Low Balance Transfer Credit Cards

Who else wants to pay 0% for up to 24 months on your credit card?

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% interest, over a set term. In fact, our current deal of the day gives finder.com.au users 18 months interest free on transferred balances, which is huge! Click here for more information.

If you still have a leftover balance after the balance transfer offer expires, the remaining balance will generally revert to the standard purchase rate for the credit card, although in some cases this will revert to the cash rate.

Some credit cards offer 0% balance transfer rates and some low rate longer term balance transfer options. Where the balance transfer rate is the same, you will then need to look at other features such as the annual fee and purchases interest rate.

The following is a comprehensive guide to help you understand exactly what a balance transfer is, how it can benefit you by reducing your credit card interest repayments, and how to compare the available balance transfer credit cards to find the best offer for you. Take note that all balance transfer offers require good credit for application approval.

St.George Vertigo Visa Credit Card - BT Offer - Feb to May

Balance Transfer Credit Card Offer

For a limited time, the St.George Vertigo card offers 0% p.a. for 18 months on balance transfers, when requested at card application as well as 0% p.a. for 3 months on purchases, from card approval.

  • 0% p.a. for 18 months on balance transfers requested at card application. Rate then switches to the variable cash advance rate.
  • 0% p.a. for 3 months on purchases, from card approval.
  • $55 annual fee
  • Enjoy up to 55 days interest free on purchases when the closing balance (including any balance transfer amount) is paid by the statement due date.
  • Offer ends 30 April 2015.

    Balance Transfer Credit Cards Comparison

    Rates last updated April 21st, 2015

    $
    % p.a.
    Interest rate (p.a.) Balance transfer rate (p.a.) Annual
    fee
    Interest
    saved
    St.George Vertigo Visa
    St.George Vertigo Visa
    Benefit from a low interest rate on your everyday purchases combined with a long term low interest rate balance transfer offer. 0% p.a. for 3 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
    Virgin No Annual Fee Credit Card
    Virgin No Annual Fee Credit Card
    Enjoy a long term balance transfer and never pay an annual fee for this card. 18.99% p.a. 0% p.a. for 14 months $0 p.a. Go to site More info
    St.George Vertigo Platinum
    St.George Vertigo Platinum
    A low rate purchase card with a long term on balance transfer offer. 0% p.a. for 3 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. Go to site More info
    Virgin Australia Velocity Flyer Card - Balance Transfer Offer
    Virgin Australia Velocity Flyer Card - Balance Transfer Offer
    Offering 0% p.a. interest rate on balance transfers for 16 months. Plus earn Velocity Points for every $1 spend. 20.74% p.a. 0% p.a. for 16 months $129 p.a. Go to site More info
    Citibank Rewards Credit Card - Platinum Card
    Citibank Rewards Credit Card - Platinum Card
    A long term balance transfer offer with the Citibank Rewards Platinum card. Earn extra points on overseas spend and includes travel insurance. 20.99% p.a. 0% p.a. for 24 months $199 p.a. Go to site More info
    Bank of Melbourne Vertigo Platinum
    Bank of Melbourne Vertigo Platinum
    Low ongoing rate on purchases with a long term offer on balance transfers. 0% p.a. for 3 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. Go to site More info
    Westpac Low Rate Card
    Westpac Low Rate Card
    A long term low rate balance transfer offer together with a low annual fee. 0% p.a. for 3 months (reverts to 13.49% p.a.) 0% p.a. for 16 months $59 p.a. Go to site More info
    Citi Simplicity Card
    Citi Simplicity Card
    No annual fee ever and a long term offer for balance transfers. 19.99% p.a. 0% p.a. for 12 months $0 p.a. Go to site More info
    Bankwest More Classic MasterCard
    Bankwest More Classic MasterCard
    Earn 28,000 bonus More Rewards points. Plus earn 1.50 points for every dollar you spend. 19.99% p.a. 0% p.a. for 18 months $70 p.a. Go to site More info
    HSBC Platinum Credit Card
    HSBC Platinum Credit Card
    Earn rewards points plus a balance transfer offer. Access to prestige services including a personal concierge service and VISA Platinum reward program. 19.99% p.a. 0% p.a. for 8 months $0 p.a. Go to site More info
    Westpac Low Rate Card - Exclusive Offer
    Westpac Low Rate Card - Exclusive Offer
    Exclusive Offer to finder.com.au
    A longer term balance transfer option available exclusive to this website only.
    13.49% p.a. 0% p.a. for 20 months with 2.5% balance transfer fee $59 p.a. Go to site More info

