0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.
0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.
Read our Mozo Review to learn more about the Low Rate Credit Card
0% p.a. on balance transfers for 26 months (2% BT fee applies). 0% purchase rate for the first 6 months, then moving to 12.99% thereafter, great for consolidating debt.
0% p.a. on balance transfers for 26 months (2% BT fee applies). 0% purchase rate for the first 6 months, then moving to 12.99% thereafter, great for consolidating debt.
Read our Mozo Review to learn more about the Breeze Mastercard
0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
Read our Mozo Review to learn more about the Vertigo
Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.
Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.
Read our Mozo Review to learn more about the Low Rate
Get 0% p.a. for 22 months on balance transfers requested at card application. 1.5% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Bonus 0% p.a. on purchases for 7 months. Rate then switches to applicable variable purchase rate. Get your first year annual card fee waived for the first year ($99 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Get 0% p.a. for 22 months on balance transfers requested at card application. 1.5% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Bonus 0% p.a. on purchases for 7 months. Rate then switches to applicable variable purchase rate. Get your first year annual card fee waived for the first year ($99 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Read our Mozo Review to learn more about the Amplify Platinum
0% p.a. for 26 months on balance transfers (one off 1.5% BT fee applies, reverts to cash advance rate). Also receive complimentary International Travel Insurance.
0% p.a. for 26 months on balance transfers (one off 1.5% BT fee applies, reverts to cash advance rate). Also receive complimentary International Travel Insurance.
Read our Mozo Review to learn more about the Rewards
70,000 bonus Qantas Points (min $1,500 spend each month for 3 months). New cards only, Eligibility criteria and T&Cs apply. Offer ends 2nd March 2021.
70,000 bonus Qantas Points (min $1,500 spend each month for 3 months). New cards only, Eligibility criteria and T&Cs apply. Offer ends 2nd March 2021.
Read our Mozo Review to learn more about the Amplify Platinum
0% p.a. for 12 months on balance transfers requested at card application (1% balance transfer fee applies). Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
0% p.a. for 12 months on balance transfers requested at card application (1% balance transfer fee applies). Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Read our Mozo Review to learn more about the No Annual Fee
0% p.a. interest on balance transfers for the first 20 months (2% fee), plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.
0% p.a. interest on balance transfers for the first 20 months (2% fee), plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.
Read our Mozo Review to learn more about the Low Rate Card
0% p.a. for 12 months on balance transfers requested at card application (1% balance transfer fee applies). Rate then switches to applicable variable cash advance rate. New cards only. Eligibility criteria and T&Cs apply. Offer ends 2 March 2021.
0% p.a. for 12 months on balance transfers requested at card application (1% balance transfer fee applies). Rate then switches to applicable variable cash advance rate. New cards only. Eligibility criteria and T&Cs apply. Offer ends 2 March 2021.
Read our Mozo Review to learn more about the No Annual Fee
Get 24 months 0% p.a. on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. Pay no annual card fee for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Get 24 months 0% p.a. on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. Pay no annual card fee for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Read our Mozo Review to learn more about the Vertigo
^See information about the Mozo Experts Choice Credit cards Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
A balance transfer is when you take the debt that you've built up on your credit card, and move it to a new credit card at a much lower interest rate, often even 0%.
Without a hefty interest-rate hanging over your head you can repay that debt faster, because payments are going towards wiping the balance away, instead of keeping up with interest charges.
A balance transfer can be a great tool to help you clear credit card debt once and for all, but before you get started there are two things to bear in mind.
Until you've paid off the balance transfer, it’s best that you don't use the new card for new purchases. This is because most cards won't give you any interest free period on new things that you buy, until that balance has gone.
And balance transfer rates are always limited time offers, so you should always have a plan for how you are going to pay off the debt before that great interest rate runs out.
Now you know what a balance transfer card actually is, let’s take a look at how it works. It’s important to know the ins and outs of balance transfers before you sign up, so that you give yourself the best chance of actually clearing your debt.
You can usually transfer a balance of around 80% of the new card’s credit limit, but sometimes it’s 70% or even as much as 100%. Let’s break that down.
Say you apply for a balance transfer deal that allows you to transfer up to 80% of your credit limit. If you’ve got a balance of $4,000 to clear, you’d need to be approved for a credit limit of at least $5,000 to put it all on the one balance transfer.
This can get tricky if you’re transferring multiple debts, so be sure to crunch the numbers carefully. Keep in mind there might also be minimum transfer limits with some balance transfer cards, so you may not be eligible if you’ve only got a small balance to clear.
