Repay your existing credit card debt interest-free with no costs by shifting to a balance transfer credit card with $0 annual fee.
Are you burdened with high credit card fees and interest? Lower your costs and time making repayments while increasing your savings with a 0% balance transfer and no annual fee credit card. Take control of your expenses and compare your option using our guide.
Balance Transfer Credit Card Offer with No Annual Fee
The new American Express Essential™ Credit Card offers a low interest rate on purchases, no annual fee, Membership Rewards points and a promotional balance transfer rate.
- Earn up to 1 point for every $1 spent on purchases.
- Transfer your points to a choice of 8 Airline Rewards Partner Programs.
- Enjoy a low interest rate of 14.99% p.a. on purchases.
- Enjoy 0% p.a. on balance transfers for the first 12 months. Conditions apply.
- Smartphone Screen Insurance for up to $500 for screen repairs to your smartphone with 10% excess per claim. Up to 2 claims per 12-month period.
- Receive a $50 credit if you are a new Card member when you apply online, are approved and spend $750 within the first 3 months of Card Membership.
Compare No Annual Fee Balance Transfer Credit Cards
Rates last updated December 11th, 2016.
- American Express Qantas Discovery Card
The spend criteria for the bonus points has been changed from $300 to $750.
October 4th, 2016
- Virgin No Annual Fee Credit Card
Balance transfer and $100 cashback offers have been extended to 16 January 2017.
November 1st, 2016
- Citi Simplicity Card
5% cash back + 0% p.a. for 9 months on balance transfers. Offer ends 30 June 2017.
November 18th, 2016
The finder.com.au best* no annual balance transfer credit cards
Compare the features of the balance transfer cards below.
|Credit Card||Balance transfer Offer||Annual Fee|
|0% p.a. for 18 months with 2% balance transfer fee||$0 p.a.|
|HSBC Platinum Credit Card||0% p.a. for 15 months||$0 p.a.|
|0% p.a. for 18 months with 3% balance transfer fee||$0|
|0% p.a. for 12 months with 1% balance transfer fee||$0 p.a.|
What is a No Annual Fee 0% Balance Transfer credit card?
A balance transfer refers to the process by which you transfer an existing debt that's accruing higher interest to a new credit card that charges a low or 0% p.a. on balance transfers for a promotional period (which is usually between 6 to 24 months). This rate will then revert to the standard purchase or cash advance rate (which is usually between 12% to 20%) at the end of the introductory period. A no annual fee card, as the name suggests, is a card that doesn't charge a regular yearly fee. Combine these features and you've got a low-fee card that allows cardholders to consolidate their debts while saving on fees. Compare your options to determine whether this type of card could work for you.
What are the benefits of a no annual fee 0% balance transfer card?
The benefits of a no annual fee 0% balance transfer card are:
- Consolidation of debt at 0% p.a. interest. Customers can take control of their debt by transferring it to a card with a lower balance transfer rate to repay their debt without the burden of interest. Not only will this allow you to repay your debt fast, but it can also lead to dramatic savings.
- Competitive pricing. Competitive rates and interests can allow you to manage your finances with greater ease during the balance transfer period.
- Credit improvement. If you have multiple debts across a number cards, this can reduce your credit score. If you transfer the debt to a single card and reduce the overall amount, this could help repair your credit history.
What are the features of a no annual fee 0% balance transfer card?
The main features of a no annual fee 0% balance transfer card are:
- Reward programs. While consolidating your debt is a big enough incentive for most customers, an added advantage of rewards program can make the card a must have. These reward points can be earned on any eligible purchase.
- Complimentary travel insurance. Some cards offer complimentary travel insurance which can be useful for customers who are planning for any overseas trip in the near future.
- Interest free days. Most of the cards provide interest free periods on purchases. This effectively means that the next expense of owning the card can be absolute zero if it is used judiciously.
