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Balance Transfers in Singapore

Find out how to pay off your debt faster with a balance transfer.

Sally McMullen

James Martin

Updated Aug 18, 2020. What changed?

Fact checked

Do you want to consolidate your debts and save money on interest costs? A balance transfer can offer you an introductory low or 0% interest rate when you move what you owe from one card issuer to a new line of credit, helping you to pay off your debt faster.

Use this guide to learn about how balance transfers work and what you need to know to make an informed choice when looking for a balance transfer promotion in Singapore.

What's in this guide?

What is a balance transfer?
How exactly does a balance transfer work
Compare the best balance transfer options in Singapore
Balance transfer promotions: how to apply
About balance transfer fees
Why might my balance transfer application be refused?
So, is a balance transfer worth it?
Frequently asked questions about balance transfers
Compare credit cards

What is a balance transfer?

A balance transfer is when you move existing debt from one credit account to another. People do this in order to reduce their interest payments or help consolidate debts into one manageable monthly payment.

How exactly does a balance transfer work

Let’s say you have debt on a credit card with a typical interest rate of 25%. The repayment amount can add up fast, meaning it’s harder to keep up with your payments. By moving this balance to a 0% deal with a new personal loan or credit card, you wouldn’t need to pay interest on your borrowing until the introductory rate ends. In Singapore, this could be for as long as 12 months. As long as you pay off the credit line in full before the 0% introductory deal expires, a balance transfer works a bit like a loan you don’t pay interest on.

You can typically use up to 90%-95% of the available credit limit of your existing credit line towards a balance transfer. Most balance transfers accept debts from other card issuers as long as they are issued by different financial institutions.

Balance Transfer Offers

Compare the best balance transfer options in Singapore

The following rates, fees and details are accurate as of 18 Aug 2020 and are subject to change.

Provider	Effective interest rate	Prevailing interest rate	Processing fees
Citibank Credit Card Balance Transfer Program	3.65%	26.90%	1.58%
HSBC Credit Card Balance Transfer	Starts from 4.39% p.a.	28%	S$88 (waived for approved amounts S$10,000 or more)
Maybank Fund Transfer	2.96% p.a.	25.90%	Starts from 1.38%
Standard Chartered Credit Card Funds Transfer Programme	2.83% p.a.	29.90%	Starts from 0.70%
DBS Balance Transfer	5.34% p.a.	26.80%	Starts from 2.50%
UOB Balance Transfer	5.34% p.a.	28%	Starts from 2.50%
BOC Fund Transfer	7.49% p.a.	28.88%	Starts from 1.8%
CIMB Balance Transfer	2.06% p.a.	28%	Starts from 0.5%
OCBC Balance Transfer	7.38% p.a.	28.92%	Starts from 1.80%

*The products compared here are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order for the products we list on our site, so we enable you to re-order and compare products. The initial display order is influenced by a range of factors including commercial partnerships, product costs and conversion rates, so please don’t interpret the listing order as an endorsement or recommendation from us. We’re happy to provide you with the tools you need to make better decisions, and we encourage you to make your own decisions and compare and assess products based on your individual needs, preferences and circumstances.

Balance transfer promotions: how to apply

Most of the big banks in Singapore offer a balance transfer promotion at 0% for a stated period, usually between three and 12 months. To take advantage of the promotional interest rate, you’ll need to request a balance transfer when you apply for a new line of credit.

In most credit card applications, you will find a section that asks whether you would like to shift existing debt onto your new account. You will be asked for details of your existing credit card debt, including where it’s from and how much of it you want to transfer to the new card.

If your application gets approved, your debt may be automatically moved over to your new account after you activate the new credit account. But do check – as you may need to ensure any debt is switched within a certain time period. Always check the terms and conditions to ensure you fully understand the offer before you sign up.

Must Read. Before you apply for a balance transfer, make sure that you have selected a new line of credit from an issuer that accepts transfers from your current bank and account.

Should I close my credit card after a balance transfer?

It’s important to contact your current issuer to find out exactly what you’d need to pay back on your existing account – and by when – before it can be closed. This is important because the final payout figure might be different from the balance that appears in your account statement due to various charges, such as interest payments, annual fees or outstanding direct debits.

About balance transfer fees

The majority of balance transfers charge a one-off balance transfer or processing fee. This charge is usually calculated as a percentage of the amount of the debt that you transfer to the new account.

Typically the balance transfer fee is between 1% and 5% of your debt balance you transfer, depending on the repayment term. For example, if you have a S$5,000 debt which you want to transfer, and the fee is 3%, your transfer fee will amount to S$150. You can also expect to pay a late payment fee if you fail to make the minimum payment that applies each month. Late payment fees can range from around S$50-S$125.

