The Best Lifetime Balance Transfer Credit Cards

If you don't like the hassle of introductory 0% credit card deals, a 'lifetime balance transfer' is your next best option.

As someone who has been steadily paying off the cost of some home improvements from four years ago, I become quite used to transferring the ever-decreasing debt from one interest-free credit card to another.

I believe I'm on my fourth or fifth card now and I reckon that, this time, when my 12 months is up, the debt will finally be gone. While you may think that applying for a new credit card every few months must have been a pain, I can assure you that paying off my 'free' borrowings over a long period has been positively painless.

Of course, 0% credit cards are not quite the bargain they once were with most lenders now charging balance transfer fees of around 2-3% in order to make a few quid out of people like me. And, if you're not the sort to apply for a new card every now and then, a lifetime balance transfer card is probably more your bag.

These offer a low fixed rate deal which stays in place until the balance on the card is paid off. Rates are often lower than even the 'best buy' personal loan rates, so are better than using a consolidation loan and you don't have the hassle of having to transfer your debt to when an introductory offer has petered out.

Note that lenders have started to introduce fees for lifetime balance transfers but according to Moneyfacts the best rates on offer at the moment are:

Credit Card	Interest rate %pa	Fee
Marks & Spencer Money &More Mastercard	3.9%	None
Citi Online Platinum Life of Balance MasterCard	4.9%	2.5% up to a maximum of £75
Intelligent Finance Life of Balance Visa	4.95%	None
Lloyds TSB Advance MasterCard	5.5%	2.5%
Halifax Balance Transfer MasterCard/Visa	5.94%	3%
Sainsbury's Bank MasterCard	5.94%	None

However, the key to paying off a lifetime balance transfer card is not to spend on it! New purchases will usually attract a higher rate of interest and your new borrowing will normally go to the back of the queue to be paid off although both Intelligent Finance and Sainsbury's Bank are offering an introductory 0% rate on new purchases for eight and ten months respectively.

If you think you'll be able to pay off your card by July 2010, then the Morgan Stanley Platinum card is also worth considering as it charges just 3.9% APR although there is a transfer fee of 1%.

Check out the great lifetime balance transfer deals - compare credit cards