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Balance transfer offers explained

Discover how you can consolidate your debt and save money with a low-interest balance transfer offer.

Are you carrying high-interest credit card debt? If so, a balance transfer could be a wise way to repay your debt without the cost of high interest during the promotional period. As many providers offer balance transfer promotions, it's important to know what to look for to find the offer that is going to be of most value to you. Let's look at what a balance transfer offer is, how you can compare your options and some simple steps to getting the most out of your balance transfer offer.

How do balance transfer offers work?

A balance transfer allows you to transfer credit card debt collecting high interest to a new credit card with a low interest rate for a promotional period. These low rates can start at 0% or sit around the 5%-7% mark. This low rate will only be in place for a promotional period, which can last between 6 and 24 months, depending on the card. The promotional period usually begins as soon as your card is approved, so you'll want to start making repayments as soon as possible to take full advantage of the low rate. Once this introductory offer ends, your remaining balance will start collecting the revert rate, which is usually the much higher standard purchase or cash advance rate. The goal is to repay your entire balance before the revert rate kicks in.

Compare your options

When considering a balance transfer, it's important to compare the cards that are on the market. Ask yourself how long you think it would take to pay off the transferred debt. Use the table below to compare current low balance transfer offers. Keep an eye out for the promotional rate and the length of the promotional period. Generally, the lower the rate and the longer the period, the more you'll be able to pay off.

Balance Transfer Credit Cards Comparison

Rates last updated June 18th, 2018
$
% p.a.

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Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Amount Saved Product Description
Westpac Low Rate Card
0% p.a. for 24 months with 1% balance transfer fee
13.49% p.a.
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
Offers a 0% for 24 month balance transfer option, first year annual fee waiver and a competitive purchase rate.
HSBC Platinum Credit Card
0% p.a. for 22 months with 2% balance transfer fee
19.99% p.a.
$0 p.a. annual fee for the first year ($129 p.a. thereafter)
Offers a 0% p.a. for 22 months balance transfer, $0 annual fee for the first year and an annual fee refund each year when you spend $6,000.
St.George Vertigo Platinum - Online Offer
0% p.a. for 24 months with 1% balance transfer fee
12.74% p.a.
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Platinum card benefits including complimentary insurance, plus first year annual fee waiver and 0% p.a. for 24 months on balance transfers.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Earn up to 60,000 bonus Velocity Points in the first 3 months and enjoy a discounted annual fee of $64 for the first year.
HSBC Low Rate Credit Card
0% p.a. for 20 months with 2% balance transfer fee
13.25% p.a.
$79 p.a.
Receive up to 20 months interest-free on balance transfers with a 2% BT fee. Also enjoy exclusive offers with the home&Away Privilege Program.
NAB Low Fee Platinum Card
0% p.a. for 24 months with 2% balance transfer fee
19.74% p.a.
$90 p.a.
Offers 7 complimentary insurance covers, a 0% p.a. for 24 month balance transfer and access to a 24/7 concierge service for a $90 p.a. annual fee.
Citi Simplicity Card
0% p.a. for 15 months with 1.5% balance transfer fee
19.99% p.a.
$0 p.a.
Save with 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from approval. Plus, a 15 month balance transfer offer.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Take advantage of 0% p.a. on balance transfers for up to 18 months. $64 in the first year ($129 p.a. thereafter), plus, bonus Velocity Points.
NAB Low Fee Card
0% p.a. for 18 months with 2% balance transfer fee
19.74% p.a.
$30 p.a.
Receive complimentary purchase protection insurance, a 18 month balance transfer offer and special offers from Visa Entertainment.
Virgin Money Low Rate Credit Card
0% p.a. for 14 months
11.99% p.a.
$49 p.a.
Offers a discounted annual fee, $100 cashback when you meet the spend requirement and 0% p.a. for 14 months on balance transfers.
Citi Platinum Credit Card - 100k Bonus Points
0% p.a. for 15 months with 1% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn 100,000 reward Points, enjoy a long-term balance transfer offer, a discounted first year annual fee and complimentary travel insurance.
BankSA Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Receive a 3% p.a. for 36 months balance transfer and earn Qantas or Amplify Points per $1 spent. Plus, enjoy a $0 annual fee for the first year.
BankSA Vertigo Visa
0% p.a. for 18 months with 1% balance transfer fee
13.74% p.a.
$55 p.a.
Enjoy a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
St.George Vertigo Visa
0% p.a. for 18 months with 1% balance transfer fee
13.74% p.a.
$55 p.a.
Enjoy a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
St.George Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of 3% p.a. interest on balance transfers for 36 months. Plus, a $0 first year annual fee and Amplify or Qantas Points per $1 spent.
NAB Low Rate Platinum Card
0% p.a. for 6 months with 2% balance transfer fee
0% p.a. for 9 months (reverts to 13.99% p.a.)
$100 p.a.
Enjoy a 0% p.a. interest rate offer on purchases for 9 months and the protection of 7 complimentary insurances including overseas travel insurance.
American Express Velocity Escape Card
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$0 p.a.
Earn uncapped Velocity Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
American Express Explorer Credit Card
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$395 p.a.
Receive 50,000 bonus Membership Rewards points, a yearly $400 Travel Credit and 2 entries per year to the American Express Lounge.
Citi Rewards Platinum Credit Card
0% p.a. for 26 months with 2.5% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 26 month balance transfer offer, plus complimentary international travel insurance.
Bank of Melbourne Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of a 3% p.a. for 36 months balance transfer offer, Amplify or Qantas points per $1 spent and enjoy a $0 annual fee for the first year.
BankSA Vertigo Platinum - Online Offer
0% p.a. for 24 months with 1% balance transfer fee
12.74% p.a.
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Online only: A low rate platinum card with 0% p.a. on balance transfers for 24 months. Plus, $0 annual fee for the first year.

