Interest Free Balance Transfers

Balance transfers can save you money but interest free balance transfers can save you a bundle. It is important to learn how they work and how to use them to your advantage so you can save the most cash.

Whether you have a small or large amount of credit card debt, if it is accumulating interest at a high rate then you are losing a lot of money. If you transfer the debt to a card that has low or no interest, it will make it possible for you to pay that debt down at a faster rate.

ANZ Low Rate MasterCard

If you are looking to do a balance transfer, then you should consider the ANZ Low Rate MasterCard as part of your online comparison. It features a low purchase rate which is important, because at the end of the balance transfer period it reverts to the purchase rate – NOT the cash advance rate, like many other credit cards.

• $58 annual fee
• 0% p.a. for 3 months (reverts to 13.24% p.a.) on purchases
• 0% p.a. for 3 months on balance transfers
• Cash Advance Rate of 21.49% p.a.
• 55 days interest free
• Minimum Income Requirement of $15,000 p.a.

Read the ANZ Low Rate MasterCard – Balance Transfer terms and conditions.

How Do Interest Free Balance Transfers Work?

A balance transfer is the process of taking a balance on one credit and moving it over to another card. The reason for making such a shift is to save money on interest charges. More than likely the card that you wish to switch from has a high interest rate and the card that you want to transfer the balance to is at a low or zero interest rate.

Interest free balance transfers are one of the most attractive of all balance transfers because you are able to pay down the debt while paying absolutely no interest. For instance, if you have a balance of $1000 on one card that is accumulating interest charges at 20% then at the end of 6 months you will have paid over $100 in just interest charges. That is a lot of money that is just thrown away!

If you switch that balance over to a zero interest balance transfer card then you are saving over $100 in that amount of time. Of course, if your balance is much more you will also be saving much more money.

Things to Remember

The zero percent interest transfer deal is an excellent one but it does not last forever. Most offers last only 6 months. Some are longer but they are few and far between.

After the 6 month period has passed then the rate will revert back to the standard interest rate in some cases, but in other cases, it will revert to the cash advance rate.

You will also have to make some decisions about how you will want to use the card. The most prudent option is to keep it only as your balance transfer card. That means that you do not use it for purchases.

The reason for this is because if you choose to use your card for purchases, you will most likely negate any savings you may have acquired from the zero interest deal. The purchase rate will apply and any payments made will go towards paying off the lowest interest rate balance first. Your purchases will continue to accumulate interest at a higher rate until your other balance has been paid off.

Interest free balance transfers work best if you use the card strictly for that purpose. Doing so will save you the most money.

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%