Pay no interest for up to 20 months and repay your debt faster with a balance transfer credit card.
0% p.a. for 14 months on balance transfers
$0 first year annual fee
Offer ends 30 June 2019
Eligibility criteria, terms and conditions, fees and charges apply
Citi Credit Card Offer
Save with a $0 annual fee for the first year and a long-term balance transfer offer. Plus, enjoy complimentary insurance covers.
- $0 p.a. annual fee for the first year ($99 p.a. thereafter).
- 12.99% p.a. on purchases
- 0% p.a. for 14 months with 0% BT fee on balance transfers
- Cash advance rate of 21.74% p.a.
- Up to 55 days interest free
- Minimum income requirement of $35,000 p.a.
Compare 0% balance transfer credit cards
If you want to avoid high interest costs, you can use a 0% balance transfer credit card to move debt from an existing card to a new one with a different provider that charges no interest for an introductory period. With no interest charges, you can potentially save more and pay off your credit card debt faster. You can use this guide to learn more about 0% balance transfer cards, understand how they work and compare interest-free balance transfer offers on the market.
Balance transfers explained in 60 seconds
How do 0% balance transfer credit cards work?
While some balance transfer credit cards offer a low interest rate for a promotional period (such as 3% for 30 months), these cards charge 0% interest for a promotional period. As long as you can pay off your debt in full before the introductory offer ends and revert rate applies, you can usually save more on interest costs with a 0% balance transfer deal. Depending on the card, the interest-free period may last from 6 to 26 months.
How much you will save with a balance transfer will depend on the size of your debt, the length of the interest-free offer and whether you can pay it off in full before the revert interest rate kicks in. You can use the comparison table above to compare cards by the potential savings based on your debt and the interest rate you're currently paying.
How to compare 0% balance transfers credit cards
There are many 0% balance transfer credit cards on the market, so here are some important factors to consider when comparing your options.
- How long is the balance transfer offer?
- How much can you transfer?
- Make sure you're transferring to a new bank
- Compare fees and charges
Length of the balance transfer introductory offer
Many Australian credit cards offer 0% on balance transfers, so you can compare your options by how long the interest-free period lasts for. You should look for a card that gives you enough time to repay the entire debt before the revert rate kicks in.
For example, let’s say you have a debt of $7,000 and are looking at a card with 0% on balance transfers for 18 months. You’d need to pay around $389 each month to clear the entire debt before interest applies. If you don’t think you can afford this, you could look for a card with a longer interest-free offer to spread out and reduce your monthly repayments.
How much you are allowed to transfer
Depending on the bank, you can usually transfer between 70% to 100% of the approved credit limit. If you had an approved credit limit of $10,000 and a maximum balance transfer of 80% of the limit, you could transfer up to $8,000. Refer to our guide on each bank's balance transfer limit and how much they will allow you to balance transfer for more information.
Which banks and institutions you can transfer to
You can't transfer your balance to a new card under the same bank. This means that you also can't transfer balances between banks that are owned by the same provider. For example, you can't balance transfer between St.George and Bank of Melbourne as they're both owned by Westpac. Refer to our guide on which banks you can balance transfer to for more information.
Balance transfer revert rate
If you can’t pay your entire balance by the end of the introductory period, any remaining debt will collect the revert rate. This is usually the much higher cash advance or purchase interest rate. It’s important to compare this rate and know when it kicks, even if you’re planning to pay the debt in full before interest applies.
Fees and charges
While you won’t have to pay any interest during the promotional period, most balance transfer credit cards come with other costs. You may be charged a balance transfer fee when you first move the debt, which is usually a percentage based fee of between 1% to 3%.
While some 0% balance transfer credit cards charge $0 annual fee, others can range between $49 to $400 or more. Make sure that the annual fee won't exceed your interest savings before you apply.
You shouldn’t use your credit card to make purchases while you’re concentrating on paying down your balance transfer. In case you have to use the card for an emergency, check the purchase interest rate first.
A 0% balance transfer credit card can be a useful way to get your debt under control and pay off your card with no interest costs. If you’ve compared your options, you can use finder’s guide to applying for a balance transfer for some tips to complete the application.
As there are many interest-free balance transfer credit cards on the market, make sure to compare your options before you apply to find the right one for you.