Credit Card Balance Transfers - How low can you go?

 

Paying zero percent interest on your existing credit card debt is a terrific way to get ahead and products that offer this feature are very attractive to those who use their credit card regularly. With Australian consumers' credit card spending topping $17 billion in December, chances are, many people are still struggling with the impact of too much festive spending cheer. Rather than doggedly sticking to the same path of recovery, RateCity can help you to fast track your financial health by transferring your debt to a card offering zero or low interest on balance transfers. That way you get some breathing space and can concentrate on paying off your existing debt.

A number of providers in the Australian market promote credit card balance transfer offers, which involve the establishment of a new credit card and an attractive interest rate offer to entice you to transfer any existing balances that you currently have with other institutions - and why wouldn't you? You can save upwards of 16% interest per year! The offers range from 0% up to a maximum of 9 months, or around 6.9% for the life of the transfer. When you compare this to the current average credit card rate of 16% it amounts to be a considerable saving. Be aware that switching your credit card frequently may have a negative impact on your credit rating.

 

Play your cards wrong

If you change credit cards to the wrong type you could be worse off, even though the interest rate looks great. The easiest way to dig yourself further into debt is to choose a credit card that does not match your spending and repayment behaviour. Before you go shopping at RateCity for a new credit card, it's important to see which profile fits you (see below).

  • Habitual Spender - If you struggle to pay off your credit card each month, try to find a low rate card with a very low or no annual fee.
  • Impulse Spender - If you only use your card for emergencies and impulsive spending (such as Christmas shopping, holidays or sales) then spend a few months afterwards paying off the balance, try to find a low rate card with a very low or no annual fee.
  • Everyday Spender - If you use your card for regular purchases such as groceries and petrol and pay off your balance each month, then you don't have to worry so much about interest rates. Your challenge will be to find the card that provides the features you're interested in at the lowest cost.
  • Big Spender - If you earn and spend a lot of money on your credit card each year and always pay off your balance in full you might be in the market for a card that provides features and perks that you use frequently. These may include free travel insurance, concierge services and rewards programs.

Did you know you can search for 5 star rated Credit Cards at RateCity?

Have you ever been to a top rated restaurant? Credit cards can also be rated for value-for-money. To search out the best value credit card, you need to consider a number of factors including interest rates, fees and charges, interest-free days, rewards, balance transfer rates and many other features. RateCity does your homework for you, by providing credit card star ratings developed by CANNEX, Australia's leading financial research and ratings firm. CANNEX experts have analysed and evaluated hundreds of features to give the full five star ratings to only the very top 5% of Australia's 250 credit cards.

You can find the very best cards by searching through RateCity's large warehouse of products.

 

How do I compare credit cards?

Credit card comparison on RateCity is easy. Over 250 credit cards can be compared using our easy search tools.
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