How long does it take to transfer my credit card balance?

How long does it take to transfer my credit card balance?

Balance transfer credit cards can be an invaluable tool for cardholders hoping to work off their existing card debt. But just how long does it actually take to transfer your existing balance over to your new credit card?

The application process for a balance transfer credit card may only take you a few moments gathering paperwork and minutes applying online, but actually transferring your balance may take days, sometimes weeks – depending on the provider.

How balance transfer credit cards work

Balance transfer credit cards allow cardholders to transfer over their existing debt on to a new card, typically with a zero per cent or low interest rate for a set period of time.

If you can budget and pay off your debt in that set period of time, you’ll not only save big on interest but pull yourself out of a debt cycle. However, if you’re unable to pay off your balance in time or continue to use the new credit card as normal, you’ll begin to accrue interest on new purchases or your existing debt. 

Once you apply and are approved for a balance transfer credit card, you’ll notify your existing provider and start the process of closing that account and having your balance transferred to the new provider. Your new provider may send payment directly to the old card provider, so you can begin working off your debt with low or no interest hanging overhead.

How long does a balance transfer take?

Generally, a balance transfer will take between a few days and a couple of weeks. Instant balance transferral – particularly from major providers and the big four banks in Australia – is still a ways away. But some providers, such as HSBC, are able to process transfers in ‘real time’.

Your new credit card provider will typically provide you with information upfront on just how long you may be waiting for your balance to transfer.

Some of the biggest banks and card providers in Australia have the following transfer time windows:

Credit card providers Estimate time to transfer balance
ANZ 3-15 business days
CBA Minimum 4 working days
NAB 3-5 days
Westpac Minimum 10 business days
American Express Up to 10 business days
Citi Up to 10 business days
HSBC Processed in real time once applications are received
Macquarie Bank Up to 5 business days
St. George/BankSA/Bank of Melbourne Up to 14 days

What other options do I have to pay off a debt?

If you’re looking to get some breathing room and pay down a debt - particularly if you have multiple sources - here are some other options you may want to consider as well:

  • Debt consolidation loan

If you have more than one source of debt, then chances are you are paying multiple interest repayments with differing repayment dates and amounts. As the name suggests, a debt consolidation loan is a personal loan that consolidates all your debts into one, more manageable debt. Personal loans typically come with lower interest rates than credit cards too, so you’re likely to be reducing your overall interest costs.

  • Offset account

An offset account is a linked transaction or savings account connected to your home loan. Any money you deposit into this account will ‘offset’ the balance of your mortgage. Meaning, if you have a $400,000 mortgage, and $50,000 saved in your offset, your home loan repayments will be for the equivalent of a $350,000 mortgage. You may be able to transfer your savings towards your outstanding credit card repayment. As it is an electronic transfer, your funds could arrive faster than some of the aforementioned transfer times.

  • Redraw facility

If you have a redraw facility attached to your home loan, you may be able to withdraw any extra repayments you’ve made over the years and put this towards your debt. Not only will this help you chip away at your outstanding balance faster than making minimum repayments, but you won’t need to take out additional financing to do so. It is different from an offset account, in that accessing these funds is slightly harder. There may be a cap on how much you can withdraw, or you may be able to access the full redraw facility balance, minus one months’ mortgage repayment.

  • Keep in mind that the funds you put into your redraw facility or offset account can help to reduce your home loan interest repayments and withdrawing them may see your repayments increase each month. This may, in turn, put more pressure on your budget and make paying for regular expenses and utilities more challenging.  

 

If you’re struggling with financial hardship, don’t be afraid to reach out for help from professionals, such as accountants and financial advisers. The Australian government has free financial counselling services available, along with their National Debt Helpline – 1800 007 007.

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Learn more about credit cards

What is a balance transfer credit card?

A balance transfer credit card lets you transfer your debt balance from one credit card to another. A balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. If your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card. 

How to pay a credit card from another bank

Paying or transferring debt from one lender to the other is called a balance transfer. This involves transferring part or all of the debt from a credit card with one lender to a credit card with another. As part of the process, your new lender will pay out the old lender, so that you now owe the same amount of money but to a new institution.

Many credit card providers offer an interest-free period on balance transfers to help new applicants better handle their debt. During this period, cardholders are not required to pay interest on the debt they brought over from the other card. This can be a great opportunity for consumers to pay off credit card debt with no interest. There are often fees associated with balance transfers; normally, these are a percentage of the amount transferred.

So make sure you read the terms and conditions of the card before transferring any debt across.

How do you cancel a credit card?

It’s important to cancel your old cards to avoid any additional fees. Unless you’re doing a balance transfer, you’ll need to pay the outstanding balance before you cancel your credit card. If you’ve opted for a card with reward points, make sure you redeem or transfer the points before you close your account. To avoid any bounced payments and save yourself an admin headache, redirect all your direct debits to a new card or account. Once you’ve done all the preparation, call your bank or credit card provider to get the cancellation underway. Once you receive a confirmation letter, destroy your card and make sure the numbers aren’t legible.

How to get rid of credit card debt

  1. Calculate your debt. Credit card calculators make it easy to determine the repayments required to chip away at your debt in the shortest timeframe possible for your budget.
  2. Repayment plans. Take some time to formulate a credit repayment plan. Consider increasing your income, scaling back your lifestyle or refinancing.
  3. Talk to your credit provider. If you’re still struggling with your debt, give your credit provider a call. You may be able to come to a new arrangement.

How to increase your Qantas Premier credit card limit

When your income or spending habits change, you might wish to increase your credit card limit. The Qantas Premier credit card allows you to do this over the phone. You can contact Qantas Premier Card Support by calling on 1300 992 700. Unlike some other credit providers, Qantas doesn’t give you the option to increase your limit online.

