Understand how balance transfer limits work so you can find the right credit card to consolidate your debts.
A balance transfer credit card can be a great way to pay off an existing balance faster and cheaper with a 0% promotional period. However, the right balance transfer card for you may depend on the size of the debt you're transferring. This is because many banks only allow you to transfer up to a percentage of your approved credit limit. You can use this guide to understand how balance transfer limits work and to compare 0% balance transfer offers so you can find the right card for you.
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How do balance transfer limits work?
When you apply for a credit card, the card issuer assigns you a maximum credit limit based on your income, credit history and other factors (including any credit limit you request during the application). If you're also applying for a balance transfer, your approved credit limit could have an impact on how much debt you're able to move onto the new card.
Usually, you can transfer between 70% and 100% of the new card's approved credit limit, although this varies between card issuers. For example, if a card allows you to transfer 80% of your credit limit and you're approved for a $10,000 limit, you'd be able to balance transfer $8,000 worth of debt.
If you're transferring multiple debts from more than one account, you need to make sure that the combined debt doesn't exceed this balance transfer limit. Otherwise, the bank may only transfer the maximum amount of debt, which could leave you with a balance on your old account. You may also find that there is a minimum transfer limit, which is usually between $200 and $500. Balance transfer credit limits vary between cards, so you can compare your options below.
What happens when you balance transfer is higher than your credit limit?
How much can I balance transfer?
The table below shows balance transfer limits for different financial institutions. If you're looking at a particular balance transfer credit card, you can also find these details on the review pages.
Bank | Balance transfer limit |
|---|---|
| Commonwealth Bank | Commonwealth Bank can process balance transfer requests from $500 up to your available credit limit. |
| Bankwest | You can use up to 95% towards a balance transfer with Bankwest. |
| ANZ | Minimum balance transfer limit of $100 and a maximum balance transfer limit up to of your credit limit. |
| NAB | NAB’s minimum balance transfer limit is $200. NAB’s maximum balance transfer limit is up to 90% of your approved credit limit at the time of processing the balance transfer request. |
| Westpac | Westpac lets you to use up to 80% of your credit card limit towards a balance transfer. |
| St.George | St.George’s minimum balance transfer is limit $200 and maximum balance transfer limit is up to 80% of your credit limit. |
| Bank of Melbourne | You can balance transfer a minimum of $200 and up to 80% of your credit limit with Bank of Melbourne. |
| BankSA | Balance transfer as little as $200 and up to 80% of your credit limit with BankSA. |
| Bank of Queensland | You can balance transfer up to 80% of your approved credit limit. |
| Citi | The minimum credit limit is $500 and up to 80% of your approved credit limit. |
| Coles Mastercard | You can transfer up to a maximum of 80% of your approved credit limit to a Coles credit card. |
| Community First | Balance transfers to Community First credit cards start at $500 and are capped at your Community First credit card credit limit. |
| HSBC | You can transfer up to 90% of your credit limit. |
| ME | You can transfer up to $100 less than your available credit limit. |
| Suncorp Bank | You can transfer up to 80% of your approved credit limit. |
| Woolworths | You can transfer up to 90% of your approved credit limit. |
As the amount of debt you can move onto a balance transfer card depends on the credit limit, you won't know exactly how much you can balance transfer until your application is approved. But checking the minimum and maximum balance transfer amounts, as well as potential credit limits, can help you find a card that works for you.
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Hi
Not sure if my last question came thru but basically, what happens if you pay off your balance transfer quicker than 14months etc?
Also, is it possible to do another balance transfer from the same card? Obviously with a different bank.
Or is that a bad idea..
Thanks
Hi Jazz, thanks for your question.
If your balance transfer debt is repaid then you can use the credit card as normal. If you meet the eligibility requirements for the next bank/ card you are applying for then you can request a balance transfer to pay less interest.
Cheers,
Jonathan
Hi,
I have been accepted for a st George vertigo card, however my credit limit is very low.
Would it be best to amend the amount to transfer rather than cancelling the card? Would this help credit limits or do Banks just stick to initial credit limit.
Also, if I cancel this card, how long should I wait before applying or another credit card balance transfer?
Thank You.
Hi Jazz, thanks for your inquiry!
If the approved credit limit for your St.George Vertigo card is insufficient to transfer all your existing credit card debt, then a credit limit increase can be requested. In regards to applying for another credit card typically it is best to wait at least a few months (4-6 months) before applying for another card.
Cheers,
Jonathan
Hi,
Another question:
If the smaller amount of balance transfer is paid off say in couple months time, would it be a bad idea to apply for another credit card for another balance transfer, In the hopes that the credit limit be extended?
Thank U.
Hi Jazz, thanks for your inquiry!
Credit limits are subject to a bank’s lending criteria who take into account income, liabilities, employment history and credit history. As a result applying for another credit card balance transfer offer will not guarantee a credit limit extension. Frequent credit applications can display negative signals to a bank, so it can be recommended to wait at least a few months before applying for another card.
Cheers,
Jonathan