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Balance transfers with cash advance revert rates

Save money on interest charges by consolidating your debts with a balance transfer card, but watch out for high cash advance rates that often apply once the promotional period ends.

Updated

Low-rate or 0% balance transfer offers let you move existing debt onto a new credit card so you can save money on interest charges for an introductory period. At the end of the introductory period, any remaining balance transfer debt will be charged interest at a higher, standard rate. This "revert rate" is usually the card’s purchase rate or cash advance rate.

Since cash advance rates are often the highest applicable credit card interest rates, you could end up paying a lot more interest on your remaining debt. Use this guide to learn more about cash advance revert rates and how you can factor them into your comparison when you're looking for the right balance transfer card for you.

Compare balance transfer credit cards that revert to cash advance rate

Data indicated here is updated regularly
$
% p.a.
Name Product Balance transfer rate Purchase rate Annual fee Amount saved
Westpac Low Rate Card
0% p.a. for 20 months with 1% balance transfer fee
13.74% p.a.
$59
A low rate card offering 0% p.a. interest on balance transfers for the first 20 months and a $200 cashback offer.
Coles No Annual Fee Mastercard
0% p.a. for 18 months with 1.5% balance transfer fee
19.99% p.a.
$0
Earn flybuys points for your spending and save with an ongoing $0 annual fee and 0% p.a. on balance transfers for 18 months.
Virgin Money No Annual Fee Credit Card
0% p.a. for 12 months
18.99% p.a.
$0
Offers 0% p.a. for 12 months on balance transfers and up to 55 days interest-free on purchases, all for a $0 annual fee. Ends 30 Sept 2020.
Citi Rewards Card - Balance Transfer Offer
0% p.a. for 30 months with 1.5% balance transfer fee
21.49% p.a.
$0 annual fee for the first year ($199 p.a. thereafter)
Save with 0% interest on balance transfers for the first 30 months (with a 1.5% BT fee) and a $0 annual fee for the first year.
Westpac Altitude Platinum Qantas
0% p.a. for 18 months with 1% balance transfer fee
20.49% p.a.
$99 annual fee for the first year ($200 p.a. thereafter)
Get 60,000 bonus Qantas Points when you spend $3,000 within 90 days. Plus, a first-year annual fee discount and a long-term balance transfer offer.
Westpac Altitude Platinum Card
0% p.a. for 18 months with 1% balance transfer fee
20.49% p.a.
$99 annual fee for the first year ($150 p.a. thereafter)
Earn 80,000 bonus Altitude Points when you spend $3,000 within 90 days. Plus, a first-year annual fee discount and a long-term balance transfer offer.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
0% p.a. for 22 months
20.74% p.a.
$64 annual fee for the first year ($129 p.a. thereafter)
Get 0% p.a. for 22 months on balance transfers and a reduced first-year annual fee. Plus, earn up to 30,000 bonus Velocity Points. Ends 30 Sept 2020.
St.George Vertigo Classic
0% p.a. for 22 months with 1.5% balance transfer fee
0% for 7 months, reverts to 13.99% p.a.
$0 annual fee for the first year ($55 p.a. thereafter)
Get 0% p.a. promotional purchase and balance transfer rates and save with a first-year annual fee waiver. Ends 30 Sept 2020.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 6 months
0% for 14 months, reverts to 20.74% p.a.
$64 annual fee for the first year ($129 p.a. thereafter)
Enjoy 0% p.a. interest on purchases for 14 months, a reduced first-year annual fee and Velocity Points per $1 spent. Ends 30 Sept 2020.
Coles Rewards Mastercard
0% p.a. for 18 months with 1.5% balance transfer fee
19.99% p.a.
$99
Earn 2 flybuys points / $1 spent and save with a 0% balance transfer offer. Plus, 0% international transaction fees on purchases.
NAB Low Rate Credit Card
0% p.a. for 20 months with 2% balance transfer fee
12.99% p.a.
$59
Receive an introductory 0% p.a. interest rate for 20 months on balance transfers, Visa Entertainment offers and a competitive $59 ongoing annual fee.
Citi Rewards Card - $500 Voucher Offer
0% p.a. for 12 months
21.49% p.a.
$99 annual fee for the first year ($199 p.a. thereafter)
Get a $500 e-voucher to spend at Myer, JB Hi-Fi or Coles when you spend $3,000 in the first 90 days. Plus, earn points with the Citi Rewards Program.
BankSA Vertigo
0% p.a. for 22 months with 1.5% balance transfer fee
0% for 7 months, reverts to 13.99% p.a.
$0 annual fee for the first year ($55 p.a. thereafter)
Enjoy a 0% p.a. for up to 22 months on balance transfers and up to 7 months on purchases. Plus, $0 first-year annual fee. Ends 30 Sept 2020.
St.George Amplify Signature
0% p.a. for 6 months
19.74% p.a.
$139 annual fee for the first year ($279 p.a. thereafter)
Up to 200,000 bonus points (130k in the first year & 70k in the second year) when you spend $12k/year for the first 2 years. Ends 30 Sept 2020.
Bank of Melbourne Amplify Platinum - Qantas
0% p.a. for 6 months
19.74% p.a.
$99
Receive 60,000 bonus Qantas Points when you spend $2,000 within 90 days and earn up to 0.5 Qantas Points per $1 spent. Ends 30 Sept 2020.
BankSA No Annual Fee
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$0
Offers 0% p.a. on balance transfers for 12 months, up to 55 days interest-free on purchases and an ongoing $0 annual fee. Ends 30 Sept 2020.
St.George No Annual Fee
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$0
Receive up to 55 days interest-free on purchases, a low minimum credit limit of $500 and a long-term balance transfer offer. Ends 30 Sept 2020.
Bank of Melbourne Vertigo Classic
0% p.a. for 22 months with 1.5% balance transfer fee
0% for 7 months, reverts to 13.99% p.a.
$0 annual fee for the first year ($55 p.a. thereafter)
Save with 0% p.a. for 7 months on purchases, 0% p.a. interest for 22 months on balance transfers and a $0 first-year annual fee. Ends 30 Sept 2020.
St.George Amplify Platinum - Qantas
0% p.a. for 6 months
19.74% p.a.
$99
Earn 60,000 bonus Qantas Points, plus enjoy 0% p.a. on balance transfers for 6 months and complimentary insurance covers. Ends 30 Sept 2020.
St.George Amplify Platinum
0% p.a. for 22 months with 1.5% balance transfer fee
0% for 7 months, reverts to 19.74% p.a.
$0 annual fee for the first year ($99 p.a. thereafter)
Save with 0% p.a. interest rates on purchases and balance transfers. Plus a $0 first-year annual fee. Ends 30 Sept 2020.
Bank of Melbourne Amplify Platinum
0% p.a. for 22 months with 1.5% balance transfer fee
0% for 7 months, reverts to 19.74% p.a.
$0 annual fee for the first year ($99 p.a. thereafter)
Enjoy 0% p.a. on purchases and balance transfers along with a $0 first year annual fee waiver. Ends 30 Sept 2020.
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What’s the difference between balance transfer cards that revert to the cash advance rate and purchase rate?