    6 to 8 month Balance Transfer Credit Card Offers

    Rates last updated April 21st, 2015

    $
    % p.a.
    Interest rate (p.a.) Balance transfer rate (p.a.) Annual
    fee
    Interest
    saved
    HSBC Platinum Credit Card
    HSBC Platinum Credit Card
    A no annual fee card with prestige platinum services including a personal concierge service. 19.99% p.a. 0% p.a. for 8 months $0 p.a. Go to site More info
    HSBC Credit Card
    HSBC Credit Card
    A very unique credit card offer that offers both a low balance transfer offer and a $0 p.a. annual fee for the life of the credit card. 17.99% p.a. 0% p.a. for 6 months $0 p.a. Go to site More info
    HSBC Platinum Qantas Credit Card
    HSBC Platinum Qantas Credit Card
    A low interest rate offer on balance transfers and a bonus 20,000 Qantas Points for new applications. 19.99% p.a. 0% p.a. for 6 months $199 p.a. Go to site More info
    American Express Qantas Discovery Card
    American Express Qantas Discovery Card
    Earn Qantas Points with introductory offer of 7,500 Qantas Points and 0.99% p.a. interest for 6 months on balance transfers. 20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $0 p.a. Go to site More info
    American Express Platinum Edge Credit Card
    American Express Platinum Edge Credit Card
    A Platinum rewards card with 10,000 Membership Rewards Bonus Points plus a low interest rate of 0.99% p.a. for 6 months on balance transfers. 20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $195 p.a. Go to site More info
    St.George Amplify Classic
    St.George Amplify Classic
    Enjoy up to 55 interest-free days, and get a great balance transfer and purchase rate offer. 0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $79 p.a. Go to site More info

    9 to 24 month Balance Transfer Credit Cards Comparison

    These credit cards allow you to transfer your balance for a longer period of time. This might give you some more time to repay your debt. Typically, the balance transfer rate will be higher than the shorter balance transfer term offers.

    Rates last updated April 21st, 2015

    $
    % p.a.
    Interest rate (p.a.) Balance transfer rate (p.a.) Annual
    fee
    Interest
    saved
    Citibank Rewards Credit Card - Platinum Card
    Citibank Rewards Credit Card - Platinum Card
    Take advantage of a great introductory long term balance transfer offer. 20.99% p.a. 0% p.a. for 24 months $199 p.a. Go to site More info
    St.George Vertigo Platinum
    St.George Vertigo Platinum
    Long term balance transfer together with a low ongoing rate on purchases. 0% p.a. for 3 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. Go to site More info
    St.George Vertigo Visa
    St.George Vertigo Visa
    A great value credit card for consumers with an interest rate offer on balance transfers and a low ongoing purchase rate. 0% p.a. for 3 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
    Virgin No Annual Fee Credit Card
    Virgin No Annual Fee Credit Card
    No annual fee for the life of the card and a great balance transfer offer. 18.99% p.a. 0% p.a. for 14 months $0 p.a. Go to site More info
    Westpac Low Rate Card
    Westpac Low Rate Card
    One of the longest balance transfer cards on the market. Also benefit from a low ongoing purchase rate and annual fee. 0% p.a. for 3 months (reverts to 13.49% p.a.) 0% p.a. for 16 months $59 p.a. Go to site More info
    Virgin Australia Velocity Flyer Card - Balance Transfer Offer
    Virgin Australia Velocity Flyer Card - Balance Transfer Offer
    0% p.a. for 16 months on balance transfers, plus earn 10,000 bonus Velocity Points in your first 3 months. 20.74% p.a. 0% p.a. for 16 months $129 p.a. Go to site More info
    Bank of Melbourne Vertigo Platinum
    Bank of Melbourne Vertigo Platinum
    Low ongoing rate on purchases with an introductory offer on balance transfers. 0% p.a. for 3 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. Go to site More info
    Westpac Low Rate Card - Exclusive Offer
    Westpac Low Rate Card - Exclusive Offer
    Exclusive Offer to finder.com.au
    Apply online via creditcardfinder.com.au to receive this exclusive Low Rate offer from Westpac.
    13.49% p.a. 0% p.a. for 20 months with 2.5% balance transfer fee $59 p.a. Go to site More info
    Bankwest More Classic MasterCard
    Bankwest More Classic MasterCard
    A long term balance transfer offer and 28,000 bonus points offer. 19.99% p.a. 0% p.a. for 18 months $70 p.a. Go to site More info
    Citi Simplicity Card
    Citi Simplicity Card
    0% for 12 months on balances transfers with no annual fee to pay. 19.99% p.a. 0% p.a. for 12 months $0 p.a. Go to site More info
    NAB Qantas Rewards Card
    NAB Qantas Rewards Card
    Earn a low interest rate on balance transfers. 20,000 bonus Qantas Points. Apply by 11 October 2015. 19.99% p.a. 0% p.a. for 15 months $65 p.a. Go to site More info
    ANZ Low Rate
    ANZ Low Rate
    Offering a low interest on balance transfers and purchases. 13.49% p.a. 0% p.a. for 16 months with 2% balance transfer fee $58 p.a. Go to site More info
    ANZ First Visa Credit Card
    ANZ First Visa Credit Card
    This simple a low annual fee credit card it offers interest free days on purchases and low minimum credit limit. 19.74% p.a. 0% p.a. for 16 months with 2% balance transfer fee $30 p.a. Go to site More info
    Bank of Melbourne Vertigo Visa Credit Card
    Bank of Melbourne Vertigo Visa Credit Card
    A low rate card from Bank of Melbourne with a short term introductory rate on purchases. 0% p.a. for 3 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
    ANZ Platinum Credit Card
    ANZ Platinum Credit Card
    ANZ offers a platinum credit card which includes medical and travel insurance. 19.74% p.a. 0% p.a. for 16 months with 2% balance transfer fee $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
    BoQ Platinum Visa Card
    BoQ Platinum Visa Card
    A low rate balance transfer offer with a low annual fee. 20.74% p.a. 0% p.a. for 14 months $49 p.a. annual fee for the first year ($199 p.a. thereafter) Go to site More info
    Westpac Altitude Platinum Card
    Westpac Altitude Platinum Card
    Redeem Altitude points for flights on any of the world's major airlines. Also includes free insurance and travel benefits. 0% p.a. for 3 months (reverts to 20.24% p.a.) 0% p.a. for 16 months $150 p.a. Go to site More info
    ANZ Low Rate Platinum Credit Card
    ANZ Low Rate Platinum Credit Card
    A platinum card with a low interest rate with a long balance transfer and low ongoing purchase rate. 13.49% p.a. 0% p.a. for 16 months with 2% balance transfer fee $99 p.a. Go to site More info
    NAB Premium Card
    NAB Premium Card
    Enjoy a low interest rate on balance transfers. Benefit from platinum credit card advantages. 19.74% p.a. 0% p.a. for 15 months $90 p.a. Go to site More info
    Citibank Rewards Credit Card - Classic Card
    Citibank Rewards Credit Card - Classic Card
    Low annual fee and a long balance transfer offer. Earn Citibank Rewards. 20.99% p.a. 0% p.a. for 18 months $89 p.a. Go to site More info
    Westpac Altitude Black
    Westpac Altitude Black
    Access a dedicated concierge & iPhone app, your own personal shopper and a range of complimentary travel and purchase insurances. Offers two reward programs which you can choose between Altitude or Qantas Rewards. 0% p.a. for 3 months (reverts to 20.24% p.a.) 0% p.a. for 16 months $395 p.a. Go to site More info

