Balance transfer credit cards to turn your debt frown upside down

How we calculate Balance Transfers Credit Card Finder Scores

Read full methodology

What different scores mean

9+

Excellent

These cards offer the longest 0% interest periods, lowest balance transfer fees, and competitive revert rates for maximum savings.

7+

Great

Tackle debt with generous interest-free periods, reasonable balance transfer fees, and potential for additional perks.

5+

Standard

Reduce interest costs with reasonable interest-free periods and balance transfer fees.

0+

Basic

These are generally cards aimed as general audiences which include a balance transfer feature.

Our best balance transfer offers for October 2024

Here are some of the best balance transfer credit cards on the market, based on their Finder Score:

• The St.George Vertigo Card has a Finder Score of 9.9. It has a 0.99% balance transfer offer for 28 months.
• The Bank of Melbourne Vertigo Card has a Finder Score of 9.9. It has a 0.99% balance transfer offer for 28 months.
• The BankSA Vertigo Card has a Finder Score of 9.9. It has a 0.99% balance transfer offer for 28 months.
• The NAB Low Rate Credit Card has a Finder Score of 9.5. It has a 0% balance transfer offer for 28 months.
• The Virgin Money Anytime Rewards Credit Card - Balance Transfer Offer has a Finder Score of 9.35. It has a 0% balance transfer offer for 24 months.
• The Virgin Australia Velocity Flyer Card - Balance Transfer Offer has a Finder Score of 9.34. It has a 0% balance transfer offer for 24 months.
• The Westpac Low Rate Card has a Finder Score of 9.31. It has a 0% balance transfer offer for 26 months.

Updated October 2024 by Finder's money editor, Richard Whitten.

The lowdown on Finder Score

Let's face it, the average person doesn't spend all day comparing credit cards. But we do. That's why we developed the Finder Score.

It's a quick, easy way you can see how one credit card compares to others on the market.

But a lot of work goes into that number. Every month we:

• • • Analyse 127 credit cards with balance transfer offers.
    • Assess seven features of each card and give each component a rating.
    • Combine the ratings via a weighted methodology to decide the Finder Score.

We give different scores for different categories. So one card might get a 9 in the balance transfer category but only a 7 in the rewards category.

The Finder Score methodology is designed by our insights and editorial team. We review products objectively. Commercial partnerships do not affect the scores.

Remember that Finder Score is just one factor to consider. Look at other aspects like fees, features, benefits and risks to make sure a product is suitable for you. Double-check details that matter to you before applying or buying.

Balance transfer credit cards - score weightings

Finder Scores: What they mean

• 9+ Excellent - These cards offer the longest 0% interest periods, lowest balance transfer fees, and competitive revert rates for maximum savings.
• 7+ Great - Tackle debt with generous interest-free periods, reasonable balance transfer fees, and potential for additional perks.
• 5+ Standard - Reduce interest costs with reasonable interest-free periods and balance transfer fees.
• Less than 5 – Basic - These are generally cards aimed as general audiences which include a balance transfer feature.

Best low rate balance transfer card - NAB Low Rate Card

NAB Low Rate Credit Card

• 0% Balance Transfer Offer
• $0 Annual fee
• 13.49% Purchase rate

Go to site

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Pros & cons

• 0% p.a. on balance transfers for 28 months
• $0 annual fee for the first year ($59 p.a. thereafter)
• Free additional cardholder

• Charges a one-time 2% balance transfer fee
• No rewards program or travel insurance

Best no fee balance transfer - Virgin Australia Velocity Flyer Card

Virgin Australia Velocity Flyer Card - Balance Transfer Offer

• 0% Balance Transfer Offer
• $149 Annual fee
• 20.74% Purchase rate

Read review

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Pros & cons

• 0% p.a. interest on balance transfers for the first 24 months
• $129 Virgin Australia Gift Voucher each year
• Velocity Points per $1 spent on eligible purchases
• Purchase protection and extended warranty insurance

• There is a 1% balance transfer fee
• High 20.74% p.a. interest rate for purchases
• No interest-free days on purchases if you have a balance transfer
• 3.3% international transaction fee

Best 28-month balance transfer - St.George Vertigo Card

St.George Vertigo Card

• 0.99% Balance Transfer Offer
• $55 Annual fee
• 13.99% Purchase rate

Go to site

Ends on 30 November 2024

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Pros & cons

• Balance transfer rate of 0.99% p.a. for the first 28 months, with no balance transfer fee
• A low ongoing annual fee
• Shopping cashbacks through ShopBack
• Competitive purchase interest rate of 13.99% p.a.
• Additional cardholder at no extra cost

• Balance transfer rate reverts to 21.99% p.a. at the end of the introductory period
• No rewards program, travel perks and insurance covers

Want more great credit cards? Check out all the 2024 Finder Credit Card Award Winners.

