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.
Best Balance Transfer Credit Cards in Australia
Navigating the world of credit cards can be challenging, especially when you are looking to minimize interest and manage your debts effectively. Balance transfer credit cards can be a suitable option. In Australia, several banks and financial institutions offer attractive balance transfer deals. Below we delve into some tips to find the best balance transfer credit cards in Australia and what you should consider while choosing one.
Understanding the Balance Transfer Mechanism
- Definition: Balance transfer credit cards allow you to transfer the balance from one card to another, often with a lower interest rate.
- Benefits: The main benefit is saving on interest charges and consolidating debts.
Tips to Find the Best Cards
- Interest-Free Period: Look for cards offering a long interest-free period on balance transfers.
- Transfer Fees: Be aware of any fees that might be associated with transferring the balance.
Top Financial Institutions Offering These Cards
- Big Banks: Big banks like ANZ, Commonwealth Bank, and Westpac usually have offers available.
- Credit Unions: Credit unions Australia and smaller lenders might also have competitive offers.
Key Features to Look For
- Low or No Annual Fee: Cards with low or no annual fees can help you save money.
- Rewards Program: Some cards come with rewards programs that can provide added benefits.
FAQs to Best Balance Transfer Credit Cards
What are the best balance transfer credit cards available in Australia?
The “best” card will depend on individual circumstances, but commonly respected options come from big banks like ANZ and Commonwealth Bank, among others.
How does a balance transfer work?
A balance transfer involves moving the balance from one credit card to another, generally to take advantage of a lower interest rate and save on interest charges.
What should I be cautious about when opting for a balance transfer credit card?
Be cautious of transfer fees and the interest rate that will apply once the promotional period ends.
Best Balance Transfer Credit Cards in Australia
When looking for the best balance transfer credit cards in Australia, it’s essential to consider several factors to make an informed decision. Here we guide you through the intricacies of choosing a card that meets your needs.
Understanding the Nitty-Gritty of Balance Transfers
- Introductory Rates: Many cards offer low or zero interest rates during the introductory period. Understanding the duration and terms of this period is crucial.
- Revert Rates: Post the introductory period, the card will revert to a higher interest rate. Be sure to know what this rate will be.
Evaluating Different Card Offers
- Comparative Analysis: Perform a comparative analysis of different cards based on the interest-free period, annual fees, and other features.
- Reviews and Ratings: Consider looking at reviews and ratings of various cards to gauge user satisfaction.
Factors to Consider While Choosing a Card
- Your Credit Score: Your credit score can significantly influence the card offers you may qualify for.
- Your Repayment Strategy: Consider your repayment strategy and how long you’ll need to pay off your existing debts.
Top Picks for Balance Transfer Credit Cards
- ANZ Low Rate: Known for its low revert rate and a considerable interest-free period.
- Westpac Low Rate: Offers a generous interest-free period with a reasonable revert rate.
FAQs to Best Balance Transfer Credit Cards in Australia
Are there any cards offering a 0% introductory rate?
Yes, several cards offer a 0% introductory rate on balance transfers, including options from ANZ and Westpac, among others.
Can I transfer the balance from multiple cards?
Yes, many balance transfer credit cards allow you to transfer balances from multiple credit cards, though it’s advisable to check the specific terms and conditions of each card offer.
What happens if I don’t pay off the balance within the introductory period?
If you don’t pay off the balance within the introductory period, any remaining balance will be subject to the card’s revert interest rate, which can be considerably higher.
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).