Got existing credit card debt? Get 0% interest for up to 20 months and save money with balance transfer credit cards
Interest free balance transfer credit cards allow you to transfer your existing credit card debt to a new credit card and pay 0% interest for a specified promotional period. Compare balance transfer offers here and pay less interest on your credit card debt today.
0% Balance Transfer Credit Cards Comparison
The finder.com.au list of best* 0 balance transfer credit cards
Compare the features of the balance transfer cards below.
|Virgin Australia Velocity Flyer Card – Balance Transfer Offer||Get a 0% p.a. for 18 month balance transfer offer with half price annual fee for the first year|
|HSBC Platinum Credit Card||A balance transfer credit card that offers all the perks of platinum.|
|NAB Low Rate Credit Card||A low interest rate card with a 0% p.a. for 15 months balance transfer offer|
|St.George Vertigo Visa||A low annual fee credit card with 0% p.a. for 18 month balance transfer|
How does an interest free balance transfer work?
Balance transfer credit cards let you transfer your credit card debt to a new credit card with a lower interest rate. It is possible for you to save hundreds of dollars a year by transferring balances to a 0% balance transfer credit card. Balance transfers are usually requested during the online application. After your application has been approved and you have activated your credit card, your new bank will initiate the balance transfer process by requesting the outstanding amount from your old bank. This process usually takes one or two weeks.
Key considerations to find the best* 0 balance transfer credit card for your needs
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 perfect balance transfer credit card, look to the longest length of balance transfer for the lowest interest rate that suits your needs.
- Decide how long you need to repay your existing credit card debt. Balance transfer credit cards offer 0% from 6 months up to 18 months. A longer balance transfer may provide you with more financial flexibility.
- Know which banks you can transfer to. You can balance transfer to any banks/ credit cards, except credit cards from the same bank or credit provider.
- Fees. Are there any balance transfer fees or annual fees? Balance transfer fees are typically 2% of the entire balance transfer amount. Along with an annual fee, these amounts could add a substantial portion to your existing credit card debt. Make sure you compare cards carefully using our reviews and read the terms and conditions before applying. You can also compare cards with no annual fee and 0% balance transfers.
- What else are you looking for in a credit card? Credit cards can provide a range of extra perks and benefits, including frequent flyer points per $1 spent, complimentary travel insurance and rewards programs.
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!
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. Because each credit inquiry/ application is recorded on your credit file, frequent applications may result in your next request being rejected. It is recommended to leave at least 6 months between applications.
- 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 so you repay your debt before the promotion ends.
- 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.
If you need to make purchases whilst repaying your debt then compare these types of credit cards.
Use the Balance Transfer Calculator in 4 easy steps and find out how much you can save today
Step 1. Enter the total debt/outstanding amount you would like to transfer
Step 2. Provide the interest rate that you are paying on your existing debt (if you don’t have your interest rate on you, the average is around 18-20%)
Step 3. See the ‘Interest Saved’ column to find out which credit cards will save you the most money. Click on the ‘Interest Saved’ title to sort the cards in ascending or descending order of money saved
Step 4. Compare the credit cards available in the table provided to find the card that suits your needs. If you still want to find out more about a particular credit card, click the ‘More info’ link for a full review on the features and benefits.
Frequently asked questions about 0% balance transfers
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 repaying my debt?
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 repaying your debt at a lower interest rate you could save hundreds or thousands of dollars in interest.
Do I have to pay a balance transfer fee?
Balance transfer fees are typically included with longer term balance transfer offers and are usually a fixed percentage of the entire balance transfer amount.
What’s the maximum I can balance transfer?
This is usually set at 85-90% of the credit limit you’re approved for.