    Balance Transfer Credit Card Comparisons

    Credit Card Debt Sufferers: Reduce your interest payments and save $1,000′s by Switching credit cards to a New Balance Transfer card

    How to Choose the Best Balance Transfer Deal

    Following is a step by step guide to selecting a balance transfer deal. Just answer each of the questions and follow the tree to our recommended areas.

    Question 1: Have you got a good credit history?

    A good credit score will give you a much better chance to get a Balance Transfer If your credit history isn’t good, the likelihood is your application will be declined.

    You can check your credit history by ordering a Credit Report.

    Question 2: Are you able to payoff Your debt within 6 months?

    You have 2 options
    1. Get more time to payoff debt – Consider a longer term balance transfer offer to give yourself more time to payoff the debt.
    2. Switch more than once – If your credit rating is good enough you can consider retransferring your balance transfer after the 1st 6 month deal is finished. This way you can buy yourself enough time to payoff your debt. You need to be careful with this as it will require careful management of your cards and you will need a very strong credit rating.

    Top Deals

    Take advantage of the some of the long term balance transfer offers in market. If you feel that you’ll need 12 months or more to repay your debt, it would be wise to look at the longer term offers.

    Balance Transfer – Questions & Answers

    What is a balance transfer?

    Balance transfers allow you to consolidate the debt from one or more credit cards into a new credit card at a lower interest rate meaning you pay less interest for a number of months.

    Balance Transfer Process

    TIP It is best to make your balance transfer within a couple of months of opening the new card account otherwise the opportunity could expire. It’s important you don’t confuse cutting the interest with paying less each month, as that’s determined by the minimum repayments.

    How do balance transfers work?

    Fred Schebesta. Finder.com.au

    How do Low Rate Balance Transfer Credit Cards work?

    Learn how low rate balance transfer credit cards works, and how to identify the best offers. Be aware of the main pitfall of making purchases on a balance transfer credit card. Check out the St.George Vertigo Visa as a great all-rounder for balance transfers and future purchases.

    A low rate balance transfer credit card is used when you have an outstanding balance on another credit card at a regular rate of interest. The process is that you apply for the new low rate balance transfer card and make the request to transfer the balance on the application form itself. This is used for balances that are likely to take more than a few months to pay off. Any less than that, and you will probably pay more on the new card’s annual fee than you save on interest charges.

    Making a balance transfer will allow for a quicker repayment of the balance because you can direct the money you save on interest towards paying it down, or alternatively you can take more time paying it off because you know that the interest charges are not so punitive. In the latter scenario, as balance transfer deals are for a limited time, you should still aim to clear the balance before the offer period ends and the interest rate reverts to the card’s regular one.

    Avoid the biggest mistakes with balance transfers

    The worst decision on how to use a balance transfer credit card is to treat it as just another credit card, meaning you use it for new purchases or cash advances. Once you have set your balance transfer in progress, you need to put your new credit card somewhere safe and not take it out again until after your offer period has expired. This is because of the way credit card companies apply your repayments. It is variously called the order of payments, the adverse order of payments, or the allocation of payments. It means that the way your debts are repaid is according to the rate of interest applied to them, and your cheaper debts are always repaid first. This keeps the more expensive debts earning interest for the credit card provider for the longest time. The message is therefore to avoid purchases and cash transactions on a credit card to which you have transferred a balance.

    UPDATE: For all new credit card contracts since 1st July 2012, credit card providers are required to direct repayments to the most expensive part of your credit card debt first – making it easier to reduce your debt faster. Read more about the credit card reforms here.

    The only time this will not apply is when there is a combined deal on balance transfers and purchases, but these must be at the same rate of interest and for the same time period. Even then, cash transactions will not be included, which means no ATM cash withdrawals, no foreign currency purchases or traveller cheque purchases, and no gambling transactions. If you do want to continue with your credit card spending, use the old credit card that now has a clear balance.