Imagine that you have a $5,000 credit card debt you want to pay off, and you're comparing 2 balance transfer cards that offer 0% interest for the first 12 months. The main difference between these cards is that one reverts to a low standard purchase rate of 13.99% p.a. while the other reverts to a cash advance rate of 21.99% p.a.

If you budgeted to pay off your debt in equal monthly payments over 24 months, you would be charged interest on the debt that remained after 12 months. Here's the different in interest charges based on each card's revert rate:

  • Card that reverts to purchase rate. You would be charged 13.99% p.a. on the remaining balance of $2,500, which would add up to about $181 in interest over 12 months.
  • Card that reverts to cash advance rate. You would be charged 21.99% p.a. on the remaining balance of $2,500, which works out to about $299 in interest over 12 months. That’s an extra $118 compared to the other card.

How can I tell if a balance transfer offer reverts to the cash advance rate?

There are several ways you can find out if a balance transfer card reverts to the cash advance rate. The following are the most common ways to figure this out:

  • Main offer details. Some balance transfer offers outline the revert rate as part of their promotion. For example, the offer may say “Pay 0% on balance transfers for 12 months (reverts to 21.99% p.a.).”
  • Fine print. Credit card providers are required to include information about the revert rate in the terms and conditions of their offer. Usually, this will include the specific rate applicable at the time, such as “reverts to the cash advance rate of 21.99% p.a.” although sometimes it may say “reverts to the standard variable cash advance rate”.
  • Key facts sheet. Providers are required to make available a key facts sheet for every credit card they offer. This sheet includes details of the rates and fees for the card, so you’ll be able to see the introductory balance transfer rate as well as the standard variable rates for the card.

