Compare & Apply Online: Balance Transfer Credit Cards

What is a credit card balance transfer?

A balance transfer is when you pay off the debt on another credit card or store card you currently own, using your new credit card; typically at a cheaper, lower or special interest rate. Once you’ve made a balance transfer, you will owe money on your new card, instead of your old card. You’re essentially borrowing money from the bank on a new credit card, to pay off the debts on a credit card you already own.

Example of a balance transfer:

• Current card with debts: Commonwealth Bank Gold Card with a $3,000 balance at 19.99% and an ANZ Rewards VISA Card with $1,500 at 18.99%
• New balance transfer card: St. George Bank Vertigo MasterCard with a 0% for 6 months offer and a regular interest rate of 11.99% p.a.
• The Balance Transfer Process: When you apply for the new balance transfer on the St. George Vertigo MasterCard, in the application you specify that would like them to pay your balance of $3,000 with Commonwealth Bank and your balance of $1,500 with ANZ to pay off your old cards. (Note: you can also perform a balance transfer with just one credit card – you don’t need to transfer multiple cards)
• Enjoy Your Savings: The old credit cards with ANZ and Commbank are now debt-free, with a zero balance, as you have now succesfully transferred the debt from these cards to your new St. George Vertigo MasterCard, where you will no longer be paying interest on your debts for 6 months as you are now on a 0% interest for 6 months deal. Bring on the savings!

How to choose the right balance transfer credit card

There are a number of key considerations you should make when you compare balance transfer offers. The interest rate being offered is a key factor when comparing balance transfer credit card offers. The typical balance transfer rates offered by Australian banks are:

• 0% for 6 months
• 2.9% for 12 months
• balance transfers for the life of the card

Questions & Answers: Balance Transfer Credit Cards Explained in Plain English

How exactly do I go about doing a balance transfer?

How soon after received my new card will it take for the balance transfer to happen?

What are some of the benefits of transferring my credit card balance(s)?

• The primary motivator for you when doing a balance transfer should be to save on the interest you would normally pay each monthly credit card billing period.
• By reducing monthly your credit card payments, this will free up more funds for you to be able to pay off your credit card debt faster
• If you have more than one credit card, a balance transfer is a good way to consolidate your credit card balances, combining them on to one credit card. One card is easier to manage – consolidating your credit cards has the added benefit that you will also only receive one credit card statement each month.

What details will I need to have handy so I can complete my balance transfer application?

• Card Issuer (eg: Commonwealth Bank, ANZ, NAB)
• Card Type (eg: MasterCard, VISA, American Express)
• Your credit card number
• The amount of money you wish to be transferred

What happens when the balance transfer period is over?

How much money will I save by transferring my credit card balances?

This will vary depending on your current credit cards balance and interest rate. To calculate how much you will save, you can use the Credit Card 0 Balance Transfer Calculator. To use the calculator, the first step is to enter your current credit card balances and interest rates. The second step is to input the details of the credit card you are wanting to apply for including it’s introductory interest rate (APR), introductory term (months), standard interest rate, and it’s annual fee. Once you have entered in all this information, you will be presented with the amount of money you will save by carrying out the balance transfer.

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