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What is a balance transfer fee?

Learn more about the one-time fee you might pay when you move your debt to a new credit card.

Balance transfers can be a useful way to consolidate existing debt without the high interest cost. While you'll save on interest with low balance transfer rates, it doesn't mean that balance transfers are cost-free. As well as the standard card fees, you might also have to pay a one-off balance transfer fee. Here we explain what this fee is and how you can confirm what you'll have to pay when you transfer your balance.

What is the balance transfer fee?

A balance transfer fee is charged when transferring your existing credit card, store card, or personal loan debt onto a new credit card. It is usually 1-3% of the entire balance transfer amount. For example, if you are transferring $5,000 onto a new card and are charged a 2.5% balance transfer fee, the entire amount of the debt that will appear on the new card is $5,125 (the $5,000 exisiting debt and the $125 balance transfer fee). Unlike an annual fee, this fee is only charged once when you first move your balance.

Do I have to pay a balance transfer fee?

Not all balance transfer credit cards charge a balance transfer fee, so it's something worth considering when you're comparing your balance transfer options. If you're wondering if your new card will charge a balance transfer fee, you can check the product disclosure statement (PDS), the card review on finder or contact the card issuer to confirm the fee.

Comparison of credit cards without a balance transfer fee

Rates last updated July 16th, 2018
$
% p.a.

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Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Amount Saved Product Description
Suncorp Clear Options Platinum Credit Card - Exclusive Offer
0% p.a. for 18 months
20.74% p.a.
$99 p.a. annual fee for the first year ($129 p.a. thereafter)
finder Exclusive: Receive a long 18-month, 0% p.a., no fee balance transfer and earn Suncorp Rewards Points or Qantas Points per $1 spent.
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.
Virgin Money Low Rate Credit Card
0% p.a. for 14 months
11.99% p.a.
$49 p.a.
Offers a $49 annual fee, up to $100 cashback when you make a purchase within 3 months and 0% p.a. for 14 months on balance transfers.
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.
Emirates Citi World Mastercard
0% p.a. for 9 months
20.99% p.a.
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Receive up to 60,000 bonus Skywards Miles, pay half the annual fee for the first year and indulge in curated local and global experiences.
NAB Low Fee Platinum Card - Exclusive Amazon Offer
0% p.a. for 24 months with 2% balance transfer fee
19.74% p.a.
$90 p.a.
finder Exclusive: Take advantage of 10% cashback with amazon.com.au for 12 months (capped at $25 per month).

Compare up to 4 providers

Balance transfer review and frequently asked questions

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Westpac Low Rate Card
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2 Responses

  1. Default Gravatar
    RickyNovember 15, 2011

    Are you aware of any credit cards in the Australian market that currently charge a balance transfer fee? I’ve shopped around and I can’t find any at present…

    • finder Customer Care
      JeremyNovember 17, 2011Staff

      Hi Ricky

      The HSBC Credit Card currently charges a 2% balance transfer fee.

      Cheers

      Jeremy

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