Who else wants to pay 0% for up to 16 months on your credit card?
Our credit card experts have reviewed a number of balance transfer deals for you to compare and choose from.
Long Term 0% Balance Transfer Offer
The ANZ Low Rate Credit Card offers a low interest rate on balance transfers with a low ongoing rate on purchases.
- $58 p.a. annual fee
- 13.49% p.a. on purchases
- 0% p.a. for 16 months on balance transfers
- Cash Advance Rate of 21.74% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
0% Balance Transfer Credit Cards Comparison
Rates last updated November 28th, 2014
What is a 0% balance transfer?
A balance transfer is a process that allows you to transfer your existing credit card balance and repay it at a much lower rate. Similarly, a 0% balance transfer is when you transfer your balance and pay 0% interest on it for a set term. If you still have a leftover balance after the offer expires, the remaining balance will revert to either the cash advance or purchase rate. It’s important to know which rate it is because in general, cash advance rates tend to be a lot higher than purchase rates.
Balance transfer deals
Compare balance transfer credit card offers and you could save up to hundreds of dollars in credit card interest repayments. Shopping for 0% balance transfer credit cards can save consumers hundreds of dollars in interest charges, and statistics show that around half of Australian grocery store purchases are made with credit cards. The decision as to which credit card you use has a strong impact on how much is paid in interest. One way you can save money in interest charges is to shop around for a 0% balance transfer credit card to transfer your existing balances to a 0% p.a. card for a set period of time.
Case study: Julie’s school supplies
Julie is a stay-at-home mum with two kids in primary school. The kids have grown out of last year’s shoes and clothes, so Julie needs to buy the kids new uniforms before school goes back. She puts this spend on her credit card which takes the balance up to $3500. Paying 20.99% p.a. on this card. She is currently paying a high amount of interest with the old card and decides to carry out a balance transfer. She chooses a card that offers 2.9% p.a. for 12 months on her balance. By transferring her balance she will save over $500 over the course of the first year, allowing her to put this money away for next year’s school clothes!
How does a 0% balance transfer credit card work?
It is possible for you to save hundreds of dollars a year by transferring balances to a 0% balance transfer credit card. All you have to do is apply for a new credit card with a special introductory interest rate of 0% interest for balance transfers. After gaining approval, you transfer the balance to the new credit card. Often balance transfers can be requested in the online application, but sometimes this process is initiated after the credit card has been approved and activated.
What do I have to know to compare balance transfer credit cards?
You can get the best balance transfer rates by comparing our balance transfer credit cards and choosing the one that best suits your financial situation. As many credit cards offer 0% p.a. for a balance transfer, a good indication is the length of the balance transfer period and whether it’s enough time for you to pay off the amount you transferred. As you’re deciding on which is the best balance transfer credit card, look to the longest length of balance transfer for the lowest interest rate that suits your needs.
finder.com.au’s tip for you
- A balance transfer will require applying for a new credit card, which means you may need to pay an annual fee on the card itself. If you put this into perspective, you’re paying around $40 – $100 for this, but the potential savings from a balance transfer could exceed this. Some cards even have no annual fee and a 0% balance transfer.
Balance transfers offers can last up to year, but the ones that offer 0% usually last around 6 to 9 months. Note that balance transfers often require a good credit rating for most application approvals.
Things to avoid with balance transfer credit cards
A 0% balance transfer credit card is a financial tool that can greatly benefit consumers. However, as with all financial tools, it is important to use it wisely.
- Don’t balance transfer too often. Usually these are a solution to come out of a credit card you’re not happy with. Each application you make keeps on adding in your credit files for several years.
- Pay at least the minimum repayment each statement. Consumers should be aware that failure to pay at least the minimum payment on time could result in an immediate end to the introductory period. Many credit cards, however, provide an automatic debit system or an online bill pay option. This can help consumers set up automatic payments that ensure that there are no late payments.
- You forget the end date of the balance transfer offer. Usually the balance transfer date starts after the success of the application, then your credit card arrives a week after in the mail. It’s important to mark these dates in your calendar.
- Adding more purchases and debt to your credit card. This could potentially eliminate the benefits of completing a balance a transfer, because the ultimate goal is the pay off your credit card debt.
Shopping around for the best bargain is a way of life for many. Applying that rule to credit card applications can mean that you get to keep more of your hard earned cash. So it is wiser to compare and contrast the interest rates on various credit cards to get the best mileage of your hard-earned money.
Frequently asked questions about 0% balance transfers
- Exactly how much do I save by completing a balance transfer? Use our balance transfer calculator to help you find out.
- When should I utilise a balance transfer? A balance transfer is just one of the three major ways to reduce the interest you pay on your credit card debt. It’s suitable for relatively small debts – ideally ones that can be repaid within the balance transfer offer period. Balance transfers are superior in their access to interest-free periods, often up to 6-9 months. This gives people with debt a huge opportunity to direct all their repayments towards cutting down bad debt.
- Are there any other options for debt? The other options are to consolidate your debt into a personal loan or your home loan.
- Are balance transfers suited to everyone? A balance transfer isn’t suited to everyone, but if you have a substantial debt accumulated on your credit card then you might be able to save money with a balance transfer. By taking your existing debt at a higher interest rate and switching it to a 0% p.a. or 2.9% p.a. you could save hundreds of dollars in interest
- Do I have to pay a balance transfer fee? Balance transfer fees are generally no longer charged, but check with your institution to ensure this is correct for you. If you are charged a balance transfer fee, it’s usually a percentage of the transfer amount.
- What’s the maximum I can balance transfer? This is usually set at 90% of the credit limit you’re approved for, but this number could be lower depending on the institution.
FREE BONUS: Download a copy of our newly released e-book: The Ultimate Guide to Balance Transfers
Balance Transfer Credit Card Offer
The HSBC Credit Card has a no annual fee for life1, as well as a very good balance transfer offer. Pay off your existing credit card by transferring your balance over to the new HSBC Credit Card.
- $0 p.a. annual fee1 for life
- 17.99% p.a. on purchases
- 0% p.a. balance transfer for 6 months on application from non-HSBC credit cards (reverting to the cash advance rate of 21.99% p.a. and subject to change)
- Up to 55 days interest free on purchases3 when you pay the full balance (including any balance transfers, promotional purchases and the 0% p.a. balance transfer offer above)
- Minimum income requirement of $20,000 p.a..
You may also be interested to apply for a credit card that offers 0% interest on purchases. If so see our comparison of 0% purchase rate credit cards.