You could save over $600 on credit card interest with one of these top balance transfer offers

woman smiling paying for a drink happy with her balance transfer

With Australians accruing interest on $17.24 billion in credit card debt each month, according to the RBA, it could be a good idea to take advantage of a balance transfer offer to help pay off your debt.

A balance transfer is when you take the debt you've built up on your credit card, and move it to a new credit card at a much lower interest rate for a set period, often even 0% p.a.

For example, Mozo discovered you could save $696 when switching from a card with the average rate and annual fee from those on the Mozo database (17% p.a. and $135 annual fee) on a $4,200 balance paid off over 12 months using a 0% p.a. balance transfer offer.

Mozo’s database currently has 100 balance transfer offers, with 72 offering 0%, and of these, 52 come with no balance transfer handling fee, with Citi Clear, Coles Low Rate and HSBC Platinum offering 36 months at zero interest.

You want to find a balance transfer card with a long enough interest free offer period for you to pay off your debt balance in full. Additionally, it’s key to budget for any additional annual or transfer fees associated with the card.

Although balance transfer offers can be useful in getting on top of your credit card debt, if you are unable to pay down your debt by the time the 0% period ends, you could be in for a sudden interest rate shock. Once the balance transfer period ends, the promotional interest rate reverts to a much higher rate - often the cash advance rate, which can be over 20%.

If you’re looking for a minimum 12-month balance transfer offer on a card with no annual fee, then check out these top picks below.

Top balance transfer offers

Virgin Money No Annual Fee Card
  • $0 annual fee
  • 0% p.a. balance transfer rates for 12 months (then the cash advance rate)
  • Up to 55 interest free days
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The Virgin Money No Annual Fee Credit Card has a balance transfer offer of 0% p.a for the first 12 months. Be sure to be diligent in paying it off in the intro period that you qualify for. Otherwise, you'll find yourself paying the high cash advance rate of 20.99% p.a. until it's cleared. Purchases are also free for the first 12 months before reverting to 18.99% p.a. As long as you pay your balance in full each month, you'll get up to 55 days interest free. If you miss a payment, you will be charged a $30 late fee.

Coles No Annual Fee Mastercard
  • No annual fee
  • 0% balance transfer rate for 12 months (reverts to cash advance rate)
  • 1 flybuys point per $2 on eligible spends
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With the Coles No Annual Fee Mastercard, you'll have 12 months to pay off any balance transferred without paying interest. Just keep in mind that after 12 months, any transferred debt still left on your card will start attracting interest at the 19.99% cash advance rate. The purchase rate is also 19.99% p.a, and you can earn 1 flybuys point per $2 on eligible spend, as well as an additional 1 point per dollar spent at Coles and other Flybuys partners when your card is scanned (conditions apply). The Coles No Annual Fee Mastercard has no annual fee and up to 55 interest free days, but you will face a $30 late fee if you miss a payment.

Heritage Bank Gold Low Rate card
  • No annual fee
  • 0% balance transfer rate for 12 months (reverts to cash advance rate)
  • Competitive 10.80% p.a. purchase rate
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If you're ready to blast some old credit card debt, the Heritage Bank Gold Low Rate card 12-month 0% balance transfer offer could be worth a look. The Gold Low Rate Credit Card offers a 10.80% purchase and cash advance rate along with no annual fee. One thing you should keep in mind about this credit card is that there are no interest-free days on offer. This means that you’ll automatically be charged interest for any purchases you make. Additionally, if you miss a payment, you will face a $20 fee.

Kogan Money Black Card
  • $0 annual fee
  • 0% balance transfer rate for 12 months (reverts to cash advance rate)
  • Earn 1 reward point per dollar spent on eligible purchases
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If you are looking for the opportunity to pay off your existing credit card debt with 0% interest, the Kogan Money Black Card could be right up your alley. This card offers a 12-month 0% interest rate balance transfer, although bear in mind this reverts to a high 21.74% cash advance rate after the transfer period ends. The Kogan Money Black Card offers you the ability to earn 1 reward point per dollar spent on eligible purchases and up to 2 points for every dollar spent on Kogan.com, as long as you’re buying Kogan Exclusive Brands (conditions apply). Plus, you could get $400 in Kogan.com credit when you spend $1,500 on eligible purchases in 90 days from card approval (conditions apply). The Kogan Money Black Card also comes with a complimentary Kogan First Membership, valued at $99 per year (conditions apply). While there is no annual fee and up to 55 interest free days on purchases, just remember this card comes with a hefty 20.99% p.a. purchase rate.

Paypal Rewards Credit Card.
  • No annual fee
  • 0% balance transfer rate for the first 20 months (reverts to cash advance rate)
  • 2021 Mozo Experts Choice Awards winner^
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If you’re looking for a longer balance transfer offer, the PayPal Rewards Card could be a top contender. It offers a 0% balance transfer rate for the first 20 months. Although you should keep in mind, this reverts to a high 21.74% cash advance rate after the introductory balance transfer period. The PayPal Rewards Card stood out to our experts for its really unique ways to utilise points, winning a 2021 Mozo Experts Choice Award for best reward card. Cardholders can spend their points online with 750,000+ businesses where Pay with Rewards is offered. You can also select a transaction in your account after purchasing an item and use your points to pay for it instead. In addition to everything the PayPal Rewards Card has to offer, new applicants could catch a special deal: receive 50,000 bonus points, equivalent to $275 to spend, when you spend $3,000 or more in the first 3 months from card approval on eligible transactions (conditions apply). The Paypal Rewards card offers a 20.99% p.a purchase rate 55 interest free days on purchases. You should make sure not to miss a payment because the card does come with a $30 late payment fee.

QBank Bluey Card
  • No annual fee
  • 0% balance transfer rate for the first 12 months (reverts to cash advance rate)
  • 2021 Mozo Experts Choice Award winner^
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If you’re looking to use the QBank Bluey Card to finally get rid of lingering credit card debt, you could have a 0% balance transfer rate for the first 12 months. Once this period has ended, the rate will revert to a reasonable rate of 11.99% p.a. for any leftover debt. Winner of a 2021 Mozo Experts Choice Credit Card Award for best No Annual Fee Credit Card, this card features no annual fee and low purchase and cash advance rate of 11.99% p.a. and 55 interest free days. Additionally, if you miss a payment, there’s a low $8 late fee.

^See information about the Mozo Experts Choice Credit Card Awards

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