Guide To Lifetime Balance Transfer Credit Cards

Who else wants to transfer their balances into 1 credit card for life?

Don’t let your 11%+ interest rates sit around for over a year accumulating as you pay the absolute minimum. Consolidate your balance(s) into one single low lifetime balance transfer credit card rate and save an incredible amount.

Table of Contents: Guide to Lifetime Balance Transfer Credit Cards

• Compare lifetime balance transfer credit cards
• Which is the best lifetime balance transfer credit card?
• How do Balance Transfer for Life credit cards work?
• How to compare Lifetime Balance Transfer Credit Cards
• How to use a Balance Transfer for Life credit card

If you need to find out more about long term balance transfers, browse through our credit card balance transfer resources or use our balance transfer calculator to find out how much you could save.

Best Lifetime Balance Transfer

If you are looking to clear an existing debt then this card is for you. The Citibank Platinum Credit Card offers a low 3.9% p.a interest rate on balance transfers for the life of the balance transfer. You can also enjoy the freedom of a higher credit limit, and a discounted annual fee for the first year - combined with complimentary international travel and transit accident insurance, purchase cover insurance, and a personal 24 hour concierge service.

• $125 (First Year, Save $125) annual fee
• 20.74% p.a. on purchases
• 3.9% p.a. for life on balance transfers
• Cash Advance Rate of 21.24%
• Minimum Income Requirement of $50,000 p.a.

Click here to read the Citibank Platinum Card terms and conditions

3.9% p.a. 'For Life' Balance Transfer Offers

Unless you have over approximately $10,000 in balance’s to be consolidated, the lower rate on the latter cards will likely not compensate for the higher annual fee of the 'for life' offers. These credit cards also require a good credit file for application approval.

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
Citibank Platinum Card	50% off the annual fee for the first year. Exclusive benefits such as 24/7 concierge service, generous credit limits and a low for life balance transfer offer.	20.74%	21.24%	3.9% for life	$125 (First Year, Save $125)	55
Suncorp Clear Options Platinum	Large range of rewards program. Complimentary travel insurance.	19.99%	19.99%	3.9% for life	$205	55
Bank of Queensland Platinum Visa Card	Earn 2 Q Rewards Points for every $1 spent, with no points expiry. Includings international travel insurance, purchase cover insurance and extended warranty on purchases made for up to 1 year. Enjoy a 3.9% p.a. for life balance transfer offer.	20.24%	20.74%	3.9% for life	$199	55

2.9% p.a. for 12 month Balance Transfer & Long Term Balance Transfer Offers

These offers are ideal for those who wish to pay a low annual fee on their credit card, and have a low standard interest rate on purchases after the balance transfer offer has expired.

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
Suncorp Clear Options Standard Visa Card	The clear choice for consolidating your debt over 12 months with a very competitive balance transfer offer and a low annual fee	12.24%	17.99%	1.9% for 12 months	$39	0
Citibank Silver Card	Get a credit card with rewards, and a great balance transfer offer. Generous credit limit of up to $7,500.	20.74%	21.24%	2.9% for 12 months	$89	55
ANZ Frequent Flyer Classic - Balance Transfer	Get in control of your finances with a 2.9% p.a for 12 month balance transfer offer and earn Qantas Frequent Flyer points on everyday purchases.	19.49%	20.74%	2.9% for 12 months	$95	44
Citibank Gold Card	Consolidate your debts with a 1.9% p.a for 12 month balance transfer offer.	20.74%	21.24%	1.9% for 12 months	$149	55

2.9% Balance Transfer Credit Cards For 12 Months

Are you after 2.9% balance transfer credit cards? Just as well you are because we have got quite the deal for you to choose. Short of stumbling through all Australian bank branches to find you all available deals we have actually scoured the web for the same.

Fuelled with burst of caffeinated breaks we think we found the top of the cream of all 4.9% balance transfer credit cards for you. Enjoy the selection process.

An overview of Australian 2.9% balance transfer credit cards:

If there is a better deal than getting 2.9% balance transfer for a 12 months period then it is called getting the deal for life.