    Low rate balance transfer credit card options:

    There are different kinds of low rate balance transfer credit cards available. Your choice will depend on the amount you need to transfer, and crucially on how long you predict it will take to pay it off completely. The most common deal at the moment is the 0% balance transfer offer that is set for six months. You can also find slightly higher rates for a year or so, and higher rates again for offers that last until the transferred amount has been paid off in full, however long that takes.

    It is important that you judge this correctly and do not go for the 0% deal just because it is the lowest, especially if the card’s regular interest rate is one of the highest. If you fail to pay off the balance in full within the allotted period, you will then be subject to this regular rate. It is far better to take a slightly higher balance transfer rate for a longer period. An all-round option at the moment is the ANZ Low Rate which is offering 0% p.a. for 16 months on balance transfers, and a regular rate on purchases of just 13.49% p.a.

    Very few credit cards in Australia charge a balance transfer fee, so if you do see one that does charge you need to consider looking elsewhere, especially if an annual card fee is also being levied. However, bear in mind that you will very seldom find a great balance transfer deal and a zero annual fee combined. The credit card provider has to make some money somewhere.

    Here are a few examples of low rate balance transfer deals currently available:

    A Lower Interest Does Not Equal Lower Monthly Payments

    Unlike a loan, credit cards have minimum monthly payment requirements over which you can decide how much you wish to pay each month. Therefore, even if you have a lower interest rate, if the minimum monthly repayment rate is higher than with your previous cards you will have to pay more each month. Of course, this means that you are paying off the capital faster but you have to ensure you can afford to make the required minimum payment each month.

    However, if you can pay more than the minimum requirement you should certainly do that to ensure you pay off all your debt before your time runs out. Even if your interest rate is 0%, it’s still debt, even if it’s free and it won’t be free forever. This rate, though, will give you the chance to pay your debt off much faster which is why you should take advantage of it by paying as much as you can every month.

    Remember that the lower interest rate means that the total amount you will be paying back will be a lot less. So, you will also be saving money in the long run which is why you should focus on clearing your balance transfer as quickly as possible.

    Tips on what to look for in a low rate balance transfer credit card:

    Is there a balance transfer handling fee?

    As mentioned already, this is not normal, so the deal must be truly spectacular to justify one being in place.

    How soon do you have to transfer your balance?

    You may have up to three months to make the transfer before the option to do so expires. However, why would you want to waste that amount of time? Your best bet is to make the transfer request on the application form for the card itself. There is a special page for this.

    Does my credit limit apply to balance transfers?

    If you have been approved for the card but the limit you have been given doesn’t cover your needs, you still should use it. You might be annoyed but that isn’t a good enough reason not to use it. After all, lowering your debt by something is better than not lower it at all.

    Simply do balance transfers for however much you can, close any of the credit cards you have paid off in full and then apply for another card from another provider to clear the rest.

    One issue that will likely have an impact on the credit limit you are approved for is the credit crunch. This is because providers are not so lax anymore and offer much lower limits than before. The result is that you will probably need two cards to cover the debt of a single card. The more applications you fill out, the lower your score and so a vicious cycle is born.

    How are your payments allocated?

    This is very important. Your repayments will be directed towards paying off your cheapest debt first, so you should not be making any purchases on a credit card that you have transferred a balance to, because these purchases will accrue interest at the regular rate until your transferred amount has been fully paid off.

    Credit Card Balance Transfer – The Savings Demonstrated

    A healthy portion of our articles are dedicated to or involve a credit card balance transfer, as the benefits are simply indispensable. Using a hypothetical balance of $5000, on a credit card with a 18% interest rate (which is a fairly standard rate on any non-low interest cards), the savings across different balance transfer types you can take advantage of include:

    0% for 6 month Credit Card Balance Transfers:

    $5000 at 18% interest, paid off over 6 months: $450
    $5000 at 0% interest, paid off after 6 months: $0

    2.9% for 12 month Credit Card Balance Transfers:

    $5000 at 18% interest, paid off over 12 months: $900
    $5000 at 2.9% interest, paid off over 12 months: $145

    Is this all I’ll have to pay from a balance transfer? What’s the catch?

    You’ll still need to pay the upfront annual fee of the credit card your planning to carry out a balance transfer towards. This means an upfront fee of While there’s no simple ‘catch’ to balance transfers, there are a couple of easily avoidable pitfalls.

    How To Compare Low Rate Balance Transfer Offers

    Learn the key points that must be taken into account when you compare balance transfer credit cards. Understand how to make sure that a great balance transfer deal works in your favour by recognising the main trap to avoid. There are not too many issues to watch out for when you compare balance transfer credit cards, but you must get them right. This is especially the case if you are making a large balance transfer because so much more is as stake. A low rate balance transfer credit card is used when you have an outstanding balance on another credit card at a regular rate of interest. The process is that you apply for the new low rate balance transfer card and preferably make the request to transfer the balance on the application form itself. Balance transfers are for useful for amounts that will take more than a few months to pay off, because if you are looking at any less time, you will probably pay more on the new card’s annual fee than you save on interest charges.

    Examples to help you compare balance transfer credit cards:

    Here are a few examples of balance transfer deals currently available, to give you an idea of what to look for:

    Key points when you compare balance transfer credit cards:

    What interest rate applies to the balance transfer?

