couple_computing_debt_Shutterstock

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 revert rates that often apply once the promotional period ends.

Low-rate or 0% balance transfer offers let you transfer existing debt onto a new credit card so you can save money on interest charges for a fixed period. While this can help repay your debts faster without the cost of high interest, promotional offers only last for a limited time.

At the end of the promotional period, a higher standard interest rate will typically be charged for any remaining debt from the transfer. This will usually be at the card’s purchase rate or cash advance rate. Since cash advance rates are often the highest applicable credit card interest rates, your debt repayment plan could backfire on you if you’re not careful.

Compare balance transfer credit cards that revert to cash advance rate

Rates last updated June 25th, 2017.

Virgin Australia Velocity Flyer Card - Exclusive Offer

0% p.a. for 18 months exclusive balance transfer offer has been extended until 31 July 2017.

June 15th, 2017

Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer

30,000 bonus points and 1.9% balance transfer offers have been extended until 31 July 2017.

June 15th, 2017

Virgin Australia Velocity Flyer Card - 0% Interest Offer

0% purchase and balance transfer offers have been extended until 31 July 2017.

June 15th, 2017

View latest updates

Jonathan Choi Jonathan
$
% p.a.

Your search criteria didn't return any products. Click to reset your filter options and search again
Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
HSBC Platinum Credit Card
Earn 1 Reward Point per $1 of eligible spend and receive complimentary travel and purchase protection insurances.
0% p.a. for 22 months with 2% balance transfer fee 19.99% p.a. $99 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - Exclusive Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent in the first 3 months, plus a $129 Virgin Australia Gift Voucher each year.
0% p.a. for 18 months 20.74% p.a. $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Save with 0% p.a. on purchases for 12 months. Plus, up to 0.66 Velocity Points per $1 spent.
0% p.a. for 6 months 0% p.a. for 12 months (reverts to 20.74% p.a.) $129 p.a. Go to site More info
NAB Low Fee Card
Receive complimentary purchase protection insurance, special offers from Visa Entertainment and up to 44 days interest-free on purchases.
0% p.a. for 16 months with 2% balance transfer fee 19.74% p.a. $30 p.a. Go to site More info
Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
Take off sooner with up to 1 Velocity Point per $1 spent and earn up to 30,000 bonus Velocity Points. Plus, complimentary travel insurance.
1.9% p.a. for 15 months 20.74% p.a. $144 p.a. annual fee for the first year ($289 p.a. thereafter) Go to site More info
Emirates Citi World Mastercard
Earn up to 1.5 Skywards Miles for every $1 spent and indulge in carefully curated local and global experiences.
0% p.a. for 9 months 20.99% p.a. $149 p.a. annual fee for the first year ($299 p.a. thereafter) Go to site More info
Citi Rewards Platinum Credit Card
Earn Reward Points per $1 spent as part of the Citi Rewards Program, plus receive complimentary international travel insurance.
0% p.a. for 24 months with 1.5% balance transfer fee 20.99% p.a. $49 p.a. annual fee for the first year ($149 p.a. thereafter) Go to site More info
Citi Simplicity Card
Earn 10% cashback on eligible purchases (capped at $50 per month) for the first 4 months from card approval.
0% p.a. for 6 months 19.99% p.a. $0 p.a. Go to site More info
Citi Rewards Classic Credit Card
Receive 1 point per $1 spent on all eligible Domestic Spend (up to $5,000 per period) and membership to the Citibank Dining Program.
0% p.a. for 15 months with 1.5% balance transfer fee 20.99% p.a. $49 p.a. annual fee for the first year ($99 p.a. thereafter) Go to site More info
NAB Premium Card
Offers 7 complimentary insurance covers, access to a 24/7 concierge service and special offers through Visa Entertainment.
0% p.a. for 20 months with 2% balance transfer fee 19.74% p.a. $90 p.a. Go to site More info
What’s the difference between balance transfer cards that revert to the cash advance rate or purchase rate?

To help illustrate the difference your revert rate can make, let’s 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 need to pay the following interest after the promotional period ends:

  • Card that reverts to purchase rate. You would pay 13.99% p.a. on the remaining balance of $2,500, which equals $181 over 12 months.
  • Card that reverts to cash advance rate. You would pay 21.99% p.a. on the remaining balance of $2,500, which equals approximately $299 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.

credit-card-calculator895x250

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, such a balance transfer could be treated as a cash advance and thus be subject to 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. This is a generic credit card benefit, and the standard “55 interest-free days” feature means that you can enjoy up to 55 interest-free days on eligible purchases. See our guide to learn what this really means. Many cards require that you pay off your account balance in full for the previous month to enjoy this feature. This might mean that making new purchases on a balance transfer card could immediately accrue purchase interest fees as long as your balance transfer isn’t paid up.
  • Allocation of repayments. It is important to note that credit card reforms now clearly define the allocation of repayments to mean that your transaction with the highest interest rate will be paid off first, followed by the transaction with the second highest interest rate, and so on. This means that your repayments will always be used to repay any cash advances first, followed by purchases, and lastly balance transfers where your balance transfer offer rate is low or 0%.

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

Back to top

Amy Bradney-George

Amy is a Senior Writer at finder.com.au with more than 10 years experience covering credit cards, personal finance and various lifestyle topics. When she’s not sharing her knowledge on money matters, Amy spends her time as an actress.

Was this content helpful to you? No  Yes

Related Posts

American Express Velocity Platinum Card
American Express Velocity Platinum Card

Interest rate

20.74

Annual fee

375
ANZ Platinum Credit Card - Exclusive Offer
ANZ Platinum Credit Card - Exclusive Offer

Interest rate

19.74

Annual fee

87
St.George Vertigo Platinum
St.George Vertigo Platinum

Interest rate

12.74

Annual fee

99

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

2 Responses to Balance transfers with cash advance revert rates

  1. Default Gravatar
    Daniel | April 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?

    • Staff
      Jonathan | May 1, 2015

      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

Ask a question
feedback