A balance transfer can help you save money by putting a stop to mounting interest. Wondering how much you could save? Check out this scenario:
Say you have $10,000 owing on your current credit card with a 20% interest rate and you make monthly repayments of $600. To pay this off, it will take you 1 year and 8 months and you will pay $1,814 in interest. Whereas if you move that debt across to a 0% balance transfer card, you will pay no interest at all and on top of that you will also repay your debt three months earlier. Think of all you could do with nearly $2,000!
Savings crunched using our debt repayments calculator.
But, and there is a but, if you use the balance transfer card unwisely by spending on the card or fail to repay the debt within the balance transfer period you could end up paying high revert rates and fees, and find yourself back where you started.
Generally speaking, whenever you’re using a balance transfer deal, you don’t get interest free days on your regular spending. Once you’ve paid off your debt and you’re back down to a zero balance, you will again be eligible for the card's standard interest free days on new purchases which will usually be between 44 - 55 days depending on the card.
The good news is that doesn't leave you any worse off than before - if you carry any balance on your credit card you usually won’t be eligible for interest free days until you’ve paid the balance back in full anyway.
To avoid the traps of a balance transfer credit card, and make the most of your time off from paying interest, check out these basic rules of BT cards.
Rule 1# Always create a repayment plan
Unlike a debt consolidation loan where the provider tells you how much you need to repay each month to pay off your loan within the given timeframe, with a balance transfer card all you're required to pay is the minimum monthly payment amount, which is usually 2-3% of the balance.
But the minimum repayment isn't going to clear your debt within the interest free period. So make sure you use a debt payments calculator to work out how much you'll need to repay each month to totally clear your debt before the balance transfer period comes to an end.
Rule 2# Compare balance transfer deals before you start
Before you apply for a new balance transfer offer, make sure you take a look around to be sure you’ve found the right fit for your needs. There’s more information on choosing the right balance transfer deal in the next section.
You can easily compare balance transfer cards using Mozo’s unique Switch & Save Calculator which will help you find the cards that will save you the most in interest and fees. We’ll compare your existing card, balance owing and repayments with hundreds of other cards in the market. Like all of our comparison tools, it's free, so why not see how much you can save by switching now?
Rule 4# Don't use it like a regular credit card
Spending on your new card will only get you deeper in the red, because the low balance transfer interest rate doesn't apply to new purchases. Instead those new gadgets will be charged the card's much higher purchase rate, and you won't get the benefit of any interest free days on new purchases until you have paid off your outstanding debt in full.
Another thing to be mindful of is payments have to be made towards the highest accruing debt, which is usually the purchase rate. So if you spend $300 on the card and you've worked out you can afford to repay $500 a month, $300 will go towards paying off the new purchases first and only $200 will go towards paying off the original debt.
Rule #5 Steer clear of cash advances
Steering clear of the ATM or taking cash out over the counter with your credit card is a good rule of thumb at any time, but it’s especially important now. That 0% interest rate also doesn't apply for ATM cash withdrawals, instead you will be charged the much higher cash advance rate, soaring close to the 22% mark in some cases. And you guessed it, there are no interest free days.
Rule #6 Choose the right balance transfer for you and stick with it
Did you know applying for too many balance transfers could affect your credit rating, especially if you are rejected by multiple banks or card providers? That's why it's important to get a free copy of your credit rating prior to applying for the new card, to check if there are any mistakes that could affect your chances of being approved for the card.
And once you do get a balance transfer credit card, do your best to pay out the debt within the 0% balance transfer period. Continually moving your debt from one balance transfer card to another, may hurt your credit rating and your likelihood of being approved for other banking products like car loans, personal loans and home loans later on.
Rule #7 Don’t repeat old mistakes and stay debt free
Lastly, don't revert back to your old spending habits, instead only spend within your means by creating an airtight budget. And if you decide to keep on using the credit card, be sure to pay the balance in full each month to avoid the bite of interest and late payment fees.
With so many things to consider, finding the right balance transfer card for you can seem overwhelming. So to help you make sure you’re not forgetting anything crucial, Mozo Director Kirsty Lamont has broken down five key questions you should ask when comparing balance transfer deals and choosing a card.
There’s a fine art to choosing the right balance transfer deal for your needs. You need to find a card that offers an interest free period long enough to allow you to comfortably pay off your debt.
For example, if you have a $5,000 balance and choose a card with 0% interest for 12 months, you’ll need to pay at least $417 each month to clear your balance before the interest free period is over.
