Australia : A detailed Guide on 18 Best Balance Transfer Credit Cards Australia to Save on Interest and Consolidate Debt
If you are carrying a credit card balance with high-interest rates, a balance transfer credit card could be a smart financial move. Balance transfer credit cards in Australia offer an opportunity to save on interest charges and consolidate multiple debts into one manageable payment.
In this guide, we will explore the benefits of balance transfer credit cards, how they work, and the key factors to consider when choosing the right card for your needs.
What are Balance Transfer Credit Cards?
A balance transfer credit card is a type of credit card that allows you to transfer existing credit card debt from one or multiple cards onto the new card. The primary objective of a balance transfer is to take advantage of a promotional low or 0% interest rate offered by the new card for a specific period, usually between 6 to 24 months.
Benefits of Balance Transfer Credit Cards
1. Interest Savings
The most significant advantage of a balance transfer credit card is the potential to save on interest payments. By transferring your balance to a card with a low or 0% interest rate, you can significantly reduce the interest accrued on your debt during the promotional period.
2. Debt Consolidation
If you have multiple credit card debts, a balance transfer credit card allows you to consolidate them into one account. This simplifies your finances and makes it easier to manage your debt with a single monthly payment.
3. Pay Off Debt Faster
With lower or no interest charges during the promotional period, more of your payments go towards reducing the principal balance, allowing you to pay off your debt faster.
How to Use a Balance Transfer Credit Card Wisely
1. Read the Fine Print
Before applying for a balance transfer credit card, carefully review the terms and conditions. Pay attention to the promotional period duration, any balance transfer fees, and the revert interest rate (the rate applied after the promotional period ends).
2. Make a Repayment Plan
Create a realistic repayment plan to pay off your balance before the promotional period ends. Divide the total debt by the number of months in the promotional period to ensure you can clear the debt on time.
3. Avoid New Purchases
To maximize the benefits of a balance transfer, refrain from making new purchases on the card. New purchases may attract higher interest rates and could hinder your debt repayment progress.
Choosing the Right Balance Transfer Credit Card
1. Promotional Interest Rate Period
Look for a card with a longer promotional period, giving you more time to pay off your debt without incurring interest charges.
2. Balance Transfer Fees
Consider cards with low or no balance transfer fees to minimize additional costs.
3. Revert Interest Rate
Check the revert interest rate to ensure it is competitive, in case you still have a balance remaining after the promotional period ends.
After understanding the Balance transfer credit cards benefits and need to have it,let’s have a look on the top balance credit cards in australia to have in 2023.
18 Best Balance Credit Cards Australia 2023
1. Bankwest Platinum Mastercard
Benefits:Â 0% p.a. introductory balance transfer rate for 24 months, no annual fee for the first year, and up to $200 cash back on balance transfers.
Features:Â $0 annual fee for the first year, $99 annual fee after that.
Charges:Â Balance transfer fee of 2.99%, cash advance fee of 2.5%, and late payment fee of $35.
2. ANZ Platinum Low Rate Mastercard
Benefits:Â 0% p.a. introductory balance transfer rate for 21 months, no annual fee for the first year, and up to $150 cash back on balance transfers.
Features:Â $0 annual fee for the first year, $95 annual fee after that.
Charges:Â Balance transfer fee of 2.99%, cash advance fee of 2.5%, and late payment fee of $35.
3. Citibank Balance Transfer Platinum Mastercard
Benefits:Â 0% p.a. introductory balance transfer rate for 20 months, no annual fee for the first year, and up to $100 cash back on balance transfers.
Features:Â $0 annual fee for the first year, $99 annual fee after that.
Charges:Â Balance transfer fee of 2.99%, cash advance fee of 2.5%, and late payment fee of $35.
4. AMP Low Rate Mastercard
Benefits: 0% p.a. introductory balance transfer rate for 18 months, no annual fee for the first year, and up to $100 cash back on balance transfers.
Features: $0 annual fee for the first year, $75 annual fee after that.
Charges: Balance transfer fee of 2.99%, cash advance fee of 2.5%, and late payment fee of $35.
5. AMERICAN EXPRESS Essential
ANNAUL FEE : $95
Benefits:. 0% p.a. interest on balance transfers for 24 months, $0 annual fee for the first year, complimentary Shoprunner membership, purchase protection, extended warranty, and travel accident insurance
Features: $95 ANNUAL FEE,19.99% p.a.
