0% Balance Transfer Credit Card Offers

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How do 0% balance transfer credit cards work?

These cards give you a way to pay no interest on balance transfer debts for an introductory period – which can last from 6 to 36 months. With 0% interest charges, you can pay off your debt faster and save money.

If you have a few credit card debts, you can transfer and consolidate them on one balance transfer card. That way you'll pay no interest on the combined debt and will only need to pay off one credit card account.

What happens after the introductory period?

At the end of the interest-free period, any unpaid balance will attract a much higher, ongoing variable interest rate. So you'll usually get the most value from these cards if you can pay off your balance transfer in full during the introductory 0% interest period.

How much can you save?

How much you will save with a balance transfer depends on the size of your debt, how much interest you currently pay, the length of the interest-free offer and whether you can pay it off in full before a higher interest rate kicks in.

As an example, if you had $5,000 on a card with a 19.94% interest rate and transferred it to a card that offered 0% interest on balance transfers for 36 months, you could save over $2,000.

Promoted

Kogan Money Card – Exclusive Offer

0% p.a. for 18 months on balance transfers (with a one-time 1% balance transfer fee). Ongoing $0 annual fee.

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How to compare 0% balance transfers credit cards

There are many 0% balance transfer credit cards on the market, so here are 5 important factors you can use to help you find one that works for you.

1. Length of the balance transfer introductory offer

Since many Australian credit cards come with introductory offers on balance transfers, it is crucial that you compare balance transfer cards by how long the interest-free period lasts for. You should look for a card that gives you enough time to repay the entire debt before the revert rate kicks in.

For example, let's say you have a debt of $7,000 and are looking at a card with 0% on balance transfers for 18 months. You'd need to pay around $389 each month to clear the entire debt before interest applies. If you don't think you can afford this, you could look for a card with a longer interest-free offer to spread out and reduce your monthly repayments.

2. How much you are allowed to transfer

Depending on the bank, you can usually transfer between 70% to 100% of the approved credit limit. If you had an approved high credit limit of $20,000 and a maximum balance transfer of 80% of the limit, you could transfer up to $16,000. Refer to our guide on each bank's balance transfer limit and how much they will allow you to balance transfer for more information.

3. Which banks and institutions you can transfer to

Most of the time, it is easy to get a balance transfer from one bank or brand to another. But there are a couple of exceptions:

1. You can't transfer your balance to a new card with the same bank. For example, if you had credit card balance with ANZ, you couldn't transfer it to another ANZ card with a 0% balance transfer offer.
2. You can't transfer balances between banks or brands that are issued by the same provider. For example, you can't balance transfer between St.George and Bank of Melbourne as they're both owned by Westpac.

Want more details on balance transfers between banks? Check out Finder's guide on which banks you can balance transfer to.

4. Balance transfer revert rate

If you don't pay off the entire balance by the end of the introductory period, any remaining debt will be charged interest at the balance transfer revert rate. This is usually an ongoing, variable rate and is often the same as the card's (much higher) cash advance or purchase interest rate.

When you're looking at 0% balance transfer offers, you'll see details of the revert rate in the fine print – we also list it on Finder's credit card review pages. It's important to compare this rate and know when it kicks, even if you're planning to pay the debt in full before interest applies.

5. Compare fees and charges

While you won't pay any interest during the promotional period, most balance transfer credit cards come with other costs. For starters, you may be charged a balance transfer fee of around 1% to 3% of the debt that you transfer.

Annual fees are another potential cost, which can range from around $30 to $400 or more depending on the card – although there are also some 0% balance transfer credit cards offer a $0 annual fee. If there is an annual fee, make sure it won't exceed your interest savings before you apply.

Making new purchases can also lead to higher costs on these cards. This is because balance transfer cards often charge high purchase interest rates, and your repayments will automatically go towards whichever balance attracts the most interest.

If you're concentrating on paying down your balance transfer during the interest-free period, you should avoid using your card to spend unless you know you can pay it off quickly.

A 0% balance transfer credit card can be a useful way to get your debt under control and pay off your card with no interest costs.

As there are many interest-free balance transfer credit cards on the market, make sure to compare your options before you apply to find the right one for you.