Is it Possible to do a 2nd Balance Transfer?
Posted November 15th, 2008 and last modified November 29th, 2012
It is absolutely possible, and sometimes beneficial to do a 2nd credit card balance transfer. The benefit of balance transfers to another credit card company is sometimes beneficial, especially in this economy where every dollar counts, and lowering bills to meet obligations is essential.
Most balance transfer credit cards give you a zero percent introductory rate, and sometimes even a discount or cash bonus to transfer to their company, and most times, these zero rates last six months to a year.
These balance transfers can save you bundles of cash and allow you to pay your balance principal down without the high interest rates being added each month. Taking advantage of this can really lower your debt quickly.
Paying down debt quickly enhances your credibility plus, all of your debt is in one place and consistent, regular monthly payments can keep you open to plenty of other offers.
Balance Transfer Credit Card Offer
Rather than doing a 2nd balance transfer, transfer your entire balance onto a longer term balance transfer credit card. The ANZ Low Rate credit card is currently offering a sweet deal for new cardholders. Take advantage of a low promotional balance transfer rate. Switch to an ANZ Low Rate credit card today! Apply online and receive a response within 60 seconds.
- $58 p.a. annual fee
- 13.14% p.a. on purchases
- 0% p.a. for 9 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
However, transferring balances for the sake of not having high credit card payments, without paying off the principal debt has its disadvantages.
Fees:
One of the downfalls of credit card balance transfers is the fee you incur. Nearly all balance transfer offers charge an up-front fee, some as much as 2-5 percent of your balance.
Introductory Period Ending/Second Balance Transfer:
Once this period ends, if your balance is not paid off the interest rate will shoot to the moon. This is the time to consider a second balance transfer. The considerations are based on how low your balance is, what your credit rating is, and if you can again attain a low balance transfer interest rate.
Running the Risk of Rejection
If you’re strategy for credit cards and debt consolidation involves constant balance transfers, you’re running the risk that your next credit card application will be denied. This is always a possibility, particularly since constant applications for new credit can affect your scorecard. The trick is to pay it down once the zero interest is in effect.
2nd Balance Transfers:
If done correctly, you may lose a few points on your credit score, but the benefits much outweigh the credit hits. Mostly because of the money you save. The main point is not to rack up more credit, but to lower it by holding off on charges, and paying down the debt.
Bottom Line:
The bottom line is that if you’re trying to buy a house, or in the near future need to have your bills paid, with no late payments you probably don’t want to start applying for credit card balance transfers – as your scorecard will not benefit you in a mortgage or auto loan situation.
Further, your scorecard is determined by your overall credit picture – so the number of cards is not a huge factor, however, high balances are, as well as late or missed payments.
The ultimate thing to do would be to get your debt down far enough, through credit card balance transfers, to carry no balance, and when you use your cards, pay off the balance each month. This is the smartest debt decision, for expense reasons and for credibility. The bonus: you’ll never have to worry about credit card interest rates again.
See the top balance transfer credit cards available in Australia for online application.
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I have just been informed that Citibank Australia is not accepting any balance transfers from other banks. Why is this?
Hi Dianne. This is news to us. Can you tell us exactly what the Citibank representative told you? We have double checked with Citibank and this is not the case. Thanks.