Best Balance Transfer Rates* – 0% Interest Credit Cards
Get 0% interest for up to 12 months and save money with balance transfer credit cards.
Interest-free balance transfer credit cards allow you to transfer your existing credit card debt to a new credit card and pay 0% interest for a specified promotional period. Balance transfer credit cards with competitive 0% interest rates can help you clear your debt faster and minimise your interest costs.
Compare balance transfer offers here and pay less interest on your credit card debt today.
How does an interest-free balance transfer work?
Balance transfer credit cards let you transfer your credit card debt to a new credit card with a lower interest rate. Many balance transfer credit cards come with 0% interest for a promotional period. Depending on the size of your debt and your ability to repay, this can help you save hundreds or thousands of dollars in interest. At the end of the promotional period, a higher revert rate will apply to any remaining debts.
You can usually request a balance transfer during the online application. After your application has been approved and you have activated your credit card, your new bank will initiate the balance transfer process by requesting the outstanding amount from your old bank. This process usually takes one or two weeks. It’s important to note that the 0% promotional period usually applies as soon as your card is activated.
How to find a 0% balance transfer credit card for your needs
As many credit cards offer a 0% promotional interest rate for a balance transfer, the following factors could help you narrow down your balance transfer comparison:
- How long you need to repay your existing credit card debt. The length of the balance transfer offer can vary from card to card, but some cards offer 0% from 6 months to 12 months. The longer the promotional period, the more time you’ll have to take advantage of the interest-free offer.
- Know which banks you can transfer to. You can’t conduct a balance transfer between cards that are issued by the same organisation. This often includes cards that are issued by separate banks but owned by the same institution, which could limit some of your balance transfer options. You can compare the cards you can and can’t transfer between with this guide.
- Compare the fees. While you may save on interest, it’s important to compare the other fees of the card. Some cards charge a balance transfer fee which can be between 2%-3% of the balance you’re transferring. Some balance transfer credit cards also come with annual fees. You can compare cards balance transfer credit cards with no annual fee here. It’s important to ensure that any fees you have to pay won’t outweigh the interest you save with the 0% offer.
- Balance transfer limit. While some cards allow you to balance transfer up to your total approved credit limit, others only allow you to transfer up to a percentage of your credit limit (such as up to 70% to 95%). Consider the size of your debt, the credit limit you’re applying for and the balance transfer limits in place to ensure your card can support your debt.
How much could you save with a balance transfer card with 0% for up to 12 months?
Exactly how much you’ll save in interest will depend on the size of your debts and your ability to repay, but let’s look at an example to see some of the potential savings.
Let’s say you have $3,500 debt on a card that is currently charging 20.99% p.a. If you transfer this to a card with 0% on balance transfers for 12 months and no annual fee, you’ll save $684.21 if you repay the entire balance before the revert rate applies.
You can use the interest calculator built into finder’s balance transfer comparison tables to determine how much you could save on interest.
Things to avoid with balance transfer credit cards
While a balance transfer credit card comes with many benefits, here are a few traps you should look out for:
- Don’t balance transfer too often. As each credit inquiry and application is recorded on your credit file, frequent applications may result in your next request being rejected. To demonstrate responsible financial habits, you should leave at least six months between applications.
- Only paying the minimum repayment. While you’re required to meet the minimum repayment (which is usually between 2% and 10% of your total balance) each statement period, it’s wise to pay as much as you can each month. If you want to pay your entire balance before the promotional offer ends, divide the amount you’re transferring by the number of months in the introductory period. This will help you determine exactly how much you need to repay each statement period to ensure you clear the entire debt before the revert rate applies.
- Don’t forget the offer end date. Once the promotional period ends, any remaining balances will collect the revert rate (which is usually the standard purchase or cash advance rate). If you want to avoid collecting interest, set a calendar reminder for the end of the promotional period and do your best to repay the entire debt before this date.
- Using your balance transfer credit card for purchases. If you want to concentrate on repaying your debt, you shouldn’t use your balance transfer credit card to make purchases. Unless the card has a 0% offer on both balance transfers and purchases, your repayments will automatically go to the purchases as they’ll be accruing a higher interest rate. It’s also important to note that interest-free days don’t apply on purchases if you’re also paying off a balance transfer.
Discover how much interest you could save with the balance transfer calculator
Step 1. Enter the total debt/outstanding amount you would like to transfer.
Step 2. Provide the interest rate that you are paying on your existing debt (if you don’t have your interest rate on you, the average is around 18-20%).
Step 3. See the ‘Amount Saved’ column to find out which credit cards will save you the most money. The calculator automatically accounts for any balance transfer fees and annual fees charged for each card. Click on the ‘Amount Saved’ title to sort the cards in ascending or descending order of money saved.
Step 4. Compare the credit cards available in the table provided to find the card that suits your needs. If you still want to find out more about a particular credit card, click the ‘More info’ link for a full review on the features and benefits.