Moving your credit card debts to a cheap long term home is a great way to cut costs and move towards being debt free. Lifetime balance transfer credit cards offer low interest rates but still vary in cost so finding the best card is essential.
If you want to move your credit card debt to a cheaper home until it’s paid off then opting for a lifetime balance transfer card could be the best choice.
This type of card typically offers a low interest rate on balance transfers either for an extended period, or until the balance is repaid in full.Many life of balance credit cards also extend the low interest rate to purchases too.
Both facilities give you a means of spreading the cost of a purchase, or repayments of a debt over a number of years while minimising the interest that accumulates.
In many instances a life of balance credit card will offer a more competitive rate than would be available on a low rate loan - particularly for lower value amounts - but gives you the flexilbility to repay your debt at a rate that suits you, and even clear it early without incurring charges.
The main factor that will determine the cost of a credit card with long term balance transfer facility is the interest rate.
It is this interest rate that will be applied to your debts until they are cleared and if you are going to take several months, possibly years to repay the balance even a small difference could save you hundreds or even thousands of pounds.
As a result when looking for the best life of balance transfer offers, getting the lowest interest rate possible is of paramount importance. You need to check whether the rate applies to both purchases and/or balance transfers, and if an end date is specified or if it applies until you clear the balance completely.
Another factor that will determine how cost effective a lifetime balance transfer card is will be the transfer fee. Previously many lifetime balance transfer offers allowed you to transfer the balance without a fee, however more and more now impose a small percentage charge when the debt is transferred.
While over the long term the balance transfer fee may not be as crucial as securing a low interest rate, it is still likely to influence which lifetime balance transfer credit cards are best for your circumstances.
If you feel that you will be able to repay you outstanding debts in a shorter time frame or are happy to move your debts again at a later date, then a 0% balance transfer card may be a cheaper alternative to life of balance credit card transfers.
You can compare low interest for life of balance credit cards using our life of balance credit card comparison table.
