Why some banks won’t accept your balance transfer application, and why some debts will never meet the criteria for a balance transfer
Have you ever been rejected for a balance transfer? Or are you looking to do a balance transfer and are wondering which banks will let you do it? We’ve got the lowdown on which banks to look out for and why.
- Credit provider: This is the institution that provides the funds for other institutions to launch a product.
- Credit card issuer: This is the institution that provides the card to the credit card brand – usually with its logo somewhere on the product.
- Credit card brand: This is the institution that physically provides the card to the consumer.
Which banks provide credit to other banks?
Ever wondered where the smaller institutions like credit unions and building societies get their money from? It’s probably no surprise that it comes from the larger lenders like Citibank and HSBC. These companies control billions of dollars and they are the guys other banks and lenders turn to when they want to finance a new credit card or other credit product.
The implications of such an arrangement are that for one, an institution that turns to the bigger guys for money is limited in how progressive the terms of the product can be, but in more concrete terms, it determines the places where you can or can’t move your debt to through a balance transfer. Think of it this way. When you apply for a balance transfer, institution A is buying the debt from institution B in order to secure your business. If both institution A and B are getting their money from institution C, there’s nothing in it for institution C and they subsequently put a stop to the deal going through.
Banks and the credit cards issued by them
|Credit Card Issuer||Credit Card Product|
|Citibank||Citibank, IMB, Suncorp, CUA, Virgin, BOQ|
|CBA||CBA, Bankwest, Aussie|
|Westpac||Westpac, St.George, Bank of Melbourne, BankSA|
Here’s the inside tip on whether your application for a balance transfer is going to be rejected because of a bank’s credit structure.
Who you can and can’t transfer between based on the provider
|Funding Bank||Credit Card Brand||Bank Transfer Allowed||Conditions and Other Tips.|
|Bank of Queensland||No|
|Westpac||St.George, Bank of Melbourne, BankSA||Yes||Balance transfers not allowed between St.George, Bank of Melbourne and BankSA.|
|Latitude Financial Services||Coles, 28 Degrees||No|
From the table above, you can see that we found five credit cards out of the eight we contacted who allow balance transfers from the same credit card provider. We also had a look at the different institutions that are underwritten by Citibank to see whether balance transfers are allowed between them.
You may not transfer a balance between any card offered or underwritten by Latitude Financial Services.
You are free to perform a balance transfer between all other non-related lending institutions.
Balance transfer credit cards comparison
Rates last updated September 30th, 2016.
- Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Balance transfer offer has been extended until 31 October 2016.
September 26th, 2016
- Bank of Melbourne Vertigo Visa Credit Card
Intro APR of 1% for 12 months and BT offer of 0% for 18 months extended until 4 January 2017.
September 30th, 2016
- St.George Vertigo Platinum
Balance transfer period changed from 20 to 18 months and is valid until 4 January 2017.
September 30th, 2016