If you currently struggle with high credit card debt, looking into transfer to a zero percent interest card might just be the method you need to get you out of debt quicker. Transfer the sooner the better – as your current interest rates are most likely high, and are costing you a bundle. ‘Once you transfer your high interest balances, your payments will begin to lower your principal right away and the balance will begin to go down quickly.
If you can afford to pay off your card in full each month, there are other cards, such as American Express, also known as a charge card, that will also save you big on interest rates.
Comparing 0% Balance Transfer Credit Cards
One aspect of using transfer cards is to know that you can only transfer from one credit card Company to another. So if you currently bank with Citibank and want to use a zero percent credit card to reduce your debt and pay it off in full, then you can only choose companies other than Citibank.
Virgin Money Credit Card Offer
A long term balance transfer offer with a reduced annual fee for the first year.
- $64 p.a. annual fee for the first year ($129 p.a. thereafter) annual fee
- 20.74% p.a. on purchases
- 0% p.a. for 18 months on balance transfers
- Cash Advance Rate of 20.99% p.a.
- Up to 44 days interest free
- Minimum Income Requirement of $35,000 p.a.
0% Balance Transfer Credit Cards
Choose from the most competitive balance transfer credit cards on the market
The following zero percent credit cards can all be considered to be the outstanding on the market. Choose from the available offers depending on your needs, knowing that each of them offers you a really good deal to get rid of debt within a specified period of time.
- Citi Credit Cards: Up to 55 days zero interest on purchases.
- St.George Amplify Credit Card: Under one percent interest for 6 months.
- ANZ Credit Card: Under three percent for 6 months.
Terms of Zero Interest Cards
When you look into the terms of a balance transfer card, make sure you understand them before you transfer your balance over. ‘Many are different and have offers that will most benefit you individually and remember, the banks are trying to win your business, so find the most suitable offers available in terms of the length of time you will be at zero interest, and what the interest rate will be after the initial trail period is expired.
While one offer might sound particularly great, it might not be the right card due to unforeseen fees and charges or the length of term offered. ‘Some zero interest balance transfer cards change to higher than average interest rates after the initial free interest period.
Top 0% Purchase Rate Credit Cards*
How Zero interest credit cards work
Most all-major banks offer no interest cards as an incentive to get new customers. ‘Once the initial period has passed, a lot of people transfer yet again, to another zero interest card, which causes the banks to lose money. ‘They want you to stay after the transfer and the trial period has ended.
Sometimes these zero interest card companies or banks will have hidden fees, which include per transaction charges, and requirements of at least one purchase per month. ‘If you fail to make a purchase for one month, you can be charged fees or penalties.
Just remember to mark down the introductory period on your calendar in big red letters, because the chances of being notified of the switch from an introductory period, to high interest on your balance, are slim to none. ‘This is where the bank will reap the benefits of offering no interest.
Multiple Credit Cards
If you have more than one interest bearing credit card, you can transfer them all over to one zero interest credit card as well, to get all of your credit card debt in one place, making it more affordable to get out of credit card debt for good.
Paying off debt
Once you transfer all of your credit card debt to one zero interest card, if you take the entire amount owed, divided by twelve months, you will get a monthly payment that will pay off your entire debit, in one year. ‘If your debt is higher than you can afford, plan on transferring again after the initial period has passed. ‘Becoming credit card debt free will save a lot of interest in the future.