Compare up to 4 providers

How to a choose balance transfer offer

There are many balance transfer offers to choose from, but there are a few important features you can compare to find the right one for you.

  • The introductory rate. At the moment, most balance transfer offers have a 0% interest rate, but this can sometimes vary to other low rates. This is how much you'll have to pay on interest as well as the balance you already owe, so this is very important to consider right off the bat.
  • The promotional period. Balance transfer offers generally last between 6 and 24 months. This is how long the promotional low rate will stay in place, so you'll want to consider this to ensure you can repay your entire balance before the end of the introductory period.
  • Revert rate. What will the balance transfer interest rate revert to at the end of the promotional period? Your remaining balance will usually start collecting the standard interest or cash advance rate, which usually sits around the 20% mark. It's important to compare this rate to understand what you'll be paying and how your interest could grow if you're unable to repay the whole amount during the promotional period.
  • Offer expiry date. Some balance transfer offers are only available for a given period, so you'll need to apply before a set date if you want to take advantage of the offer. Make sure to read the terms and conditions as soon as you see the offer to avoid missing out.
  • Minimum repayment. Even if you're paying 0% interest on balance transfers, you'll still need to make minimum repayments each month. The minimum amount will vary from card to card, but you should always try to pay as much as you can. You won't be able to repay your balance by the end of the promotional period if you only make the minimum repayments, so follow a budget and pay as much as you can afford each month.
  • Other costs. You'll also have to make the standard payments that come with a credit card, such as the annual fee, so make sure the savings you make with the card outweigh the fees. While you should avoid using your balance transfer credit card for purchases while you're repaying the transferred debt, consider the purchase rate in case you need to use the card for an emergency or if you plan to use it after you've repaid your debt. Some cards also charge a one-off balance transfer fee of 1-3% of your total balance when you conduct the transfer. See the relevant product disclosure statement (PDS) to confirm the costs and fees that come with your card.

Conducting a balance transfer is a straightforward process, but it's important to compare your options and understand the fees, costs and terms and conditions of the offer to take full advantage of the promotion.

How to ensure your balance transfer application is successful

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Related Posts

Credit Card Offers

Important Information*
Westpac Low Rate Card
Westpac Low Rate Card

Interest rate

13.49

Annual fee

59
HSBC Platinum Credit Card
HSBC Platinum Credit Card

Interest rate

19.99

Annual fee

129
St.George Vertigo Platinum - Online Offer
St.George Vertigo Platinum - Online Offer

Interest rate

12.74

Annual fee

99

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