Featured Balance Transfer Deal
Peace of mind and security need not cost you a fortune if you transfer your balances to ANZ Low Rate MasterCard. It offers a low balance transfer rate for 12 months, 55 interest free days, low annual fee and 24/7 protection from suspicious transactions with ANZ Falcon security system.
- 0% p.a. for 3 months (reverts to 13.24%p.a.) on purchases
- 0% p.a. for 3 months on balance transfers
- $58 annual fee
- 21.49% p.a. on cash advances
When you are dealing with the Australian credit card market, it is important to keep in mind the fact that balance transfers are not always the means to the end. In other words, while balance transfers are fantastic deals that can really help a person out financially if they use them correctly, it can also be argued that balance transfer combo deals are a lot more valuable in the long run. They have the ability to take the benefits provided by balance transfers and leverage those benefits to a much greater degree by combining them with something else.
So, what exactly are balance transfer combo deals? Well, there is no specific description that covers them in their entirety, but it is enough in a general sense to say that balance transfer combo deals are deals made between a customer and a credit card company or between a customer and multiple credit card companies that allow a customer the opportunity to combine their balance transfer tactic with another tactic in a way that more than doubles the benefit that they get out of doing it. Such deals are difficult to pull off under the best of circumstances and in the current economic slowdown that the Australian market is feeling they can be impossible. Nevertheless, there are a couple of ways that it can be done.
Combining Balance Transfers
The most obvious balance transfer combo deal is one that combines multiple balance transfers. Now, there is no credit card in the Australian credit card market that will let you do multiple balance transfers with the same conditions under each one unless you transfer balances from multiple credit cards to the same new credit card that you get. For this reason, most leveraging with multiple balance transfer deals will require more than one credit card, although this is not always the case.
A classic balance transfer combo deal that involves more than one balance transfer would see the first balance transfer enacted and the introductory period started. Then, when the introductory period expired, the balance would be transferred to another credit card and so on down the line for as long as the customer wanted to make it happen.
In order to do this of course the customer would have to avoid credit cards that carry a minimum balance stipulation to their balance transfers and the customer would also have to be actively working on whittling down the balance in order to convince successive credit card companies that they were actually serious about using the balance transfers for something more than just finagling extra time out of the system. That is not always an easy argument to make and that is precisely why pulling off the balance transfer combo deal can be tricky to do.
Balance Transfer and Low Interest Credit Card
The second major balance transfer combo deal that you will run into on a frequent basis is the combo deal involving a balance transfer and a low interest credit card. The way it works is for a customer to sign up for two credit cards at the same time. The first needs to be an excellent balance transfer credit card and the second needs to be a great credit card from the point of view of low interest.
Once the signups have been completed, the customer can then use the balance transfer card to get a good introductory rate on the balance they would like to reduce while they use the second low interest credit card for all of their purchases. This gives them a chance to continue spending money on a credit card while at the same time they also get a chance to put a real dent in the amount of money they owe. It is a sweet and simple plan that people have used to great effect in the Australian credit card market once they have seriously resolved to get rid of their debt problems once and for all.
Conclusion
In order for any of these plans to be viable, the customer needs to have a balance on another debt source that they would like transferred. If they don’t possess one, there is no point in going for the balance transfer combo deal as it would really just be a waste of time and money for everyone involved.
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Posted on Friday, March 26th, 2010 at 3:46 pm
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