Abbey's six months interest free on balance transfers with no charge,” says Sean Gardner. "Abbey's Zero card isn't a best buy on purchases or balance transfers. So if you're one of many looking for a lengthy balance transfer or you're about to make a big purchase then you're probably best to steer clear, despite the lack of fees. Around 80% credit cards offer a lower standard APR on purchases compared to Abbey's Zero card. And its standard balance transfer rate of 18.9% is among the highest go-to rates on the market, only thirteen cards have a higher rate of interest if you choose to transfer a balance after the introductory rate expires.

There is no doubt that the Abbey Zero credit card is a breath of fresh air in the wake of the current credit crunch. But the key is to be a savvy user, select credit cards very carefully, to suit your different needs. Always look closely at the offers available and the long term costs involved.