Westpac Low Rate credit card 0% balance transfer for 24 months
Clear your credit card debt without the cost of interest for two years with Westpac’s new balance transfer offer.
Good news! Westpac relaunched its 0% for 24 months balance transfer offer on the Westpac Low Rate credit card this month. The bank previously released the same offer in December last year, which came in handy for cardholders who needed to consolidate their Christmas credit card debt.
The reinstated 0% for 24 months offer makes it the longest interest-free balance transfer card on the market, a title it shares with the NAB Low Rate Platinum Card. Regularly, the Westpac Low Rate credit card would only offer 0% on balance transfers for 12 months. However, you can take advantage of this 24 month, interest-free offer if you apply online and are approved by 31 July 2017.
While you will save on interest, the card isn’t entirely cost-free. You’ll have to pay the 2% balance transfer fee when you first move your balance to the new card and an annual fee of $59 (which is relatively competitive compared to some other balance transfer credit cards).
When the interest-free balance transfer offer ends, the interest rate will revert to the standard purchase rate of 13.49% p.a. and any remaining debt will begin to grow with interest. While higher than the 0% offer, the revert rate is competitive compared to other balance transfer credit cards which often have a standard interest rate of around 20%. If you’re worried that you won’t be able to pay your debt in full by the end of the two year promotional period, the revert rate is something you should pay attention to.
You’re required to pay at least 2% of your closing balance each month, but you should pay as much as you can to clear your debt before the introductory offer ends. So, let’s say you have a balance of $10,000. Rather than just paying the 2% minimum repayment (which would be $200 each month), you could pay $416 each month to clear the entire balance within 24 months and avoid collecting any interest.
Although the Westpac Low Rate card offers a competitive 0% balance transfer deal and relatively low fees, it is a no-frills card that comes with limited extra features. For example, the NAB Low Rate Platinum Card comes with a higher annual fee of $100 and a revert rate of 21.74% p.a., it also offers complimentary travel insurance, purchase protection insurance and a concierge service.
On the other hand, the Westpac Low Rate card comes with little to no extra features. This may not be an issue if you’re only using the card to consolidate and repay your debts, but could be something you might want to consider if you plan to use the card beyond the promotional balance transfer offer.
If you’re struggling to repay a large debt that is collecting high-interest, Westpac's Low Rate card could be a useful tool to clear your debt without collecting any additional interest. However, as this isn’t the only 0% balance transfer offer on the market, it would be wise to compare your options before you apply.
You can use our balance transfer credit card guide and consider the size of your debt and your ability to repay as well as the additional costs that come with the card to pick the right card for you.