Balance Transfer Credit Cards
Are you currently dealing with a high balance on your credit card? Are you tired of a high interest rate that continually adds to your balance, month after month? If so, you should consider switching to a 0% interest balance transfer credit card. With this type of card, you can transfer a high interest balance while avoiding interest charges for a specific period of time (such as 6 or 12 months). This type of credit card is an excellent way to get your repayments down and work your way out of debt. Balance transfer offers are available from most of Australia’s top banks. If you’re not paying off your credit card in full at the end of the month, then you’ll probably be paying about 20% APR on your balance. Take a few minutes to learn how a balance transfer card can help you get out of debt and apply online.
| credit card details | purchase rate (p.a.) | balance transfer (p.a.) | balance transfer period | annual fee | online application |
|---|
| credit card details | purchase rate (p.a.) | balance transfer (p.a.) | balance transfer period | annual fee | online application | |
|---|---|---|---|---|---|---|
|
St.George Vertigo MasterCard Low interest rate spending, low balance transfer rate, cheap annual fee. |
13.24% | 0.99% | 12 months | $55 | top choiceApplication |
|
Westpac Low Rate Credit Card Balance transfer onto a low interest credit card. Fast 60 second approval. |
0% for 6 months (reverts to 13.49%) |
0% | 6 months | $45 | editor's choiceApplication |
|
HSBC Credit Card 0% on balance transfers for 6 months and no annual fee, ever. |
17.99% | 0% | 6 months | $0 | editor's choiceApplication |
|
Aussie MasterCard Very cheap balance transfer rate and purchase rate. Apply for approval within 60 seconds. |
9.99% for 12 months (reverts to 13.29%) |
2.99% | 12 months | $49 | editor's choiceApplication |
|
ANZ Platinum Credit Card Platinum level features with an excellent offer on balance transfers & purcahses. |
0% for 6 months (reverts to 19.24%) |
0% | 6 months | $0 | |
|
Bank of Melbourne Vertigo MasterCard Special balance transfer rate available until 29 Feb 2012 and low ongoing interest rate on spending. |
13.24% | 0.99% | 12 months | $55 | |
|
HSBC Platinum Credit Card 0% on balance transfers for 6 months. No annual fee for the 1st year. Platinum priveleges. |
19.99% | 0% | 6 months | $0 | |
|
NAB Gold Credit Card Money saving balance transfer rate for first 12 months. Apply and get fast 60 second approval. |
19.74% | 1.00% | 12 months | $90 | |
|
Suncorp Gold Credit Card 0% on Balance transfers for 6 months. Half price annual fee. |
20.50% | 0% | 6 months | $60 | |
|
Virgin Low Rate Card Low rate credit card from Virgin Money. |
12.99% | 2.9% | 9 months | $59 | |
|
Westpac Altitude Credit Card Receive 5,000 bonus Altitude points. No points capping or expiry. |
19.99% | 3.99% | 6 months | $100 | |
|
Westpac Earth Platinum Credit Card Maximise your Qantas Frequent Flyer points. Earn $1 = 1.5 QFF Points (Amex) |
19.99% | 0.99% | 6 months | $250 | |
|
BankSA Vertigo Credit Card Cheap low interest credit card for residents living in South Australia. |
13.24% | 0.99% | 12 months | $55 | |
|
Bankwest Breeze MasterCard No frills credit card with extremely low interest rate on purchases. |
10.99% | 4.99% | 12 months | $69 | |
|
Bankwest Zero MasterCard No frills credit card with no annual fee for life & reasonable interest rates. |
1% for 6 months (reverts to 17.99%) |
4.99% | 12 months | $0 | |
Help with Choosing a Balance Transfer Credit Card
With so many balance transfer credit card deals to consider, choosing the right one is not always as simple as it sounds. While every card has something unique and beneficial to offer, one is sure to be better for you than the rest. Here are three points to consider as you compare your options and make a final decision.
- Length of the balance transfer offer – In other words, make sure you know how long the 0% interest rate is effective. Longer is generally better when it comes to balance transfers.
- Post introductory period interest rates – This point is often overlooked as it is easy to focus solely on the promotional offer. It is important to know what your rate will be after this period comes to an end, especially if you don’t intend on switching to a different bank.
- Fees – Unlike in the United States and United Kingdom, fees on balance transfer credit cards are uncommon in Australia. However, banks may charge an administrative fee to move your balance from one card to another. Take this into consideration as, depending on the amount of the balance, you could pay a fee that will reduce your overall savings.
Pros
- You can save a lot of money when used properly – Imagine not paying interest on a large balance for 6 or 12 months. If you are successful in paying off your debt during this period, you are in position to save hundreds or possibly even thousands of dollars, and live without debt.
- Continued use after your introductory period ends – Just because your introductory period is over does not mean you have to switch to another credit card. If you choose wisely, you will end up with a card that offers a reasonable interest rate as well as other features such as a reward program.
Cons
- Not all balance transfer credit cards offer a 0% deal – While you may find some, Citibank and other banks often run 0% balance transfer offers, most cards in this category charge from 1 – 3% interest. While not as good as 0%, it is probably much better than what you are used to.
- Minimum monthly repayments still exist – Just because you transfer your balance to a new credit card does not mean that you don’t have to make payments. There is still a minimum monthly payment that you must make (which probably won’t be very different from your existing minimum repayment). Along with this, you only have so long to pay off your balance before you are once again hit with high interest charges. For this reason, paying the minimum each month is not the ideal thing to do.