ANZ lowers balance transfer credit card length and fee
ANZ has dropped its balance transfer offer of 0% for 18 months to 16 months.
New applicants hoping to transfer their credit card balance to an ANZ credit card will now have less time to repay their debt without accruing interest. As of today, ANZ’s balance transfer offer has dropped from 0% for 18 months to zero interest for 16 months. While this is only a two-month fall, it means you’d have to pay more each month to clear the entire balance before the promotional offer ended.
Currently, the ANZ First Visa Credit Card and the ANZ Platinum Credit Cards are the only products that offer balance transfers and will be impacted by this change. Both cards will now have a 0% balance transfer offer for 16 months and revert rate of 21.49% p.a.
So, let’s say you were transferring a debt of $5,000. When the 0% for 18-month offer was in place, you’d need to pay a minimum of approximately $277 each month to repay the entire balance. With a 0% for 16 months promotion, you’ll need to pay a larger $312 each statement period to avoid extra interest when the revert rate kicks in.
Some good news is that the balance transfer fee is also dropping from 3% to 2%. Using the $5,000 balance transfer example again, you would have previously been charged a transfer fee of $150. With a 2% balance transfer fee, this will now reduce to $100. Obviously, the larger your balance, the more you’ll appreciate the lower balance transfer fee. As more banks are adding balance transfer fees to their debt consolidation deals, this lower charge could be a way to counteract the short 0% promotional period and compete against other providers.
January is Australia’s busiest balance transfer season. As such, it’s a time when many banks ramp up their balance transfer offers to entice applicants who are looking to consolidate their post-Christmas debts. As we reported in our best balance transfers roundup, NAB, Westpac and Citi and their 0% balance transfers for 24 months are all examples of this. With this in mind, it’s interesting that ANZ has done the opposite by shortening its balance transfer offers by two months.
Of course, just because a card has a longer balance transfer period, that doesn’t make it the right card for you. Make sure to compare other factors such as the balance transfer fee, revert rate that will apply with the promotion ends, annual fee and other features of the card to find the right balance transfer card for you. You can compare a full range of 0% balance transfer credit cards on our balance transfer guide.