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Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Read our Mozo Review to learn more about the NAB Low Rate Card - Balance Transfer Offer
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120,000 bonus points when you spend $4,000 within 90 days from card approval. Complimentary features like travel insurance and concierge.
120,000 bonus points when you spend $4,000 within 90 days from card approval. Complimentary features like travel insurance and concierge.
Read our Mozo Review to learn more about the Citi Premier
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Read our Mozo Review to learn more about the Bank of Queensland Blue Visa Credit Card
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Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
Read our Mozo Review to learn more about the Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer Offer
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Earn 1.5 More Rewards points per $1 spent on eligible purchases. Plus, if you meet the minimum annual spend, you'll receive a bonus 19,500 points every year.
Earn 1.5 More Rewards points per $1 spent on eligible purchases. Plus, if you meet the minimum annual spend, you'll receive a bonus 19,500 points every year.
Read our Mozo Review to learn more about the Bankwest More Classic Mastercard
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^See information about the Mozo Experts Choice Credit cards Awards
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See more credit card providersThe biggest change to the balance transfer credit card market this month is that the long standing 0% balance transfer offer from the Westpac Group (Bank of Melbourne, St George and BankSA Vertigo Card reduced from 32 months down to 28 months.
The introduction of balance transfer fees continues to gain momentum with the major banks. Following ANZ's increase in January, Westpac has introduced a 2% fee to its Low Rate balance transfer offer.
Despite the changes, balance transfers can be a way to get on top of debt, with many providers still offering 0% offers of over 2 years. If you're considering getting a balance transfer deal in March do some number crunching with Mozo's credit card debt repayments calculator so that you will be able to pick the best balance transfer period for you based on your ability to pay it back and amount of debt.
These are some of the top offers in the Mozo database right now for balance transfers.
Citi Clear Credit Card - 28 months (2% BT fee)
ANZ Low Rate Credit Card - 28 months (3% BT fee) - increase in fee by 1% from Jan
NAB Low Rate Card - 28 months (2% BT fee)
Westpac Low Rate Credit Card - 28 months (0% BT fee)
Bankwest Zero Mastercard or Zero Platinum Mastercard - 28 months (3% BT fee)
See our editor's picks for February: Best credit cards
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.
Firstly, 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.
Balance transfer rates are always limited time offers. You should always have a plan for how you are going to pay off the debt within the low interest period.
How do they work?
Balance transfers are when you move your existing credit card debt to a new card
Generally these cards offer 0% for a certain amount of time
Giving you the time to pay down your debt interest-free!
Usually you can transfer 80% of the new card’s credit limit
Say you choose a balance transfer card with a $5,000 limit
You’d be able to transfer a maximum of $4,000 of your debt
Remember! There are some cards that only allow 70% and others 100% - so read the fine print before signing up!
Interest free period also differ between cards
Some may be only 6 months
Here’s how to work out the right period of time for you
Let’s look back on your debt
You have $5,000 in credit card debt
Your budget allows you to pay $450 per month in repayments
So which balance transfer period is suitable for you?
Well…
5,000 (your debt) ÷ 450 = 11.12
Meaning it would take you 11.12 months to pay down your debt at 0% interest
So it’s be a good idea to opt for a 12 month balance transfer offer
That way, at $450 per month, you’d pay down your debt a few weeks before the interest free offer is over!
Here are some other things to look out for when choosing a balance transfer credit card…
Annual fees
Balance transfer fees
Revert rate
Bear in mind that this can sometime be the cash advance rate instead of the regular purchase rate
So before you choose your balance transfer credit card, crunch the numbers and compare the fees and conditions to find the right card for you
Happy debt kicking!
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.
Also remember, there may be fees attached to your new balance transfer card, so consider these in your budget.
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, here are the 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:
Otherwise take a look at what we've decided to be the best credit cards.
A balance transfer can both help or hurt your credit score, it all depends on how you use the card. The following things might have a negative impact on your credit rating:
applying for a number of balance transfer credit cards at once
not making minimum repayments each month
not paying down your debt in full before the 0% promotional period is up
keeping your old credit card account open without using it
transferring the same debt from one balance transfer card to another.
However, if you pay down your debt and make all your minimum repayments on time on your balance transfer card, it may actually improve your credit rating as you are lessening the debt you have and becoming a less risky borrower.
Yes, as long as you have credit card debt you can apply for a balance transfer credit card at any time. As mentioned, remember to select the ‘balance transfer’ option when applying for your desired card and indicate how much you intend to transfer over.
There is no limit to the amount of times you do a balance transfer across multiple credit cards.
The truth is, balance transfers can be a good way to pay off what you owe. So taking advantage of multiple offers may be a smart way to avoid paying interest while you clear debt. Keep in mind that there are also disadvantages to making multiple transfers, if you don’t approach it properly. Things like applying for multiple cards at once, being rejected for a card or missing repayments can negatively impact your credit rating. Ultimately it means you may be rejected by a credit card provider if you are constantly moving your debt around without paying it down.
Plus, there are also additional costs that come with making multiple balance transfers, such as the card’s annual fee, balance transfer fee, interest on new purchases etc.
This depends on what type of debt you have. On the one hand, if you are just wanting to clear credit card debt, then you are more likely suited to a balance transfer. This way, you might end up paying no interest on your debt as you pay it back over 6 to 36 months, according to the Mozo database.
Alternatively, if you have multiple personal debts, it may be a better idea to take out a debt consolidation loan. This way all your debt repayments are rolled into one and you can save yourself in interest by choosing a low rate option. It’s important to remember though, while these loans have longer term options than a balance transfer, they are not interest free.
It’s up to you. There is no requirement that you close your credit card once the balance transfer offer is over. In fact, it could have a positive impact on your credit score if you continued making purchases on the card - once you have cleared your debt. Bear in mind though, it will only be beneficial if you use the credit card responsibly and pay off your balance, or at least the minimum repayment each month. Don’t use the card if you feel you will spiral into unmanageable debt and be back where you started.
Also consider any fees and the revert rate that is attached to the card, as they may not fit within your budget. In this case, you may want to make the switch to a low interest rate credit card or no annual fee option.
The card for overseas is fantastic. No fees and great conversion rates. However the customer service is worse that appalling. I've tried to get an additional card for my partner both on-line and via their support email and its been 3 weeks of bad non existent service. I wonder if I lost a card or had it stolen whether I'd get any help.
Read full reviewThe card for overseas is fantastic. No fees and great conversion rates. However the customer service is worse that appalling. I've tried to get an additional card for my partner both on-line and via their support email and its been 3 weeks of bad non existent service. I wonder if I lost a card or had it stolen whether I'd get any help.
Amazing providers as a 19 year old mum i ama thankful two have the opportunitys i have had with vom bank
Read full reviewAmazing providers as a 19 year old mum i ama thankful two have the opportunitys i have had with vom bank
Pros: - No annual fee - Low interest rate for purchases - Access to Apple Pay - Ability to transfer balances from one ING account to another Cons : - No rewards or cashback - Foreign transaction fees may apply
Read full reviewPros: - No annual fee - Low interest rate for purchases - Access to Apple Pay - Ability to transfer balances from one ING account to another Cons : - No rewards or cashback - Foreign transaction fees may apply
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