Balance Transfer Credit Cards

Compare low balance transfer credit cards to help you get out of debt quicker!

A balance transfer card can help you with credit card debt which could be hanging over your head for a number of reasons – over-indulgence at the Christmas and New Year sales; emergency costs for a family member, car repairs or a vet bill; or simply a slow build up of charges to your credit card that you intended to pay off, but which have escaped your control. No matter what your reason for collecting credit card debt you may be feeling stretched by your monthly repayments, financially irresponsible about adding such debt to your credit report, and a little foolish for letting your credit cards run away with you.

Fortunately you’re not alone, that is why there are so many different types of balance transfer cards and such a number of balance transfer offers available, and here we have all the information you need to know about how balance transfers of your credit card debt work, and how you can save hundreds or even thousands of dollars as you get out of debt.

Balance Trasnfer FAQ

What you need to know about balance transfer cards?
What is a Balance Transfer Card?
Who is Suited to a Balance Transfer?
Types of Balance Transfer Cards
How to Compare Balance Transfer Cards
Which Type of Balance Transfer Card Are You?
Balance Transfer Tricks to Avoid
How to Make the Most of Your Balance Transfer
How to Apply for a Balance Transfer Card
What Do You Do When the Debt is Paid?

Balance Transfer Credit Card Comparison

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
Suncorp Clear Options Standard Visa Card	Suncorp come out of nowhere with this amazing card! A great balance transfer deal and a low ongoing interest rate.	12.24% p.a.	17.99% p.a.	1.9% p.a. for 12months	$39	0
HSBC Credit Card	HSBC storm the market with this great balance transfer offer on top of no annual fee EVER.	16.99% p.a.	20.75% p.a.	0% p.a. for 6months	$0	55
Citibank Clear Platinum Visa Card	Another Citibank winner! The Clear Platinum Card is a prestigious, yet relatively affordable card.	11.49% p.a.	21.24% p.a.	0% p.a. for 6months	$49 (First Year, Save $50)	55
St George Vertigo	The St. George Vertigo Card is one the most popular credit cards in Australia, and with good reason.	12.49% p.a.	21.24% p.a.	2.99% p.a. for 6months	$55	55
Aussie MasterCard	Be patriotic and pick yourself up an Aussie Mastercard! One of the most appealing balance transfer credit cards on the marker.	2.99% p.a. for 6 (reverts back to 12.99% p.a.)	19.79% p.a.	2.99% p.a. for 6months	$49	55
ANZ Balance Visa	One of Australias leading banks offers the ANZ Balance Visa Card, which is both a rewards and low interest card!	14.24% p.a.	21.49% p.a.	0% p.a. for 6months	$79	55
Citibank Clear Visa Card	The Citibank Clear Credit Card is an ideal card due to its incredible balance transfer offer and reasonably low interest rate.	11.99% p.a. for 12 (reverts back to 15.49% p.a.)	21.24% p.a.	0% p.a. for 6months	$65	55

What you need to know about balance transfer cards:

What is a balance transfer card? Before you can choose a card to wipe out your credit card debt, you need to know what you’re looking for because not all credit cards will accept balance transfers.

Who is suited to a balance transfer? Here we will ask you to examine your current credit card and your reasons for wanting to get out of debt to make sure a balance transfer card is the best route for you to take.

Types of balance transfer cards. Yes, we’re back to the choices available and there are three main types of balance transfer cards to choose from – a 0% interest rate offer, a low interest rate card and a For Life balance transfer offer.

How to compare balance transfer cards. As well as determining which features are important to you, we’ll also show you where compromising on a 0% interest rate can give you more time to pay, and a card with a higher annual fee may give you a lower interest rate.

Who is best suited to a 0% interest rate balance transfer card? A spotlight on the ANZ Low Rate MasterCard highlights the card’s pros and cons to help you decide if a 0% balance transfer card suits your circumstances.

Who is best suited to a low rate transfer? We’ll give you an overview of the Citibank BP Card transfer offer so you can decide whether you could pay a slightly higher rate for slightly different benefits.

Who is best suited to a For Life balance transfer? Using the Citibank Platinum balance transfer offer as an example, you can weigh the pros and cons of having no expiry date on your low balance transfer interest rate.

The tricks to avoid. We’re a comparison site and not endorsing one card or offer over another, this means we can show you the pitfalls and fine print that the providers want you to gloss over.

