Balance Transfer Credit Cards

How we calculate Finder Scores

Read full methodology

By Amy Bradney-George and Saranga Sudarshan

What different scores mean

9+

Excellent

These cards typically offer the greatest potential savings with long balance transfer periods, a 0% rate and an affordable annual fee. Suited to people who are focused on paying down their debt.

7+

Great

These cards typically offer valuable savings with a 0% balance tranfer rate and a shorter balance transfer period. Suited to people who may want to make purchases on the card as well.

5+

Standard

These cards typically offer an average balance transfer feature with shorter balance transfer periods and higher fees. Suited to people whose primary focus isn't debt repayment, but have a small balance to transfer.

0+

Poor

These cards typically offer a balance transfer as a secondary or tertiary feature. Suited to people who may have a small balance to transfer, but are likely seeking the perks or rewards of a new card.

What is a balance transfer credit card?

A balance transfer credit card gives you a low or 0% interest rate for an introductory period when you move your existing debt to the new credit card account. This introductory period gives you breathing room from interest charges and can allow you to pay off your debts faster.

When applying for a balance transfer card, you will be asked to give the details of your old card. Once approved, the new provider will effectively "pay off" your current card's debt. It's then up to you to close the account if you choose, and also to pay off any remaining debt if there was some that couldn't be transferred.

• Methodology: How we chose these balance transfer cards

  To determine Finder's pick of balance transfer offers, we examine over 250 cards in our database. We narrow it down to cards available through Finder that offer a 0% balance transfer rate for an introductory period. The other key factors we consider are:

  • The length of the introductory period (the longer the period, the higher the ranking)
  • Whether or not there is a balance transfer fee
  • The annual fee, including if it is waived in the first year
  • The purchase rate
  • The interest rate that applies to balance transfers after the introductory period

  Keep in mind: Our top picks may not always be best for you. Based on your situation, you may find certain features to be more or less important, so compare your options before you apply.

I got into some credit card trouble in my early twenties. I was stuck with over $5000 of debt on a commonwealth 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 go zero interest for 18 months, which gave me a lot more space to pay the thing off.

— Tim Bennett, Insurance expert

Tips for making the most of your balance transfer:

1. Make sure you can transfer enough of your balance
2. Pay off the full balance before the end of the promotional period (auto-payments can help)
3. Don't spend on the new card

How to compare balance transfer credit cards

There are lots of balance transfer credit card deals available in Australia and there isn't one that is the "best", but some will offer you better savings than others. These tips will help you find a balance transfer card that suits you best:

• 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. Cards that charge a balance transfer fee can affect your potential savings by adding an upfront cost worth between 1% to 3% of the amount you transfer.
• Find a low rate. Most balance transfer credit cards in Australia offer 0% interest for the promotional period. Typically, the lower the rate, the more you'll save.
• 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. See our guide to the banks you can and can't transfer between for more information.
• 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.

How does a credit card balance transfer work?

Most balance transfer credit cards let you move debt from existing credit cards or store cards. A few cards also accept debt from personal loans.

The actual balance transfer process is simple: when you apply for a balance transfer credit card, you need to include details of the existing account and the amount of money you want transferred. If your application and balance transfer are approved, then your new credit card provider will move the balance to your new account.

After the balance is transferred, you can pay it off without having to pay interest (or with a very low rate of interest) for a set period of time. At the end of the introductory period, any remaining debt from your balance transfer will attract a higher, ongoing interest rate.

Is there risk when transferring credit card balances?

As with any credit card application, there is some risk to consider when transferring a credit card balance. Your credit score will be impacted if your application is rejected. This will lower your chance of approval for a different card, at least in the short-term.

The other risk is "putting off" paying down the debt. While you're only required to make the minimum payment on a card, it's wise to pay off the whole debt when you have the low or 0% balance transfer rate. Otherwise, you could end up paying more interest when the introductory period ends – even if that's 3 years from now.

How much can I save with a balance transfer credit card?

The amount you'll save with a balance transfer credit card depends on how much you owe, your current interest rate, the balance transfer offer and your monthly repayments (among other things). Using the calculator at the top of the comparison table above will show you how much you could save with each current offer.

Example: A 0% balance transfer card vs paying off your current card

We've compared a common balance transfer offer with monthly repayments on a standard credit card. The current balance and interest rates are based on Australian credit card statistics and data in 2023. We assume that the annual fee on both cards is the same and no new purchases are being made, and the result is savings over $300.

These savings are based on making the same repayments for either card and paying the one-off balance transfer fee separately (which would cost $43.61 in this example).

Pros and cons of balance transfer credit cards

How long does a balance transfer take?

The balance transfer process typically takes between 5 and 14 days from when you activate the new card, although it does depend on the credit card provider.

