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Balance Transfer Credit Cards
Done with debt? Transferring a $5,000 credit card balance could save you as much as $1,710.
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A credit card balance transfer gives you a way to move the money you already owe to a new credit card that offers a low or 0% introductory interest rate for a set period of time. This can save you on interest charges and help you pay off your debt faster.
Citi Credit Card Offer
Citi Rewards Card
0% p.a. for 30 months on balance transfers
$49 first-year annual fee
Offer ends 30 June 2021
Eligibility criteria, terms and conditions, fees and charges apply
Citi Credit Card Offer
Save with a long-term balance transfer offer and a first-year annual fee discount. Plus, Citi reward Points for your spending and complimentary insurance.
- $49 first-year annual fee ($149 p.a. thereafter)
- 0% p.a. on balance transfers for 30 months with no balance transfer fee, reverts to 22.24% p.a.
- 21.49% p.a. purchase interest rate | 22.24% p.a. cash advance rate
- Earn 1 Citi reward Point per $1 spent
- Minimum credit limit of $6,000
Compare Balance Transfer Credit Cards
See which card will offer you the most savings when you enter your current balance and interest rate into the calculator below.
What is a balance transfer credit card?
A balance transfer credit card offers you a low or 0% interest rate for an introductory period when you move your existing debt to the new credit card account. This introductory period gives you breathing room from interest charges and can allow you to pay off your debts faster (and for less). You can also use it for debt consolidation.
Most balance transfer credit cards let you move debt from existing credit cards or store cards. There are also a few that accept debt from personal loans. The actual balance transfer process is simple: when you apply for a balance transfer credit card, you need to include details of the account and the amount of money you want transferred. If your application and balance transfer are approved, then your new credit card provider will move the balance to your new account.
After the balance is transferred, you can pay it off with the low or 0% introductory rate for a set period of time. At the end of the introductory period, any remaining debt from your balance transfer will attract a higher, standard interest rate.
Types of balance transfer credit cards
Balance transfer cards with rewards
Transfer your existing debt and earn rewards on new purchases you make.
Transfer your existing debt and earn rewards on new purchases you make.
0% purchase and balance transfer cards
Consolidate your existing credit card debt and make new purchases interest-free.
Consolidate your existing credit card debt and make new purchases interest-free.
Balance transfer cards with no annual fee
Save on interest and on fees with an ongoing $0 annual fee or first year waiver.
Save on interest and on fees with an ongoing $0 annual fee or first year waiver.
Cards with no balance transfer fee
Move your existing debt to a new card without the added expense of a balance transfer fee.
Move your existing debt to a new card without the added expense of a balance transfer fee.
Example: A 0% balance transfer card vs. paying off your current card
To help you figure out whether a balance transfer card could save you money (and time), we've compared a common balance transfer offer with monthly repayments on a standard credit card using. The current balance and interest rates are Australian averages from October 2020. We assume that the annual fee on both cards is the same and no new purchases are being made.
| 0% Balance Transfer Card | Standard Credit Card | |
|---|---|---|
| Current balance | $2,728 | $2,728 |
| Interest rate | 0% p.a. | 17.00% p.a. |
| Period or term | 12 months | Ongoing |
| Balance transfer fee | 1.5% | N/A |
| Monthly repayment | $230.74 | $230.74 |
| Time to pay off | 12 months | 14 months |
| Interest paid | $0 | $278.75 |
In this example, a credit card balance transfer would save you $278.75 in interest and you'd pay off your debt two months faster – even while making the same monthly repayments and forking out for a balance transfer fee. You can use our credit card repayment calculator to figure out how much you could save and set your repayment goals.
Citi Rewards Card
0% p.a. for 30 months on balance transfers with no balance transfer fee. $49 annual fee for the first year ($149 p.a. thereafter).How do I find the best balance transfer credit card for me?
There are lots of balance transfer credit card deals available in Australia, but some will offer you greater savings than others. To help you find a balance transfer card that suits your needs, here's what you need to know:
- Look for a long offer. The longer the offer term, the more time you'll have to pay off your debt for a low or 0% rate.
- Watch out for the transfer fee. Some cards charge a balance transfer fee of 1% to 3% and that can eat into your potential savings.
- Find a low rate. Typically, the lower the rate, the more you'll save. Most balance transfer credit cards in Australia offer 0% interest for the promotional period.
