0% p.a. for 22 months on balance transfers
Eligibility criteria, terms and conditions, fees and charges apply
HSBC Credit Card Offer
A platinum card offering 0% interest on balance transfers for 22 months with no balance transfer fee. Plus, an annual fee refund each year when you spend $6,000 on eligible purchases
- Annual fee: $129 | Purchase interest rate: 19.99% p.a.
- Complimentary travel insurance and 2 lounge passes per year
- Earn 1 HSBC Rewards Point per $1 spent in Australia and 2 overseas
- Foreign transaction fee: 3% of transaction value | Cash advance rate: 21.99% p.a.
- Minimum income requirement of $40,000
Compare Balance Transfer Offers
Updated January 21st, 2020
If you want to clear your credit card debt, you can transfer your balance to a new credit card and pay it off with a low or 0% introductory rate. Use this guide to find out more.
What is a balance transfer credit card?
A balance transfer credit card charges a low or 0% interest rate on existing debts that you transfer from another card or account. You can use this type of card to repay existing debts quicker and save money on interest. The introductory balance transfer interest period can last from 5 to 36 months, after which any remaining balance will be charged interest at the higher revert rate.
You can watch the video below to find out what a balance transfer is and how they work.
How can I compare credit card balance transfer offers?
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 are the key features to compare:
- Length of introductory offer. The offers vary between cards, but 0% p.a. balance transfers can generally range from 6 months to 26 months. You can also find other low rate balance transfers that last for up to 36 months. You should choose a balance transfer that gives you enough time to pay the balance in full before the higher revert rate kicks in. You can do this by dividing your debt by the number of months in the introductory period. This will show you how much you have to pay each statement period to clear the debt before the offer ends. If you don’t think you can pay it all in this time, you might want to look for a card with a longer introductory period.
- Balance transfer fee. While not all offers charge a balance transfer fee, they are becoming more common in Australia. This fee typically ranges from 1% to 3% of the total balance transfer amount and is charged when your debt is transferred to the new card. This might not sound like a lot, but it can eat into the potential savings you'd get from the transfer. You can learn more about this fee and compare credit cards that don't charge a balance transfer fee in this guide.
- Balance transfer rate. Most balance transfer credit cards in Australia offer 0% interest for the promotional period, but others will offer a low rate (such as 2.99% p.a.). Generally the lower the interest rate, the more you'll save, but you can use the calculator in the balance transfer comparison table above to compare cards based on the potential interest savings.
- Balance transfer revert rate. At the end of the promotional period, the low or 0% balance transfer interest rate will revert to a higher, standard rate. This is usually the standard cash advance or purchase rate. Although you should aim to pay off your debt before the revert rate applies, you should pay attention to this rate to avoid any nasty surprises when the introductory offer ends.
- Eligible debts you can transfer. You can usually transfer one or multiple debts from Australian-issued store cards or credit card accounts from a different issuer. Some cards also allow you to transfer debts from personal loans and lines of credit. See our guide to the banks you can and can't transfer between for more information.
- Balance transfer limits. Some cards impose balance transfer limits, meaning you can only transfer up to a percentage of your approved credit limit. Depending on the card, 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.
- Annual fee. You'll usually pay an annual fee on a balance transfer card, although some cards will have a $0 annual fee or will waive this cost for the first year. When this fee is charged, it is treated as a purchase and attracts the same interest rate as other purchases made with the card. If you pay the annual fee straight away you can avoid interest charges, which will help you make the most of the 0% p.a. balance transfer period. You can compare balance transfer cards with no annual fees on finder to avoid this cost altogether.
How to do a balance transfer in five steps
Whether you want to consolidate your credit cards or pay off a debt for good, here's how you can transfer your balance to a new credit card in just a few steps through Finder.
- Compare credit card balance transfer offers. Use the credit card comparison table to browse on the different balance transfer offers and click on a column to sort by feature (e.g. "Balance transfer rate"). You can also see how much value you can get from each offer by entering your debt details, clicking “Calculate” and looking at the “Amount saved” column.
- Confirm how much you owe. Check your account balance or contact your existing credit card provider and ask for your balance details, including interest charges, annual fees, direct debits or any other costs that may be applied before the balance transfer is complete. This will help you fill out the balance transfer request correctly when you apply for a card.
- Submit your application. Click the "Go to site" button next to your chosen card and you'll be taken to the bank or card company's secure online application form. Remember to include the details of your existing account(s), issuer(s) and the amount of debt you want to transfer on your application.
- Activate your card. Once you’re approved, you’ll usually need to activate the new card before the balance transfer can be processed. You can do this online, at an ATM or over the phone with your new provider.
- Confirm the transfer and close your old account. The balance transfer may take 1-2 weeks to show up on your new credit card. After that, you can contact your old bank to close the previous card account and avoid any further fees or charges.
Mistakes to avoid with balance transfers
Watch out for these traps to make the most of a 0% balance transfer credit card offer.
MISTAKE: Thinking 0% interest means no payments
Even if you're paying 0% p.a. 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 can 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.
MISTAKE: Only making the minimum repayment each month
Although you’re required to repay a minimum amount each month, and you won't be penalised for paying just that, it could take years to pay off your entire debt if you only pay this amount. Instead, it's wise to make bigger payments and clear the entire debt before the 0% introductory period ends. How much you’ll have to pay each statement period will depend on the size of your debt and the length of the promotional period.
MISTAKE: Making new purchases with your card
If you use your card to make purchases, it will collect the standard purchase interest rate and could make it harder to pay off your debt. Credit card issuers are also required to allocate repayments to the debt that is charged with the highest rate of interest on your account. So, if your balance transfer has a 0% interest rate and your purchases collect 19.99% p.a., your repayments will go towards the purchases first rather than your balance transfer. 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 most providers interest-free days don't apply to purchases when you're carrying debt from a balance transfer.
MISTAKE: Keeping your 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.
If a balance transfer can help me save money, what's in it for the bank?
Credit card issuers make money when you pay interest, so why would they offer 0% when they could charge 20% or more? Here's what you need to keep in mind:
- The interest rate will eventually revert to a higher rate. As mentioned above, if you don't pay off your entire debt during the promotional period, you'll end up collecting interest at the standard rate for your card. This is typically the purchase rate or cash advance rate and usually ranges between 12% and 21% or more. Once when the balance transfer rate reverts, your new credit card issuer can potentially make hundreds or even thousands of dollars from you through interest charges.
- Persuading you to switch is tough. Australians are reluctant to switch banks and it is expensive for banks to acquire new customers. So, offering a discounted interest rate is a way to attract potential customers.
- You'll still have to pay interest on new purchases. While you'll enjoy 0% interest on your balance transfer debt, the standard variable interest rate for purchases will usually apply to any new purchases you make while you're paying off that debt.
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 the right balance transfer card for you.
* 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.
$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