Can you keep taking out balance transfer card after balance transfer card, moving to another card when the 0% offer on the previous card expires? This article explains that to a certain extent, you can – but it may not be a good idea.
Can I get back-to-back balance transfers?
Yes, you can, but not endlessly. Back-to-back balance transfers may negatively affect your credit rating, and eventually you may find that you are rejected for future balance transfers.
Disadvantages of back-to-back balance transfers
Back-to-back balance transfers negatively affect your credit rating in the following cases:
- If you make back-to-back balance transfers because you are unable to repay your debt by the end of the promotional period
- If you apply for a balance transfer and are rejected
- If you apply for multiple balance transfer cards
- If your debt increases because you are unable to meet the regular minimum repayments and do not repay your balance by the end of the introductory promotional period
- If you do not close your old credit card account after transferring your balance to a new card, and do not repay the debt on both credit cards
Other options for repaying credit card debt
A balance transfer is just one of the many options for consolidating and repaying your credit card debt, and for it to be a good idea, you would need to repay your debt within the introductory period. Other options include:
|A personal loan, where you have a set timeframe to repay the debt and you have to repay a set amount each month, so you can budget for the payments.|
|Add it to your mortgage – although this can be a more expensive option in the long run, in terms of how much interest you pay on the debt.|
|Talk to your lenders about a repayment plan.|
For those who are struggling to repay credit card debt, we recommend speaking with a free financial counsellor. This is not to be confused with a debt consolidation company, who charge a fee and will not help you with your larger budgeting situation.
If you think a balance transfer is still the way to go, compare your options on our website.
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