When it comes to a balance transfer promotion, be aware that if you fail to repay your entire debt before the promotional period ends, you’ll have to start paying interest. Keep an eye out for the new account’s ‘revert rate’ of interest. Also, be aware that you may even have to pay a cash advance rate after the 0% period ends. Read our guide for more information on how cash advance rates work.

So, be sure to look for the following:

Reverting interest rate. The promotional rate for your balance transfer is locked in, so you won’t have to pay higher interest rates during the offer. When the promotional offer ends, a higher revert rate will apply to any remaining debts. This is called the reverting rate. If you want to save on interest costs, go for a card with lower reverting rates of interest, especially if you will be unable to complete repayment during the interest free promotion period.
Minimum payments. Even if the card offers a 0% balance transfer rate, you will still have to make the minimum payment each month. If you only meet the minimum repayment, you won’t pay off the entire debt before the promotion ends. Once the promotion period ends, any remaining debts on your credit card will start collecting interest and your balance will continue to grow.

Why might my balance transfer application be refused?

credit-card-rejection-reasons Financial institutions assess balance transfer applications carefully. To increase your chances of approval, see some of the factors that could cause a bank to decline your application before you apply:

Poor credit history. You’ll need a good credit history to obtain a balance transfer deal. If you haven’t checked recently, you may find out what your current credit score is with a report from the Credit Bureau. It is important to remember, however, that prompt payments, regular paying off of debt in full and other responsible credit behaviours for at least a year will only clean up the ‘Account Status History’ section of your credit report. Other parts of the credit report will still show your credit card issuer about bankruptcies, defaults and debt management programs in the past.
Submitting multiple applications too rapidly. Too many such enquiries in the credit report can indicate higher risk behaviour to a lender. If an application gets refused, avoid making another application straight away. Take the time instead to work out a plan to help boost your credit rating. When you’re ready, carefully compare your credit options and ensure you meet all the eligibility criteria before making another application.
Transferring to the wrong bank. Banks do not allow balance transfers within institutions of the same group. So before applying for a balance transfer offer, find out which issuers will accept your balance transfer. If you apply for a balance transfer deal from a bank with the same owner as your current card, your application will be immediately refused. If you’d like to explore other ways to pay down debt, you might consider a personal loan.
Cards in a different name. Your new balance transfer account must be in the same name as your current card. If you apply with a different name, such as your partner’s name, your application will be rejected.

So, is a balance transfer worth it?

Used intelligently, a balance transfer can be a good idea as it reduces your interest payments and can help you repay your debts faster. Many people are able to save money with a balance transfer by not paying interest. However, if you use a balance transfer in the wrong way then your debts may escalate. As long as you understand all the typical fees and charges of balance transfers – and how balance transfers work – then you could find you’re in a great place to get on top of your finances.

Frequently asked questions about balance transfers

Exactly how much you’ll save with a balance transfer depends on a number of factors:
- The size of your debt you plan to transfer
- The current rate of interest you pay on that debt
- The length of the 0% or low rate balance transfer offer from your new card company
- How you keep up with repayments.
Depending on the level of debt transferred, you may save hundreds or thousands of dollars in interest if you actually work on paying off the entire debt you transferred before the expiry of the promotional period.
No. Your new card issuer will manage this process after both your card and the balance transfer are approved. You simply need to give the details of your existing card when you apply. But if you want to close your old card account, you will need to do this yourself by contacting your bank. If you don’t close your old account, you could be stuck with ongoing annual fees and any other maintenance costs that come with your existing account.
Credit card issuers make money when cardholders pay interest. Then, why would they want to charge 0% interest even for a while when they could charge you 25% or more? Here’s why:
They know that every card customer, including you, will eventually revert to a higher rate. If you don’t pay off your entire debt at the 0% rate, you will end up collecting interest at the prevailing rate for your card. This is usually the purchase rate or cash advance rate, which can range between 25% and 30% in Singapore (from research at time of writing). But, it is typically over 25% on most credit cards. Once that happens, your new credit card issuer can, over time, potentially make hundreds or even thousands of dollars from you in interest charges.
There are several ways you can find out if a balance transfer card reverts to the cash advance rate. The following are the most common ways to figure this out:
- Main offer details. Some balance transfer offers outline the revert rate as part of their promotion. For example, the offer may say “Pay 0% on balance transfers for 12 months (reverts to 25% p.a.).”
- Fine print. Credit card providers are required to include information about the revert rate in the terms and conditions of their offer. Usually, this will include the specific rate applicable at the time, such as “reverts to the cash advance rate of 28% p.a.” although sometimes it may say “reverts to prevailing cash advance rate”.
- Key facts sheet. Providers are required to produce a full Terms and Conditions sheet for every credit card they offer. This sheet includes details of the rates and fees for the card, so you’ll be able to see the introductory balance transfer rate as well as the prevailing rates for the card.
You should make repayments by the due date given on your bank statement for each statement period. While you can get away by with only the minimum repayment, you should always aim to pay more each month so that you can clear your transferred debt faster.
Remember that your 0% balance transfer offer that will only apply for a limited period. To avoid paying interest on your debt, you should calculate how much you need to pay each month by dividing the size of your debt by the how the length in months of your promotional period. This will give you a goal repayment to make each month to repay your balance before the promotion ends.
If you also made purchases at the prevailing rate on the same card, be careful to repay those amounts in their entirety as well. Not doing so will end up resulting in a higher debt burden than you had before the balance transfer.
Banks allocate your repayments to the balances accruing the highest rates of interest first. This means that with a low interest rate balance transfer promotion, repayments will usually go towards settling your standard rate purchases and cash advances first. As a result, it is ideal not to make other transactions when repaying a balance transfer to ensure that all of your repayments are dedicated to clearing your debt.

