Balance Transfer Credit Cards with Rewards Programs

Discover how to repay your debt interest-free while earning rewards

Balance transfers and rewards card are both attractive features, but imagine if you could take advantage of them both with one card. Take advantage of a lower interest rate to consolidate your debts and once you’ve paid it off, earn points on purchases to reward your spending. While these cards sound like a catch, there are some factors you should consider before submitting your application.

Coles Low Rate MasterCard

Balance Transfer Credit Card with Rewards Points

The Coles Low Rate MasterCard features a low interest rate on purchases and balance transfers with a low annual fee.

  • $49 p.a. annual fee
  • 9.99% p.a. on purchases
  • 0% p.a. for 6 months on balance transfers
  • Cash Advance Rate of 19.99% p.a.
  • Up to 62 days interest free
  • Minimum Income Requirement of $25,000 p.a.

Balance transfer credit card offers with rewards points comparison

Rates last updated September 26th, 2016
Rewards Points per $ spent (AMEX) Rewards Points per $ spent (VISA/MC) Bonus Points Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
0 0.66 $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
American Express Platinum Edge Credit Card
Receive 10,000 Membership Rewards Bonus Points when you meet the minimum spend requirement. Enjoy 0% p.a. for 12 months on balance transfers and receive a complimentary Virgin Australia domestic economy return flight every year.
1 0 10,000 bonus points $195 p.a. Go to site More info
St.George Amplify Platinum
This card features a balance transfer rate of 12% p.a. for 18 months, 1% p.a. for 12 months on purchases and an annual fee waiver for the first year.
0 1 $0 p.a. annual fee for the first year ($99 p.a. thereafter) Go to site More info
NAB flybuys Rewards Card
Earn flybuys rewards points on your everyday purchases. Also enjoy a 0% p.a. on purchases and balance transfers for 15 months.
0 1 $95 p.a. Go to site More info
NAB Qantas Rewards Card
Enjoy an introductory offer of 0% p.a. for 15 months on balance transfers and purchases, plus 10,000 bonus Qantas Points on eligible spend.
1 0.5 10,000 bonus points $95 p.a. Go to site More info
NAB Velocity Rewards Premium Card
0% p.a. on purchases and balance transfers for 15 months and 20,000 bonus Velocity Points when you make an everyday purchase in the first 90 days of opening your account. You gain both Visa and American Express cards which are linked to one single account and annual fee.
1.5 0.5 20,000 bonus points $150 p.a. Go to site More info
Citi Rewards Credit Card - Classic Card
Earn points for every dollar spent in the first three months and enjoy 0% p.a. on balance transfers for 12 months.
0 1 $99 p.a. Go to site More info
NAB Qantas Rewards Premium Card
Get 20,000 bonus Qantas Points plus enjoy a low promotional offer of 0% p.a. for 15 months on purchases and balance transfers.
1.5 0.5 20,000 bonus points $250 p.a. Go to site More info
Citi Rewards Platinum Card - Cashback Offer
Earn $250 cashback on eligible spend, plus enjoy 0% p.a. balance transfer offer for 12 months, discounted annual fees for the life of the card and a complimentary travel insurance.
0 1.25 $99 p.a. annual fee for the first year ($199 p.a. thereafter) Go to site More info
Citi Rewards Credit Card - Platinum Card
Enjoy a reduced annual fee on the first year, 0% p.a. for 24 months balance transfer offer, Citi Reward Points on eligible spend, plus a complimentary travel insurance.
0 1.25 $199 p.a. annual fee for the first year ($249 p.a. thereafter) Go to site More info
American Express Qantas Ultimate Card
Enjoy 50,000 bonus Qantas Points when you meet the minimum spend requirement and earn up to 3 Qantas Points for every $1 spent. Also enjoy a complimentary return flight every year.
1 0 50,000 bonus points $450 p.a. Go to site More info
American Express Explorer Credit Card
Receive 100,000 Membership Rewards Bonus Points on eligible spend within the first 2 months of Card Membership. Also enjoy a $400 travel voucher and two complimentary airline passes per year.
2 100,000 bonus points $395 p.a. Go to site More info
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What are the features of a balance transfer credit card with rewards?

Balance transfer credit cards with rewards offer a number of features, and while these can vary from card to card, the following should give you a fair idea of what to expect:

  • Balance transfer offer. Some cards charge 0% p.a. on balance transfers during promotional periods, and some others charge low balance transfer rates. The time period of these offers typically varies in between 6 and 18 months.
  • Earning reward points. The earn rate (how many points you’ll earn per dollar) you can expect will depend on the provider and rewards program. There may also be some terms and conditions such as bonus points with partnered retailers or restrictions on transactions (such as cash advances). It also pays to find out if your points expire, and if there’s a cap on the maximum number of points you can earn.
  • Redeeming rewards. Understand exactly how you can redeem your points. Certain rewards programs give you the option to choose between an array of merchandise, store vouchers, and travel vouchers; some allow you to use your points as cashback; and some even give you the option of transferring your points to your frequent flyer program account. You’ll want to make sure these rewards suit your lifestyle so you can get the most out of your card.

