Balance Transfer Credit Cards Guide
Key Points:
- Save money by transferring high-interest debt
- 0% interest periods up to 24 months
- Compare balance transfer offers
- Understand fees and conditions
What is a Balance Transfer Credit Card?
A balance transfer credit card allows you to move debt from one credit card to another, usually at a lower interest rate. Many cards offer 0% interest for an introductory period, helping you save money and pay off debt faster.
Example Savings
On a $5,000 balance at 20.95% p.a.:
- Current annual interest: $1,047.50
- With 0% balance transfer: $0 interest
- Potential savings: $1,047.50
How Balance Transfers Work
- Apply for a balance transfer card
- Transfer existing credit card debt
- Pay 0% interest during promotional period
- Regular interest rate applies after promotion
Compare Balance Transfer Offers
| Card | 0% Period | Transfer Fee | Revert Rate |
|---|---|---|---|
| ANZ Low Rate | 12 months | $0 | 20.95% |
| ASB Visa Light | 6 months | $0 | 13.95% |
| BNZ Advantage | 12 months | 1% | 20.95% |
Calculate Your Savings
Credit Card Interest Calculator
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Results
Time to Pay Off
12 months
Total Interest
$103
Tips
- • Paying more than the minimum payment saves interest
- • Consider a balance transfer to save on interest
- • Pay full balance to avoid interest charges
Tips for Balance Transfer Success
- Make a repayment plan to clear debt during 0% period
- Avoid new purchases on the card
- Set up automatic payments
- Check all fees and charges
- Compare revert rates
Common Questions
Can I transfer multiple card balances?
Yes, most cards allow you to transfer balances from multiple cards, up to your approved credit limit.
What happens after the 0% period?
The card reverts to its standard interest rate, which applies to any remaining balance.
Will a balance transfer affect my credit score?
Applying for a new card may temporarily impact your credit score, but managing it well can improve your score long-term.