What is a balance transfer credit card?

A credit card balance transfer gives you a way to move the money you already owe to a new credit card that offers a low or 0% introductory interest rate for a set period of time. This can save you money on interest charges and help you pay off your debt faster.

If you switch to a new credit card with a 0% balance transfer offer, you can move the debt to the new card and pay no interest. The best cards have a 0% offer for up to 28 months. We can help you compare balance transfer offers from 43 card providers.

The average Australian credit cardholder with credit card debt carries an interest accruing balance of $1,365, based on RBA data.

Sounds great! What's the catch?

There's no catch. But...

• Your new card provider may charge a one-off balance transfer fee of 1–3% of your balance.
• At the end of the balance transfer period the 0% interest rate reverts to a much higher rate (often above 20%). Pay it off before this happens.
• You will get charged interest on any new spending you do on the card. This is called the purchase rate.

The key to making a balance transfer work

1. Once the balance transfer is complete, start paying the debt off.
2. Figure out a realistic amount you repay each month (and stick to it).
3. Close the old credit card (the one you used to rack up the debt). That way it won't get you into any future trouble.
4. Look at your past spending. Figure out where you went wrong with the old card. You have to avoid making the same mistakes with your new card.

Does transferring credit card balances affect your credit score?

When used correctly, a balance transfer credit card can help you repay your debt and improve your credit score in the long-term. But applying for a new credit card leaves a hard enquiry on your credit report (and may decrease your score for a month or two).

Try to avoid applying for multiple cards. This will lower your credit score. Missing repayments on the balance transfer card will also hurt your credit score.

How to compare balance transfer credit cards

Many Australian credit cards let you make a balance transfer when you apply. Here's how you know you've found a good one.

• Look for a long offer. The longer the offer term, the more time you'll have to pay off your debt for a low or 0% rate. Make sure the first thing you do is compare credit cards.
• Watch out for the transfer fee. Some cards charge a balance transfer fee. This one-off fee is 1% to 3% of the amount you transfer.
• Find a 0% balance transfer rate. The best balance transfer credit cards in Australia offer 0% interest for the promotional period.
• Take note of the revert rate. If you haven't paid off the balance transfer by the end of the offer period, the higher revert interest rate will be charged on your leftover debt.
• Check the eligibility. You can usually transfer a balance from Australian-issued cards or accounts, as long as they are from a different issuer. Some cards also allow you to transfer debts from personal loans and lines of credit.
• Know your limits. On some cards you can only transfer up to a percentage of your approved credit limit (usually 70% - 100%). You can see Finder's guide to balance transfer limits for more information.

Pros and cons of balance transfer credit cards

"I got into some credit card trouble in my early twenties. I was stuck with over $5,000 of debt on a Commonwealth Bank credit card that I should never have taken out. That might not seem like a lot to some people, but I was struggling financially at the time, and the interest was crippling. I took out an ANZ balance transfer card and was able to get zero interest for 18 months, which gave me a lot more space to pay the thing off."

Tim Bennett

Insurance expert

Is a balance transfer credit card right for me?

A balance transfer credit card is really useful if you are struggling with unpaid credit card debt - and interest - from one or multiple cards.

Still not sure if a balance transfer card is right for you? Ask yourself these questions first.

1. Is there a way I can pay off my balance without getting a new card?
2. Can I afford the fees that come with the new card?
3. Will I be able to pay my balance off before the 0% period ends?
4. Am I eligible for this credit card? Is my application likely to be rejected?

Check your credit score before you apply for a card.

"I used to work for a credit card company in the call centre and helped hundreds of people with balance transfers and many who had missed a payment and lost their transfer rate. The deals in Australia are some of the best in the world if you are eligible for a credit line to cover your outstanding balance. These are the 3 most important things to know:

1. If you take out a BT card, use it for the BT and only a BT. If you make purchases on it, that money is charged at a different and often higher purchase rate and you won't pay it off until you pay off the whole balance first.
2. Don't miss a payment or you'll end up reverting to the purchase rate. Set up auto-payments.
3. Don't assume it's not worth it. Even on a $5K balance, you could save more than $1,500 in interest if you drop from a standard purchase rate to 0%."