What are the pros and cons of using a balance transfer credit card with rewards?

Pros

  • Save money. By paying little to no interest on balance transfers for a given time period, you can save considerably in the form of interest, especially if you manage to pay off the entire transferred balance before the promotional period comes to a close.
  • Earn rewards. If you use your credit card frequently, you can benefit by earning rewards as per your spending.
  • Make use of extras. Many such credit cards come with complimentary purchase and travel insurance covers that you can use in different circumstances. Some cards also offer round-the-clock access to a concierge service that offers assistance in various matters.

Cons

  • High-interest rate. You can expect a balance transfer card with rewards to charge a high interest rate on purchases, and if you don’t keep paying your account’s closing balance in full each month, the money you pay as interest could outweigh the rewards you earn.
  • Annual fee. Most such credit cards charge ongoing annual fees, and just how much you have to pay in annual fees depends on the extras any given card offers.

What else will I need to consider when comparing this type of card?

When you’re comparing rewards credit cards with balance transfer offers, don’t forget the following:

  • Balance transfers don’t earn rewards. At the time of writing, no Australian credit cards offer rewards points on balance transfers.
  • The earn rate. The earn rate can vary from one rewards card to the next, so pay due attention to this aspect. Normally, platinum and premium cards offer better earn rates, and American Express usually compares better than Visa and MasterCard on this front.
  • The revert rate. At the end of the promotional period, any outstanding balance from balance transfers starts attracting the card’s purchase rate or cash advance rate. It’s usually the cash advance rate, which can be noticeably higher than the purchase rate.

Getting a balance transfer credit card with rewards can be a good idea if you have a roadmap in place and plan to pay off the entire transferred balance within the promotional period. Once you do, you can then look forward to earning rewards. The number of options on offer is a definite plus, so make sure you compare as many as possible before applying for any one.

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Frequently asked questions

Do I get interest-free days on purchases with such credit cards?

These cards sometimes offer interest-free days on purchases, but to make use of these interest free days you have to pay the transferred balance in full first, following which you have to pay your account’s closing balance in full each month.

I have little over a month to repay my transferred balance completely before the introductory period ends. Can I apply for a new card with a balance transfer offer and transfer the outstanding balance again?

While this is possible, approval of your new card and you qualifying for the new balance transfer offer depends on the credit card provider. So come to terms with the eligibility criteria before applying.

Do introductory bonus points come with any riders?

They might. You could get a part of the bonus points when you use your card for the first time, and part if your spending reaches a predetermined threshold within a given time period.

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5 Responses to Balance Transfer Credit Cards with Rewards Programs

  1. Default Gravatar
    harry | February 21, 2016

    Hi there I am interested in transferring from Westpac Altitude. I have 600,000 points do you lose them when I transfer? cheers H

    • Staff
      Sally | February 22, 2016

      Hi Harry,

      Thanks for your question.

      If you transfer your balance to another card and close your Westpac Altitude card (and don’t have another card open with Westpac), you’ll lose your rewards points.

      You can convert your Westpac Altitude Points to other rewards programs, such as Velocity Frequent Flyer or Singapore Airlines KrisFlyer if you have an account with them. Transferring your points to another rewards program before closing the account is one way you can still get value from your Altitude points after you’ve closed your Westpac credit card.

      I hope this has helped.

      Cheers,

      Sally

    • Staff
      Jonathan | February 22, 2016

      Hi Harry, thanks for your inquiry!

      If you are transferring from your Westpac Altitude card you can still keep it active so your points are not lost. Transferring does not cancel the card.

      Cheers,

      Jonathan

  2. Default Gravatar
    Luke | May 18, 2015

    With the balance transfer rate of 0% for 16 months on the ANZ platinum card does that also include future balance transfers or only the initial one on application for the card

    • Staff
      Jonathan | May 18, 2015

      Hi Luke, thanks for your inquiry!

      The balance transfer promotional rate of 0% for 16 months is only available at the time of application. As per the terms and conditions “The offer must be requested at the time of applying for the credit card.” ANZ allows 95% of the available credit limit for balance transfers.

      Cheers,

      Jonathan

Credit Cards Comparison

Rates last updated September 26th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 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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