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 has relaunched its 0% for 24 months balance transfer offer on the Westpac Low Rate credit card this month. The bank previously released a similar offer in December last year and again in April and August 2017.
The reinstated 0% for 24 months offer makes it one of the longest interest-free balance transfer card on the market. Outside of this specific promotional offer, the Westpac Low Rate credit card usually only offers 0% on balance transfers for 20 months. However, you can now take advantage of this 24 month, interest-free offer if you apply online and are approved by 31 January 2018.
What are the costs?
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 variable cash advance rate of 21.49% p.a. and any remaining debt will begin to grow with interest. 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% (or $10, whichever is greater) 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.
Are there any extra features?
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, some other balance transfer credit cards come with complimentary insurances, concierge services and rewards programs. However, if you're only using the card to consolidate and repay your debts, the lack of additional features may not be a concern if you don't 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.
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