If you want to know how long a balance transfer can take with a particular bank or credit card brand, we've also summarised how Australian card issuers manage balance transfers and the processing times you can expect in a table.

• Table: Balance transfer times for different credit card providers

  Search by provider

  Institution	Number of days	Balance transfer notes
  American Express	Normally within 10 business days	Once approved, American Express balance transfers are normally completed within 10 working days. During this time, you'll need to continue making any payments that are due on your existing accounts.
  Bank of Melbourne	Up to 14 days	If you apply for a Bank of Melbourne card and are approved, it can take up to a week for your balance transfer to go through. Once it's complete, it's your responsibility to contact your old bank to close your account. If you don't, then you'll continue to be charged any account maintenance fees (like annual fees) that come with your card.
  BankSA	Up to 14 days	If you apply as a new BankSA customer, the balance transfer request will only be processed after you have completed an identification check and activated the card.
  Bendigo Bank	Varies	Once your application is approved, Bendigo Bank staff will contact you for details needed for the balance transfer. Once they have them, the balance transfer will be processed. Depending on your existing provider's processes, it could take up to 48 hours for the balance to be moved once Bendigo Bank has paid out your old card.
  Citi	Up to 10 business days	Balance Transfers can take up to 10 business days to process. Within that period, you need to continue making payments until there is no outstanding balance on your existing accounts.
  Coles	Up to 10 days	As Coles credit cards are issued under the Citi brand, you won't be able to transfer balances from other Citi branded accounts. This includes cards from Citi, Suncorp Bank, IMB, Qantas Money and Virgin Money.
  HSBC	Up to 7 business days	With HSBC, the balance transfer process is started once your application is approved. However, you should still allow around 7 working days for the balance to be added to your new account. You'll still need to make any payments due on your existing accounts.
  Macquarie Bank	Up to 5 days	Note that balance transfers are not allowed from any account issued by Macquarie Bank. This includes other Macquarie or Card Services accounts.
  NAB	5 to 10 business days	NAB will begin the balance transfer process around five days after your card is approved, even if you have not yet used the card. When this happens and the balance transfer is processed, NAB will consider it as your agreement to the card's terms and conditions.
  Virgin	Up to 10 business days	Most Virgin Money balance transfers are processed within 10 working days from when you activate your card, although you should allow more time if Virgin Money sends a cheque to your old provider. Make sure you check the balance of your old and new accounts to see when the transfer is completed.
  Westpac	Up to 10 days	With Westpac, you typically request the balance transfer during the application process. Once you activate the card, any approved balance transfers will occur.

Frequently asked questions

• Longest 0% balance transfer deals?

  • St.George Vertigo Card - 32 months (with no BT fee)
  • Bank of Melbourne Vertigo Card - 32 months (with no BT fee)
  • BankSA Vertigo Card - 32 months (with no BT fee)
  • Westpac Low Rate Credit Card - 28 months (with no BT fee)
  • NAB Low Rate Credit Card - 28 months (2% BT fee)
  • Bankwest Zero Mastercard or Zero Platinum Mastercard - 28 months (3% BT fee)

• How many times can you do a balance transfer?

  There is no set maximum amount of times you can transfer a balance between credit cards. However, you should factor in any balance transfer fees, the enquiries on your credit report and your chance of being approved for new cards with different banks. Ideally, you should focus on paying it back in full and eliminating the need for multiple transfers.

• How many balances can I transfer?

  The number of balances you can transfer depends on the provider and the offer but typically you'll be able to move debt from 1 to 3 eligible accounts. If you want to use a balance transfer credit card to consolidate debts, check the offer details or contact the provider to find out exactly how many balances you'll be able to transfer.

• 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.

• Can I do a balance transfer within the same bank?

  Unfortunately, no. Balance transfer offers are only for new customers, meaning you'll have to open a card with a different bank or lender. This also goes for cards within the same group. For example, St.George, Bank of Melbourne and BankSA are all part of Westpac group, so you couldn't transfer a balance between any of these institutions.

• What happens at the end of my balance transfer?

  After the introductory period ends, the 0% interest rate ends too. If there's any debt left over that you haven't paid, it will start to be charged interest at the "revert rate". This is usually, though not always, the cash advance rate. The cash advance rate is higher than the purchase rate, so if you haven't paid off your balance in time, it could end up costing you more in interest than 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

• 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 when you apply for a credit card, it leaves a hard enquiry on your credit report (and may decrease your score). This means applying for a few balance transfer cards in a short amount of time could hurt your credit score. Missing repayments on the balance transfer credit card will also hurt your credit score, so be sure to weigh up what's best for keeping your credit healthy.

• 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 you transfer an existing balance to a new card, it's your responsibility to contact your current credit card or loan 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.

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