Getting Approved for Long Term Balance Transfer

June 18th, 2010

For anyone with a large credit card debt that is saddling them with high interest repayments and increasing levels of stress, securing a long term balance transfer approval can be a momentous occasion.

Long term balance transfers are sometimes known as life-of-the-debt balance transfers, lifetime transfers, life transfers, or permanent transfers. They all amount to the same thing: the ability to shift a debt from an existing credit card to one provided by a new issuer who will offer a fixed low rate of interest on your debt until it is fully paid off, no matter how long that takes.

Best Lifetime Balance Transfer Offers

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Citibank Rewards Credit Card – Platinum Card	20.99%	0.9% for 9 months	$199	21.74%
BoQ Platinum Visa Card	20.74%	1.9% for 6 months	$99 (half annual fee for the life of the card)	21.74%

If that sounds too good to be true, there are some people who think that perhaps it is. Long term balance transfer approval for some people proves very difficult even though they seem to meet all applicable requirements. They are able to tick the income requirement box, the residency box, and, they believe, the credit history box, yet they are still rejected.

Here a couple of complaints voiced by rejected applicants:

“The whole for life balance transfer and the offer for 4.9% is a joke. They didn’t give it to me even though I qualified. It’s better for them to give that money as a loan and get more profit rather than accepting applications for balance transfer credit cards. Or maybe they don’t even have the money to support their product.”

“I applied for a 7.9% balance for life and was declined for no apparent reason, They did not even do a employment and salary check with payroll. This is a huge time waster, they will take days to give you a response and the customer service number is overseas. You do not get to talk to anyone ever in Australia. It looks to good too be true cause it is.”

Possible reasons long term balance transfer approval is denied

Long term balance transfers are rarely available on credit cards other than at platinum level. These cards require a much higher income, but even if the customer can prove this, their credit history may not suffice.

Having a “good credit history” doesn’t mean very much unless you can absolutely define what “good” means in terms of a points system, and it doesn’t work that way. Credit card companies want to be able to reject a potential customer and give no reason for doing so.

The ultimate decider for the credit card company as to whether long term balance transfer approval is granted is whether it is believed the customer will bring revenue their way and certainly not cause any financial losses.

Someone who is earning a high income but is unable to clear a credit card debt may be a worrying candidate for what is effectively a large loan. The best scenario for the provider is that the customer takes a long time to repay a big debt, but does so progressively and without any hitches.

Evidence that they have been able to clear a credit card debt or keep up with repayments in the past is a crucial part of a healthy credit history. Someone with a large debt who cannot show a past record of regular payments may not be able to secure a long term balance transfer approval.

From a cynical point of view, these offers may be more of a lure to bring customers to the provider generally, where they will end up taking another card that is less financially risky for the provider. If you cannot secure one of these cards, there are many others offering a year’s low interest that would be easier in terms of getting approval.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Westpac 55 Day Credit Card	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%