Compare credit cards

Name	Reward	Cashback Offer	Annual Fee	Min Income - Singaporean and PR
HSBC Revolution Credit Card	Earn up to 10X Reward points or 4 miles per S$1 spent on qualifying purchases.	Receive up to S$200 cashback. T&Cs apply. Ends 30 June 2021.	S$0 annual fee	S$30,000	New cardholders will be awarded with up to S$200 cashback. S$50 cashback for one qualifying transaction and S$120 cashback upon S$500 minimum spend. Receive an additional S$30 cashback when you apply online with MyInfo via SingPass. Existing HSBC credit cardholders are eligible to receive S$30 cashback. T&Cs apply. Ends 30 June 2021.	Go to site More Info	Compare	loading Fetching your data...
UOB PRVI Miles American Express Card	Earn 1.4 miles for every S$1 spent locally and 2.4 miles for every S$1 spent overseas.	Get S$150 cash credit when you apply. T&Cs apply.	S$0 annual fee for the first 1 year and S$256.80 thereafter	S$30,000	Enjoy up to 20,000 bonus miles if you charge S$50,000 to your card in a year. Apply today and enjoy free transfers to Changi Airport.	Go to site More Info	Compare	loading Fetching your data...
HSBC Visa Platinum Credit Card	Earn 1 Reward point for every $1 on all spend.	Up to 5% cash rebates on groceries, dining and fuel with minimum monthly spend of at least S$600.	S$0 annual fee for the first 2 years and S$192.60 thereafter	S$30,000	New cardholders will be awarded with up to S$200 cashback. S$50 cashback for one qualifying transaction and S$120 cashback upon S$500 minimum spend. Receive an additional S$30 cashback when you apply online with MyInfo via SingPass. Existing HSBC credit cardholders are eligible to receive S$30 cashback. T&Cs apply. Ends 30 June 2021.	Go to site More Info	Compare	loading Fetching your data...
KrisFlyer UOB Credit Card	Earn 3 KrisFlyer miles per S$1 when you spend with Singapore Airlines, Scoot and KrisShop and 1.2 KrisFlyer miles per S$1 on all other spend.	Receive S$150 cash credit when you apply for a new credit card. T&C apply.	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	Receive S$150 (first 100 successful applications) plus 3,000 KrisFlyer miles when you apply for a new credit card and spend at least S$1,500 within 30 days from card approval date. T&C apply. Ends 31 May 2021.	Go to site More Info	Compare	loading Fetching your data...
UOB Yolo Card	Enjoy a wide variety of discounts and cashback rebates on dining, entertainment, online shopping and travel.	Up to 8% cashback on some weekend dining, travel, and entertainment and 3% cashback on online fashion, weekday dining, travel and more.	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	Receive S$150 cash credit (for first 100 successful UOB personal credit card applications) when you apply for a new credit card and spend at least S$1,500 within 30 days from card approval date. T&C apply. Ends 31 May 2021.	Go to site More Info	Compare	loading Fetching your data...
UOB Lady's Card	Earn 10X UNI$ (or 20 miles) per S$5 spent on a chosen spending category with no min. spend required, and 1X UNI$ (or 2 miles) on other purchases.	Receive S$150 cash credit when you apply for a new credit card. T&C apply.	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	Receive S$150 cash credit (for first 100 successful UOB personal credit card applications) when you apply for a new credit card and spend at least S$1,500 within 30 days from card approval date. T&C apply. Ends 31 May 2021.	Go to site More Info	Compare	loading Fetching your data...
HSBC Advance Credit Card	Receive up to S$200 cashback when minimum spend requirements are met.	Enjoy up to 3.5% cashback on all purchases with no minimum spend	S$0 annual fee for the first 1 year (permanently waived for HSBC Advance banking customers) and S$192.60 thereafter	S$30,000	New cardholders will be awarded with up to S$200 cashback. S$50 cashback for one qualifying transaction and S$120 cashback upon S$500 minimum spend. Receive an additional S$30 cashback when you apply online with MyInfo via SingPass. Existing HSBC credit cardholders are eligible to receive S$30 cashback. T&Cs apply. Ends 30 June 2021.	Go to site More Info	Compare	loading Fetching your data...