How to find out your balance transfer revert rate

credit card calculator

Other important details about balance transfers and cash advances

There are some other things you should know about balance transfers and cash advances:

  • Balance transfers as cash advances. Aside from the balance transfer offers you may have access to as a new cardholder, you can also request a balance transfer to an existing credit card. With some cards, this type of transfer could be treated as a cash advance, which would attract the cash advance rate from the time of the transfer.
  • Cash advance transactions. Cash advances typically refer to ATM withdrawals made on your credit card, but also include cash equivalent transactions such as the purchasing of gift cards and prepaid cards, gambling items, travellers’ cheques and foreign currencies. Fund transfers and certain bill payments are also considered cash advances. Aside from immediately attracting interest fees at the cash advance rate, a cash advance fee of about 2-3% also usually applies.
  • Interest-free days. Interest-free days typically don't apply to either balance transfers or cash advances. You also won't usually be eligible for interest-free days on purchases if you're carrying a balance transfer debt.
  • Allocation of repayments. It is important to note that credit card companies must allocate repayments so that the part of your balance which is charged the highest interest rate is paid off first, followed by the debt with the second highest interest rate, and so on. This means that your repayments will be used to repay any cash advances – or balances that are charged the cash advance interest rate first – followed by purchases. If you have a balance transfer debt with a promotional 0% p.a. interest rate, this part of your balance will be paid off after any other part of your balance that is charged interest.

While balance transfer offers can often help with debt consolidation by reducing your interest component, ideally you should aim to repay your full balance within the promotional period. This will ensure that you don’t get stuck with new mounting interest fees once the revert rate kicks in. As such, it is important to compare balance transfer card offers and choose the one with an introductory period that best suits your needs.

Pictures: Shutterstock

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4 Responses

  1. Default Gravatar
    TomNovember 22, 2018

    I have a credit card debt on my credit card that is mainly cash advance. So, I’m paying a very high-interest rate currently. Does balance transfer work for such debt? Please let me know.

    • Avatarfinder Customer Care
      JhezNovember 24, 2018Staff

      Hello Tom,

      Thank you for your comment.

      I am sorry to hear about such high-interest rate you have incurred from the cash advance transactions. Please note that the cash advance interest rate can be more than double the purchase rate of interest. This is explained here.

      You can do a balance transfer from your old credit card to the new credit card. You may compare balance transfer credit cards with 0% interest rate for the first few months as an introductory offer here.

      Please make sure though to read the eligibility criteria, features and details of the card, as well as the relevant PDS/ T&Cs of the card before making a decision and consider whether the product is right for you. Please make sure that you have met the eligibility criteria before submitting an application for the card. To apply, just click the Go to Site button.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  2. Default Gravatar
    DanielApril 29, 2015

    Can I do cash advance on one of my Credit Card and then immediately proceed for Balance Transfer it to another Credit Card with offer of 0% APR for first 16 months? Will this attract any charges either with the first credit card provider or at new credit card giving me the Balance Transfer option?

    • Avatarfinder Customer Care
      JonathanMay 1, 2015Staff

      Hi Daniel, thanks for your inquiry!

      If you meet banks application requirements then you will be eligible to apply for a balance transfer. Generally there are no exiting fees associated with leaving a credit card. It can be ideal to check with both banks and the terms and conditions to ensure there are no hidden charges. You may also like to refer to the following link for a list of balance transfer cards.

      Cheers,

      Jonathan

Credit Cards Comparison

Data indicated here is updated regularly
Name Product Purchase rate Balance transfer rate Annual fee
Skye Mastercard - Exclusive Offer
23.99% p.a.
0% p.a. for 25 months
$99
Finder Exclusive
Save with 0% p.a. on balance transfers for 25 months, up to 110 days interest-free on purchases and flexible instalment plan options.
ANZ Low Rate - Exclusive Offer
12.49% p.a.
0% p.a. for 25 months with 1.5% balance transfer fee
$0 annual fee for the first year ($58 p.a. thereafter)
Finder Exclusive
Save with 0% p.a. on balance transfers for 25 months (with a one-time 1.5% BT fee) and $0 first year annual fee. Ends 30 Sept 2020.
NAB Qantas Rewards Signature Card
19.99% p.a.
0% p.a. for 6 months with 2% balance transfer fee
$295 annual fee for the first year ($395 p.a. thereafter)
Collect up to 130,000 bonus Qantas Points. Get 100k when you spend $3,000 on eligible purchases in the first 60 days and 30k after 12 months.
ANZ Platinum Credit Card
0% for 17 months, reverts to 20.24% p.a.
20.24% p.a.
$0 annual fee for the first year ($87 p.a. thereafter)
Receive a 0% purchase rate offer for 17 months and a $0 first-year annual fee. Plus, complimentary overseas travel and medical insurance.
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* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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