Permanent Balance Transfer Credit Cards

According to a recent survey conducted by Datamonitor, there are more UK credit cards in the country than there are humans! In fact there are two cards for every man, woman and child in the UK!

It’s hardly surprising when there are so many tempting offers and so many variations on a theme available. Quite often, your head can start to spin with all of the terms that you are bombarded with. That’s why it makes sense to sit down and understand each credit card variation and how this can affect you. As this can be time consuming, we have taken all the weight off of your shoulders and compiled all of the information for you.

Let’s now look at how a permanent balance transfer credit card, otherwise known as a low rate balance transfer credit card differs from the others.

A permanent or low rate balance transfer credit card really is a variation on a theme of a balance transfer credit card. The underlying difference is that:
This card does not have an introductory rate of 0% APR or an introductory low rate APR.
The interest rate remains low for the life of the balance that you transfer.

For example, if you transfer £5,000 from an existing credit card, the APR will not change after several months. It will remain the same until this balance has been paid off in full.

This type of card is for you if:

1. You have outstanding balances on a variety of credit and store cards and wish to consolidate them into one debt with a low rate credit card.

2. You feel that you would be unable to pay back the entirety of your debt that you wish to consolidate if you took out an introductory rate credit card. After all, you don’t want a huge hike in interest rates when the offer expires.

3. You don’t think you would remember to transfer the balance again when the offer on a balance transfer credit card expires and feel that this is the best option available for you.