Charges:Â 3% of the balance transferred
6. CBA PLATINUM Low rate card
Annual Fee – $95
Interest Rate – 19.99% p.a.
Balance Transfer Fee – 3% of the balance transferred
Benefits : 0% p.a. interest on balance transfers for 24 months, $0 annual fee for the first year, complimentary 24/7 travel assistance, purchase protection, extended warranty, and travel accident insurance
7. WESTPAC Platinum charge Card
Annual Fee – $195
Interest Rate– 19.99% p.a.
Balance Transfer Fee – 2.99% of the balance transferred
Benefits : 0% p.a. interest on balance transfers for 25 months, $0 annual fee for the first year, complimentary airport lounge access, purchase protection, extended warranty, and travel accident insurance.
8. Virgin Money Low Rate Master Card
Annual Fee – $99
Interest Rate – 19.99% p.a.
Balance Transfer Fee – 3% of the balance transferred
Benefits : 0% p.a. interest on balance transfers for 25 months, $0 annual fee for the first year, complimentary 24/7 travel assistance, purchase protection, extended warranty, and travel accident insurance
9. 28 Degrees Platinum Mastercard
Annual Fee– $ 99
Interest Rate – 0% p.a. for 24 months
Balance Transfer Fee – 19.99% p.a.
Benefits : $0 foreign transaction fees, complimentary airport lounge access, and travel insurance.
10. HSBC Revolution Credit Card
Annual Fee – $99
Interest Rate – 21.99% p.a
Balance Transfer Fee – 0% p.a. for 24 months
Benefits : $0 foreign transaction fees, and earn Rewards Points
11. ING Low Rate Mastercard
Annual Fee– $ 0
Interest Rate– 22.24% p.a.
Balance Transfer Fee – 0% p.a. for 24 months
Benefits :$0 foreign transaction fees, and earn 0.25 points per dollar spent
12. Macquarie Platinum Low Rate Mastercard
Annual Fee -$99
Interest Rate – 19.99% p.a.
Balance Transfer Fee -0% p.a. for 24 months
Benefits : $0 foreign transaction fees, and earn Everyday Rewards points
13. St.George Low Rate Mastercard
Annual Fee -$99
Interest Rate – 19.99% p.a.
Balance Transfer Fee – 0% p.a. for 24 months
Benefits : $0 foreign transaction fees, and earn Everyday Rewards points
14. UBank Low Rate Mastercard
Annual Fee – $ 0
Interest Rate – 22.24% p.a.
Balance Transfer Fee – 0% p.a. for 24 months
Benefits : $0 foreign transaction fees, and earn UBank Rewards points
15. NAB Low Rate Mastercard
Annual Fee – $ 99
Interest Rate – 20.49% p.a.
Balance Transfer Fee – 0% p.a. for 24 months
Benefits : $0 foreign transaction fees, and earn NAB Rewards points
16. Commonwealth Bank Low Rate Mastercard
Annual Fee – $95
Interest Rate – 20.99% p.a.
Balance Transfer Fee – 0% p.a. for 24 months
Benefits : $0 foreign transaction fees, and earn Velocity Frequent Flyer points
17. BankSA Platinum Mastercard
Annual Fee – $99
Interest Rate – 20.99% p.a.
Balance Transfer Fee – 0% p.a. for 24 months
Benefits : $0 foreign transaction fees, and earn Velocity Frequent Flyer points
18. Qantas Premier Platinum Mastercard
Annual Fee – $295
Interest Rate– 21.99% p.a.
Balance Transfer Fee – 0% p.a. for 20 months
Benefits : $0 foreign transaction fees, and earn Qantas Points
Read This also : Qantas Credit Cards 2023 : Is it Expensive for Low-Budget Families in Australia ?
14 Reasons Australians Underestimate Credit Card Charges and Fees: Examples and How to Rectify Them
Balance Transfer Credit Cards Final Review
Balance transfer credit cards in Australia offer an effective way to manage credit card debt and save on interest payments. By choosing the right card and implementing a repayment plan, you can take control of your finances and work towards becoming debt-free.
Always remember to use a balance transfer credit card responsibly and avoid accumulating new debt during the promotional period. With proper financial planning and discipline, a balance transfer credit card can be a valuable tool in your journey towards financial freedom.