Friday 17th August 2007
Lifetime credit card balance transfers carry a high degree of flexibility, it has been suggested.
Heather Scott, head of corporate communications at Intelligent Finance, lauds the products over alternatives such as loans.
She claims that loans impose fixed monthly fees and may carry penalties for early repayment.
Meanwhile, with a lifetime credit card balance transfer, "you are not bound by a regular monthly payment but can choose to pay the minimum or indeed more".
But she warns Britons to ensure they only obtain such a long-term deal if they are sure it is the best option for them.
"We view it more as a niche product and one that depends very much upon prevalent market conditions," Ms Scott explains.
The advice follows the suggestion by Equifax that long-term interest free balance transfers can help protect individuals credit ratings.
Making frequent applications for new credit cards as introductory offers run out can appear desperate and reduce the likelihood of approval, the financial intelligence service claimed.
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