Do you currently have credit card debt across one or more cards that you are struggling to pay off? If so, you might benefit from a balance transfer credit card. 

A lot of Australians struggle with credit card debt, so you're not alone. A balance transfer moves your existing debt to a new credit card, to reduce your monthly repayments and the total interest you have to pay. This could save you hundreds or even thousands of dollars in debt, especially if you only make the minimum repayment every month.

The main reason people use a balance transfer credit card is to take advantage of 0 per cent balance transfer periods, which can be anywhere from 6 to 26 months.

Calculate how much you could save by transferring your balance to a 0% card balance deal

Credit card holders who transfer their balance to a new card could save an average of $1262 in interest and fees and pay their debt off 6 months earlier. Calculate your savings and compare balance transfer deals today*

Credit card balance

$

Monthly repayment

$

Current interest rate

%
Balance Transfer Rate

Balance Transfer Rate

0

% p.a

for 36 months then 21.99%

Annual Fee

Annual Fee

$29

for 12 months then $129

Potential Savings

$1,565

1 year and 10 months

Fees & Interest

$258

Go to site
More details
Balance Transfer Rate

Balance Transfer Rate

0

% p.a

for 6 months then 21.74%

Annual Fee

Annual Fee

$30

Potential Savings

$1,288

1 year and 11 months

Fees & Interest

$536

Go to site
More details
Balance Transfer Rate

Balance Transfer Rate

0

% p.a

for 26 months then 21.74%

Annual Fee

Annual Fee

$0

for 12 months then $59

Potential Savings

$1,705

1 year and 9 months

Fees & Interest

$118

Go to site
More details
Balance Transfer Rate

Balance Transfer Rate

0

% p.a

for 26 months then 20.99%

Annual Fee

Annual Fee

$64

for 12 months then $129

Potential Savings

$1,565

1 year and 10 months

Fees & Interest

$258

Go to site
More details
Balance Transfer Rate

Balance Transfer Rate

11.99

% p.a

Annual Fee

Annual Fee

$0

Potential Savings

$1,339

1 year and 11 months

Fees & Interest

$485

Go to site
More details
Balance Transfer Rate

Balance Transfer Rate

20.24

% p.a

Annual Fee

Annual Fee

$95

Potential Savings

$544

2 years and 3 months

Fees & Interest

$1,280

Go to site
More details

How does the balance transfer calculator work?

Credit card debt happens to the best of us, and one way you can try and get on top of it is through a balance transfer.

The RateCity balance transfer calculator can help you see how much you might save by switching from your current credit card to a balance transfer card. The calculator shows you multiple balance transfer options, and the potential savings for each card.

Here’s how it works:

  • Enter your current credit card balance (debt)
  • Enter your monthly credit card repayment
  • Put in your current credit card interest rate
  • Hit Enter

The rate table below will update to show you a list of credit cards and the potential savings you could make if you were to switch. 

The table also includes information like annual fee, other fees and interest charges, as well as the balance transfer rate, and details of any 0 per cent balance transfer period.

Why use a balance transfer calculator?

Determining how much you’ll save on a balance transfer can be tricky, especially when there are so many choices available on the market. 

Fortunately, the RateCity credit card balance transfer calculator eliminates the guesswork by showing you: 

  • Potential savings you will make by switching to another credit card;
  • How much you could save by choosing to make higher repayments; and
  • How much interest you’ll pay after the promotional interest period is over.

How do I choose the best balance transfer offer?

There are a few factors to keep in mind when choosing the best balance transfer offer for your financial situation, and the balance transfer calculator can be a great asset in your decision making. 

  • Interest free period: the period of time that you are not charged interest will indicate just how much breathing room you have to pay back your debt. This could range from as low as 6 months to 12 months, and climb as high as 18 months to 24 months interest free. 
  • Interest rates: not only should you take into consideration the purchase rate charged on new purchases and cash advance rate, but also the balance transfer rate charged upon using the account. Looking for a low rate option once your balance transfer period has ended may help you continue to keep debt at bay. 
  • Fees: including annual fees, balance transfer fees (bt fees), foreign transaction fees, late payment fees, and more. These will impact the ongoing cost of your balance transfer card, regardless of if you're still in an interest free period. 
  • Card issuer: your card provider should play a role in your decision making. If you want a credit card that is bundled with your home loan, or with the same bank as your personal loan, you'll only be considering offers from the one lender. Or, you may want a card from a newer, online lender for ease of application and access to the latest fintech. And it's not just the bank you need to consider, but also whether you want a Visa, Mastercard or American Express. 
  • Perks and rewards: once you've paid your balance transfer amount in full, will your new card offer you any perks and rewards? This could include a rewards program, travel insurance, a high number of interest free days, cash back and more.

What happens if I don't pay off my balance transfer in time?