How to make the most from your balance transfer. Not only can you transfer your debt to pay a lower interest rate but if you manage your transfer correctly you can pay off your debt sooner, save more in interest and avoid fees.

How to apply for a balance transfer card. Once you’re convinced a balance transfer card is right for you, we’ll walk you through the application process so you can start saving.

What do you do when the debt is paid? You may be focussed on finding a credit card which doesn’t charge you such exorbitant interest, but what about when your balance transfer card is paid off, and you are credit-card-debt-free? We’ll help you make decisions about what to do with your current credit cards, to avoid crippling credit card debt in the future.

What is a Balance Transfer Card?

A balance transfer card is essentially a credit card which is offering a special interest rate for customers who bring their debt with them. A balance transfer works by:

• Paying off your old credit card debt. A balance transfer card can pay off your debt on just one credit card or a number of credit cards and even store cards. The balance of your existing credit and store cards is now zero as the debt has been transferred to your new balance transfer card.
• Offering you a lower interest rate on your credit card debt. Where the debt is paid off from your old credit card or store card, you still have to repay that amount, however, by transferring your balance to a card with a lower interest rate you are paying less interest, and sometimes even zero interest, so you have the opportunity to repay your debt faster.
• Not necessarily offering lower monthly repayments. Even though less of your monthly repayment will now be going towards paying interest on your debt, each credit card provider calculates their minimum monthly repayments differently so you may be paying the same amount each month – this simply means you’ll be paying more towards the principle amount, paying down your debt sooner.

Who is Suited to a Balance Transfer?

There is such a range of balance transfer cards that there is one to suit just about every debt, need and budget, but a balance transfer card is best suited to you if:

• You want to consolidate your debts. If you have more than one credit card and want to be making just one monthly repayment to make your budgeting and cash flow easier then you might consider a balance transfer card as it can take on all of your debts and roll them into one repayment, and charge you a lower rate of interest.
• You want to pay off your debt faster. If you feel like you’re not getting anywhere making repayments on your current credit card it could be because you are paying a high rate of interest on your debt, so the majority of your repayment is going to pay off interest, and very little is going to pay off your actual purchases. However, with a balance transfer card you can be paying little to no interest so you can focus more of your repayments on your actual debt.
• You want to tidy up your credit report. If you are looking at applying for a home loan or personal loan, if you reduce your credit card commitments you will be eligible to borrow more of the purchase price, and may even be able to pay less mortgage insurance. If you consolidate a number of credit cards to one balance transfer card you can make just one monthly repayment, and pay off that debt sooner making you a more attractive loan candidate.

Types of Balance Transfer Cards

There are any number of balance transfer offers, but there are three main types of balance transfer cards which you can choose from. These include:

• A 0% interest rate balance transfer. This type of balance transfer will not charge you any interest on the balance your transfer to your new card. This means that everything you pay to your credit card each month goes to reducing your debt, just be aware that 0% interest balance transfer offers are usually for a very short period of time so make sure you can pay off your debt within the 0% interest rate period.
• Low interest rate balance transfers. Offer you a much lower interest rate than you are paying on a standard credit card so you can still make great savings in interest and pay off your balance sooner. A low interest rate card is also likely to give you a little longer to pay off your debt before reverting to a higher standard rate, as compared to a 0% interest rate card.
• For Life balance transfer cards. Will apply a lower interest rate to your balance until it is completely paid off. This allows you to tackle an exceptionally high credit card debt, or make some more room in your budget for other expenses as you don’t have to rush to pay off your credit card. The rate on a For Life transfer will be slightly higher than the other two options, but you are paying that little bit more interest for a lot more time.