    This is the first question to ask when you compare balance transfer credit cards because this is the whole point of your making a balance transfer – to enjoy a lower rate of interest on your outstanding debt. Rates for balance transfers range from 0% to around 9%, depending on the length of time the offer is for. Generally speaking, at the lower rate you will be allowed less time to settle your debt before the regular rate kicks in. Offers come and go, so you may find that some of the higher balance transfer rates fall away somewhat if there are low regular rates available. Credit card providers know that an 8.99% balance transfer rate does not look so hot when there are credit cards that offer regular rates of just slightly more.

    How long does the balance transfer rate last for?

    Another crucial question to ask when you compare balance transfer credit cards. This is something you must judge correctly, or you may choose too short a period and end up with a portion of your debt still unpaid when the offer period expires and the higher rate takes over. Currently, there are a number of offers at 0% for six months, but you can also find six month offers at higher rates but they come with other features. For example, some rewards credit cards also offer a host of extra perks and benefits to offset it. For the most part, the longer the offer period for the balance transfer, the higher the interest rate. However, you should always check on current offers because some can buck the trend a little and be pleasantly surprising. Again, this is the case with the St.George Vertigo Visa that is now offering 0% p.a. for 18 months on balance transfers.

    Warning about long term balance transfers

    There’s sometimes a hidden sting with these cards; if you spend on them, it’s often at a high interest rate and can’t be repaid until all the cheap debt has been. They may try and tempt you with cashback or short term 0% deals on any spending; ignore it. The rule is simple; never, ever, ever, ever spend on these cards. If you do all the benefit will be lost.

    • Say you have transferred a balance of $10,000 to your new credit card. You then spend a $500 purchase on the card, at a 15% interest rate.
    • You will not be able to pay off that $500 purchase until the whole transferred balance itself has been paid off, thus accumulating a fair bit of interest.
    • It is simply one of the techniques used by banks to profit from balance transfers. As mentioned prior there’s a simple solution to avoid the hidden sting – use a different credit card for new purchases.
    • Banks often provide the incentive of an annual fee waiver if $X amount of money is spent on your card during a balance transfer.

    Is there an annual fee?

    It is quite normal for an annual fee to be charged for the account maintenance of the credit card, although an actual balance transfer fee would be very unusual. Annual fees are something to check when you compare balance transfer credit cards, to make certain you are not being penalised for a great balance transfer rate by a hefty annual fee. However, depending on the size of the transferred amount and the rate offered, paying a few dollars more for an annual fee is probably neither here nor there.
    At the moment, there are balance transfer credit card deals that do not charge an annual fee, including the HSBC Credit Card and the Virgin No Annual Fee Credit Card.

    Is there a balance transfer window?

    You will normally find in the fine print that you have a limited time from the date you receive your card in which to instigate a balance transfer. This could be up to three months, or could be as little as one month. This means that after this time you will not be able to make a balance transfer according to the original offer. You must also remember that the offer period on your balance transfer begins when you get your card, not when you decide to request the transfer. So, with a six month deal, if you delayed three months before making the transfer, you would only have three months left at the lower rate of interest.

    What does the balance transfer apply to?

    The clue to this is in the wording: balance transfer. Hoping to compare balance transfer credit cards and find one that covers everything you put on the card is not realistic. The special rate of interest applies to the transferred amount only. It will not apply to any new purchases, nor to any new cash transactions made on the card, including purchases of foreign currency and traveller’s cheques, nor any gambling transactions. The amount you are transferring from your old credit card can obviously contain transactions made in these ways, but making such transactions on your new card will cause them to be treated very differently to the transferred amount. The reason for this is down to the next point.

    What is the order of payments?

    This is also sometimes called the allocation of payments or the adverse order of payments. These all refer to one practice: namely, the way the credit card company uses your repayments to pay off the balance on your credit card. The order of payments rule states that the lowest rate debts are cleared first. This means that the amount of your 0% balance transfer is paid down before your purchases at 15%, which are cleared before your cash advances at 20%.

    Your repayments are not split in any way. Until your balance transfer is paid off in full, any new purchases or cash advances on the credit card will not be touched and will simply accrue interest. Clearly, if a large amount of purchases were allowed to accrue interest untouched for twelve months, this could easily negate a lot of the benefits of having made a balance transfer in the first place. This would be a key point on which to compare balance transfer credit cards if different providers paid things differently, but this is a rule that is applied everywhere in the Australian credit card industry. It is for this reason that it is very important that you do not make any purchases or cash advances on a credit card you have transferred a balance to at a much lower rate. The only time this is not the case is when your new card has a combined offer applying to balance transfers and new purchases that are at the same rate for the same length of time.

    Is a same-bank balance transfer possible?

    No, you must be transferring a balance from a different bank than the new card is issued by. For example, you could not transfer a balance from one ANZ credit card to a different ANZ credit card.

    Do I have to close my existing credit card after doing a balance transfer?

    Once you have been successful in your application for a card and your balance transfer has been approved, you have the choice of closing your old account or keeping it open. This is something that you are responsible for doing yourself and is something that shouldn’t be overlooked as you may still incur unnecessary fees and charges on your old account.

    It is also important to remember to change any direct debit agreements you may have had in place on your old card. Services like phone bills, utilities and internet arrangements to name a few, will still be charged to your old account if you don’t switch payments to your new credit card and you are responsible for contacting any service providers and informing them that your old account has closed or is no longer your primary card.

