A balance transfer could save you hundreds of dollars in wasted payments on interest. Compare these offers on the market and save!
When thinking about your credit card debt it is not a subject that many talk about. It is still considered quite a taboo topic in Australia. The reality is though, that the majority of us stress way too much about it. Luckily there is something we can do about it – transfer the balance of one credit card, onto another and utilise the low introductory rates to pay off that balance sooner!
The premise behind a balance transfer is really quite simple – you take your outstanding balance from one card – and and receive a special interest rate for a set period of time on the balance you transferred.
Below is a comparison of some of the balance transfer credit cards available.
Balance Transfer Credit Card Comparison
See our balance transfer guide for a detailed comparison of the latest balance transfer offers
How does a balance transfer work?
A balance transfer credit card allows you to transfer your existing credit card balances and repay them at a much lower rate, sometimes even 0% p.a. interest, over a set term. If you have kept a good credit history then you could be eligible for a balance transfer. If you think you can pay the debt of within 6 months then you should consider a 6 month balance transfer offer. If you think you will need more time to pay down your debt,
read more about a 12 month balance transfer.
How do balance transfers work?
Fred Schebesta of finder.com.au
Short Term Balance Offers
When choosing and comparing balance transfer offers it is crucial to take into account all elements of the card. You should be comparing such factors as:
- Balance transfer period
- Balance transfer interest rate
- Annual Fee
- Interest Free Days
- Cash advance rate
- Standard interest rate
You will need to decide whether or not each factor is important in your finances. For example, a card with a $0 annual fee has a higher interest rate after the introductory period, but a card with $49 annual fee has a lower rate in the same period. It is also worth as