Qantas will only accept your application if you have a good history of repayment and have not increased your credit or bought another credit product from Qantas in the past six months.

Before approving your Qantas Premier credit card limit increase, Qantas will perform a credit assessment on your current financial circumstances and ask why you would like to increase your credit limit.

To ensure that there are no bumps in your application process, you must provide accurate and recent information about your financial situation. You should also account for any future changes you’re anticipating which could hinder your ability to repay the loan.

Once the assessment is complete, Qantas will either approve or deny your application. If they approve it, you will need to sign a credit limit increase agreement - and you can request a written copy of the credit assessment. However, if your application is rejected, Qantas can opt not to provide a copy of the assessment.

What does Westpac credit card insurance cover?

If you own a Westpac credit card, one of the perks may be  free travel insurance. If you’re eligible, you may be covered if you get sick while travelling, have lost your luggage, have to cancel a trip or have an accident while you’re on the move.

Besides these standard inclusions, the Westpac credit card insurance policy may also cover you for hospital essentials, emergency dental treatment and alternative transport if your original plans go awry. It may also cover loss of income when you get back home after being sick  overseas and your pets’ boarding costs too.

If you have any queries, the Westpac credit card insurance contact number is 1800 091 710. You can submit a claim online.

 

How to calculate credit card interest

Credit card interest can quickly turn a manageable balance into unmovable debt. So being able to understand how interest rates translate into dollars is an important skill to acquire.

The common mistake people make is focusing on the credit card’s annual percentage rate (APR), which often sits between 15 and 20 per cent. While the APR does provide a rough idea of how much interest you’ll pay, it’s not entirely accurate.

This is because you actually accrue interest on your balance daily, not annually. So, you need to work out your daily periodic rate (DPR). To do this, divide your card’s APR by the number of days in a year (e.g. 16.9 per cent divided by 365, or 0.05 per cent). You can then apply this figure to the daily balance on your credit card.

How do I apply for a BOQ credit card limit increase?

If you’re an existing BOQ customer, you can request a BOQ credit card limit increase over a phone call. However, you should remember that owning and using a credit card is a matter of financial responsibility, so it might be worth thinking this decision through. 

When requesting a credit card limit increase, you’ll need to be just as responsible in terms of how much you earn and can set aside to repay the outstanding card balance. A credit card company may approve a credit limit increase only if you can show that you have either the income or the disposable income, which is the amount you have left after all expenses have been paid out.

For this purpose, you may need to submit your latest income documents and bank statements for an increase. You may want to estimate how much you usually have left after deducting your expenses, and then use this amount to try and convince the credit card company. Also, you may prefer to pay off the card balance in full each month and thus avoid paying interest on the card, helping you back up any claims of financial responsibility, as well. 

Remember that you may not be able to apply for a credit card limit increase beyond any limitations on the type of card you own. For instance, if you own a card whose ceiling is $10,000, and your current limit is $5,000, you won't likely be able to apply for a $10,000 credit card limit increase.

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

How do you pay off credit cards?

The best way to pay off a credit card bill is to set a realistic spending budget and stick to it. Each month, you’ll get a credit card statement detailing how much you owe and how long it will take to pay off the balance by making minimum repayments. If you only make the minimum repayments, it will take you years to pay off your outstanding balance and add extra costs in interest charges. To avoid any extra charges, you should pay the entire bill. 

How is credit card interest charged?

Your credit card will be charged interest when you don’t pay off the balance on your credit card. Your card provider or bank charges you the individual interest rate that is associated with your card, which is usually between 10 and 20 per cent. 

The interest will be added onto your bill each month or billing period if you don’t pay off the balance, unless you are in an interest-free period.

You will be charged interest on anything that hasn’t been paid for inside the interest-free period. Usually you will receive a notice on your bill or statement saying you will be charged interest so you have some form of notice before you’re charged.

What is the CUA credit card increase limit process?

A credit limit is pre-assigned based on factors like your income, expenses, and debt by the card-issuing company. It varies from time to time based on credit utilisation and changes to your circumstances.

If your income has increased or your liabilities have reduced, you can request for an increase of your CUA credit card limit. You can lodge the request via online banking on the website, or by visiting the closest branch, or by downloading the application form and mailing it. While making the application, you may need to provide information about your income, employment status, desired limit, and the reason for the increase. The card-issuing company will assess your request before approval.

Before you apply for an increase to the credit limit, ensure your bills are paid in full and you aren’t asking for a very steep enhancement.

How can I increase my credit card limit on my American Express card?

If you want to increase the credit limit on your American Express (AMEX) credit card, you will need to apply through the AMEX Online Services, or by calling the number on the back of your card. You may need to share personal information that the bank can use to assess whether the requested limit is suitable for you and your current financial status. Once your application is approved, your new limit will be ready for use within an hour.

Does ING increase credit card limits?

You may want to increase your credit card limit for many reasons, such as having access to more spending money. However, if you are using the Orange One credit card issued by ING, you may not be able to do so. 

ING customers can choose a credit limit of their preference when applying for the Orange One credit card. Depending on your financial situation, this limit can be anywhere between $1,000 and $30,000. If you qualify for a Rewards Platinum card, the minimum credit card limit will likely be $6,000. 

Ideally, you should set your credit card limit knowing how much you can afford to repay each month and keep your expenses lower than this level. With most credit cards, you should have the option of requesting a credit card limit increase at a later time, although you will need to qualify for any increase. With an ING credit card, limit increases are out of the question (at the time this was published), which means you may want to apply for a higher credit card limit from the beginning. Remember that you have the option of decreasing your ING credit card limit at a later time.