Balance transfer credit cards allow you to save money on interest by giving you a chance of paying your debt without interest for a limited time.
How Balance Transfer Credit Cards Work?
Balance transfer means paying off your current credit card debt with another credit card with lower interest.
For a limited time, you will not be required to pay off interest, when that promotional period ends you will be charged regular interest again. You need to read and understand terms and fees before signing the deal if you do not want to fall into a debt cycle. You should know how long will the promotional period last, how long will you have to transfer your current balance when you have the card and what kind of additional fees you will be charged before applying for credit card balance transfer in Australia.
When To Apply For a Balance Transfer Credit Card?
- If your credit score is good,
- If you have a stable job
- If your credit card balances are modest, you may apply for a balance transfer credit card.
You can apply for a balance transfer credit card either online or by visiting the nearest branch. You have a chance to compare balance transfer credit cards online to choose the best for you. You need to fill out an online application form and submit. If you get approved, you can transfer your balance by contacting the new credit card issuer.
Best Balance Transfer Cards
- HSBC Platinum Credit Card Balance Transfer Offer: For 22 months, you do not have to pay off interest, then you will be charged 19.99% p.a ongoing rate. Also, you will not be charged a balance transfer fee. On the other hand, you will be charged $129 annual fee but you have a chance to refund that fee if you spend $6,000 on eligible purchases.
- George Vertigo Platinum Credit Card: For 18 months, you do not have to pay off interest then you will be charged 12.99% p.a ongoing rate without balane transfer fee. You will be charged $49 annual fee for the first year, thereafter the fee will be $99 p.a.
- Virgin Australia Velocity Flyer Credit Card: For 18 months, you do not have to pay off interest then you will be charged 20.74% p.a ongoing rate. You will be charged a reduced ongoing annual fee ($50 p.a).