May’s best balance transfer credit card offers
Need time to deal with credit card debt? This month's pick of 0% balance transfer offers could help you pay it off with no interest for up to 30 months.
Australian credit card debt has dropped a lot since the start of the coronavirus pandemic, as more people have saved money, spent less and even used some of their superannuation to pay it off. But Australians still have $20.6 billion worth of credit card debt accruing interest.
Finder analysis of Reserve Bank of Australia (RBA) data also shows that the average standard interest rate for a credit card is 19.94% p.a. That's a lot higher than most other types of credit and well above the RBA's official cash rate figure (as we reported in April).
If you have a credit card debt that's being charged interest, you can lower the cost by moving it to a card that offers an 0% balance transfer rate for an introductory period. No interest means savings and a chance to pay off the debt faster. So, here's our pick of balance transfer offers you can get in May 2021.
How did we pick this month's line-up?
We selected the May line-up based on the length of the 0% p.a. balance transfer period, the annual fee and other valuable features on credit cards offered through Finder in May 2021.
A good balance transfer deal has a lengthy 0% p.a. interest offer, no balance transfer fee and a low or $0 annual fee. We've picked cards available through Finder with the longest 0% period and then weighed up their other features. There's no one best credit card for everyone, so check details that matter to you. (And remember: you may not be eligible for a balance transfer offer from your current credit card issuer or bank.)
Best long-term balance transfer offer
ANZ Low Rate Credit Card
- Balance transfer offer: 0% p.a. for 30 months with no balance transfer fee.
- Revert rate: 20.24% p.a.
- Annual fee: $0 in the first year ($58 after that).
- Purchase rate: 12.49% p.a.
- Eligible debts: You can transfer from $100 up to 95% of your approved credit limit from credit cards and store cards not issued by ANZ.
The ANZ Low Rate Credit Card has one of the longest 0% balance transfer periods you can get right now. It offers you 0% interest on balance transfers for 30 months, no balance transfer fee and a $0 annual fee in the first year. After the first year, the annual fee is $58, which is competitive for this type of card.
To take advantage of this offer, you need to apply as a new customer and include details of your balance transfer request as part of the application.
If you got this card in May 2021, the 0% balance transfer rate would last until November 2023. To give you an idea of the potential savings, transferring a $6,000 debt from a credit card with a 19.94% interest rate could save you $2,286.14 over 30 months.
At the end of the introductory period, a high 20.24% interest rate applies if you have any balance transfer debt left to pay off. If you make new purchases, a 12.49% interest rate applies. That's 7.45% p.a. lower that the average standard rate in Australia.
For May, we picked the ANZ Low Rate because it has a very long 0% balance transfer period, no BT fee and no annual fee in the first year. But if you want longer to pay off your debt, you could also look at the HSBC Platinum Credit Card, which currently offers 0% interest for 36 months, no balance transfer fee and a $29 annual fee in the first year (then $129).
Best 0% p.a. balance transfer and $0 annual fee offer
Kogan Money Black Credit Card – Exclusive Offer
- Balance transfer offer: 0% p.a. for 24 months with no balance transfer fee.
- Revert rate: 21.74% p.a.
- Annual fee: $0
- Purchase rate: 20.99% p.a.
- Eligible debts: You can transfer a minimum of $500 up to 80% of your available credit limit from credit cards, store cards, personal loans and lines of credit issued in Australia.
Exclusive to Finder, this offer on the Kogan Money Black Credit Card gives you 0% interest on balance transfers for 24 months, no balance transfer fee and no annual fee ever.
Unlike some credit cards, the Kogan Money Black accepts balance transfers from personal loans and lines of credit, as well as other cards. This gives you options if you want to consolidate debts from a few accounts.
To get this offer, you'll need to apply through Finder by 31 May 2021 and request a balance transfer within 90 days of being approved.
If you're still paying off the balance transfer at the end of the introductory period, you'll be charged the cash advance interest rate, which is currently 21.74% p.a. This card also has a 20.99% p.a. variable rate for purchases (higher than the standard average rate).
It also gives you complimentary Kogan First Membership (valued at $99) and reward points for eligible purchases. If you're a regular shopper at Kogan.com, these perks could help you get value from using the card. But, with no interest-free days while you have a balance transfer, it's better to focus on paying off the balance before spending any more.
Best 0% balance transfer and 0% purchase rate offer
Virgin Money No Annual Fee Credit Card
- Balance transfer offer: 0% p.a. for 12 months with no balance transfer fee.
- Revert rate: 20.99% p.a.
- Annual fee: $0
- Purchase rate: 0% p.a. for the first 12 months, then 18.99% p.a.
- Eligible debts: You can transfer a minimum of $500 from Australian credit cards, store cards, personal loans or lines of credit that are not issued by Citigroup, with a maximum value of up to 80% of your approved credit limit.
If you want to pay off credit card debt but also have expenses coming up, the current offer on the Virgin Money No Annual Fee Credit Card gives you 0% interest on balance transfers and purchases for the first 12 months. As the name suggests, it also has a $0 annual fee for life.
To take advantage of the 0% interest rate offers, you need to apply by 31 May 2021. Then, at the end of the introductory period, the 0% interest rate for balance transfers reverts to 20.99% p.a. and the rate for purchases goes to 18.99% p.a.
Like Kogan, Virgin Money also lets you transfer balances from personal loans or lines of credit, as well as from other credit cards issued in Australia. But you can't get a balance transfer for any accounts issued by Citigroup.
This credit card also offers Fraudshield security and can be added to Apple Pay or Samsung Pay for mobile payments.
Compare these balance transfer offers side by side
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Remember: this is a selection of credit cards with competitive balance transfer offers available right now on Finder. You can compare other balance transfer offers here. Looking for a new credit card but don't need a balance transfer? Check out a wider range of credit card offers here.
Images: Finder (Luke Dubbelde), Supplied