Spotlight on: AA's Transfer Plus card

The deal

The AA's new Transfer Plus credit card offers a promotional rate of 6.9 per cent for the life of any balances transferred to the card in the first 60 days.

Good points

The rate is lower than average high street loan rates at the moment.

Bad points

There's a 2 per cent transfer fee. So switch a £5,000 loan to the card and you'll have to stump up £100 as well as the ongoing interest charges. If you go over your credit limit, the promotional rate will be scrapped and replaced with interest charged at up to 20.9 per cent.

Conclusion

The AA suggests people could use the card to buy "a new car, home improvements or a holiday of a lifetime". But rather than lumbering yourself with plastic, you could apply for one of the many personal loans on the market at below 6 per cent.