What is a balance transfer fee? | finder.com.au

What is a balance transfer fee?

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

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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. This guide explains what this fee is and how you can confirm what you'll have to pay when you transfer your balance.

What is a balance transfer fee?

A balance transfer fee is a percentage-based fee charged when you transfer your existing credit card, store card, or personal loan debt onto a new credit card. The balance transfer fee 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 existing 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.

Compare credit cards without a balance transfer fee

Data updated regularly
$
% p.a.
Name Product Balance transfer rate Purchase rate Annual fee Amount saved
HSBC Platinum Credit Card
0% p.a. for 36 months
19.99% p.a.
$29 annual fee for the first year ($129 p.a. thereafter)
Save money with a 0% balance transfer rate for 36 months (with no BT fee), a first-year annual fee discount and free travel insurance.
St.George Vertigo Classic
0% p.a. for 28 months
13.99% p.a.
$55
Enjoy a 0% interest rate on balance transfers for 28 months, with no balance transfer fee.
Citi Rewards Card - Balance Transfer Offer
0% p.a. for 30 months
21.49% p.a.
$49 annual fee for the first year ($149 p.a. thereafter)
Save on interest with 0% p.a. on balance transfers for 30 months with no balance transfer fee. Plus, a $49 first-year annual fee.
Citi Clear Card
0% p.a. for 15 months
14.99% p.a.
$49 annual fee for the first year ($99 p.a. thereafter)
Get $250 cashback when you spend $3,000 within the first 90 days. Plus, a 0% balance transfer offer and first-year annual fee discount.
Virgin Money No Annual Fee Credit Card
0% p.a. for 12 months
0% p.a. for 12 months, reverts to 18.99% p.a.
$0
Save with an ongoing $0 annual fee and 0% p.a. on balance transfers and purchases for 12 months.
Coles No Annual Fee Mastercard
0% p.a. for 6 months
19.99% p.a.
$0
Get $100 off a Coles Supermarket shop when you spend at least $1,000 in the first 60 days and save with a 0% balance transfer offer.
Coles Low Rate Mastercard
0% p.a. for 15 months
12.99% p.a.
$58
Enjoy a 0% interest on balance transfers for 15 months, with no BT fee. Plus, earn Flybuys points as you spend.
ANZ Low Rate
0% p.a. for 20 months
12.49% p.a.
$0 annual fee for the first year ($58 p.a. thereafter)
Save with 0% p.a. on balance transfers for 20 months (with no BT fee) and $0 first-year annual fee. Plus a 12.49% p.a. purchase interest rate.
Citi Simplicity Card
0% p.a. for 6 months
0% p.a. for 6 months, reverts to 21.49% p.a.
$0
Get 0% p.a. interest for up to 6 months on purchases and balance transfers. Plus, a $0 annual fee for life.
Citi Rewards Card - Points & Gift Card Offer
0% p.a. for 15 months
21.49% p.a.
$49 annual fee for the first year ($149 p.a. thereafter)
Receive 90,000 bonus Citi reward Points (worth $400 in gift cards) and a $100 Coles eGift Card when you spend $3,000 in the first 90 days.
BankSA Vertigo
0% p.a. for 28 months
13.99% p.a.
$55
Enjoy a 0% p.a. for 28 months on balance transfers (with no balance transfer fee), a low purchase rate and annual fee.
Bank of Melbourne Vertigo Classic
0% p.a. for 28 months
13.99% p.a.
$55
Save with a 0% interest on balance transfers for 28 months, with no balance transfer fee.
St.George Vertigo Classic Rainbow
0% p.a. for 28 months
13.99% p.a.
$55
All the great low cost features of the Vertigo Visa with a rainbow design in support of the LGBT community.
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2 Responses

    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…

      Avatarfinder Customer Care
      JeremyNovember 17, 2011Staff

      Hi Ricky

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

      Cheers

      Jeremy

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