Offering those promising features is Citibank:

• Suncorp Clear Options Standard Visa credit card
• Citibank BP Card
• Citibank Emirates Platinum Card

Why would one choose a 2.9% balance transfer credit card for 12 months anyway?

It's simple really. Instead of choosing a 0% interest rate card that will revert to a much higher interest rate after six months you can gain more by dealing with a 2.9% card.

Mind you, you need to have a substantial amount of existing debt to fully benefit from one of these cards, little debts are better served with the 0% balance transfer version whereas very large debts should consider a personal loan instead.

These cards are ideal for those wishing to pay a low annual fee and own a low standard variable interest rate after the initial balance transfer offer has expired.

How Do Lifetime Balance Transfer Credit Cards Work?

Balance transfers for life credit cards work by allowing you to shift a debt from a higher interest card to a lower interest card.

Over time, balances can build on credit cards and store cards. The interest rate on a credit card ranges from around 10% to nearly 20%, and store cards are just not funny. The average debt on an Australian credit card is more than $3,000, which means there are people who are carting around a far higher burden.

The obvious solution to this is to find a credit card with a lower rate of interest. Although there are offers of 0% on balance transfers, these last for a shorter period before the regular rate kicks back in. A balance transfer for life is a better option if you have a larger debt to settle, and, despite your best intentions, you envisage it lasting beyond the timescale offered by a fixed-period interest rate offer. This assessment will depend on your personal finances at the time, and how you predict them panning out over the next few years.

The basic process with a lifetime balance transfer credit card:

1. You initiate the transfer - This can be done during the application process, or later using special forms, over the telephone or via the internet. Make sure you don't delay with this, or the offer could expire, and the sooner you transfer the debt the sooner you will begin to enjoy the lower rate of interest.
2. You pay as much as you can every month - As you have the "luxury" of a balance transfer for life as opposed to one for six or twelve months, you do not need to go mad with this and starve the kids to pay off a few extra dollars, but you equally should not lose track of the importance of settling your debt as soon as reasonably possible.
3. Never fail to pay the minimum payment - However dire your finances may be for that month, always pay the required amount. If not, you will be charged a late fee, it will appear on your credit history, and you may even forfeit your special rate.
4. You watch the balance reduce month by month - This is the ideal scenario and it is perfectly achievable if you approach your card with the right attitude.
5. You treat your card as though it's radioactive - This is the above-mentioned right attitude. Do not touch your card for any reason. Do not have it in your wallet or purse. Keep it locked safely away (although the container does not strictly speaking need to be lead-lined).

This last point is perhaps most important. Any extra activity on your card, be that purchases or cash transactions, will mean your balance transfer for life will not work effectively. These amounts will, in effect, form a separate amount within your total debt, and this portion will not reduce until your transferred amount has been paid off in full. In other words, it will sit and accrue interest at the standard rate for however long it takes for you to clear the balance transfer, even if that takes years.

How to compare Lifetime Balance Transfer Credit Cards

However attractive a 0% balance transfer rate appears, if you have honestly assessed your level of debt and realize that the shorter period attached to the 0% rate is just not long enough, then you may want to compare balance transfer for life credit cards.

A balance transfer for life is something of a misnomer as it almost sounds like a debt you can only fully pay off on the day you die. Actually, they exist to try and help you avoid keeping a debt that feels like it's lasting a lifetime. The "life" bit obviously refers to the transferred amount, and it means that when you transfer your debt it will attract the advertised low rate of interest for as long as it takes for you to completely clear it.

Simplify your balance transfer for life comparison:

When you make a balance transfer for life comparison, you will need to do some research first to find the lowest rate available. Other things to take into account will be the annual card fee, and the percentage rate that is used to work out the balance transfer fee. Beyond this, although it is always a good idea to check out the fine print of any deal, you shouldn't really need to consider too much more than the interest rate that applies for the life of your balance, and whether this is fixed or variable. A variable rate may fluctuate according to the economy at large, and it is your call as to whether you want to roll with that or plump for a fixed rate to remove any doubt. Rates vary from around 5% up to around 9%.