- Take note of the revert rate. If you haven't paid off the balance transfer by the end of the promotional period, the higher revert interest rate will be charged on your debt.
- Check the eligibility. You can usually transfer a balance from Australian-issued cards or accounts, as long as they are from a different issuer. Some cards also allow you to transfer debts from personal loans and lines of credit held with other Australian financial institutions. See our guide to the banks you can and can't transfer between for more information.
- Know your limits. On some cards you can only transfer up to a percentage of your approved credit limit. This can range from 70% to 100% of your available credit limit. If you apply to transfer more than your limit, the remaining amount will stay in your old account(s) and collect interest. You can see Finder's guide to balance transfer limits for more information.
How to do a balance transfer in 4 steps
1. Compare balance transfer offersUse the table above to compare offers and see how much you could save.
2. Apply for a new cardRead the requirements, gather your documents and request the balance transfer during the application.
3. Activate your new cardWhen you receive the card, activate it by phone or online (and start making repayments).
4. Close your old accountYou are not required to close your old account, but it's usually a good idea to help you stay out of debt.
Quick tips for making the most of your balance transfer
- Make sure you can transfer enough of your balance. It doesn't have to be 100%, but if you have to split your balance, make sure you can manage both cards.
- Pay off the full balance before the end of the promotional period (auto-payments can help). This way you will avoid the higher revert interest rate.
- Don't spend on the new card. This way your repayments go towards your balance transfer and you won't add to your debt.
Pros and cons of balance transfer credit cards
Balance transfer credit cards can be a useful tool to help you pay off existing debt and clear your balance faster. However, there are some potential downsides to these offers. Make sure you consider all the pros and cons that are relevant to your situation.
Pros
- Save on interest costs. You can transfer your existing balance to a new card and get a low or 0% interest rate for an introductory period of time. This will almost always be lower than the interest rate you're currently paying and will save you money on interest charges.
- Pay off debt faster. By not paying interest (or paying a lower rate) on your balance, you should be able to pay it off a lot faster because the amount won't be creeping up (or will be a lot less) month after month.
- Simplify your payments. If you have a few debts, you can use a balance transfer card to consolidate them so you only have to keep track of one credit card bill. Not only will this help you manage your debt, it can also save you money on annual fees and other card costs.
- Complimentary extras. If you want to use the card after you have paid off your balance, perks like travel insurance or rewards could help you get more value out of the card in the long run.
Cons
- Balance transfer fee. This is a one-time fee that you may have to pay to move your balance over to the new card. These fees can range from 0% to 3% on your balance transfer amount, which could mean a fee of $300 on a $10,000 debt.
- Revert rate. If you don't pay off your balance in full during the introductory period, this is the interest rate you'll pay on the remaining balance. Typically, it is higher than the purchase interest rate.
- Balance transfer limits. Depending on the card and how much debt you want to transfer, you may not be eligible to move it all onto the new card. You could still be saving money, but you'll also have to manage your existing card.
- Credit score impact. Every time you apply for a new credit card, an enquiry is recorded on your credit report. If you already have a weak credit score, this could decrease it further and you may not be approved.
Frequently asked questions
Does 0% interest mean no payments?
No, even if you're paying 0% p.a. interest on your balance transfer debt, you still have to make at least the minimum repayment for each statement period. This is usually stated as "3% of outstanding balance or $30, whichever is greater", although the percentage and dollar amounts vary between cards. You can check the minimum payment requirements by looking at review page for individual cards or by looking at the key facts sheet that credit card providers must share with you before you apply.
How many times can you do a balance transfer?
There is no set maximum amount of times you can transfer a balance between credit cards. However, you should factor in any balance transfer fees, the enquiries on your credit report and your chance of being approved for new cards with different banks. Ideally, you should focus on paying it back in full and eliminating the need for multiple transfers.
Can I use my balance transfer card to make new purchases?
Yes but those purchases will collect the standard purchase interest rate. Even if your card has an introductory 0% rate on new purchases, you should concentrate on repaying your debt rather than making more purchases. It's also important to note that for many banks interest-free days don't apply to purchases when you're carrying debt from a balance transfer.
Do balance transfers hurt your credit?
A balance transfer does not inherently hurt your credit score. Whenever you apply for a new credit card, it does leave a hard enquiry on your credit report (and may decrease your score) but the balance transfer itself has no effect. That said, missing repayments on your credit card will hurt your credit score, so be sure to weigh up what's best for keeping your credit healthy.
What happens if I keep my old card open?