- Low or zero transaction fees. These cards also provide very low or zero transaction fees on foreign transactions. This should be useful for customers dealing in the foreign currency on a regular basis.
What should I be wary of when comparing a no annual fee 0% balance transfer card?
- Limited no annual fee period. Many cards offer lifetime no annual fees, however few cards also give no annual fee for only an introductory period of one year. Make sure you can afford the reverted annual fee if you plan on using the card for some time.
- Balance transfer fee. Some cards charge a balance transfer fee, which is usually a percentage of the total transferred amount. Customers who want absolute minimum fee/charges for balance transfer should look for zero balance transfer fee cards.
- Balance transfer promotional period. These cards generally do not allow balance transfers to the maximum credit limit of the card. Most of the cards allow balance transfer up to 70-95% of the credit limit.
- Higher interest rate on purchase. This zero interest rate is only for balance transfers. If any new purchases are made, they will attract a much higher interest rate. In this case customers can transfer the balance to one card and look for another card with minimum interest rates on purchases to reduce their interest charges.
- Credit history. If you have a bad credit history, you may not be approved for this type of card.
- Financial prudence. Customers using balance transfer card generally want to reduce their interest burden and bring down their debt. It is better to carefully plan the expenses during this time to ensure timely payback of the debt before the end of the 0% interest rate period.
How to apply for a no annual fee 0% balance transfer credit card?
If you want to apply for a no annual fee balance transfer credit card, you can click on the green 'Go to Site' button on the comparison table to begin your application. Before applying though, make sure you meet the eligibility requirements and have organised the required documents on hand:
The eligibility requirements will vary from card to card, but some of the requirements may include:
- Age. Are you aged 18 years or older?
- Location. Are you a permanent Australian resident?
- Minimum income. You'll usually need to meet a minimum annual income to receive approval. The amount will vary from card to card, but they generally sit between 25,000 to 40,000 dollars p.a.
- Existing bank. Can your existing debt be transferred to your new card? Most banks don't accept transfers from existing accounts and some also reject transfers from other banks. See which banks you can transfer between here.
- Proof of identity. You'll need to provide proof of identity, such as a driver's license or birth certificate.
- Balance details. If you want to conduct the balance transfer, you'll need to have the details of your account and the amount you're hoping to transfer ready.
Balance transfer cards provide an ideal option to consolidate debts from different locations and reduce the interest burden on them. They provide a much needed breathing space by providing 0% p.a. interest rate for an introductory period and no annual fees. Customers should compare the cards available in the table and find the ideal option which matches their needs and financial situation.Back to top
Frequently asked questions
What if my credit history is less than perfect?
Credit card firms do look at the past credit history however nothing is set in stone. It is better if the customer applies to the firm they have chosen and get a reply from them. Different firms have different policies for credit rating of the applicants, which makes it possible for customers with less than perfect credit history to also get approval.
How much can I transfer?
This again varies considerably between different cards. Most of the cards mention a maximum credit limit, however you might be offered a different credit limit based on your credit history. Of the credit limit approved, a customer can use 70-95% for balance transfers. For example, if a customer is approved for $50,000 of credit limit and can use 80% for balance transfer this will allow using balance transfer for $40,000 at no annual fee and 0% p.a. for an introductory period.
Are balance transfer cards the best financial option?
This depends on the customer and how the card is used. If one uses this option to consolidate $20,000 of debt which was outstanding in 5 credit cards, it can provide a considerable break from heavy interest rates of up to 20% p.a. for a period of over 1 year. This time can be used to bring down the debt to a big extent. Other options like using debt against assets might not provide a similar deal. However this option should be used very judiciously and customers should try not to rack up any more debt.
Can I use balance transfer to pay off my car debt or other heavy loans?
In theory this is achievable given the fact that one can get 0% interest rate for up to 16 months. However users must take a hard look at their financials and make sure they can repay the debt within this period through their income source. Else it is possible to get sucked into a vicious loop of paying one debt with another.