    Do I still have to make my minimum payments?

    Yes, you are not absolved from making your minimum payments just because you have a new low rate of interest on your balance transfer. You are still required contractually to pay at least your minimum payment each month, and a failure to do so could even cause your low rate offer to be cancelled. This is a point to check out in the fine print when you compare balance transfer credit cards, but don’t be too surprised if this is the case.

    How To Use Low Rate Balance Transfer Credit Cards

    Learn the simple rules on how to use balance transfer credit cards. Understand that balance transfer credit cards should only be used for balance transfers, and not for purchases or cash advances, otherwise much of the benefit will be negated by the order of payments rule.

    The best advice on how to use balance transfer credit cards is to make your balance transfer and then not to use your card again until it is fully paid off. The reason for this will become abundantly clear. The other main issue to remember is why you have had to make the balance transfer in the first place. If this is because of some poor financial planning in the past, now is the time to start putting things right.

    Use the balance transfer savings to repay your debt faster

    This is not just an important factor in how to use a balance transfer credit card, it is also an important life-skill to possess. Presumably you will have chosen your balance transfer credit card carefully, picking one with a low enough rate and a long enough offer period to allow for the transferred amount to be fully paid off. This, of course, can only happen if you plan ahead. Whatever you used to pay on interest charges should now be paid towards the debt. The extra finances should not be seen as spare cash to spend on further items. You need to write a detailed budget, taking into account your income and expenditure, and then set aside as much as you can spare to pay down your balance each month so that it is completely paid off before the offer expires and the higher regular rate of interest kicks in.

    This is key in how to use a balance transfer credit card; you must try not to be caught with an outstanding balance at the end of the offer period. It may be that another balance transfer could be made to another credit card, but this cannot be guaranteed. This will all depend on your credit rating, which may not be good enough to allow for another transfer to take place. This means it is imperative that you take full advantage of the opportunity afforded by your low rate balance transfer deal, and clear your debt in full within the allotted time. By understanding your credit card you will learn valuable financial skills.

    Complete your balance transfer request at the time of application

    The best time to make your balance transfer is when you are filling out the credit card application form. There will be a special page for this request to be made. This is important in how to use a balance transfer credit card most effectively because it presents you with the longest amount of time for your balance transfer to be in effect. Your balance transfer is time-limited in how long the offer is for – unless it is a balance-transfer-for-life – and also in how much time you have to set it in motion. It may be that you only have one to three months from the time you receive your card to actually request the balance transfer. If you are looking at a 0% deal for six months, then every day lost is going to cost you in the higher interest rate you are still being charged. If you move outside this transfer window, your chance to act will be lost.

    That’s about it on how to use a balance transfer credit card. The rules are few and simple, but you need to adhere to them for there to be any point in making the balance transfer in the first place. Stick to the rules and you can enjoy a zero or low rate of interest and clear your debt in the quickest possible time.

    Points to consider about credit card balance transfers

    1. Change of attitude required – Making a credit card balance transfer will only work if you have the intention of using the lower interest rate period on the new card to actually pay off the debt, rather than give you some wriggle-room to fund a new round of spending.
    2. Debt consolidation- Balance transfers ’til I die – This can’t happen. You cannot keep making credit card balance transfers in perpetuity. Credit card applications have an effect on your credit rating, and may lower your credit score. Credit card providers have access to your credit history and will not approve your application if they know you are being a credit card ‘tart’. You have to leave time between doing balance transfers.Making several credit card balance transfers to bring all your debts together under the umbrella of one credit card can simplify your finances considerably. If you have four or five cards, all requiring minimum payments, it is easy to put one of the bills to one side and forget about it. If you receive your bills online, this is even more of a danger because you will not even notice anything lying around when you tidy up.
    3. Other loans may be transferred – Find out if your new card will accommodate other types of loan, such as one you may have on a vehicle, or any another large purchase. If you can shift all these to 0% for a few months, so much the better.
    4. Fees – Beware the ‘hidden’ costs of making a credit card balance transfer. Most card providers charge a fee, which is worked out as a percentage of the amount being transferred, so you will have to calculate all the costs involved – including any annual fee for the new card – and decide if it is worth making the transfer.
    5. Length of low-rate period – Keep a close eye on the time you have left on your introductory interest rate. Time passes very quickly. When the higher interest rate kicks in, you will be back at square one if you have made no effort to lower the debt significantly. Add in the balance transfer fee, and you may actually be down on the deal.
    6. Your new low rate does not cover future purchases - In nearly all cases, the introductory offer on your new card only applies to the credit card balance transfer from your other card, and not to any purchases you make on your new card. Those will be subject to the normal APR.
    7. Repayments hierarchy - This means that any repayments you make on your debt will first go towards reducing the credit card balance transfer amount. This is linked to the point above. Other purchases made on your new card will be at the normal rate of APR and will not be touched until the transferred amount is paid off.Understand negative payment hierarchy and if it applies to you. Negative payment hierarchy is a credit card standard in which they apply all of your payments to the portion of your bill with the lowest interest rates. One of the best balance transfer tips is to only use the card for balance transfers and not for purchases. The only exception is if both purchases and balance transfers have the same interest rate.
    8. Your credit rating must be good – Similar to the above point, you cannot even start this credit card balance transfer process if you do not have a pretty sound credit rating in the first place. If it looks like you’re on the verge of bankruptcy and this is your last-ditch attempt to stop it happening, you won’t be approved because your new provider will not want to be the one who has to write off the debt due to insolvency on your part.
    9. Make all your payments on time. If you miss or make a late payment the credit card company may change the interest rates of their credit card. Rates are subject to you keeping up your end of the deal by paying on time. In addition to any fees that you may be charged there is a good chance you will lose the zero percent you are being charged for your balance transfer.
    10. Find a credit card company that has good customer service. Anyone who has ever dealt with poor customer service understands how important it is. Trusting any credit card company is difficult in these financial times. Find one that you believe will not increase your monthly payments or change due dates without notice.
    11. Find a card that is flexible. Some cards will allow you to transfer money from your card into your account. Unlike a cash advance, this money goes straight to a personal loan or an overdraft charge. These balance transfer tips can help you to pay off those other debts at the introductory rate of zero percent.
    12. Know the brand of your card and the card to which you are applying. Most credit card companies will not allow a balance transfer between their own cards. It may not be immediately clear whether or not cards are connected so be sure to double check before you apply to a card on the parent company.
    13. Time your balance transfer. If you are planning to transfer balance from one financial institution to another, then you should not transfer large balances if the introductory offer is about to end in a few short months. You don’t want to be stuck paying off your debts with a high interest (which usually starts to take effect once the intro period is over) as the balance transfer would just be useless.
      The smartest thing for you to do is to apply for a credit card and at the same time apply for the balance transfer. This way, you will be able to make the most out of the zero percent interest free introductory period when you pay for your large balances. On the other hand, if you are not so sure that you will be able to have your balance transfer as soon as possible, then it would be best to apply for a balance transfer card that has a long introductory period so that it will provide you with plenty of time for your balance transfer to be approved.