UOB One Credit Card	Receive S$150 cash credit (for first 100 successful UOB personal credit card applications) when you apply for a new credit card and spend at least S$1,500 within 30 days from card approval date. T&C apply. Ends 31 May 2021.	Up to 10% cashback with some merchants including Grab,7-Eleven and Cold Storage; 6% for Singapore Power Utilities bills; and 5% back on all other retail spending.	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	Receive S$150 cash credit (for first 100 successful UOB personal credit card applications) when you apply for a new credit card and spend at least S$1,500 within 30 days from card approval date. T&C apply. Ends 31 May 2021.	Go to site More Info	Compare	loading Fetching your data...
American Express Singapore Airlines KrisFlyer Ascend Credit Card	Earn 1.2 KrisFlyer miles per S$1 spent on local purchases, with no cap.	N/A	S$337.05 annual fee	S$50,000	Get a complimentary stay at Shangri-La Hotel, Singapore, Garden Wing Deluxe City View Room (worth up to S$450++) when you spend S$5,000 within the first three months and an additional 10,000 KrisFlyer miles if you are new to American Express. T&Cs apply. Ends 30 June 2021.	Go to site More Info	Compare	loading Fetching your data...
UOB PRVI Miles Visa Card	6 air miles for every S$1 spent through Expedia, Agoda and UOB Travel	Receive S$150 cash credit when you apply for a new credit card. T&C apply.	S$0 annual fee for the first 1 year and S$256.80 thereafter	S$30,000	Receive S$150 cash credit (for first 100 successful UOB personal credit card applications) when you apply for a new credit card and spend at least S$1,500 within 30 days from card approval date. T&C apply. Ends 31 May 2021.	Go to site More Info	Compare	loading Fetching your data...
American Express Platinum Credit Card	Up to 50% off your food bill for unlimited visits at hotels around Singapore	N/A	S$321 annual fee	S$80,000	Get up to S$150 statement credit with minimum spend at Love Dining partners and a free Bang & Olufsen Beoplay E8 3rd Gen wireless earbuds (worth S$499) when you spend S$5,000 in the first three months. T&Cs apply. Ends 30 June 2021.	Go to site More Info	Compare	loading Fetching your data...
American Express True Cashback Card	Enjoy cashback on all purchases with no minimum spend or cap. Plus receive up to S$80 CapitaVouchers when a minimum spend of S$500 is made in the first month.	Earn 1.5% cashback on all eligible spending with no minimum spend or cap	S$0 annual fee for the first 1 year and S$171.20 thereafter	S$30,000	Apply today and get a 3% Cashback bonus when you spend S$5,000 in the first six months.	Go to site More Info	Compare	loading Fetching your data...
American Express Singapore Airlines KrisFlyer Credit Card	Earn 1.1 KrisFlyer Miles per S$1 spent on purchases with no cap.	S$150 cashback for use at singaporeair.com when you spend a minimum of S$12,000 until 30 June 2021	S$0 annual fee for the first 1 year and S$176.55 thereafter	S$30,000	Get up to 13,300 KrisFlyer miles with a minimum spend of S$3,000 in your first 3 months and an additional complimentary stay at Conrad Centennial Singapore Deluxe Room (worth up to S$300++) if you are new to American Express.	Go to site More Info	Compare	loading Fetching your data...
Citi Cash Back+ Card	Get up to 20.88% fuel discounts at Esso and Shell and 1.6% cash back on eligible retail purchases.	1.6% cash back on selected retail purchases	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	Receive 4.5% cashback on up to S$5,000 spend (up to S$225 cashback) in the first 3 months. Valid till 31 May 2021.	Go to site More Info	Compare	loading Fetching your data...
UOB PRVI Miles World Mastercard	Earn 1.4 miles per S$1 spent locally and 2.4 miles per S$1 spent overseas, including online shopping.	Receive S$150 cash credit when you apply for a new credit card. T&C apply.	S$0 annual fee for the first 1 year and S$256.80 thereafter	S$30,000	Receive S$150 cash credit (for first 100 successful UOB personal credit card applications) when you apply for a new credit card and spend at least S$1,500 within 30 days from card approval date. T&C apply. Ends 31 May 2021.	Go to site More Info	Compare	loading Fetching your data...