If you come to the end of your balance transfer period, or even the end of a 0 per cent introductory period on a standard card, and you still have money owing, you will begin to accrue interest on this balance.

This is why it's so important that cardholders carefully review their repayment terms before applying for a balance transfer card. This includes:

  1. Knowing exactly how long the balance transfer period is. 
  2. Knowing exactly what purchase rate the balance will be charged if it's not paid in full. 
  3. Knowing exactly what potential ongoing fees may be charged. 
  4. Knowing that if you make any new purchases on your balance transfer card, you will immediately be charged interest on these purchases. 

The latter point can be a serious blind spot for a lot of struggling Aussies trying to get on top of their debt. This is why experts generally recommend that once you transfer your balance to your new card, you put it in the freezer or lock it in a drawer so you're not tempted to use it until the debt has been repaid.

If you believe that you won't be able to pay your balance in full by the end of the interest free period, or if you want to continue using a credit card after the balance has been paid, it may be worth considering low rate credit card options. 

It's also worth keeping in mind that you triple check your old credit card account has been closed, and nothing is still owing once you've transferred to your new card. 

  • Remember, having a maxed out credit limit and only making minimum monthly payments on your debt can seriously impact your credit score. By choosing to get on top of it with a balance transfer card, you're potentially not only improving your financial situation, but also your credit rating.

What are the pros and cons of balance transfers?

Overall, there are a variety of reasons to consider a balance transfer. However, it’s important to be aware of sneaky fees and revert rates that can hit you after the promotional period. 

The benefits of balance transfers

  • Pay off your debt quicker: switching to a credit card with a lower interest rate or 0 per cent balance transfer rate can help you pay off your debt faster.
  • Easier debt management: if you have multiple debts across different cards, it can be hard to keep track of repayments. Consolidating debt can make debt simpler to manage.
  • Lower interest rates: transferring your debt to a card with lower interest rates could save you hundreds or even thousands of dollars in interest.

The disadvantages of balance transfers

  • Additional fees and charges: credit cards can come with many different fees and charges, including bt fees. Read the Product Disclosure Statement before you apply to better understand these costs.
  • Higher rates after promotional periods: Once your interest-free period ends, you may incur a high interest rate on any outstanding balance. Make sure you work off any debt before this period ends.
  • Risk of more debt: purchases made on balance transfer cards will still accrue interest when you make purchases, so you could be at risk of accumulating more debt.

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 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.

How does credit card interest work?

Generally, when we talk about credit card interest, we mean the purchase interest rate, which is the interest charged on purchases you make with your credit card.

If you don’t pay your full balance each month (or even if you pay the minimum amount), you are charged interest on all the outstanding transactions and the remaining balance. However, interest is also charged on cash advances, balance transfers, special rate offers and, in some cases, even the fees charged by the company.

The interest rate can vary, depending on the credit card. Some have an interest-free period, otherwise you start paying interest from the day you make a purchase or from the day your monthly statement is issued. So avoid interest by paying the full amount promptly.

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 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.

Can I transfer money from my American Express credit card to my bank account?

If you’re an American Express credit card customer, you may not be able to transfer money from your credit card to your bank account. However, you may be eligible for cash advances, which involves withdrawing money through an ATM. 

To qualify for a cash advance, you’ll likely have to enrol for American Express Membership Rewards. Consider checking your online credit card account to see if you can withdraw a cash advance and, if so, the fees and charges you’ll incur for this transaction. 

You should remember that cash advances are different from balance transfers, which were available with some American Express credit cards earlier. Balance transfers allow customers to consolidate debt from high-interest credit cards to a credit card offering a lower interest rate. If you only recently applied for an American Express credit card, balance transfers may not be available irrespective of the card you own. 

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 use a credit card?

Credit cards are a quick and convenient way to pay for items in store, online or over the phone. You can use a credit card as a cashless way to pay for goods or services, both locally and overseas. You can also use a credit card to make a cash advance, which gives you the flexibility to withdraw cash from your credit card account. Because a credit card uses the bank’s funds instead of your own, you will be charged interest on the money you spend – unless you pay off the entire debt within the interest-free period. If you pay the minimum monthly repayment, you will be charged interest. There are many different credit card options on the market, all offering different interest rates and reward options.

Which credit card has the highest annual percentage rate?

The credit card market changes all the time, so the credit card with the highest annual percentage rate is also liable to change.

Keep in mind that credit card interest rates are expressed as a yearly rate, or annual percentage rate (APR). A low APR is generally good but also consider:

  • There can be different APR's for each feature of the card (e.g. purchases may have an APR of 14 per cent, while cash advances on same card could have an APR of 17 per cent.
  • Credit cards with a variable rate can change throughout the year, affecting your APR, so check the full details.
  • If you pay your balance in full every month, having the lowest APR is not as important as the other fees associated with the card. However, if you carry a balance from month to month, then you want the lowest APR possible.

