Credit cards with no transfer fees and low follow up interest rates have become a very popular option amongst credit card buffs. These cards typically charge interest rate at 6.5% on the balances transferred from rival cards.

I think the best deal like this currently on offer is Barclaycards Long Term Balance Transfer (6.5%). This interest rate is lower than any overdraft or loan rate you’ll find. The credit card also provides you with far more flexibility regarding repayments, allowing you to repay the money in broadly your own time. For the first 10 months any purchases are interest free but thereafter, new purchases attract interest at 16.9% and your balances at this higher interest rate will not be repaid until your 6.5% balances have been repaid.

Also of interest is Citibank’s Life of Balance Mastercard. This has a low life of balance rate of 6.9% but there is also a transfer fee of 2.5%.

Abbey and Virgin Money still offer the best interest free deal. Both these deals last 15 months. Abbey charges a transfer fee of 2.98% and Virgins transfer fee is 3%.

Oh, by the way, unless your credit is perfect, don’t bother applying for any of these cards – you’ll stand no chance!