Consolidate all your credit card debt and pay it off faster with a high credit limit balance transfer credit card. Find out more and 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 and gives 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. We’ll 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.
What’s in this guide?
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.
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. 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. Any amount left will continue to collect interest in your old account.
- Balance transfer fees. Most high credit limit balance transfer cards charge a one-off processing fee of 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. High credit limit balance transfer cards have annual fees that range from $55–$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 payment plan can help you avoid hefty interest costs down the road.
- 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 11–22%, 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. Complimentary benefits can add a lot of value for those who plan to use the card long term, so make sure you factor them in when weighing 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 aren’t ideal when you want to pay down credit card debt, potential points may be factor into your decision to use your card after the balance is cleared.
- Other fees. High credit limit balance transfer cards can 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.
You should have good credit to apply for these offers; the better your creditworthiness, the higher the limit you will qualify for.
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. Any remaining balance at the end of the introductory period 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 likely won’t have access to any interest-free days. This also means that any payments you make on the card will go toward 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. Not factoring them into your budget could make it harder to pay off the balance before the end of the introductory period.
- Minimum payments. Credit cards have minimum payments between 2–3% of the total balance and you’ll 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 higher application requirements such as good-to-excellent credit history and high minimum incomes. Make sure you meet the eligibility conditions to lessen the chances of your application being declined and your credit score being affected.
- Cancelling cards. Once the balance transfer is complete, you’ll be responsible for managing or cancelling any of the old cards.
Follow these steps to apply for a high balance transfer credit limit credit card today.
- Compare cards. Compare balance transfer credit cards with high credit limits to find one that suits your needs.
- Fill out the application. You’ll be asked to provide a range of details including your full name, residential address, driver’s license or passport number and employment details.
- Include supporting documentation. Credit card providers might require a range of supporting documents to complete your application, such as copies of your driver’s license, birth certificate, passport and pay stubs. Keep these handy and submit them when they are requested.
- Provide details for the balance transfer. During your application you’ll 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.
Upon a successful application the credit card company will contact you to finalize the application and issue your card. After that, you should get the card within 5 to 10 working days, although it could be up to 21 days depending on the issuer.
With some cards you might need to activate it before the issuer completes the balance transfer process. Keep in mind that this could take an additional two weeks to complete and you’ll need to continue to make any required payments on your existing accounts during this time. As soon as the transfer finishes you can take advantage of the low or 0% balance transfer rate as you pay down all your credit card debt.
Once you’ve found the right card and your transfer has gone through, keep the following in mind:
- Make sure the old card has been paid off. While you may be able to check your statement online, there’s the chance that a fee or
- Consider keeping your old card open. When you charge small amounts each month, such as a cellphone bill or fuel costs, and pay off the balance in full it can help boost your credit score. Your credit utilization, how long you’ve had the credit and the on-time monthly payments all contribute towards a positive shift in your credit profile.
- Continue to make payments. Any balance remaining on the old card will require you to pay at least the minimum amount due each month until it’s paid off.
- Plan within the promotional period. To take full advantage of the low or 0% introductory rate, you’ll want to pay off the entire balance before the period ends. Once the introductory period is over it will revert to the normal purchase or cash advance rate, which may be even more than your previous card’s APR.
- Make timely payments Late payments can end your introductory rate early. Keep up with your monthly bills and pay at least the minimum to get the most out of the promotional period.
Too low of a credit limit may not be as much of a hindrance as it seems. Here are some different ways you can deal with your transfer amount being more than the maximum limit:
- Transfer what you can. Transfer as much of the balance that you can to the new card and take advantage of the introductory rate. During this time, you’ll still need to make minimum payments on your original card and the new one.
- Request a higher limit. Try to request a higher credit limit from the provider. It will require calling the issuer or visiting a local office, and there’s no guarantee that the provider will agree to it.
- Seek an alternative. When transferring only a portion of your balance or the credit card issuer won’t raise your limit, it may be time to look for another means if you’re set on moving your debt. A personal loan could give you the maximum limit you need, but you likely won’t benefit from the type of promotion a balance transfer credit card offers.
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.