How to Compare Balance Transfer Cards

When the banks advertise their balance transfer offers they are of course touting the best features of their products. However, before you choose a balance transfer card, make sure you compare all of the features of your new card, and understand all of the fine print. For example:

• Check for an annual fee. Balance transfer cards can offer annual fees as low as $0 and as high as $250; and don’t just think because you are planning to pay off your balance within six months that you don’t need to pay that annual fee because it is usually charged when you sign up for the card. Some balance transfer cards will also waive the fee for the first year, something you can take advantage of if you plan to pay off your debt quickly.
• Compare the low/no interest rate periods. A 0% interest rate sounds too good to be true right? Well it can be if you are unable to pay off your transferred debt within the six months usually allocated to a 0% balance transfer. Instead, compare the interest rates on balance transfer terms you can realistically meet and you’ll save yourself in the long run.
• Check for transfer fees. Some balance transfer cards will charge you an additional fee to accept your balance, so compare which card offers you the lowest transfer fee before you make a decision.
• Is the purchase rate the same or much, much higher? A low interest rate on a balance transfer card usually only applies to the transferred balance, not to any purchases you make on the card. So can you avoid making purchases and attracting that higher ate, or do you want to hang onto your balance transfer card once your debt is repaid and actually want a low purchase rate too?
• Look for the additional features you need. Compare the other features which make up a credit card offer such as the payment methods you can use to make your monthly payments, the statement frequency, the access to internet banking to check you progress – you know the features you need and want to make your repayments process easier.

Which Type of Balance Transfer Card Are You?

So we’ve told you about the three main types of balance transfer cards and how to make comparisons to find the best offer for you, now find out more about the pros and cons of each type of balance transfer card and compare our featured cards to give you a comparison benchmark in your own search.

A 0% interest rate balance transfer card, the ANZ Low Rate MasterCard:

• Can you focus on making the highest repayments and paying off your balance in the shortest period? A 0% balance transfer card will have a short expiry date on their low rate; the ANZ Low Rate MasterCard offers . Therefore, you need to be willing to channel all of your spare cash into paying off your debt. Alternatively a six month payment period may suit you if you have only a low balance to transfer.
• Drawbacks of a 0% balance transfer – with a shorter time to repay your debt you will have to make a careful budget to stick to your repayments. Usually a 0% balance transfer card also has a much higher standard rate which will be charged on any remaining debt at the end of the transfer period.
• Benefits of a 0% balance transfer – you pay zero interest so all of your monthly repayments go towards paying off your debt. This means you can stop paying for your purchases over and over again in interest and simply pay off your principle debt amount.
• Benefits of the ANZ Low Rate MasterCard – the standard interest rate is actually one of the lowest of all Australian credit cards and after your six month transfer period you will only be charged interest on purchases. Plus, you are getting a very low annual fee of and 55 interest free days if you decide to keep your ANZ Low Rate MasterCard after your balance transfer is repaid.

A low rate balance transfer card, Citibank BP Card:

• Do you want to pay more than the minimum but still want some breathing room? While you will be charged interest on your balance transfer you are not feeling the pressure of a short six month repayment period. When you accept a slightly higher rate you are rewarded with more time to make your repayments. Your low rate does still expire so make higher monthly repayments to keep within the transfer period if you need to.
• Drawbacks of a low rate balance transfer – your low rate will eventually expire so you need to be dedicated to paying off your balance. Plus, while your interest commitment is lower, some of your monthly repayment is still going to pay off interest charges.
• Benefits of a low rate balance transfer – you have more time to pay and need to worry less about the standard rate of your card. You can also usually secure a low rate transfer on a card with a low annual fee too, for example the annual fee of the Citibank BP Card is just .
• Benefits of the Citibank BP Card – offers you a low on balance transfers and 12 months to pay them off. Also, after your balance is repaid you have 55 interest free days to take advantage of cash back offers and discounted petrol.

A For Life balance transfer card, Citibank Platinum:

• Do you have high balances to repay or little room in the budget for higher repayments? Then having a low rate on a balance transfer fixed for the life of the balance could help you regain control. You don’t have to stretch yourself to repay your balance within a certain time frame, yet you can still enjoy a lower interest rate than your standard credit card.
• Drawbacks of a For Life balance transfer – For Life balance transfer cards generally have a higher annual fee, like the fee on the Citibank Platinum card. The purchase rate is also high so you are unable to use the card for anything else while you are repaying your balance, without attracting that high rate.
• Benefits of a For Life balance transfer – you don’t have to rush to repay your balance, and you can still remain in control of your credit card debt as you have reduced the amount of interest you pay each month. Also, you may find you can pay more than the minimum as the interest rate is lower and the monthly payment may be lower than what you were used to too.
• Benefits of the Citibank Platinum card – a interest rate guaranteed for the life of your balance and all the time you need to repay it.

