Life of Balance Transfer Credit Cards

How to choose a life of balance transfer credit card...

Life of balance transfer credit cards offer a solace from pricey monthly repayments and the constant hassle of switching between 0% deals when the introductory period expires.

ChooseMoney can help you select a credit card that offers a permanently low rate of interest until your transferred balance is fully paid off.

No more struggling, no more switching, no more spiraling debts - just one low rate for life. See how below!

:: These cards are good for:

Paying off your balance slowly over a long period of time. Once your balance is transferred, there is no further need to move it again. Life of balance transfer credit cards remove any worry of ending promotional periods, and the burden of escalating debt on a credit card charging a high interest rate.

:: These cards are unsuitable for:

Those of you likely to pay off your balance within 12 months. In this case you would benefit more from a 0% balance transfer credit card.

General purchasing, with the exception of a few providers highlighted in our life of balance transfer comparison table - however, the cards that are suitable for spending, are only suitable during an initial period and not throughout the entire duration of your use of the card for a balance transfer.

Look for:

- Lowest balance transfer interest rate
This is the most important feature of the card. If you are paying off a large balance over a number of years, just ½ percent could make a big difference to the total amount you repay. Some life of balance transfer credit cards do not offer a fixed rate, but instead, change their rates in line with fluctuations in the Bank of England's base rate. Check out our life of balance transfer comparison table to find the cards with the best interest rates.

- The ability to use the card for purchases
If you plan to spend on your life of balance transfer credit card, find out the potential to do so safely.

The most important question is: Will I be able to pay off the spending on my card before I clear the balance I have transferred?

When it comes to life of balance transfer credit cards the suitability for spending depends upon whether the card offers a lower (or the same) interest rate for purchases, and also the time frame your purchase balance will stay at a lower (or the same) rate as your balance transfer.

Although not a hard and fast rule for all credit cards, most will only allow you to repay the lowest rate balance on your card, and only when that is repaid in full, will you be able to repay any higher rate balances.

If you do spend on a 'suitable for spending' life of balance transfer credit card, it's vital you repay this balance in good time before the promotional purchase rate ends - otherwise your purchases will jump to a higher rate than your balance transfer, where they will become trapped, racking up hefty charges in interest - ultimately forcing you to either promptly repay your balance transfer, or transfer the whole lot to a new card.

Watch out for:

- Transfer handling fees
Unlike 0% balance transfer credit cards - which almost without exception charge transfer fees - most life of balance transfer credit cards won't charge you a handling fee. Make sure you check that they don't though, as some do.

- The true cost of purchases
Make sure you are aware of the conditions of using the life of balance transfer credit card for purchases. If the interest rate is very high, or you can only pay back the purchase amount after your balance transfer has been cleared, it is advisable to use a different credit card for purchases you may need to make.

Cash withdrawals are generally quite a costly transaction to make on any credit card, and the price to pay is always dearer on balance transfer credit cards - so remember to use your debit card if you need to get your mitts on some cash.

Don't forget:

- To transfer the money promptly
Many life of balance transfer credit cards will have a specific timeframe, in which, the balance transfer must be made. Miss it and you'll be left with a pretty useless credit card.

The timeframe is usually around 3 months, but it can be as short as just 30 days - so play it safe and transfer your balance during card application or as soon as your new plastic lands on your doormat.

- Monthly payments
Don't forget to pay your monthly repayments. It may sound silly, but miss a payment and you could lose the low interest rate on your balance transfer.

It is probably worth setting up a direct debit to ensure you always pay on time, or failing that, sign up for Internet banking, as most issuers will send you a monthly statement via e-mail so you know when you to pay.

Compare life of balance transfer credit cards