When you transfer an existing balance to a new card, it's your responsibility to contact your current credit card or loan provider and close the old account. If you don't, you could end up paying account costs for a card you're not using. Before you close the card, make sure the balance is completely transferred or paid in full and move any regular payments (such as direct debits) to another account.
Balance transfer credit cards can help you save on interest costs and get your debt under control. As there are so many different balance transfer cards on the market, there is no one best option that works for everyone. Instead, look at the size of your debt, what you can afford to pay each month and the card’s features to find a balance transfer card that works for you.
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Read more on this topic
-
0% Balance Transfer Credit Card Offers
Pay no interest on your credit card debt and clear it faster with a 0% balance transfer credit card. Compare and apply here.
-
What is a cheque-to-self?
A cheque to self was a feature offered by Citibank as an alternative to a balance transfer. It is no longer available, but you can explore your other options here.
-
Consolidate and pay off debt with a large balance transfer
If you qualify and are confident you can make the payments, here are your options for transferring balances onto a high limit credit card.
-
Can I consolidate a zipMoney balance on a balance transfer card?
Find out what balance transfer credit card options you can use to consolidate debts from zipMoney, zipPay and other interest-free accounts.
-
Best Balance Transfer Rates
Need to transfer your credit card debt and want to save on interest costs? Compare 0% balance transfer offers here and repay your debt faster.
-
How to ensure your balance transfer application is successful
Follow these simple steps to improve your chances of approval when applying for a balance transfer credit card.
-
Which banks can I balance transfer to?
Balance transfers are not allowed between certain credit card brands. Read on for a list of lenders that do and don’t allow a balance transfers between them.
-
Can I balance transfer a personal loan to a credit card?
Use this guide to see which providers accept balance transfers from a personal loan to a credit card and discover how you can repay your debt faster with 0% balance transfer offers.
-
What if I have bad credit and can’t balance transfer?
Find out how a bad credit score could affect your balance transfer credit card application and what you can do about it.
-
24 month 0% balance transfer credit cards
A 24 month balance transfer credit card gives you an introductory 0% or low interest rate on an outstanding credit card balance so you can save on interest as you pay off your debt.
Ask an Expert
$0 credit card no fee lowerest interest rate
Hi Sue,
Thanks for your comment.
You can find low rate credit cards on this page. On the page, you will find a table that compares the features and benefits of each credit card provider such as purchase rate, annual fee, interest-free periods and balance transfer rate. This way it will be easier for you to see which provider fits you best.
Click the button on the right side of the “purchase rate” column, it will sort the cards with 0% interest rates within a promo period. If you need further help, a quick guide on how to compare credit cards is also stated on the page. You can also click the compare box beside each loan option and compare up to 4 options side by side for easier comparison.
As a friendly reminder, check the eligibility requirements of the card before proceeding with your application. Also, read about its features and benefits and see how it fits your financial needs. Additionally, it’s helpful to review the PDS and Terms & Conditions of the card before fully committing to the card. You may also reach out to the bank if you have any clarifications.
Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
Hi,
I’ve narrowed my choice down to either St. George Vertigo Classic, BankSA Vertigo or Bank of Melbourne BT as they are all 0% pa for 18 months, with an annual fee of $55 per year which suits me. The purchase rate is different on each, however my question is this: “As long as I don’t purchase anything on any of these cards (I don’t usually on a BT because otherwise it never gets paid!) during the time I have it and also during the promotional period, I won’t get charged any purchase rate? So basically, only if I purchase?”
Just trying to choose which of these 3 cards is best as I have no intention of buying anything once I’ve transferred my debt.
Hi D,
Thank you for getting in touch with Finder.
Your understanding on not making purchases on the same card you did a balance transfer with to prevent being charged purchase interest is correct. You may refer to this page for more info on this matter.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
What are the hidden costs paying off a credit card this way. I have a $4500.00 balance on my credit card. About a quarter of what I pay goes on on charges, a payment of $45.50 plus goes in charges just to make the payment. I got into this card with the whole own it now and now with no interest on purchases. And when I got it I realized it was just a credit card, with huge interest on purchases. Silly me I guess. But how many people actually read the terms, they seem like a whole lot of words nobody has heard of .. I will be reading them with a magnifying glass from now on.
Hi Sue,
Thanks for getting in touch! Balance Transfer credit cards, as far as fees are concerned, generally involve:
Balance transfer rate
Balance transfer revert rate
Balance transfer fee
For more detailed information on what entails the fees, please read the part of the page above saying “How can I compare credit card balance transfer offers?”
