How does a balance transfer credit card help you save money?

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Name	Purchase rate p.a.	Annual fee	Balance transfer rate p.a.	Amount Saved
Westpac Low Rate Card	Purchase rate p.a. 13.74%	Annual fee $59	Balance transfer rate p.a. 0% for 26 months with 2% balance transfer fee, then 21.99%	Amount saved $1,553.37 over 26 months	Go to site More Info Compare	Save with a 0% p.a. interest rate on balance transfers for 26 months (with a 2% BT fee). Plus, a low 13.74% p.a. purchase interest rate.
Kogan Money Card – Exclusive Offer Exclusive Kogan Rewards Program	Purchase rate p.a. 9.99% for 18 months, then 21.99%	Annual fee $0	Balance transfer rate p.a. 0% for 18 months with 1% balance transfer fee, then 22.74%	Amount saved $1,285.99 over 18 months	Go to site More Info Compare	Save with 0% p.a. interest on balance transfers (with a 1% BT fee) and 9.99% p.a. on purchases, both for 18 months, plus, an ongoing $0 annual fee.
Bankwest Breeze Platinum Mastercard	Purchase rate p.a. 12.99%	Annual fee $59	Balance transfer rate p.a. 0% for 24 months with 3% balance transfer fee, then 12.99%	Amount saved $1,443.89 over 24 months	Go to site More Info Compare	Get 0% p.a. interest on balance transfers for 24 months (with a 3% BT fee). Plus 0% foreign fees and complimentary overseas travel insurance.
Bankwest Breeze Classic Mastercard	Purchase rate p.a. 12.99%	Annual fee $49	Balance transfer rate p.a. 0% for 24 months with 3% balance transfer fee, then 12.99%	Amount saved $1,463.89 over 24 months	Go to site More Info Compare	Save with 0% p.a. on balance transfers for 24 months (with a 3% BT fee).
NAB Low Rate Credit Card	Purchase rate p.a. 13.49%	Annual fee $59	Balance transfer rate p.a. 0% for 24 months with 3% balance transfer fee, then 21.74%	Amount saved $1,443.89 over 24 months	Go to site More Info Compare	Get a 0% p.a. interest rate on balance transfers for the first 24 months (with a 3% BT fee).
St.George Vertigo Card	Purchase rate p.a. 13.99%	Annual fee $55	Balance transfer rate p.a. 0% for 24 months with 1% balance transfer fee, then 21.99%	Amount saved $1,551.89 over 24 months	Go to site More Info Compare	Get a 0% p.a. interest rate on balance transfers for 24 months (with a one-time 1% balance transfer fee).
Qantas Premier Platinum Qantas Frequent Flyer	Purchase rate p.a. 20.99%	Annual fee $349 first year ($399 after)	Balance transfer rate p.a. 0% for 12 months with 2% balance transfer fee, then 21.99%	Amount saved $478.32 over 12 months	Go to site More Info Compare	Earn up to 80,000 bonus Qantas Points. Plus, save with a reduced first-year annual fee and 0% p.a. for 12 months on balance transfers, with a 2% BT fee.
NAB Rewards Platinum Card NAB Rewards	Purchase rate p.a. 20.99%	Annual fee $45 first year ($195 after)	Balance transfer rate p.a. 0% for 12 months with 3% balance transfer fee, then 21.74%	Amount saved $732.32 over 12 months	Go to site More Info Compare	Get up to 100,000 bonus NAB Rewards Points (worth $480 in eGift cards): 80,000 points when you spend $1,000 in the first 60 days and 20,000 after 12 months.
Qantas Premier Everyday Qantas Frequent Flyer	Purchase rate p.a. 20.99%	Annual fee $99	Balance transfer rate p.a. 0% for 12 months with 2% balance transfer fee, then 21.99%	Amount saved $728.32 over 12 months	Go to site More Info Compare	Get 2 bonus Qantas Points per $1 spent on eligible purchases in the first 4 months (up to 8,000 points), plus complimentary insurance.
St.George Vertigo Card - Cashback Offer	Purchase rate p.a. 13.99%	Annual fee $55	Balance transfer rate p.a. 6.99% for 12 months with 0% balance transfer fee, then 21.99%	Amount saved $562.66 over 12 months	Go to site More Info Compare	Get up to $500 cashback at eligible supermarkets and petrol stations in the first 180 days. Plus, a low interest rate for purchases.
Qantas Premier Titanium Qantas Frequent Flyer	Purchase rate p.a. 20.99%	Annual fee $1,200	Balance transfer rate p.a. 0% for 6 months with 0% balance transfer fee, then 21.99%	Amount saved No savings	Go to site More Info Compare	Get 150,000 bonus Qantas Points when you spend $5,000 in the first 3 months. Plus, 20% bonus Status Credits on eligible flights, with a $200k minimum income requirement.
NAB Rewards Platinum Card – Velocity Points Velocity Frequent Flyer	Purchase rate p.a. 20.99%	Annual fee $95 first year ($195 after)	Balance transfer rate p.a. 0% for 12 months with 3% balance transfer fee, then 21.74%	Amount saved $682.32 over 12 months	Go to site More Info Compare	Get up to 80,000 bonus Velocity Points: 60,000 points when you spend $1,000 in the first 60 days and 20,000 after 12 months.

