The Longest 0% Balance Transfer Card...Ever!

A 0% balance transfer is a brilliant way of getting to grips with your credit card debt.

This article was originally sent to Fools as part of our 'Summer Lolly' email series.

A 0% balance transfer is a brilliant way of getting to grips with your credit card debt. If you haven't quite got round to it yet, why not put it at the top of your `to do' list this summer?

Pick one of the best-buys and you won't need to pay a single penny in interest on your credit card balance until well after summer 2009.

Sounds great, but which of the fantastic 0% balance transfer credit cards should you go for?

Credit card balance transfers have become a fiercely competitive market, with the Capital One Platinum Balance Transfer Mastercard recently storming into the lead. This card now offers the longest interest-free period I've ever seen which runs until 1 November 2009.

That means you'll be able to put a full stop on your interest for almost 16 months.

But don't forget, balance transfers don't come for free these days. You'll need to pay an upfront fee of 3% of your balance for the privilege.

Although this is a great card with a really eye-catching interest-free deal, there's a downside -- you'll only be accepted if you have an excellent credit rating. If you don't, I think you're probably better off going for a different card which is a little less exclusive.

You could try Virgin Money's Credit Card instead. This card has been popular for a long time with borrowers because of its competitive 0% deal. In fact, you can enjoy an interest-free period which now lasts for a full 15 months.

Once again, there's a fee to pay of 2.98%, but I think that's a reasonably small price to pay to side-step interest for well over a year.  And you don't need a perfect credit history to get accepted either.

In fact, I'm so impressed by Virgin's card that I recently applied myself. I was accepted instantly online and offered a credit limit generous enough to cover my total credit card debt.

It's great to know that I won't run up any interest whatsoever until October next year. That should give me plenty of time to make a serious dent in my balance, if not clear it completely.  

What's more, Capital One and Virgin Money aren't the only cards to offer lengthy 0% deals. Take a look at the best of the rest below, which are all completely interest-free for more than 12 months:

The best of the rest

You really won't go far wrong with one of these cards as long as you stick to this golden rule:

The cards I've talked about in this article are the best ones to use for interest-free balance transfers only. But not all of them are good for spending. The Capital One Platinum Balance Transfer Mastercard, for instance, offers the longest interest-free period on balance transfers -- until 1 November 2009 -- but it only offers a 0% deal on new purchases until 1 November 2008.

That means, after 1 November 2008, interest will be charged on your spending at a rate of 15.9% APR unless you pay off your balance in full -- and that includes clearing your balance transfer too.

This is because the card operates negative payment hierarchy, which means your repayments will be used to pay off the 0% balance transfer first, leaving your purchases on the card for longer to rack up lots more interest.

If you want to use the same card for spending -- as well as your balance transfer -- always go for a card which offers the same interest-free period on both.

You could try a different card from Capital One, the Capital One Platinum card, which charges 0% on transfers and spending until 1 October 2009 (although you'll need an excellent credit rating to be accepted). Alternatively, go for Halifax All in One Mastercard which is interest-free on both for the next 10 months.

More: The Credit Card Credit Crunch