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.

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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

Updated January 29th, 2020
$
% p.a.
Name Product Balance transfer rate Purchase rate (p.a.) Annual fee Amount saved
HSBC Platinum Credit Card - Balance Transfer Offer
0% p.a. for 22 months
19.99% p.a.
$129 p.a.
Enjoy a balance transfer offer, yearly annual fee refund, airport lounge passes and complimentary insurance covers.
St.George Vertigo Classic
0% p.a. for 18 months
13.99% p.a.
$55 p.a.
Get 0% p.a. interest for up to 18 months on balance transfers with no balance transfer fee. Plus, a low annual fee and purchase rate.
Coles No Annual Fee Mastercard
0% p.a. for 12 months
0% for 12 months, reverts to 19.99% p.a.
$0 p.a.
Offers 0% p.a. on purchases and balance transfers for the first 12 months and an ongoing $0 annual fee. Plus, earn flybuys for your eligible spend.
Coles Low Rate Mastercard
0% p.a. for 12 months
0% for 12 months, reverts to 12.99% p.a.
$58 p.a.
Offers 0% p.a. interest on balance transfers and purchases for the first 12 months. Plus, earn flybuys points at Coles Supermarkets.
HSBC Platinum Qantas Credit Card
0% p.a. for 12 months
19.99% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Save with a $0 first year annual fee and a long-term balance transfer offer. Plus, complimentary travel insurance.
Westpac Low Rate Card
2019 Winner
Westpac Low Rate Card
0% p.a. for 16 months
13.74% p.a.
$59 p.a.
A no frills, low rate card offering 0% p.a. interest on balance transfers for the first 16 months, with no balance transfer fee.
St.George Vertigo Card - Exclusive Offer
0% p.a. for 6 months
0% for 14 months, reverts to 13.99% p.a.
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Finder Exclusive:
Low rate card offering 0% p.a. interest on purchases for the first 14 months and on balance transfers for 6 months. Plus, a $0 first year annual fee.
Virgin Money Low Rate Credit Card
0% p.a. for 14 months
11.99% p.a.
$49 p.a.
Get a $49 annual fee, 10% cashback on purchases made in the first 3 months (capped at $100) and a 14-month balance transfer.
St.George Amplify Signature
0% p.a. for 6 months
19.74% p.a.
$139 p.a. annual fee for the first year ($279 p.a. thereafter)
Earn up to 200,000 bonus Amplify Points (130k in the first year & 70k in the second year) when you spend $12k / year for the first 2 years.
ANZ Low Rate
0% p.a. for 15 months
12.49% p.a.
$58 p.a.
Save with a 0% p.a. introductory rate on balance transfers for 15 months with no BT fee. Plus a low 12.49% p.a. interest rate on purchases.
St.George Amplify Platinum - Online Offer
0% p.a. for 22 months
19.74% p.a.
$99 p.a.
Get 100,000 bonus Amplify Points when you spend $2,000 in the first 90 days. Plus, a balance transfer offer of 0% interest for 22 months.
St.George Amplify Platinum - Qantas - Online Offer
0% p.a. for 22 months
19.74% p.a.
$99 p.a.
Receive 60,000 bonus Qantas Points when you spend $2,000 within 90 days and a 0% balance transfer for 22 months.
Westpac Altitude Platinum Qantas - Online Offer
0% p.a. for 20 months
20.49% p.a.
$200 p.a.
Get 40,000 bonus Qantas Points when you spend $2,000 within 90 days of approval. Plus, a 0% balance transfer and complimentary insurance.
Westpac Altitude Platinum Velocity - Online Offer
0% p.a. for 20 months
20.49% p.a.
$200 p.a.
Receive 40,000 bonus Velocity Points when you spend $2,000 within 90 days. Plus, a 0% p.a. balance transfer and yearly upgrade vouchers.
Westpac Altitude Platinum Card - Online Offer
0% p.a. for 20 months
20.49% p.a.
$150 p.a.
Earn 40,000 bonus Altitude Points when you spend $2,000 within 90 days of card approval. Plus, a 0% p.a. balance transfer offer for 20 months.

Compare up to 4 providers

Balance transfer review and frequently asked questions

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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…

    • Avatarfinder Customer Care
      JeremyNovember 17, 2011Staff

      Hi Ricky

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

      Cheers

      Jeremy

Credit Cards Comparison

Updated January 29th, 2020
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee
HSBC Platinum Credit Card - Balance Transfer Offer
19.99% p.a.
0% p.a. for 22 months
$129 p.a.
Enjoy a balance transfer offer, yearly annual fee refund, airport lounge passes and complimentary insurance covers.
St.George Vertigo Classic
13.99% p.a.
0% p.a. for 18 months
$55 p.a.
Get 0% p.a. interest for up to 18 months on balance transfers with no balance transfer fee. Plus, a low annual fee and purchase rate.
Coles No Annual Fee Mastercard
0% for 12 months, reverts to 19.99% p.a.
0% p.a. for 12 months
$0 p.a.
Offers 0% p.a. on purchases and balance transfers for the first 12 months and an ongoing $0 annual fee. Plus, earn flybuys for your eligible spend.
ANZ Low Rate
12.49% p.a.
0% p.a. for 15 months
$58 p.a.
Save with a 0% p.a. introductory rate on balance transfers for 15 months with no BT fee. Plus a low 12.49% p.a. interest rate on purchases.

Compare up to 4 providers

* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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