Applying for a balance transfer credit card is just like applying for any other credit card, but at some point during the application process, you’ll need to choose the balance transfer option, and put down what balance you’d like to transfer over.
Getting started is really easy - if you’ve found the right balance transfer deal for you here at Mozo, just click the blue Go to Site button to go to the credit card providers website. Once there, you can find some more information or start an application.
Let's look at transferring your debt in a little more detail. Here are the main steps you'll follow when transferring credit card debt using a balance transfer deal.
To be eligible for one of these debt blasting offers, you’ll need to tick a few boxes, including:
Sometimes there is a balance transfer fee that you’ll need to pay when taking up one of these deals. It’s a one off handling fee payable upfront, which is usually a percentage (between 1 - 3%) of the amount you’re transferring. For instance, if there was a 1% fee and you transferred $5,000, you would be charged a fee of $50.
This fee is usually linked to cards that have longer balance transfer terms (18 - 24 months). So you’ll need to weigh up the cost of the fee against the benefit of having more time to pay back the debt at little or no interest.
The good news is, if you’re reading this you’ve already taken the first step to getting rid of your bad debt. Here are a few other tactics to help you stay debt free.
If you’ve tried all that and you’re still struggling to pay off your balance, make repayments and stay debt free, it might be time to look at other options. Some steps you can take include:
Written by: Kelly Emmerton, Mozo Money Editor
I was having trouble paying off my credit card because my interest rate was so high 19.99%. When Covid struck they dropped the credit rate by 2.5% for 3 months so I contacted the bank. I spoke to a lovely gentleman and told him all my troubles about not being able to pay off the card and how it was affecting me financially. He got my next months interest rate waived and for the next 3 months my interest rate was 6.5%. Lastly he got my interest rate dropped to 9.95% for the life of the credit card. This has made a huge difference in me being able to pay off a lot of the $10,000 I owed on the credit card. The interest rate is one that I can pay off as well as some of the balance. I am feeling in a more happy place now and it is all because of this one gentleman on the phone.
Read full reviewI was having trouble paying off my credit card because my interest rate was so high 19.99%. When Covid struck they dropped the credit rate by 2.5% for 3 months so I contacted the bank. I spoke to a lovely gentleman and told him all my troubles about not being able to pay off the card and how it was affecting me financially. He got my next months interest rate waived and for the next 3 months my interest rate was 6.5%. Lastly he got my interest rate dropped to 9.95% for the life of the credit card. This has made a huge difference in me being able to pay off a lot of the $10,000 I owed on the credit card. The interest rate is one that I can pay off as well as some of the balance. I am feeling in a more happy place now and it is all because of this one gentleman on the phone.
BCU are the best in my eyes as they have helped when my card was hacked and money was spent on airfares in Spain and I don't have a passport. They are always polite and helpful and even though things are a little different since their joining with P & N I still find them the best in the business.
Read full reviewBCU are the best in my eyes as they have helped when my card was hacked and money was spent on airfares in Spain and I don't have a passport. They are always polite and helpful and even though things are a little different since their joining with P & N I still find them the best in the business.
My payment was due on the 14/02/21 and I did made the payment early on the 12/02/21 but they didn't take the money out of my account. Their statement says it's still pending and on the 17/02/21 they send a dishonoured fee of $15.00 to me stated that I dshonoured the payment. While I was with skye mastercard, everything runs well and good. Now humm90 took over it's a nightmare, no good customer service on the phone, giving dishonour fee for no reason, accumalating of dishonour fees for no good reasons and so on. Please people, don't use this bank. They are stealing money, even though you made payment before the due date, they won't take the money out of your account until the due date passed and then they say you dishonoured the payment and that's when they will charge you the dishonoured fee. They are Thieves.
Read full reviewMy payment was due on the 14/02/21 and I did made the payment early on the 12/02/21 but they didn't take the money out of my account. Their statement says it's still pending and on the 17/02/21 they send a dishonoured fee of $15.00 to me stated that I dshonoured the payment. While I was with skye mastercard, everything runs well and good. Now humm90 took over it's a nightmare, no good customer service on the phone, giving dishonour fee for no reason, accumalating of dishonour fees for no good reasons and so on. Please people, don't use this bank. They are stealing money, even though you made payment before the due date, they won't take the money out of your account until the due date passed and then they say you dishonoured the payment and that's when they will charge you the dishonoured fee. They are Thieves.
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