What should I do if my ANZ credit card has expired?

Your ANZ credit card is considered expired only after the last day of the month and year marked on your card. For instance, if your card’s expiry date reads 03/22, it is valid until 31 March 2022 and expires on 1 April 2022. Typically, you should have received a new credit card by that date, and you won’t have to request a new card. 

Once you get the new card, you should remember to switch any automatic payments you have - such as a utility or mobile phone bill - from your expired credit card to your new credit card. Equally, if you are using CardPay Direct to repay your ANZ credit card debt, you may need to update the credit card account details for that service as well. 

In case the new card doesn’t arrive by the expiry date of your current credit card, you can call ANZ on 13 22 73 to find out the reason and if you need to request an expedited card. Please note that if you were planning to close your credit card account or request a credit card upgrade, you may need to call ANZ at least before the 25th of the month your current credit card expires in, as that’s when they may send you the new 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.

Can a pensioner get a credit card?

It is possible to get a credit card as a pensioner. There are some factors to keep in mind, including:

  • Annual income. Look for credit cards with minimum annual income requirements you can meet. 
  • Annual fees. If high fees are a concern for you, opt for a card with a low or $0 annual fee. 
  • Interest rate. Make sure you won’t have any nasty surprises on your credit card bill. Compare cards with a low interest rates to minimise risk.

Should I get a credit card?

Once you've compared credit card interest rates and deals and found the right card for you, the actual process of getting a credit card is quite straightforward. You can apply for a credit card online, over the phone or in person at a bank branch. 

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 do I transfer money from my Commonwealth bank credit card to my bank account?

Your Commonwealth bank credit card may include a cash advance benefit, but you won't be able to transfer money to your bank account. 

You can, however, withdraw cash from your credit card at an ATM. You should remember that you have to pay a fee for such transactions, and you’ll be charged interest from the day you withdraw the cash. 

Unlike other credit card transactions, you don’t get an interest-free repayment period for cash advances. Also, you may not be able to access your full credit card limit for a cash advance.

What should you do when you lose your credit card?

Losing your credit card is a serious situation, and could land you in financial trouble. Here is a simple guide detailing what to do when you lose your credit card.

Lock you card – Contact your provider and inform them about your lost credit card. From here lock, block or cancel your card.

Keep track of transactions – Look out for unauthorised credit card transactions. Most banks protect against fraudulent transactions.

Address recurring charges – If your card is linked to recurring charges (gym membership, rent, utilities), contact those businesses.

Check credit rate – To ensure you’re not the victim of identity theft, check your credit rating a month or two after you lose your credit card.

Can I transfer money from a credit card to a bank account with HSBC?

With HSBC’s cash transfer function, you can transfer money from a credit card to a bank account. Customers who wish to make cash transfers have to apply through HSBC and are charged interest on the transactions, but no other fees. Under the program, customers can:

  • Borrow between $500 and $15,000, so long at least 20 per cent of the credit limit is still available after the transfer
  • Transfer to any nominated bank account quickly. 


Registered HSBC online banking users can log in to their accounts and select credit cards online from the My Banking tab. They can then complete the form from the Cash Transfer option. On approval, the requested amount is transferred to the nominated bank account within three days.

Customers can also register for the cash transfer program via the Mobile Banking app. Don’t forget to check the interest rate you’ll be charged, both before and after any promotional period.

Can I use PayPal to transfer from a credit card to a bank account?

You can easily link your credit card to your PayPal account. When you need to make a payment, PayPal makes an instant transfer from your bank account, provided you’ve linked and confirmed your credit card details.For credit card holders, you can transfer funds from eligible cards listed in the “Instant” section of the money transfer page.

Here is how you can transfer money from PayPal to your bank account:

  1. On the “My Wallet” tab, select “Transfer Money” and then click on the “Transfer to your bank account” option.
  2. Choose the bank account where you want to transfer the money and click “Continue.”
  3. Enter the amount, review and click “Transfer Now.”
  4. When you confirm the transfer, the amount should be moved to the bank account linked from the chosen credit card.

What to consider before transferring money from your credit card to your bank account in Citibank?

You can transfer money from a Citibank credit card to a bank account depending on the available limit of each. The process is known as a cash advance transaction, and Citibank should allow you to transfer some portion of the total credit limit.

Transferring funds from a credit card to a bank account is likely to attract additional charges, so please consider the following potential costs:

  • A cash advance fee, which is a per cent of the total transfer amount
  • A 2 per cent transaction fee when you transfer money from a Citibank credit card to a bank account
  • Cash advance interest rate applicable on the transfer amount without any interest-free period.

To learn more about such transfers, you can contact the bank via the online service desk, email, or by calling 13 CITI (13 24 84).