Balance transfer for life credit cards are best suited for those that need time to pay of their credit card debt without having a high interest rate to battle. When you compare balance transfer credit cards to other credit cards, you will see that these cards can save you thousands of dollars in the long run.
Have a worry-free tomorrow when you transfer you balances to St George Vertigo. It has incredibly low rates for balances and purchases.
- 13.24% p.a. on purchases
- 0.99% p.a. for 12 months on balance transfers
- $55 annual fee
- 21.49% p.a. on cash advances
Once you begin to compare balance transfer credit cards you will see that they are best suited for people that would like to have more than a year to repay their balance. If you are paying a high rate of interest currently on a credit card then it is costing you a lot of money. With this type of card you can clear up your balance with a lower-than-average interest rate that remains in effect until your balance is completely repaid.
Long Term Balance Transfer Credit Card Comparison:
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
 St George Vertigo |
Take control of your finances with a low balance transfer offer for the first 15 months. | 13.24% | 0.99% for 12 months | $55 | 21.49% |   |
 Bank of Melbourne Vertigo Credit Card |
Save with a 12 month balance transfer and a low annual fee | 13.24% | 0.99% for 12 months | $55 | 21.49% | |
 NAB Gold Card |
Benefit from gold credit card advantages including travel insurance, higher credit limits and VIP Lost card cover. | 19.74% | 1% for 12 months | $90 | 21.74% | |
 Citibank Clear Platinum Card |
Special introductory offer on balance transfers with Platinum benefits. | 11.99% | 2.9% for 12 months | $99 | 21.74% | |
 St George Gold Low Rate Card |
Combination of low rates on both purchases and balance transfers for the first 12 months. | 15.99% | $79 | 20.24% | |
|
 Citibank Rewards Credit Card – Platinum Card |
A great low balance transfer offer, plus earn up to 4.25 Citibank Rewards Points for every $1 spend. | 20.99% | 0.9% for 9 months | $199 | 21.74% | |
 Bankwest Breeze MasterCard |
Enjoy a low balance transfer rate from one of Australia’s lowest MasterCard purchase rates | 10.99% | 4.99% for 12 months | $69 | 21.99% | |
 ANZ Platinum Credit Card |
An affordable platinum credit card from ANZ with a low interest rate in balance transfers and purchases. | 0% for 6 months (reverts to 19.24%) | 0% for 6 months | $0 annual fee for the first year( $87 thereafter) | 20.99% | |
 Bankwest Zero Platinum MasterCard |
Enjoy the freedom of no annual fees plus platinum privileges including complimentary international travel insurance, automatic purchase protection and 24/7 concierge service. | 1% for 6 months (reverts to 17.99%) | 4.99% for 12 months | $0 | 18.99% | |
How to compare balance transfer credit cards:
These balance transfer credit cards are not good for people that are looking for a card that they can spend on as well transfer their balance. You will be charged a regular interest rate for all your purchases, and any payments made cannot go towards the purchase balance until your initial transfer balance has been paid off. Credit card companies will usually only allow payments to go towards the balance with the lowest interest rate. This purchase balance will be trapped and will continue to accrue compounded interest while you are struggling to pay off your transfer balance. If you do have to do some spending it is best to use a debit card, or another credit card, so that you can pay for your purchases either as you make them or on a monthly basis right away.
If you know that you will be able to pay off your credit card balance within a year then you would be better off getting a 0% balance transfer credit card so that you have no interest to pay at all. You may also consider getting a 0% card if you don’t mind making another transfer in a year’s time, when the first credit card introductory period is over. It is a good idea to compare balance transfer credit cards with other 0% interest rate cards to see the difference.
Any cash withdrawals or other cash transactions, such as buying traveler’s checks or foreign currency, any gambling transactions, or cash back from a retail store will also become trapped, although at a higher rate of interest than purchases. Any cash transactions should be avoided with this card, and another card used in its place. You should compare balance transfer credit cards with other cards that allow purchase spending.
Other things you should know
When you first apply for the credit card you should read all the fine print before signing anything, and make sure that you compare balance transfer credit cards fees and rates to other cards. Credit card offers can be very complicated, and even more so than a loan or mortgage because of the different rates and fees. You need to know all of the charges for different transactions before you start using the card.