    This means the expensive debts from spending are effectively trapped, speedily accruing interest, and you can’t repay them until you’ve cleared all the cheap debt. Thus you can be racking up debt which you will eventually have to repay later. Clearly credit card providers make their money this way because they want you to spend whilst you are paying off your balance you transferred to them. To avoid this situation it would be better to get a second card with a low purchase rate.

    Balance transfer tips are important to evaluate if you are considering this option to reduce debt. It can be a good way to reduce the amount of money you spend on interest. It can help you pay off the outstanding amount or at the very least free up your monthly cash for other expenses.

    Following simple tips for balance transfers can make them a worthwhile way to save money and pay off debt. All you have to do is pay close attention to your finances and you will be able to take full advantage of the benefits.

    Frequently Asked questions

    Can I make a balance transfer to an existing account?

    Yes – but this is only possible through some financial institutions, you will need to contact your credit card provider and enquire if they offer this service. Sometimes your credit card provider could let you know via online banking or promotional material sent through
    the mail.

    How do I make a balance transfer to an existing account?

    The steps will differ according to the financial institution, but here is a rough guide about what you can expect.

    • Contact your existing financial institution and you will need to notify them of your card type, account number, BPAY code and amount to be transferred.
    • Your credit card provider will process the funds transfer, this could take between 3 to 15 business days.
    • There could also be the option of requesting a balance transfer if you’re registered for online banking with that financial institution.
    • Your bank will give you statement notifying you of the rate and when the balance transfer will expire.
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    227 Responses to Low Balance Transfer Credit Cards

    1. Default Gravatar
      Susan | April 20, 2015

      If I transfer over to a credit card with 0% interest on balance transfers, at the end of the interest free period is there any reason why I cant then transfer onto another credit card with another bank.

      • Staff
        Jonathan | April 20, 2015

        Hi Susan, thanks for getting in touch with us!

        Balance transferring to another card after the promotion has ended is eligible, as long as you meet the application criteria and requirements of the next bank/lender and you are not transferring to the same bank.

        Cheers,

        Jonathan

    2. Default Gravatar
      Maria | April 19, 2015

      I currently have a credit card with Citibank and requested a balance transfer but they refused …pls advise

      Thanks

      • Staff
        Jonathan | April 20, 2015

        Hi Maria, thanks for your inquiry!

        Credit card application approval is determined by a number of factors including an individual’s credit score and the bank/ lender’s application criteria/ lending requirements. Please refer to the following page for guidelines on getting your credit card application approved.

        Cheers,

        Jonathan

    3. Default Gravatar
      Andrew | April 18, 2015

      I have a credit card with ANZ and would like to do a balance transfer to another credit card with ANZ. Can I do this?

      • Staff
        Jonathan | April 21, 2015

        Hi Andrew, thanks for your inquiry!

        Transfers between two credit cards of the same bank/ lender can be supported but no promotional interest rates/ bonus features will apply. Your balance will be charged at the applicable revert rate. You may like to refer to the following link for a list of balance transfer credit cards and offers.

        Cheers,

        Jonathan

    4. Default Gravatar
      waza | April 12, 2015

      Where can I get a credit card ?

      • Staff
        Jonathan | April 13, 2015

        Hi Waza, thanks for your inquiry!

        You can apply for a credit card by comparing the types of credit cards and pressing the ‘Go to Site’ if you have picked a card that suits your needs. Please refer to the following link for a guide and comparison for credit cards.

