Are you struggling to repay your debt? Consider a long-term balance transfer with 18-20 months interest-free.
If you feel as though you might never have your debt under control, then a long-term balance might be your solution. With a longer interest-free period of up to 20 months, you can repay your debt without the burden of high interest rates.
Compare the benefits, features and restrictions of a long-term balance transfer to see whether it’s the key to your debt consolidation.
Compare Long Term Balance Transfer Credit Cards
Rates last updated September 30th, 2016.
- HSBC Platinum Credit Card
$0 annual fee + 0% for 15 months on balance transfers offer extended until 31 December 2016
September 1st, 2016
- American Express Platinum Edge Credit Card
Standard 10,000 bonus points offer has replaced the 30,000 bonus points exclusive offer.
September 1st, 2016
- Virgin No Annual Fee Credit Card
Balance transfer offer has been extended to 31 October 2016.
September 26th, 2016
What is a long-term balance transfer?
A long-term balance transfer allows you to transfer your debt from a high interest credit card to a new credit card under a longer low interest period. While most balance transfer offers only last for six months, long balance transfer offers generally give you between 12 and 24 months to pay off your debt. Long-term balance transfer credit cards are designed for cardholders with a high outstanding balance, meaning they need a longer period to repay their balance. If you’re struggling to repay your large credit card debt, a long-term balance transfer will give you more time to repay your debt at a low or 0% interest rate before the offer ends and reverts to the standard high rates.
How much am I allowed to transfer?
The total amount you can transfer will depend on the conditions outlined by the bank you complete the balance transfer with. While some may let you transfer up to 95% of your credit limit, others may only allow you to transfer 80% of your total credit limit. Your maximum credit limit will be decided based on your financial circumstances and credit history.
If you’re carrying a large debt, it’s especially important to consider whether you can transfer the entire amount before applying for the card.
Mistakes to avoid with long-term balance transfers
To ensure you make the most of the long-term balance transfer offer, you should avoid the following mistakes:
- Completing multiple balance transfers. Too many balance transfer applications will have a negative impact on your credit score, which will decrease your chances of being approved for the balance transfer. If your application has been rejected, take a few months to research your options and to give your account some breathing room before applying for another card.
- Making purchases on your new credit card. The purpose of a balance transfer is to repay your debt in full during the promotional interest period and get your finances in line. Using your balance transfer card for purchases isn’t recommended, as it will only add to your debt. Plus, your repayments will automatically go to the debt that’s accruing the highest amount of interest (which is most likely going to be the purchases). This means that you’ll be wasting time and money repaying your purchases when you should be taking advantage of the low or no interest balance transfer period.
- Only meeting your minimum repayments. Only paying the minimum is unlikely to cover your entire debt by the end of the promotional period.If you have the opportunity to put more towards your debt than the monthly minimum requirement, you’ll clear your debt faster. For example, if you have a debt of $5,000 and only paid the minimum each month, it could take you up to 10 years to pay it off in full. Alternatively, if you paid $208 each month, you could have your debt fully repaid over a two-year period, which could be the length of your long-term balance transfer card.
A long-term balance transfer could be your solution to clearing your debt and having a healthy credit report. By designing a realistic budget and working hard to stick to it, you can have your debt cleared before the end of the promotional period.
How to use the Balance Transfer Calculator in 4 easy steps and learn how much you can save today
Step 1. Enter the total debt/outstanding amount you would like to transfer
Step 2. Provide the interest rate that you are paying on your existing debt (if you don’t have your interest rate on you, the average is around 18-20%)
Step 3. See the ‘Interest Saved’ column to find out which credit cards will save you the most money. Click on the ‘Interest Saved’ title to sort the cards in ascending or descending order of money saved
Step 4. Compare the credit cards available in the table provided to find the card that suits your needs. If you still want to find out more about a particular credit card, click the ‘More info’ link for a full review on the features and benefits.
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