Use a balance transfer credit card to save on interest and pay off your debt faster with 0% for up to 26 months.
Virgin Money Credit Card Offer
Virgin Australia Velocity Flyer Card - Annual Fee Offer
Ongoing $50 p.a. annual fee
Offer ends 31 August 2019
Eligibility criteria, terms and conditions, fees and charges apply
Virgin Money Credit Card Offer
Receive up to 30,000 bonus Velocity Points when you meet the spend requirement. Plus, save with an ongoing $50 annual fee and a long-term balance transfer offer.
- $50 p.a. annual fee.
- 20.74% p.a. on purchases
- Cash advance rate of 20.99% p.a.
- Up to 44 days interest free
- Minimum income requirement of $35,000 p.a.
Compare Balance Transfer Credit Cards
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.
Balance transfer credit cards
HSBC Platinum Card: Offers 0% p.a. for 12 months on balance transfers and charges a $129 p.a. annual fee. The annual fee is refunded each year when you spend $6,000 on eligible purchases.
Citi Clear Platinum: Offers 0% p.a. for 14 months on balance transfers and charges a $0 p.a. annual fee for the first year ($99 p.a. thereafter).
ANZ Low Rate: Offers 0% p.a. for 15 months on balance transfers and charges a $58 p.a. annual fee.
Suncorp Clear Options Platinum - Online Offer: Offers 0% p.a. for 20 months on balance transfers and charges a $49 p.a. annual fee for the first year ($129 p.a. thereafter).
What is a balance transfer credit card?
A balance transfer involves moving your debt from one or multiple credit cards to a different card with a new provider. Usually, the new credit card will offer an introductory low or 0% interest rate on balance transfers that could help you save money. The introductory period can last from 12 to 26 months, after which time any remaining balance will collect a higher revert rate.
You can watch the video below to learn more about how you can use a balance transfer to get your debt under control.
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:
- Balance transfer rate. Most balance transfer credit cards in Australia offer 0% interest for a 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 balance transfer comparison table above to compare cards by the potential interest savings.
- 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'd 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 balance transfer offer.
- 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.
- Balance transfer fee. While not all credit cards charge a balance transfer fee, they have become 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.
- 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 credit limit. If you try to transfer more than the limit, the remaining amount will stay in your old account to 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 waive this cost. 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.com.au.
- Compare credit card balance transfer offers
Use the credit card comparison table to browse 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 could get from each offer by entering your debt details, clicking “Calculate” and then 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 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 and the amount of debt you want to transfer on your application. - Activate your card
Once you’re approved, you’ll need to activate the new card before the balance transfer can be processed. You can usually do this online 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 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 payment 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 pay a minimum amount each month, 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. As an example, below we’ve outlined how much you’d have to pay each month to clear a $10,000 debt within 6 to 24 months if you had a 0% p.a. interest rate.
| Duration | % of total to repay each month to clear debt | What that would equal per month on a $10,000 debt |
|---|---|---|
| 6 months | 16.67% | $1,666.67 |
| 12 months | 8.33% | $833.33 |
| 24 months | 4.17% | $416.67 |
The key lesson? Budget as much as you can towards paying off your credit card debt while the promotional rate applies. If you can’t repay the entire debt in time, it's possible to apply for another balance transfer.
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 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 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 get a balance transfer, it’s your responsibility to contact your current credit card 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 charge 0% when they could charge 20% or more? Here's why:
- 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 usually the purchase rate or cash advance rate, which usually ranges between 12% and 21% or more. Once that happens, 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's often expensive for banks to acquire new customers. Offering a discounted interest rate is a way for banks 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.
Last updated:
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
I have 2 credit cards with a combined debt of 17000.00 on one that was a business card , and $12000.00 on the personal one. I want to combine these so that we are only making one payment & we can get rid of them ASAP. All we are doing at the moment is paying minimum p/ments and getting nowhere. Can they be combined?
Hi Melissa,
Thank you for getting in touch with finder.
Yes you can consolidate your debts from your 2 credit cards as long the total amount of balance transfer amount from your cards are within the balance transfer limit of your new card. It will be processed separately since you have 2 different cards and make sure that the new card is from a different credit card company to successfully complete the BT process.
I hope this helps.
Have a great day!
Cheers,
Jeni
If you use the 0% balance transfer and do not pay off the total debt, can you then go to another bank offering 0% or are you stuck with the original bank?
Hi Susan,
Thanks for your inquiry.
It may not be ideal to do a second balance transfer for a short period of time as that could affect your credit history. With BT, you’d usually go with the standard process in applying for a new credit card, thus a new application in just a short time would mean credit enquiries and several enquiries on the file have negative effect on your future approval.
Furthermore, banks can actually find out that you’re not able to pay off your first balance transfer so that may cause them to reject second BT application.
Best regards,
Rench