0% Balance Transfer Credit Card Australia: A Comprehensive Guide
Are you struggling with multiple credit card debts and high interest rates in Australia? If yes, a 0% balance transfer credit card can be a lifesaver. This type of credit card allows you to transfer your existing credit card debt to a new card with a 0% interest rate for a promotional period, giving you time to pay off your debt without incurring additional interest charges.
How 0% Balance Transfer Credit Cards Work
A 0% balance transfer credit card works by allowing you to transfer your existing credit card debt to a new card with a 0% interest rate for a promotional period, which can range from 6 to 24 months. During this period, you won't be charged any interest on your outstanding balance. However, you'll need to pay a balance transfer fee, which is usually a percentage of the amount you're transferring.
Benefits of 0% Balance Transfer Credit Cards
Save Money on Interest
The most significant benefit of a 0% balance transfer credit card is that it helps you save money on interest charges. By avoiding interest payments, you can focus on paying off your principal debt.
Consolidate Debt
A 0% balance transfer credit card allows you to consolidate multiple credit card debts into one card, making it easier to manage your payments.
Lower Monthly Payments
With a 0% interest rate, your monthly payments will be lower, making it easier to pay off your debt.
Things to Consider
Balance Transfer Fee
While you won't be charged interest, you'll need to pay a balance transfer fee, which can range from 1% to 3% of the amount you're transferring.
Promotional Period
The 0% interest rate is only applicable for a promotional period. After the promotional period ends, the interest rate will revert to the standard rate.
New Purchases
Be aware that new purchases made on the card will attract the standard interest rate, not the promotional 0% rate.
Top 0% Balance Transfer Credit Cards in Australia
Here are some of the top 0% balance transfer credit cards in Australia:
ANZ Low Rate Credit Card
- 0% interest rate for 12 months
- Balance transfer fee: 2%
- Standard interest rate: 12.49% p.a.
Citi Rewards Credit Card
- 0% interest rate for 24 months
- Balance transfer fee: 1.5%
- Standard interest rate: 20.99% p.a.
St.George Vertigo Credit Card
- 0% interest rate for 18 months
- Balance transfer fee: 2%
- Standard interest rate: 13.99% p.a.
Conclusion
A 0% balance transfer credit card can be a great tool for managing your credit card debt in Australia. Just remember to consider the balance transfer fee, promotional period, and standard interest rate before applying. By doing so, you can save money on interest charges and pay off your debt faster.
