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Low lifetime balance transfers

Low lifetime balances can be better than 0%

Check your credit rating before applying
Who are they good for?
Best lifetime interest balance transfers
What to watch out for

What are low lifetime balance transfer credit cards?

These are cards that will take on the debt you owe on another credit card and they will let you pay it off on a low rate for as long as it takes you to pay it. So even if their normal interest rate is, say, 17%,you may only be charged 5% a year to pay off your debt. Some providers will charge you a transfer fee (between 2.5-3% on the whole) but others won't. You need to do the calculations and work out if the lower long-term rate is worth the extra transfer fee in some cases.

Who are these cards good for?

If you have an ongoing debt on a credit card that is currently charging you interest then it could be worthwhile switching it to one that doesn't charge so much. For some people it will be best to go for a 0% deal (particularly if your credit rating is good enough). Check here for the best 0% deals and how to get them.

Should I apply?

If your credit rating is not excellent then it may not be a good idea even to apply for one of these. If you think your credit rating might not be up to scratch then check out your credit rating first before wasting an application.

Remember that each time you apply for credit and get rejected you get minus points on your credit rating 'scorecard'. Get a 30 day free subscription to Creditexpert and check your score before applying (just remember to cancel it at the end of the free period if you don't want to continue with a monthly subscription).

Best lifetime interest balance transfers

Credit cards with 0% rates are great for giving yourself a payment break, but when it comes down to getting on top of your finances and paying back some debts – a credit card with low rate that stays low is what you need. Read through some of our best buys for credit cards with low rates that stay low.

Barclaycard's Platinum card offers a good long term deal at 6.5% until the debt has been paid in full. You also get 0% interest on purchases for 10 months. You must move all your debts to it within 60 days of opening the account to get the rate.

Capital One also has a fixed-rate card at 8.5% - fixed until August 2012. You must be at least 21 years old to apply. You also get 8.5% p.a. on purchases until 1st August 2012 and no balance transfer handling fee.

Be careful

When you transfer your balance to one of these low lifetime interest rates make sure that you cut your old card up and close that account down. Don't leave yourself the temptation of an empty card that you could just use to buy something you really don't need and make your total debt even bigger.

Also, make sure you don't use the new card to buy more stuff. This card is just a way of helping you pay off the debt quicker and cheaper. If you buy more things with it, not only will this increase your debt but you will be charged interest at the normal, high rate on the new purchases as credit card companies use your repayments to pay off the cheapest debt that you have. If you add other purchases to it they won't put your repayments towards paying those off. So, again, avoid temptation and, when you transfer a balance to this new card, cut it up as well so that you can't spend with it!

It also goes without saying that you should never use a credit card to withdraw cash from a cash machine. The charges and interest rates for borrowing cash this way are insane and will very quickly plunge you into far more terrible debt than you're in now.