The longer the balance transfer period, the more time you’ll have to repay your debt with 0% interest.
Balance transfer credit cards can be a useful way to repay your debt by moving your high-interest balance to a card with low or 0% interest, helping you consolidate your debt without the high cost of interest. However, these promotional offers don’t last forever and you’ll eventually have to start paying the much higher revert rate. The longer the balance transfer, the more time you’ll have to repay your debt before the revert rate kicks in. This is where a long term balance transfer credit card could come in handy.
Here you can compare 9-24 month long balance transfers to determine whether a long-term balance transfer credit card is the right way to consolidate your debts.
How do long term balance transfer credit cards work?
A long term balance transfer credit cards works in the same way as a standard balance transfer credit card, but it has a longer promotional period. While some cards have 6 to 8 months balance transfer periods, long-term cards boast 9-24 month long balance transfer deals. If you have a large debt or know you have trouble meeting your minimum repayments, a long term balance transfer could be your solution.
Remember that at the end of the promotional period, any remaining balance will start attracting the much higher standard cash advance or interest rate. So if you think you’ll have trouble repaying your whole balance in a short period, you might want to consider a long-term balance transfer.
Long 0% Balance Transfer Credit Card
St George introduces this fantastic low rate balance transfer offer into the market. The card also features a low ongoing purchase rate and low annual fee.
- $55 p.a. annual fee
- 1% p.a. for 12 months (reverts to 13.24% p.a.) on purchases
- 0% p.a. for 18 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- Up to 55 days interest free
What else should I consider before applying for a long term balance transfer credit card?
- How long is the offer? A long term balance transfer credit card can last from 9 to 24 months. To determine how long will match your requirements, you’ll need consider the size of your debt and how much you can afford to repay each month. This should help give you an idea of how long it’ll take to repay your debt.
- What’s the revert rate? The promotional offer won’t last forever and a higher revert rate will apply once the promotion ends. Usually the standard cash advance or purchase rate will apply, so confirm this information in case you’re unable to repay your balance by the time the offer ends.
- What’s the annual fee? Long term balance transfer fees generally come with higher annual fees. Before applying, calculate how much you’ll save on interest with the low interest card by the time you repay your debt. If this number is lower than how much the annual fee is, then you’ll want to consider a card with a lower annual fee.