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How can a balance transfer help me save money?

A balance transfer credit card is designed to give you more breathing room to pay off your debt without any interest for a promotional period. Depending on the size of your debt and the interest rate you're currently paying, this could save you tens, hundreds or thousands of dollars. Below we've explained how balance transfers work and how the different features can help you save.

Promotional balance transfer rate

Most balance transfer credit cards in Australia boast a 0% interest rate for a promotional period. Compared to the standard purchase rate (which can range from 8.99% on a low rate card to around 22% on a premium card), you can take advantage of the interest-free period to clear your debt without the burden of compounding costs. At the end of the promotional period, a higher revert rate will apply to any remaining debt from the transfer. To make the most of your balance transfer card, you should aim to pay your debt in full before this revert rate kicks in.

Length of introductory period

The length of the 0% balance transfer offer will vary from around 6 to 24 months. The longer the interest-free period, the more you can space out your repayments and generally the more you can save on interest costs. You should also consider other factors like the annual fee, any balance transfer fee and revert rate to decide which option is right for you.

Ideally, you should pick a balance transfer card that gives you enough time to pay off your entire balance in full before the revert interest rate applies. For example, let's say you have a debt of $5,000 and are looking at a card with 0% p.a. on balance transfers for 18 months. You'd need to allocate $278 each month to clear your debt in the first 18 months. If you don't think you can afford this much each month, look for a card with a longer interest-free period to spread out and reduce your monthly repayments.

How to use the balance transfer calculator in 3 easy steps

Now that you know how a balance transfer can help you save money, you can use the table above to compare which credit cards offer you the biggest savings in 3 easy steps:

Step 1. Enter the total debt/outstanding amount you would like to transfer
Step 2. Provide the interest rate that you are paying on your existing debt (if you don't have your interest rate on you, the average is around 18-20%)
Step 3. See the 'Interest Saved' column to find out which credit cards will save you the most money

If you want to find out more about a particular credit card, click the ‘More info’ link for a full review on the features and benefits.

balance-transfer-calculator

Example of table taken from 2 June 2020.

A balance transfer credit card can be a useful debt consolidation tool when you pick the right card and pay off your balance in full. As there are many 0% balance transfer credit cards on the market, make sure to compare your options before you apply.

Image: Shutterstock

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Written by

Sally McMullen

Producer

Sally McMullen was a creative content producer at Finder. Sally wrote about credit cards for almost 5 years, authoring almost 900 articles on Finder alone. She has also been published in Yahoo Finance, Dynamic Business, Financy and Mamamia, as well as Music Feeds and Rolling Stone. Sally has a Bachelor of Communication and Media Studies majoring in Journalism (Hons) from the University of Wollongong. See full bio

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13 Responses

JadeFebruary 12, 2024

Can you transfer more than one credit card balance to a new card?

Finder

SarahFebruary 15, 2024Finder

Hi Jade,

It depends on the card you transfer to. Some card issuers will allow you to transfer from 2 or 3 cards into one new card, provided the total amount transferred is no more than 90% of your new credit limit.

Hope this helps!

KersiJuly 27, 2019

Have booked a trip to India; can you pls advise which travel card from Australia I should obtain? Thanks.

Finder

JoshuaJuly 28, 2019Finder

Hi Kersi,

Thanks for getting in touch with Finder. I hope all is well with you. 😃

We do have a list of travel money cards for India. You may refer to our comparison table to help you find the card that suits you. You can compare based on fees, features, and descriptions. When you are ready, press the ‘Go to site’ button to apply.

Please make sure though to read the eligibility criteria, features, and details of the card, as well as the relevant PDS/ T&Cs of the card before making a decision and consider whether the product is right for you.

I hope this helps. Should you have further questions, please don’t hesitate to reach out again.

Have a wonderful day!

Cheers,
Joshua

RachaelFebruary 23, 2015

Myself and my partner have had an application denied and we didn’t even get to submit any of our personal financial details so we requested that re-assessment of the application with the payment details and we can’t work out why we have been denied. All they told us is we don’t meet their requirements. We currently have a credit card that we want to transfer the balance to a period of interest free. We have only applied the once. Do you have any suggestions on how we go about getting a credit card, without getting marks against our credit rating if we were to get further denials ?

Finder

JonathanFebruary 24, 2015Finder

Hi Rachael,

Thanks for your inquiry.

It would be best to directly visit a bank branch for credit inquiries. Please see our guide credit card application tips and recommendations on improving your chances on main credit criteria. It may also be beneficial to request a copy of your credit file.

Cheers,
Jonathan

NickDecember 5, 2014

If you balance transfer from an existing credit card do you have to close it down or can you continue to use that card?

Thanks

nick

Finder

ElizabethDecember 5, 2014Finder

Hi Nick,

Thanks for your question.

You aren’t required to close your previous credit card account, whether or not you close it will be up to you.

I hope this has helped.

Thanks,

Elizabeth

phantommJune 5, 2014

People need to remember that if they take a balance transfer from a card that also has normal purchases on it and they are unpaid, the lender credits payments to the interest free amount first while the balance of purchasers continue to accrue interest.

So the benefits may not be as much as they would hope for.

How does a balance transfer help you save money?