If you are approaching this in the right way, the other features of the card should be largely moot because your new card should not be used for anything other than clearing your balance. If you follow that advice when you compare balance transfer for life credit cards, then issues about cash transactions, interest rates on new purchases, interest-free days on purchases etc will not matter. Bear in mind that credit cards often work best when kept for a single use. They may possess a number of features, but some of them will not be good for your pocket - like cash advances - and may cause more issues than they solve. Some features can end up clashing with each other, where one use voids another, or causes it to be more expensive.

To explain in a little more detail, let's look at new purchases. New purchases may be subject to a special introductory rate, but will more likely just be set at the standard interest rate for the card, which may range from 10% to 19%. It is important to understand that there is a payment hierarchy that operates where balance transfer cards are concerned, which means that your repayments go to clear your transferred amount first. If you take three years to pay off your transferred debt, then your new purchases will accrue interest at the higher rate for that entire time. That's a lot of interest, and it will very likely negate any benefits you were aiming to achieve through getting the card in the first place.

Finally, remember as you compare balance transfer for life credit cards that, as with any balance transfer card at any rate over any period, you should never use your new card for cash transactions. These are expensive at the best of times, but when used on a balance transfer card they will join any purchases at the back of the repayment queue until the transferred amount has been paid off in full.

How To Use A Lifetime Balance Transfer Credit Card

If you have received your balance transfer for life credit card and you are wondering what happens next, here is some advice:

1. Make whatever transfer you wish to make as soon as you can - This is for two reasons. Firstly, the sooner you transfer the debt, the sooner you will begin to enjoy the lower rate of interest, and secondly, there may be some time limit imposed on your eligibility to make such a transfer, which could be as little as thirty days. If you don't get started immediately, you may find that time has slipped away from you and all you have in your possession is another credit card to spend on. The best time to make a balance transfer for life is when you are making your application, where a section will exist for you to fill in the required details so that the transfer can be initiated.
2. Know exactly how the balance transfer for life can be set in motion - If you have not made your balance transfer request during the application process, you can use the special forms that will have arrived with your card, or you can do it via the telephone or internet banking facilities.
3. Work out a repayment budget - Just because it is termed a balance transfer for life does not mean it has to last that long. "Life" refers to the life of the loan, not your own longevity. Your intention should be to pay off your debt as soon as you can, so it is important to sit down and form a plan of attack. Remember that your debt may well actually grow over time if all you pay off the minimum amount required every month. It is in your own interest to do this, however that should not mean you raid money set aside for everyday living expenses. You have to eat, and your co-workers will not thank you for saving on detergent by not washing your clothes.
4. Always make your minimum repayments - This is vital to avoid late fees which will only add to your debt. Failure to make this payment may in some cases even lead to your special balance transfer for life rate being withdrawn, so that your debt reverts to the standard rate of interest. It could also adversely affect your credit rating.
5. Keep your card for one purpose only - You took your balance transfer for life credit card for the purpose of your balance transfer, so keep it that way. Do not make any new purchases with it, or perform any cash transactions. They will, in effect, form a separate amount within your total debt, and this portion will not be reduced until your transferred amount has been paid off in full. In other words, it will sit and accrue interest at the standard rate for however long it takes for you to clear the balance transfer, even if that is years. Ouch.

Debt Consolidation with a Balance Transfer

The Citibank Platinum Card offers a great rewards program, combined with a 4.9% balance transfer for life. The unique thing is this card allows you to transfer non-Citibank personal loans, as well as existing credit card debt and store card balances.

• $125 (First Year, Save $125) annual fee
• 20.74% p.a. on purchases
• 3.9% p.a. for life on balance transfers
• Cash Advance Rate of 21.24%
• Minimum Income Requirement of $50,000 p.a.

Click here to read the Citibank Platinum Card terms and conditions

• How To Calculate Your Minimum Monthly Repayment On A Balance Transfer For Life

  If you do the maths, more often than not, a balance transfer for life credit card offer, could be more beneficial to you in the long run, as you remain on a lower interest rate on your credit card balance.



• Can You Spend on a Balance Transfer For Life?

  This article looks in to the question we received, asking whether or not it is possible to do spend on a balance transfer for life credit card.







Editor's Choice: Our Top Credit Cards




Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0