Struggling with high interest credit card debt? Commonwealth Bank makes it easy to consolidate your debt with a lower rate for an extended time
With high interest rate cards, it can feel like your monthly payments don’t make a dent in your debt. With balance transfer offers from Commonwealth Bank you can lower the interest rate and allow your payments to start making a difference. It’s easy to transfer your balances, and with the bank’s help you’ll be looking at debt free days in no time.
What is a balance transfer?
Balance transfers, which are sometimes referred to as debt consolidation, can be helpful in cutting down on the total amount of money you owe. The money you owe on one or more cards can be moved to another at a lower interest rate, cutting down on the amount of your monthly payments. Balance transfers also help in managing your debt by having it all in one place.
What are the benefits of completing a balance transfer with the Commonwealth Bank?
Commonwealth Bank has a number of credit cards that allow for a balance transfer. As you go through the process you will find a number of benefits to their offers:
- It’s easy. You can use Commonwealth Bank’s NetBank to quickly transfer balances from any other bank or store credit card. You can also call or complete a credit card balance transfer form and mail or hand it into any branch.
- It’s fast. It will only take five to ten working days for Commonwealth Bank to complete your request and transfer your balances.
- It saves you money. Having high interest accruing balances switched over to a lower rate card will help save you money and decrease your debt quickly.
- It helps you manage your money. Instead of looking at various credit card bills, and trying to determine how much you owe, a balance transfer puts all of your credit card debt onto one statement.
What balance transfer options does the Commonwealth Bank offer?
Commonwealth Bank Gold Awards card
The Commonwealth Bank Gold Awards Card is a part of a prestigious program allowing you to earn points with your purchases. With every dollar that you spend, you will receive two points into your rewards account, which can later be redeemed for merchandise, flights and more. Plus you get the added benefit of a 5.99% p.a. interest rate on any balance transfers for five months. After that period, the unpaid portion of your transfer will revert to the cash advance rate.
Commonwealth Bank Low Fee cards
The low fee cards from Commonwealth Bank enable you to shop and spend freely, without having to pay a high annual fee for the privilege. There is also no fee applied when you make a balance transfer, but you will begin accruing interest immediately at a rate of 5.99% p.a. Five months after you make the transfer, the rate will revert to what is charged with a cash advance.
What else should I consider?
There are variations in balance transfer deals that you should look over carefully before deciding if it is right for you.
- How much can I transfer? Typically you are going to find that there is a minimum amount allowed for a transfer, as well as a certain percentage of your available balance that can be used towards them.
- Is there a promotional offer and what’s the revert rate? The 5.99% p.a. interest for five months is a standard offer from Commonwealth Bank. At the end of the five-month period that rate increases to the cash advance rate currently at 21.24% p.a.
- Where can I transfer my balance from? Balance transfers can be made from any bank or store issued credit card so long as it is not with Commonwealth Bank.
- Are there any transfer fees? Commonwealth Bank will not charge you a balance transfer fee for the transaction.
Debt consolidation through balance transfers can be a wonderful method of freeing you from debt, if you make payments towards them while at the low rate. There are a number of points to consider with these promotions, and you should take care to compare them carefully before choosing the one for you.
Frequently asked questions
What happens if I am unable to pay off the balance transfer before the end of the five months?
With any unpaid balance, the rate will revert to what you pay when you make a cash advance.
How can I be sure that my payments are being directed to the balance transfer and not on my recent purchases?
According to Commonwealth Bank’s credit card conditions of use, payments are first applied to any interest or fees from an earlier statement period. After you pay those in full, the remainder of your payment balance will be applied to the balance transfer.
After the five month period ends could I transfer the balance to another bank credit card?
In theory yes, you are able to transfer balances from one bank to another whenever you are approved for the card. You should keep in mind however that multiple enquiries into your credit history does negatively impact your credit rating.