Looking to transfer your existing debt to a Bank of Melbourne credit card? Here’s everything you need to get started.
If you’re forking out to cover high interest costs, it might be time to move your debt to a card with 0% on balance transfers. Bank of Melbourne is one of many Australian card issuers that offers low rate and interest-free balance transfers to new cardholders. You can usually request a balance transfer when you’re applying for a new card, but there are some features, rates and fees to consider before you do.
If you’re considering transferring your debt to a Bank of Melbourne credit card, read this guide to compare your options and learn how to find the right balance transfer card for you.
0% p.a. for 16 months on balance transfers
Offer ends 26 September 2018
Eligibility criteria, terms and conditions, fees and charges apply
Bank of Melbourne Credit Card Offer
A low rate credit card that features a long-term balance transfer promotion with no balance transfer fee. Plus, a competitive annual fee.
- $55 p.a. annual fee.
- 13.74% p.a. on purchases
- Cash advance rate of 19.49% p.a.
- Up to 55 days interest free
Comparison of Bank of Melbourne credit cards
What you'll find in this guide
How can I benefit from a balance transfer with Bank of Melbourne?
- Save on interest. Offering 0% or low interest rates for a promotional period, balance transfer credit cards are to help you save on interest costs when you’re paying off a debt. You can potentially save hundreds or thousands of dollars with a balance transfer, but it depends on your debt and ability to repay it during the promotional period. If you enter the amount you’re transferring and the interest rate you’re currently paying, you can use the table above to compare Bank of Melbourne cards by how much interest you could save.
- Consolidate multiple debts. You can transfer up to three non-Bank of Melbourne credit, charge or store card debts to a new card. Not only does this mean you can pay off all of your card debts with a low interest rate, but you’ll only have to pay one credit card bill each month.
- Pay off your debt faster. By avoiding extra interest costs, you should be able to pay off your credit card debt much faster with a low or 0% balance transfer offer.
Are there any risks when completing a balance transfer with Bank of Melbourne?
As with all debt products, there are some risks that come with doing a balance transfer with Bank of Melbourne.
Revert interest rate
At the end of the introductory period, any unpaid debt will start to collect the standard variable cash advance rate. While the promotional balance transfer rate may be between 0% or 3%, the revert cash advance rate can be as high as 20.49% p.a.
To avoid growing your debt again, you should aim to pay your balance in full before this applies. Even if you plan to clear your debt within the introductory period, make sure you check what the revert rate is and when it kicks in before you apply for a balance transfer with Bank of Melbourne.
Impact on your credit score
As with any new card application, it can harm your credit score. This is especially true if your application is denied, which is why it’s crucial to check that you’re eligible for the card before you apply. However, if you transfer your debt to a balance transfer card and pay it off in full, this can also have a positive impact on your credit score.
What rates and features should I look at when choosing an offer?
- Introductory interest rate and offer length. Bank of Melbourne currently offers four balance transfer credit cards. There are three interest-free options: The Vertigo Visa card has 0% p.a. on balance transfers for 16 months, the Vertigo Platinum card has 0% p.a. for 24 months and the Bank of Melbourne No Annual Fee card charges 0% p.a. on balance transfers for 12 months. Meanwhile, the Bank of Melbourne Amplify card offers 3% p.a. for 36 months. You can use the table above to see which card offers you the greatest interest savings based on your balance and current interest rate.
- The revert rate. All Bank of Melbourne balance transfer credit cards revert to the cash advance rate after the introductory period. The Vertigo Visa and Vertigo Visa Platinum both revert to 19.49% p.a. Meanwhile, the Amplify card reverts to 20.24% p.a. and the No Annual Fee card charges a 20.49% p.a. cash advance rate. If you don’t think you can repay your debt within 24 months or less, you might want to opt for a card with a lower revert rate to reduce your overall interest costs.
- Balance transfer fee. A balance transfer fee is a one-time fee charged when you first move your balance to your new Bank of Melbourne card. While the Amplify credit card and Vertigo Visa don’t charge a balance transfer fee, the Vertigo Platinum and No Annual Fee cards both charge a 1% balance transfer fee. This might not seem like a large fee, but it will add to your overall costs and is important to consider.
- Annual fee. Some Bank of Melbourne cards offer $0 annual fees in the first year or for life, while others charge annual fees as high as $99. The cards with higher annual fees offer extra features such as reward points, complimentary insurance and concierge services. You may not take advantage of these features if you’re concentrating on paying off your balance rather than making purchases, so you need to weigh up whether the fees are worth it before you apply.
- Eligible debts to transfer. You can’t transfer debts between accounts from the same institution, so you can’t move a debt from one Bank of Melbourne card to another. As they all belong to the Westpac group, you also can’t do balance transfers between Bank of Melbourne, BankSA and St.George. If you try to, your application will be rejected. However, you can conduct balance transfers between Bank of Melbourne and Westpac. You can see our guide to which banks you can and can’t transfer between for more information.
- How much you can transfer. You can transfer up to 80% of your approved credit limit to a Bank of Melbourne credit card. If your card has a $20,000 credit limit, you could transfer a maximum of $16,000. You can see our guide to balance transfer limits for more information.
Can I transfer my debt to an existing Bank of Melbourne credit card?
If you already have a Bank of Melbourne credit card, you can transfer up to 2 non-Bank of Melbourne Australian issued credit, charge or store cards at a promotional interest rate of 2.99% p.a. for 12 months. You can compare other card issuers that offer balance transfers after application on finder.
What else do I need to know?
As well as the rates and features, here are some terms and conditions you should consider before you apply:
- Eligibility requirements. As with any credit card, you must meet eligibility requirements (such as credit history, residential status and minimum annual income) to receive approval for a Bank of Melbourne credit card. A rejected credit card application can have negative impacts on your credit score, so it’s important to check the specific requirements before you apply.
- Closing your old account. If you apply for a Bank of Melbourne card and are approved, it can take up to a week for your balance transfer to go through. Once it’s complete, it’s your responsibility to contact your old bank to close your account. If you don’t, then you’ll continue to be charged any account maintenance fees (like annual fees) that come with your card.
- Making repayments. You’re required to pay at least the minimum repayment of 2% of the closing balance or $10 (whichever is greater) each statement. If you want to clear your debt before the revert rate applies, you’ll need to pay more than the minimum. If you divide the size of your balance by the number of months in the 0% introductory period, that’s how much you’ll need to pay each month to clear your balance while the promotion lasts.
- Repayment allocation. Bank of Melbourne is obligated to put your payments towards debts with the highest interest rates first. If you use your card to make a purchase while you’re also paying off your balance transfer, your repayments will automatically go to paying off your purchase first because it collects a higher interest rate. If you want to make the most of your 0% balance transfer offer, you should avoid making purchases and put your money towards paying off your original debt.
- Interest-free days. If you use your card to make a purchase, remember that interest-free days don’t apply while you’re paying off your balance transfer.Bank of Melbourne offers a number of alternatives for Aussies looking to pay off their debt with a balance transfer credit card. As there are many low and 0% balance transfer cards on the market, you should still compare your options to find the right card for you. You can use the balance transfer guides on finder to get started.
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