Balance Transfer Tricks to Avoid

The banks are still in business to make money and while they are offering you a low interest rate, they are also gambling on the fact that many of their new transfer customers won’t be able to keep to the conditions of the card and will end up paying a higher interest rate anyway. To avoid being one of those customers, follow these few simple tips:

• Never spend on your balance transfer card. Purchases you make after you have transferred your balance will be charged at the higher standard rate of your balance transfer card. Plus, most credit cards operate on a negative payment hierarchy, where the oldest balances are paid first. Therefore, your purchases won’t be paid off until your balance has been repaid, meaning you are earning that high purchase rate for longer.
• What to do if you did make a purchase on your balance transfer card – first assess the damage, if you are close to repaying your original balance and the purchase rate of your card is low anyway, somewhere in the low teens is best, you can probably wait it out and keep making your repayments. However, if you are attracting a high purchase rate in the 20.00% range and you are not about to pay off your transferred balance, look for a new balance transfer offer and transfer your old balance and your new purchases.
• Remain aware of your low rate expiry date. Set a reminder for two months before your rate expires and assess whether you will pay your balance off in time. If you don’t think you’ll make it, start looking for a new balance transfer offer and start the application process to avoid paying the higher rate. While you may have already paid an annual fee, few balance transfer cards will have a cancellation fee so you can maintain a fighting chance at paying down your debt.

How to Make the Most of Your Balance Transfer

To make sure you stay on top of your debt and use your balance transfer card to get control of your debt as quickly and as easily as possible, follow this advice to choose and use your transfer to benefit you, not the banks:

• Shop around for the best transfer deal. Banks and credit card providers have sales and offer specials so make sure you compare all the balance transfer cards on offer to find one with the repayment terms to suit you, and one which offers you the lowest possible interest rate.
• Pay more than the minimum amount. Now that less of your monthly repayment is going to interest, paying more than the minimum of your new balance transfer card will pay off your debt sooner. Any additional payment you make to your credit card will come directly off of your debt, rather than going to pay interest, meaning you can be debt free sooner.
• Don’t use your new card. Any purchases you make on your balance transfer card will be charged interest at the higher rate, unless you choose a card like the St George Vertigo or the Aussie MasterCard which offer a purchase rate to match their transfer rate for the same six month period. Otherwise you will be paying a higher rate of interest on your purchases and your monthly payments will not go towards those purchases until your transferred balance is repaid.
• Don’t use your old card. You have transferred the balance from your old credit card because it was unmanageable so don’t go racking up a new debt on the card just because it is ‘paid off’ because it’s not really, the debt has just been moved, not removed.

How to Apply for a Balance Transfer Card

Once you have made your comparisons and found a type of card and credit card offer which suits you and your debt, you can start the application process:

• Follow the secure Credit Card Comparison links. After using our comparison tables you can follow a secure link from your chosen card to the provider’s website. You can be sure you are viewing genuine bank offers and entering your details into a secure bank website and online form.
• Complete a credit card application. A balance transfer is actually just one part of a credit card application so once you are at your chosen provider’s website, begin filling in an online application form, or apply over the phone or in person if you prefer. You will be asked during the application if you have a balance to transfer and you will need to provide your current credit card account details and the amount you want to transfer.
• Upon approval your balance transfer will be made automatically. Once your application is submitted you have to wait for approval from the bank. When your new credit card has been approved, your old credit card will automatically be paid out by your new one, and you will start making your monthly repayments to a new provider.

What Do You Do When the Debt is Paid?

You’ve been battling with your credit card debt for so long, it’s hard to imagine it ever being paid off – but rest assured you will get there if you follow our steps and advice. So what do you do when you do get to a zero credit card balance, and how can you avoid the need for another balance transfer in the future?

Cut up some cards. This is where you can compare the credit cards you have and decide which ones to keep and which ones to get rid of. Look at keeping the card with the lowest annual fee, the lowest purchase rate and the most interest free days to give you the best chance of avoiding accumulating credit card debt in the future.

Look for credit card rewards. Now that you have control over your credit card balance you can also look for cards which will reward you. This may be rewards for points collected with every dollar spent, or cash back incentives or discounts on all your purchases.

Make credit card comparisons for the future. You no longer have to worry about high balances or monthly repayments and so you can compare the top credit cards available in Australia based on what you will need in the future, knowing you are more financially responsible and more credit-aware having battled the balance transfer and won!