For any hidden fees, these are dependent on the card you apply for so it’s important to check the terms and conditions and Product Disclosure Statement before committing to the product.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
Do you have to have good credit rating to transfer balance?
Hello Karma,
Thank you for your comment.
Yes, you need to have at least a good credit rating to have a big chance of being approved for a balance transfer credit card and be able to do a balance transfer. Please refer to our page about a good credit score and what you can do with it.
Regards,
Jhezelyn
HI! I have a joint credit card with my ex husband. He is not making payments. We owe $23k on the card. Looking at doing a balance transfer. Will any banks allow a 100% balance transfer? How easy is it to transfer the balance? My credit score is not great due to missing some payments, will this be a factor in getting approved? Thanks, Liz.
Hi Liz,
Thank you for reaching out to Finder.
Doing a balance transfer is pretty much straight forward.There are banks that will allow you to transfer the whole balance from your old card. Say the card allows you to balance transfer 80% of your credit limit, you need to be approved with a minimum credit limit of $28,750 to cover the full $23,000 balance from the old card.
Please note though that your credit score is a big factor on credit card application approval. You can read our guidance on how to get your credit card application approved here so you will have an idea on what to do prior to application.
Hope you find this helpful.
Kind Regards,
Mai
Hi there,
Just curious if I transfer my balance to a new bank and card and close my old one, can I still use the new one for purchases?
Hi Monica,
Thank you for getting in touch with Finder.
Yes, you may still use the card you used for balance transfer for new purchases. Basically, your repayments will go towards your purchase debt before your balance transfer debt, because credit card payments are allocated to the balance with the highest interest rate first. You may find tips on this page helpful on managing new purchases on your balance transfer credit card.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I am looking for to transfer my Credit Card to another bank, but want to earn Qantas Frequent flyer points as well, no interest for min 12 months with a decent interest rate can you let me know which is best??
Hi Aydin,
Thanks for getting in touch! You can balance transfer credit cards earning Qantas Frequent Flyer points on the table above.You can find 0% interest for up to 18 months. You can check Qantas Premier Platinum Mastercard or NAB Qantas Rewards Signature credit card.
Hope this helps!
Best,
Nikki
We have a credit card with a bank, #a, but they have changed our rewards system. There is another bank, #b, that offers better rewards we would like to switch to bank #b, but as we have a debt on the existing credit card with bank #a we need to do a balance transfer in order to close the account with bank #a. So we would need to do a balance transfer with a different bank, bank #c (as we require a credit card for everyday purchases being bank #b and they will offer no interest free days on any purchases with a balance transfer in play). So, my question is, do we do a balance transfer from bank #a to bank #c 1st then apply for a better rewards credit card with bank #b? Or apply for the credit card with bank #b first, with the existing debt with bank #a, then apply to bank #c for a balance transfer application?
Hi Anjish,
Thank you for getting in touch with finder.
Either ways would be fine before you cancel/close bank a – applying with bank c then do a balance transfer then apply for bank b for your everyday purchases or with bank b first before applying with bank c to do a BT. Credit card providers basically set their own eligibility criteria so it is best to check if you are eligible before you submit your application. Mostly, they check your credit score and capability to repay your credit card balance but not which company you owe some money with.
I understand that you’ve done some research on getting a credit card for your everyday spend and balance transfer needs however, there are some cards that would offer both – 0% on balance transfer and 0% on purchases too. You may see and compare your other options on this PAGE.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
Is there an Australia bank that will allow balance transfer from a relative to me if I apply for one of those balance transfer credit cards?
Hi Ari,
Thanks for leaving a question.
Though we are unable to provide you specifics on your query and can only provide you general information. There are banks that do allow balance transfer between partners. You may click here for you to be routed to our article regarding this. As well, it is highly advisable to reach out to the bank or a representative to better answer your query. Hope this helps!
Cheers,
Reggie
Can I apply for a credit card balance transfer if I am an existing bank customer. I dont want to transfer from that banks credit card but another bank.
Hello David,
Thank you for your comment.
Generally, most 0% balance transfer credit card are an introductory offer and are specifically offered to new customers who want to move their debt from an existing credit card that’s issued by a different provider.
It’s important to check the terms and conditions of the product since this will vary per provider.
Regards,
Jhezelyn