Taylor Blackburn

Money expert

What's the best way to pay off a balance transfer credit card?

1. Make a plan. Look at your budget and see how much you spend and save each month. Figure out how much you can use to pay off the balance. If there's not much money, try to find ways to cut back, like cutting out subscriptions or unnecessary expenses. Use the savings to pay down your balance.
2. Do the maths. Take your unpaid balance and divide it by the number of months on your 0% balance transfer offer. Let's say you have a $4,000 balance to repay and a 28 month balance transfer offer. You need to repay $143 a month.

Set yourself up for success by setting up direct debit payments from your bank account each month. Watch as your balance goes down, and make sure it's paid off before the balance transfer period ends.

Best Balance transfer credit cards 2024 (video)

Struggling with debt? Help is available

It's easy to get into trouble with a credit card. Sometimes it's easy to sort this out with some careful budgeting and a balance transfer.

But if you've got multiple, serious debts, bad credit history, or other issues that seem to make it impossible to get back on track financially, it's much harder.

Hardship support is available

If you're struggling, talk to your bank, card company, utility or other service provider. These companies have hardship support schemes in place. You might be able to get extra time to pay a bill, or a pause on loan repayment.

It's always better to have a tough conversation before you start missing payments.

Free financial counselling

You can also call the National Debt Helpline on 1800 007 007 and get free financial counselling and support.

Frequently asked questions

• What is the longest 0% balance transfer offer on the market?

  Right now, the longest balance transfer offer is 0% for 28 months. With the cards listed below, you can transfer your balance and get charged no interest while you pay it off for over 2 years.

  • • • St.George Vertigo Card - 28 months (with 0% BT fee)
      • Bank of Melbourne Vertigo Card - 28 months (with 0% BT fee)
      • BankSA Vertigo Card - 28 months (with 0% BT fee)
      • Westpac Low Rate Credit Card - 26 months (with 2% BT fee)
      • NAB Low Rate Credit Card - 28 months (2% BT fee)
      • Bankwest Zero Classic Mastercard or Zero Platinum Mastercard - 6 months (3% BT fee)

• What happens when my balance transfer period ends?

  After the introductory period ends, the 0% interest rate ends too. If there's any debt left over, it will start to be charged interest at the revert rate.

  This rate is high, often around 20%. It's higher than the purchase rate you get charged on new card spending.

  If you haven't paid your balance off by the end of balance transfer period you could end up getting charged more interest than you were on your old card.

  This is why it's so important to plan your repayments and pay off as much of your debt as possible during the introductory period

• What is a balance transfer fee?

  A balance transfer fee is a one-time charge that may apply when you move your debt to a new card. It's typically worth 1-3% of the balance transfer amount, but not all providers charge a balance transfer fee.

  To give you an idea of the cost, transferring $5,000 onto a card with a 1.5% balance transfer fee would add $75 to the balance.

• What happens if I put purchases on a 0% balance transfer credit card?

  Unless the card offers an interest-free period for the purchases, you'll be charged interest on them. So, you'd need to make sure you could repay your purchases and the balance transfer debt. Otherwise, you'll waste your 0% balance transfer offer.

• What happens if I keep my old card open?

  When transfering an existing balance to a new card, it's your responsibility to contact your provider and close the old account. If you don't, you could end up paying account costs for a card you're not using - or worse, rack up debts on both cards. Before you close the card, make sure the balance is completely transferred or paid in full and move any regular payments such as (direct debits) to another account.

Why you can trust Finder's credit card experts

Addicted to details - We track and review nearly 100 balance transfer cards (that's literally as many as we can find), and live score products daily to bring you the best 0% offers for the longest time periods.

Sort the junk from the gold - we know even just 1% or another month can mean big bucks in your pocket. That's why we'll always prioritise showing you cards with the best offers.

No BS - we're not owned by a bank, we don't have a call centre. Our only mission is to match you with the card of your dreams. Whether it's your first card, or you have 3 on the go - we got you.

To make sure you get accurate and helpful information, this guide has been edited by Sarah Megginson as part of our fact-checking process.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 553 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips