Balance transfer credit cards with rewards programs

Save on interest as you pay off your debt and earn points on new purchases with a balance transfer credit card that also offers rewards.

A range of credit cards with introductory low or 0% p.a. balance transfer rates also come with reward programs. While the balance transfer rate can help you pay off your debt faster, the rewards program offers you points per $1 spent on your eligible, everyday spending. However, it's important to note that you won't earn points on the debt you transfer or the payments you make to your balance transfer debt. Use this guide to compare balance transfer credit cards with reward programs and learn about the key factors to consider so that you can decide if this type of card is right for you.

Compare rewards credit cards with balance transfer offers

Rates last updated October 22nd, 2019
Name Product Bonus Points Rewards Program Rewards Points per $ spent Purchase rate (p.a.) Annual fee Product Description
Qantas Premier Everyday
42,000 bonus points
Qantas Frequent Flyer
0.75
19.99% p.a.
$29 p.a. annual fee for the first year ($49 p.a. thereafter)
Get up to 42,000 bonus Qantas Points (7,000/month) when you spend $1,000/month for the first 6 months. Ends 31 October 2019.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
30,000 bonus points
Velocity Frequent Flyer
0.66
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Save with a 0% p.a. interest rate on balance transfers for the first 22 months, with a 1% balance transfer fee. Plus, a reduced $64 first year annual fee.
NAB Qantas Rewards Signature Card
120,000 bonus points
Qantas Frequent Flyer
1
19.99% p.a.
$295 p.a. annual fee for the first year ($395 p.a. thereafter)
Collect up to 120,000 bonus Qantas Points. Get 90,000 when you spend $3,000 on eligible purchases in the first 60 days and 30,000 after 12 months.
Citi Rewards Signature Credit Card
120,000 bonus points
Citi Rewards Program
1
21.49% p.a.
$199 p.a. annual fee for the first year ($395 p.a. thereafter)
Offers 120,000 bonus reward Points, a $199 first year annual fee, airport lounge passes and premium perks.
Citi Rewards Platinum Credit Card - Balance Transfer Offer
Citi Rewards Program
1
21.49% p.a.
$0 p.a. annual fee for the first year ($199 p.a. thereafter)
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 26 month balance transfer offer, plus $0 first year annual fee.
BOQ Blue Visa Credit Card
Q Rewards
1
20.74% p.a.
$60 p.a.
Receive $120 cashback when you meet the spend criteria and a 6 month interest-free balance transfer offer. Ends 31 Oct 2019.
BOQ Platinum Visa Credit Card
1,000 bonus points
Q Rewards
2
20.74% p.a.
$0 p.a. annual fee for the first year ($129 p.a. thereafter)
Enjoy 1,000 bonus Q Rewards points/month, a 12-month balance transfer offer and $0 first year annual fee. Ends 31 Oct 2019.
Citi Rewards Platinum Credit Card - Exclusive Offer
Citi Rewards Program
1
0% for 13 months, reverts to 21.49% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Finder Exclusive:
Save with 0% interest on purchases and balance transfers for 13 months (with no BT fee). Plus, a discounted $49 annual fee for the first year.

Compare up to 4 providers

What are the pros and cons of using a balance transfer credit card with rewards?

Pros

  • Save money on existing debt. By paying little to no interest on balance transfers for a given time period, you can save considerably in the form of interest, especially if you manage to pay off the entire transferred balance before the introductory period comes to a close.
  • Earn rewards. If you use your credit card frequently, you can benefit by earning rewards for your spending.
  • Make use of extras. Many of these credit cards come with insurance covers, a concierge service, airport lounge passes and more.

Cons

  • Temptation to spend. If you've got credit card debt that you're struggling to pay off, it may not be wise to get a rewards card that promises points for more spending. Consider focusing on paying off your debt before making new purchases on your credit card.
  • High-interest rate. You can expect a balance transfer card with rewards to charge a high interest rate on purchases, as the introductory balance transfer rate only applies to your existing debt.
  • Annual fee. Most of these credit cards charge an ongoing annual fee, and how much you have to pay in annual fees depends on the extras any given card offers.

