The Balance Transfer Process & Approvement

What is a balance transfer?

A balance transfer is the act of transferring an outstanding balance from one Australian account onto your credit card.

Transfers between credit cards of the same provider are not referred to as balance transfers.

Featured Balance Transfer Credit Card

The Bankwest Breeze allows you to do a balance transfer on and pay off your credit card debt. This is because it features a low balance transfer offer for the first 12 months.

• $69 annual fee
• 10.99% p.a. on purchases
• 4.99% p.a. for 12 months on balance transfers
• Cash Advance Rate of 21.99% p.a.
• 55 days interest free
• Minimum Income Requirement of $20,000 p.a.

Read the Bankwest Breeze MasterCard terms and conditions.

Why transfer your credit card balances to another banks credit card?

Balance transfers are an efficient method of saving money. For example you can transfer the balance of a high interest rate credit card to a low interest Credit Card. The most popular balance transfer offers are 0% interest for 6 months.

How much money is possible to save?

The amount of money you could save varies greatly from the interest rate on each credit card. You can use our credit card balance repayment calculator to calculate the amount you can save on your balance transfer.

How do I carry out a balance transfer?

If you are applying for a brand new credit card you can opt for a balance transfer as part of your application.

Many credit cards will have a promotional balance transfer periods beginning when your account is started. The balance outstanding at the end of the promotional period from the balance transfer will accumulate interest at the rate of the credit card (this is usually the interest rate of purchases).

How long does it take to transfer my balance?

It will take on average 2 weeks to a month for a balance transfer request to be processed by the bank.

For new applicants, your balance transfer will only be processed after your card is activated, and in some instances a ’100 point check’ may be required.

What are the key things to remember about a balance transfer?

Your balance transfer request generally WILL NOT be successful in the transfer amount is:

• Lower than $500
• From a credit card of the same provider (e.g. from one Commonwealth credit card to another Commonwealth credit card)
• From a credit card issued overseas
• Going into an account which is not in good order

Note: The requirements will vary from bank to bank. If you own a credit card with an interest free period please be aware that this period will not apply to the amount being transferred.

Do I have to close my other store/Credit Card after the balance transfer is made?

It is to the credit card owners discretion to weather or not they decide to close any credit card after a balance transfer is completed. It is unwise to spend on a credit card with a transferred balance on it, as the latter becomes essentially ‘locked’ until the purchase is repaid.

This allows banks to profit from consumers who are unable to repay their balance in the introductory low rate period, ultimately profiting from them. Therefore, it may be wiser to keep your old credit card account open in case you need to use your card.

Where can I Compare the Best Low Interest Balance Transfer Offers?

If you believe you’re all the wiser and educated on the concept of these offers, head to the comparison table to compare Australia’s leading balance transfer credit cards.