Are you wanting to find a balance transfer credit card? Calculate how much interest you could save by transferring your balance to one of the cards in our comparison below.
Choosing a credit card can often be difficult if you don’t know the right considerations. To help simplify the process we’ve made our comparison table as intuitive as possible by including just two input fields for you to make a better decision around which balance transfer card to choose. You can read our guide on how this calculator works below
Balance Transfer Credit Card Offer
The HSBC Credit Card has a no annual fee for life, as well as a low rate balance transfer offer.
- $0 p.a. annual fee
- 17.99% p.a. on purchases
- 0% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.99% p.a.
- 55 days interest free
- Minimum Income Requirement of $20,000 p.a.
Calculate how much you could save by switching to a new balance transfer credit card
How to use the balance transfer calculator:
- Enter the balance you would like to transfer (which can be your total existing credit card debt from multiple cards)
- Enter your current interest rate
- Check out the ‘Interest saved’ column you will see an estimate of how much money you would save during the balance transfer period. Don’t forget to press the blue ‘i’ icon to see how the saving is calculated.
It’s also important to consider other features of the credit card when making your decision, in particular the purchase rate and annual fee.
Balance transfer scenario
For the purpose of understanding the potential savings you could make with a balance transfer, consider the following example:
- Existing credit card balance: $5,000 (on 1 card only)
- Existing interest rate: 21.74% p.a.
To determine how much you could potentially save, enter the balance of $5,000 in to the "Transfer amount $" field and enter your current interest rate of 21.74% in to the "Current Interest Rate" field. Once you’ve done this, click "Calculate" to see the results
After clicking calculate pay attention to the "Interest saved" column in the table. This will list the amount of interest you would save during the balance transfer period.
Here is an example of the savings if you were to do a balance transfer to a 0% p.a. for 8 months credit card:
Our calculations will take into account the minimum monthly payment amount for the credit card (which is typically 2-3%). We calculate how much interest you would expect to pay during the balance transfer period on the new credit card you are looking to apply for and take in to account the credit card’s annual fee.
Our calculation will determine the amount of interest you would have paid on your current credit card during the same period of time as the balance transfer period on the card you’re considering to apply for.
How much money will I save by doing a balance transfer?
The difference between the interest you would have paid on your current credit card account and the interest you will be paying on your new balance transfer credit card (taking in to account the annual fee) is the amount of money you will save by doing the balance transfer.
How to avoid making a mistake when doing a balance transfer
- Don’t spend on your new balance transfer credit card. When you go to spend on your new balance transfer credit card the interest free days feature on the credit card won’t be active. You need to have your balance completely paid off from the prior statement period in order to ensure you have this feature.
Watch our video of finder.com.au founder Fred Schebesta explaining how interest free days work
- Pay attention to balance transfer revert rates. At the end of the balance transfer period the interest rate that you will be charged is either the standard interest rate or the cash advance interest rate. Click the "More" button next to each card in the comparison table to visit the review page where we list the "Balance Transfer Revert Rate".
Read our guide: what does my balance transfer revert to?
- You can only do a balance transfer to a different bank to your current bank. If you are wanting to transfer a credit card balance, you must apply for a credit card from a different bank. It’s also important to note that some credit card providers are funded by the same bank so this may cause problems for you – lucky we’ve written a guide on this to help you out.
Read our guide: which banks can I do a balance transfer to / from?
We hope you found this guide useful in helping you calculate your balance transfer savings and choosing a credit card to transfer your balance to. If you have any questions please use the "ask a question" box below and we’ll get back to you with a quick response to get you back on your way to saving money!