What else will I need to consider when comparing balance transfer credit cards with rewards?

Keep the following factors in mind to help you decide if this type of card will work for you:

  • Balance transfers don’t earn rewards. There are no Australian credit cards that offer rewards points on balance transfer debts.
  • No interest-free days on purchases. Interest-free periods for purchases are usually only available if you pay your balance in full by the due date on each statement. So, if you have a balance transfer, this means you'll be charged the purchase interest rate on each new purchase you make.
  • Repayments. Your repayments will be allocated based on the part of your balance with the highest interest rate. So, if you're making purchases to earn points and also have a balance transfer, your repayments will go towards your new purchases first. This increases your risk of paying a higher interest rate on your balance transfer debt once the introductory period ends.
  • Bonus point spend requirements. You'll usually need to spend a set amount of money in the first few months to be eligible for any introductory bonus points. If you already have a balance transfer debt, meeting this spend requirement increases the risk of having to pay a higher interest rate on it when the introductory period ends.

Getting a balance transfer credit card with rewards can be a good idea if you have a roadmap in place. Ideally, you should plan to pay off the entire balance transfer debt within the introductory period. After that, you can look forward to earning rewards on new purchases. With so many different offers available, make sure you compare a variety of credit cards so you can find one that suits your circumstances and goals.

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5 Responses

  1. Default Gravatar
    harryFebruary 21, 2016

    Hi there I am interested in transferring from Westpac Altitude. I have 600,000 points do you lose them when I transfer? cheers H

    • Avatarfinder Customer Care
      SallyFebruary 22, 2016Staff

      Hi Harry,

      Thanks for your question.

      If you transfer your balance to another card and close your Westpac Altitude card (and don’t have another card open with Westpac), you’ll lose your rewards points.

      You can convert your Westpac Altitude Points to other rewards programs, such as Velocity Frequent Flyer or Singapore Airlines KrisFlyer if you have an account with them. Transferring your points to another rewards program before closing the account is one way you can still get value from your Altitude points after you’ve closed your Westpac credit card.

      I hope this has helped.

      Cheers,

      Sally

    • Avatarfinder Customer Care
      JonathanFebruary 22, 2016Staff

      Hi Harry, thanks for your inquiry!

      If you are transferring from your Westpac Altitude card you can still keep it active so your points are not lost. Transferring does not cancel the card.

      Cheers,

      Jonathan

  2. Default Gravatar
    LukeMay 18, 2015

    With the balance transfer rate of 0% for 16 months on the ANZ platinum card does that also include future balance transfers or only the initial one on application for the card

    • Avatarfinder Customer Care
      JonathanMay 18, 2015Staff

      Hi Luke, thanks for your inquiry!

      The balance transfer promotional rate of 0% for 16 months is only available at the time of application. As per the terms and conditions “The offer must be requested at the time of applying for the credit card.” ANZ allows 95% of the available credit limit for balance transfers.

      Cheers,

      Jonathan

Credit Cards Comparison

Rates last updated October 22nd, 2019
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee Product Description
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.
Latitude Low Rate Mastercard
9.89% p.a.
$69 p.a.
Offers a competitively low interest rate and annual fee, plus up to 55 interest-free days on purchases.
Qantas Premier Platinum
19.99% p.a.
0% p.a. for 18 months
$199 p.a. annual fee for the first year ($299 p.a. thereafter)
Get up to 120,000 bonus Qantas Points (20,000/month) when you spend $1,500/month for the first 6 months. Ends 31 October 2019.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
20.74% p.a.
0% p.a. for 22 months with 1% balance transfer fee
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Save with a 0% p.a. interest rate on balance transfers for the first 22 months, with a 1% balance transfer fee. Plus, a reduced $64 first year annual fee.

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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