Need to consolidate a large debt or multiple credit card debts?Consolidate all your credit card debt with a high credit limit balance transfer credit card. Compare offers here.
Balance transfer offers let you move your existing credit card debt to a new card with a low or 0% introductory interest rate, giving you a chance to save money and pay off the balance faster. But what happens if you have more than one credit card balance to deal with?
That’s where high credit limit balance transfer credit cards come in. These cards give you more available credit, which also means you can consolidate more debts onto the one card. Here, we look at everything you need to know about low and 0% balance transfer credit cards with high credit limits so that you can decide if this is an option that will work for you.
Compare high credit limit balance transfer credit cards
Why does the credit limit matter on a balance transfer credit card?
Credit card providers use your credit limit to determine how much debt you can transfer to a new card. While some cards will let you transfer up to 100% or 95% of your credit limit, others may cap it at 75%.
For example, if you had $10,000 worth of credit card debt and got a balance transfer card with a $10,000 credit limit, you might not be able to transfer all of the balance to the new card. A balance transfer card with a higher credit limit of $12,000, on the other hand, is more likely to allow you to move the whole debt across. So the higher your credit limit, the more likely you are to meet these requirements and get your balance transfer approved.
How much can you balance transfer if the approved credit limit is insufficient?
If the approved credit limit is lower than your total amount of debt, your new bank will transfer up to the maximum balance transfer limit. The remaining debt will be left in their respective accounts.
How to compare high credit limit balance transfer cards
As well as looking at the minimum and maximum credit limits, consider the following factors when comparing high credit limit balance transfer credit cards to make sure you get the right option for your needs.
- The balance transfer offer. Currently the market is inundated with 0% interest on balance transfer offers, but you’ll need to make sure the offer is long enough to consolidate your entire debt. If you have a large debt, you might want to consider a long-term balance transfer of 12–24 months whereas a smaller debt might only require a 6-month balance transfer offer. A higher revert rate will kick in once the offer ends, so it’s important the promotion offers you enough time to pay off your debt before this happens.
- Available credit limit. As mentioned above, be sure to check the credit limit and the balance transfer cap to ensure the card can support your debt. If you’re unable to transfer your entire debt, the remaining amount will continue to collect interest in your old account.
- Balance transfer fees. Some high credit limit balance transfer cards charge a one-off processing fee worth 1–3% of the total debt you move to the new card. Make sure you check for this cost and factor it in before you apply so that you know exactly how much you will pay for the card you choose.
- The annual fee. Annual fees for high credit limit balance transfer cards range from $55 to $450, so you’ll need to factor this cost in when choosing your balance transfer offer. Keep in mind that some cards waive or halve the annual fee for the first year, while other high credit limit options may have no annual fee for life, so it’s important to shop around.
- The standard balance transfer interest rate. At the end of the introductory period, the balance transfer interest rate will revert to a higher standard rate. Checking this interest rate before you choose a card and factoring it into your repayment plan can help you avoid hefty interest costs down the track.
- The standard purchase rate. Unless you get a balance transfer credit card with an introductory purchase offer, the standard purchase rate will be applied to any new transactions you make while you are paying off your debt. The standard purchase rates for high credit limit balance transfer cards can range from 11% to 22% p.a., depending on the card and market competition, and even a small change can make all the difference when it comes to affordability.
- Complimentary extras. High credit limit balance transfer credit cards often come with a range of perks, including international travel insurance, extended warranties and concierge services. These complimentary benefits can add a lot of value if you plan to use the card long term, so make sure you factor them in when weighing up your options.
- Reward programs. A number of high credit limit balance transfer credit cards also come with reward programs that offer you points for every $1 you spend. While these programs are not ideal when you want to pay down credit card debt, the potential to earn points may be a factor if you plan to use the card after the balance is cleared.
- Other fees. High credit limit balance transfer cards could also come with a range of other charges including late payment and over-limit fees and foreign transaction charges. Check for these fees in the product details so that you have a clear understanding of when you may be charged more for the credit card you choose.
What to watch out for with a high credit limit balance transfer card
Avoid these pitfalls to get the most out of a high credit limit balance transfer credit card.
- Not paying off the balance before the end of the introductory offer. If you still have credit card debt at the end of the introductory period, you will be charged the higher standard rate of interest on the balance, which could make it a lot harder to pay down.
- Making purchases on the new card. New purchases will attract interest at the standard purchase rate, and you won’t have access to any interest-free days. This also means that any payments you make on the card will go towards the new purchase balance before your transferred debt, so it could take longer and cost more to pay off the card in full.
- Not factoring in fees. Balance transfer fees, annual fees and other charges will all add to your credit card debt, and if you don’t factor them into your budget it could make it harder to pay off the balance before the end of the introductory period.
- Minimum payments. Credit cards have minimum payments of between 2% and 3% of the total balance, and you will need to meet this requirement each month to keep the account in good standing. Even with a high credit limit 0% balance transfer credit card, minimum payments may not be enough to pay off the total debt before the end of the introductory period, so aim to pay more than this amount each month to avoid higher interest charges.
- Declined applications. High credit limit balance transfer cards usually have higherapplication requirements such as good to excellent credit history and high minimum incomes. If you don’t meet the eligibility conditions for one of these cards, your application could be declined and impact on your credit score.
- Cancelling cards. Once the balance transfer is complete, you will be responsible for managing or cancelling any of the old cards.
How to apply for a high balance transfer credit limit credit card
Follow these steps to apply for a high balance transfer credit limit credit card today.
- Compare cards. Compare a range of balance transfer credit cards with high credit limits to find one that suits your needs.
- Fill out the application. Hit the “Go to site” button, which will take you to a secure application. You will be asked to provide a range of details including your full name, residential address, driver’s licence or passport number and employment details.
- Include supporting documentation. Credit card providers will require a range of supporting documents to complete your application, such as copies of your driver’s licence, birth certificate, passport, employment contract and payslips. Keep these handy and submit them when they are requested.
- Provide details for the balance transfer. During your application, you will be asked to provide details of any accounts that you wish to transfer balances from, including the account name and number, financial institution and the total debt you wish to move to the new card.
- Submit the application. You should get a response within a few minutes, either on the webpage or via email.
If your application is successful, the credit card company will contact you to finalise the application and issue your card. After that, you should get the card within five to 10 working days, although it could beup to 21 days depending on the issuer.
When you get the card and activate it, the issuer will then be able to complete the balance transfer process. Keep in mind that this could take an additional two weeks to complete, and you will need to continue to make any required payments on your existing accounts during this time. After that, you can take advantage of the low or 0% balance transfer rate as you pay down all your credit card debt.
Consolidating your debt with a high credit limit balance transfer credit card can make it easier and faster to clear the balance because you get the benefit of a lower interest rate and only have to make one monthly payment. Now that you know more about these types of cards, you can compare offers and find an option that suits your needs.
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