Lifetime BT

What is a Lifetime Balance Transfer Credit Card?

A lifetime balance transfer credit card is a credit card with a very low interest rate on balances you transfer to them. This is different than 0% balance transfer cards that charge a 0% introductory rate for balance transfers and then move to a higher rate after a set number of months.

Lifetime Balance cards were introduced because many people wanted super-low interest rates to pay off their high debt cards but found it too much of a hassle to transfer to a new card every few months to get the low introductory rates. Lifetime balance cards allow you interest rates that may be as low or lower than mortgage rates, on the amount of debt you transfer to them. This low rate will continue until the debt you transferred is paid off. This is an excellent deal if you have a large debt to transfer that will take several years to pay.

It is important to note that any new debt that is added to your lifetime balance transfer credit card will have a significantly higher interest rate. Also, your payments will be allocated to your transferred debt before it goes to pay off the new debt. What this means is your new debt will continue to rack up large interest payments at a higher interest rate while you are paying off your old transferred debt. Therefore, it is important to only use this card for larger debts, and only on the debt you transfer from other cards.

Ask the card provider if you are only allowed a one-time transfer, or if you can transfer other debts after you initially open the account. Ask if there is any additional fees associated with the card, and as always, it is important to read the fine print.
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