Citi Lazada Card	Earn 10x rewards on eligible Lazada purchases and 5x rewards on qualifying dining, entertainment and commute purchases	Enjoy shipping rebates on eligible purchases of at least S$50 at Lazada.	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	New Citibank customers can get S$250 Lazada & RedMart vouchers upon minimum spend of S$250. T&Cs apply. Ends 26 May 2021.	Go to site More Info	Compare	loading Fetching your data...
Citi Rewards Credit Card	10X Rewards on eligible online and retail purchases, capped at 10,000 points per statement month. 1X Rewards for other retail purchases.	Up to 26% cashback at selected merchants	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	Get 30,000 Citi Thank You points when you spend S$3,000 in the first 3 months. T&Cs apply. 30 June 2021	Go to site More Info	Compare	loading Fetching your data...
American Express CapitaCard	Earn 3X STAR$ when you shop at participating CapitaLand malls, and more	N/A	S$0 annual fee for the first 1 year and S$171.20 thereafter	S$30,000	New card members can receive 120,000 STAR$ (worth S$120 eCapitaVouchers) upon S$2,400 minimum spend at participating CapitaLand Malls merchants within the first 2 months of card approval. T&Cs apply. Ends 30 June 2021.	Go to site More Info	Compare	loading Fetching your data...
Citi Cash Back Card	Get up to 20.88% fuel discounts at Esso and Shell. 6% cashback on dining and 8% cashback on groceries.	6% cash back on dining, 8% cashback on groceries and petrol transactions. 0.25% cashback on other retail purchases, capped at S$80 for all transactions per statement month.	S$0 annual fee for the first 1 year and S$192.60 thereafter	S$30,000	Get a welcome gift of S$120 cash back when you spend S$1,200 in the first 3 months. T&Cs apply.	Go to site More Info	Compare	loading Fetching your data...
Citi Prestige Card	Deals and discounts in more than 90 countries. Also, get six complimentary golf games across Asia	Up to 20% cashback at selected merchants	S$535 annual fee	S$120,000	Get a welcome gift of 62,500 Citi ThankYou Points (25,000 Miles) or Gadget Welcome Gift. T&Cs apply. Ends 30 June 2021.	Go to site More Info	Compare	loading Fetching your data...
Citibank SMRT Card	Up to 5% savings on groceries, fast food, movies, and coffee. Plus, 3% savings on online shopping and 0.3% savings on all other spend	Redeem S$10 cash back for shopping vouchers with every 10 SMRT$ earned	S$0 annual fee for the first 2 years and S$192.60 thereafter	S$30,000	Get a welcome gift of S$120 cash back when you spend S$1,200 in the first 3 months. T&Cs apply.	Go to site More Info	Compare	loading Fetching your data...
Citi PremierMiles Card	Earn 1.2 Citi Miles for every S$1 spent locally, 2 Citi Miles for every S$1 spent overseas and 4 Citi Miles for every S$1 spent on food delivery & home entertainment.	Up to 26% cashback at selected merchants	S$192.60 annual fee	S$30,000	Get 45,000 miles when you spend S$9,000 in the first 3 months. Annual fee applies.	Go to site More Info	Compare	loading Fetching your data...
Aspire Corporate Card	Enjoy exclusive perks and discounts with Aspire's extensive range of partners, redeemable at anytime	1% Cashback for qualified spend of above S$5,000. T&Cs apply	S$0 annual fee	N/A	A corporate debit card for SMEs and Startups with no annual fee and low FX fees. Enjoy 1% cashback on marketing and SaaS spend. T&Cs apply.	Go to site More Info	Compare	loading Fetching your data...

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Sally McMullen

Sally McMullen is Finder's credit cards and frequent flyer editor by day and a music maven by night. She's also one half of the Pocket Money podcast. Her byline can be spotted on Yahoo Finance, Dynamic Business, Financy and Mamamia as well as Music Feeds and Rolling Stone. Sally has a first-class Honours degree in Communications and Media Studies (majoring in Journalism and Professional Writing) from the University of Wollongong.

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Balance Transfers in Singapore

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