AA Financial Services has launched a new long-term low-rate credit card that charges just 6.9 per cent on balance and money transfers for the lifetime of the debt.
The credit card charges a one-off fee of two per cent on all transfers made within the first 60 days of opening the account.
It could be a good product if you have high amounts of debts that you can transfer to a product that charges a lower rate than your existing one.
Unless you are able to secure the very best rates on personal loans between £7,500 and £15,000, it is likely that you will be paying more than 6.9 per cent in interest.
The AA points out that typical rates on a personal loan of £3,000 are 15 to 30 per cent, so the new Transfer Plus card offers a cheaper alternative.
Mark Huggins, director of AA Financial Services, says: "We believe this new AA Transfer Plus card, which offers a competitive, low rate for the life of the balance, is one of the most suitable on the UK market for helping consumers pay for significant purchases such as a new car, home improvements or a holiday of a lifetime; or for consolidating a debt over a longer period of time.
"There are few credit cards offering low long-term rates for UK customers. It is often difficult to find access to money at reasonable interest rates, such as unsecured loans.”