These cards can really help you get caught up with your credit card debt. With these low interest rates you can actually start paying off your principal balance instead of just making payments on interest.
When you compare balance transfer credit cards, you will see that some of them have fancy advertisements for 0% interest on purchases for an introductory period, or for a rewards program. Don’t get caught up in these sneaky ads because it will cost you a lot more money in the end. They have been designed for one purpose only and that is for transferring your balance over to them. Be especially careful of making any purchases or cash transactions that may get trapped with high interest rates.
Make sure that your transfer is completed before the promotion is over or you will not secure the promotional rate. Sometimes you may be given only thirty days to get the transfer done. Do it as fast as you can, either while you are applying for the new card, or as soon as you get your credit card in the post. You can use telephone banking, the forms sent with your card, or online banking to get it done quickly.
Find out all the details
When you compare balance transfer credit cards there are a lot of things you should watch for and remember. Here is a list of some of the most important things you need to know
- Some credit card companies charge a handling fee to transfer the balance, usually 1 to 3% of the balance transferred, often with a capped limit. You can, however, find some companies that do not charge any fee at all.
- Remember to find out the interest rate on any cash transactions because in most cases they are not subject to the low rate.
- Determine how long you have to get the transfer completed so that you do not lose out on the offer.
- Most of these credit cards offer a variable rate although some do offer a rate that is fixed. If it is a variable rate, you may see a change in your low interest rate, but it will always stay lower than average.
- You will not be able to transfer balance from one credit card to another if they are both issued by the same bank. You will have to look for another credit card issuer to get it done.
Once you receive your card, make sure you always make the minimum payment every month on time. If this scheduled payment is not received the card company does have the right to cancel the promotion and give you a higher rate immediately. Also, remember to compare balance transfer credit cards in order to find the best rate available.
How Do Balance Transfer For Life Credit Cards Work?
Balance transfer for life credit cards offer a lower interest rate for as long as you have this balance. You can use it to pay off your debt slowly, without accruing high interest rates, but you must use it wisely to see the benefits.
If you have built up a rather large credit card debt, then balance transfer for life credit cards may be your best answer. These cards give you a much lower interest rate than standard credit cards, and even though it is not a 0% rate, if you transfer your balance over to them, you will have a longer period to pay off your debt.
How long do these interest rates remain in effect for balance transfer for life credit cards?
Almost all balance transfer for life credit cards offer this rate for as long as it takes you to repay the debt completely. This takes the stress off of paying the debt in a certain amount of time, because you know that it is not a promotional rate with a specific end time. You can make payments that you can reasonably afford each month and pay it off over time slowly.
Some cards do not offer the interest rate for an indefinite time period, but do offer the low rate for several years, which gives you more than enough time to gradually pay off the balance
Things you should know
You should not plan on doing any shopping with balance transfer for life credit cards because any purchases you make will be charged a higher interest rate. Also, any payments you make will not apply to your newer purchases, but will go directly to the balance that was transferred over. Your new balance for spending will be trapped and will continue to be charged interest until your other debt is paid off. You will be right back in the situation you were in before you did the transfer balance. Although these credit cards may be advertised as a multitasking credit card, don’t be fooled. Only use it to handle your debt
You may be offered a 0% interest rate for an introductory period on any purchases you make, but once again you must be careful. You must make sure that this purchase balance is paid off before the introductory period expires or else it will be charged a higher interest rate and become trapped as well.
Are there any fees?
Some card companies charge a handling fee for balance transfer for life credit cards, but you may still be able to find some that do not. If you have to transfer quite a large balance then there is usually a maximum amount you can be charged. This fee will be smaller than the fee charged for a 0% balance transfer credit card.
The credit card companies are offering an amazing deal with balance transfer for life credit cards, but they do expect you to play fair to maintain this low interest rate. If you miss a payment, or even if you are late for one, they have the right to cancel the low interest rate and raise it. They can also cancel the deal if you go over your credit card limit.
If you stay within your limit, always make your payments on time and curb your spending on the card, you can end up saving thousands of dollars in interest rates by transferring your balance over to balance transfer for life credit cards.
Posted on Thursday, April 29th, 2010 at 1:34 am
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