        Cheers,

        Jonathan

    5. Default Gravatar
      | April 9, 2015

      Hi. I was retrenched from my job 16mths ago and I have a ANZ low interest credit card that is maxed out to the full limit of $7000. I still pay $150 a ftn but unfortunately as soon as a bit of credit is shown it is used. I want to go to a balance transfer c.card with at least 18mths. I will soon be able to pay $200 a fortnight. Is there a financial institution that will take my balance transfer even though I am unemployed. I do not want a credit card in my husband’s name as it was not his debt. Thank you. Lyn.

      • Staff
        Jonathan | April 10, 2015

        Hi Lyn, thanks for your inquiry!

        In regards to applying for balance transfer credit cards when unemployed, it would be best to see the ‘Applications & Requirements’ section that we have placed at the bottom of our credit card reviews. This will indicate what criteria must be met to apply for the specific credit card product. For unemployed individuals they will have to provide supporting documentation to justify their income claims. Please refer to the following link for a list of balance transfer credit cards and offers.

        Cheers,

        Jonathan

    6. Default Gravatar
      matt | April 9, 2015

      Is it possible to consolidate 2 credit cards into 1 with a balance transfer ?

      • Staff
        Jonathan | April 9, 2015

        Hi Matt, thanks for your inquiry!

        Balance transfers generally allow 1-4 credit cards for the transfer process. Banks/lenders typically allow 95% of the credit limit for balance transfers. Please refer to the following link for a list of lenders and their allowances for balance transfers.

        Cheers,

        Jonathan

    7. Default Gravatar
      james | March 24, 2015

      Bendigo bank,where are they in this system

      • Staff
        Jonathan | March 24, 2015

        Hi James, thanks for getting in touch with us.

        Please see our page on Bendigo Bank credit cards.

        Cheers,

        Jonathan

    8. Default Gravatar
      Annie | March 20, 2015

      I have two credit cards with $10,000 owing and I want to transfer to one of these 0% credit cards. How do they calculate what limit I have on the new card, as I presume they will not just give me a card for $10,000 but will want me to apply for a higher limit?

      • Staff
        Jonathan | March 20, 2015

        Hi Annie, thanks for your inquiry!

        Each lender/ bank has individual lending policies and requirements. Generally the balance transfer limit varies between 80-95% of the available credit limit on the card. The credit limit is determined by the lender/ bank upon application approval and requests for a higher credit limit can be also be stated during the application process. Please see this page for credit card lender’s and the maximum balance transfer amount that is permitted.

        Cheers,

        Jonathan

    9. Default Gravatar
      Luke | March 17, 2015

      Hi, is there any hidden costs with many of these? Like monthly book-keeping fees? eg, If I paid the balance after the 18 month or so period, and there was no percentage switch over fee, and no annual fee, I wouldn’t pay anything?

      • Staff
        Jonathan | March 18, 2015

        Hi Luke, thanks for your inquiry!

        The full list of fees and applicable charges are available in the ‘Fees and Repayments’ tab for any credit card product. Generally if there is no balance transfer fee, no annual fee and the balance has been paid off within the promotional period at a 0% balance transfer rate and no interest charges have been made there should be no other fees applicable.

        Cheers,

        Jonathan

    10. Default Gravatar
      STEPHEN | March 13, 2015

      if i change to your card for balance transfer of about $8500.00 and don’t use it but just the interest free monthly payment, is that ok and if after 18 months i cancel my card and go somewhere else is that ok

      • Staff
        Elizabeth | March 13, 2015

        Hi Stephen,

        Thanks for your question.

        Just to clarify we are not a bank or card provider but are an online comparison service. You are able to take up a balance transfer credit card and, as long as you pay off the entire debt within the promotional period (18 months you mentioned) you can close your account.

        I hope this has helped.

        Thanks,

        Elizabeth

      • Default Gravatar
        STEPHEN | March 13, 2015

        thanks

    Credit Cards Comparison

    Rates last updated April 21st, 2015
    Interest rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
    St.George Vertigo Visa
    St.George Vertigo Visa
    A low annual fee and low interest rate offer on balance transfers. 0% p.a. for 3 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. 21.49% p.a. Go to site More info
    Citibank Rewards Credit Card - Platinum Card
    Citibank Rewards Credit Card - Platinum Card
    Consolidate your debt with a low balance transfer and a long purchase rate offer plus a host of platinum privileges. Earn up to 1.250 Citibank Reward points for every $1 spend. 20.99% p.a. 0% p.a. for 24 months $199 p.a. 21.74% p.a. Go to site More info
    St.George Vertigo Platinum
    St.George Vertigo Platinum
    A platinum card with a low interest rate on balance transfers and purchases with a low annual fee. 0% p.a. for 3 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. 21.49% p.a. Go to site More info
    Virgin No Annual Fee Credit Card
    Virgin No Annual Fee Credit Card
    Take advantage of the 0% p.a. for 14 months balance transfer offer 18.99% p.a. 0% p.a. for 14 months $0 p.a. 20.99% p.a. Go to site More info
    HSBC Platinum Credit Card
    HSBC Platinum Credit Card
    Earn rewards points plus a balance transfer offer. Access to prestige services including a personal concierge service and VISA Platinum reward program. 19.99% p.a. 0% p.a. for 8 months $0 p.a. 21.99% p.a. Go to site More info

    * The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.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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