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A balance transfer is when you move debt from one credit card to a new card with an interest-free period. Using a balance transfer is a smart way to pay off your debt faster by avoiding interest charges. Here are the key things to know about balance transfers.
A summary of balance transfers
- Consolidate your debt by transferring an existing credit card or personal loan balance to a new credit card with a low or no interest period.
- Repay your debt sooner by taking advantage of the promotional interest-free period.
- Potentially use benefits from your new card to save money elsewhere.
Which banks can I balance transfer to?
Some of the banks have complicated underwriting relationships, which means if you have a card with X bank, you might not be able to transfer a credit card balance to the new bank you want. Our table tells you instantly if the card you’re considering is not an option because of an existing credit card or account you already have.
What is the minimum amount I can balance transfer?
Some banks allow as little as $100, with others you have to transfer at least $500. Use the table below to see the minimum amounts for each of the main banks.
| New Card Brand | Maximum % of Your Credit Limit You Can Transfer | Minimum Amount You Can Transfer | You Cannot Transfer A Balance from These Institutions |
| American Express | $10,000 or 70%, whichever is less | $50 | American Express |
| ANZ | 95% | $100 | ANZ |
| Bank of Melbourne (BOM) | 80% | $500 | BOM, BankSA or St George |
| Bank of Queensland (BOQ) | 80% | $500 | BOQ |
| BankSA | 80% | $200 | BOM, BankSA or St George |
| Bankwest | 95% | $500 | Bankwest |
| Citi | 80% | $500 | Citi |
| Commbank | 95% | $500 | Commbank |
| CUA | 80% | $500 | CUA |
| HSBC | 100% | $500 | HSBC |
| IMB | 80% | $500 | IMB |
| NAB | 90% | n/a | NAB |
| St George | 80% | $500 | BOM, BankSA or St George |
| Suncorp | 80% | $500 | Suncorp |
| Virgin | 80% | $500 | Citi |
| Westpac | 95% | $200 | Westpac |
| Woolworths | 100% | $500 | Woolworths |
What rate does the balance transfer revert to?
You also need to be sure whether the balance transfer rate reverts to the purchase interest rate or the cash advance rate at the end of the promotional period. This is the interest rate you’ll pay on any amount left over after the balance transfer period ends. If the balance transfer reverts to the cash advance rate it will usually mean you pay more interest on any amount left over.
If your question isn’t answered on this page or in the table, take a look at our Balance Transfer FAQs, and if you still can’t find the answer you’re welcome to submit your question there.
How much can I balance transfer to a new card?
How much you can transfer depends on your available credit. Most banks work it out as a percentage, which will be somewhere between 70% to 95% of your credit limit. You may need to apply for a higher credit limit so you can transfer the amount you need – but just remember to consider your eligibility, debt ratio to make sure you have a good chance of approval.
The below table will give you some idea of the credit limit you require to balance transfer the amount you want to.
| Maximum Amount You Can Balance Transfer % | |||
| Credit Limit | 70% | 80% | 95% |
| $2,500 | $1,750 | $2,000 | $2,375 |
| $5,000 | $3,500 | $4,000 | $4,750 |
| $7,500 | $5,250 | $6,000 | $7,125 |
| $10,000 | $7,000 | $8,000 | $9,500 |
| $15,000 | $10,500 | $12,000 | $14,250 |
| $20,000 | $14,000 | $16,000 | $19,000 |
A Step-by-step Guide: How to do a Balance Transfer
While it’s important to remember that the process of completing a balance transfer will vary according to the card you apply for, here is what you may expect:
| Step 1. Choose a balance transfer card. Now you know what to look for, you can easily compare the options on CreditCard.co.au to find the balance transfer card that will work for you.Step 2. Apply. With online application on most credit cards, you can usually apply for a credit card in around ten minutes. You will need to fill in all required information regarding your personal details, your employment, and your assets and liabilities. You will also need to prove your identity, usually with your driver’s license. There will be a section on balance transfers. Complete this to provide all necessary information regarding your current credit card (or cards), and the balance transfer amount.
Step 3. Approval. Depending on the card provider, you may receive a response in regards to your approval within 60 seconds, or it may be up to two business days, or longer. With an instant approval credit card, you will receive notification of the application status on your screen after applying. With other credit cards, you may receive notification by email. Step 4. Debt transfer. Once you have been approved, your new card provider will use the details you provided to process the balance transfer from your old card onto your new card. The card provider will usually provide an estimation of how long this process will take. If you have online banking set up, you can keep an eye on the transfer. Step 5. Your new card arrives. Your new credit card will arrive in the mail, usually within two weeks. You may be able to set up a PIN online, or this may arrive separately. If you have decided not to use the card for new purchases, you may choose to keep the card somewhere safe rather than in your wallet to avoid the temptation to spend. Step 6. Close the old credit card account. Whether you close the old card account is up to you. However, by closing the old account you can avoid the temptation to spend on it, plus you’ll no longer have to pay an annual fee for that card. Make sure the transfer has been processed before closing the account. |
An example of how a transfer can work for you
| Let’s say Rebecca spent $10,000 on her credit card, taking a trip, buying a new holiday wardrobe, and buying herself a few little treats. She didn’t want to stay in debt forever and knew a balance transfer card could help her save on interest while she cleared that balance.
Rebecca worked out she would need a little over a year to clear the balance, so chose a card with no annual fee, with a 0% balance transfer offer over 14 months, and no balance transfer fee. By repaying that debt over the introductory period, she will have saved $2,035 in interest over 14 months. |
Frequently Asked Questions about balance transfers
Can I transfer to the same bank?
No, banks hope to gain a new customer with a balance transfer offer. So, you can’t transfer between the same brand (you can’t transfer NAB-to-NAB, for example). You also may not be able to transfer between brands that have the same issuer. For instance, you can’t transfer between Westpac-owned brands St.George, Bank of Melbourne and BankSA. We’ve provided a list of the banks you can transfer to on our balance transfer guide.
Can I transfer debt from a personal loan?
Yes, some brands let you transfer debt from personal loans and other lines of credit, including Buy now pay later services. For more information and a list of credit cards brands with this feature, check out our blog here.
What fees will I pay?
Some banks charge a one-off balance transfer fee. It could be 1% – 3% of the total amount, balance transfer fees can add up. If you wanted to move $5000 to a balance transfer credit card that charged 1%, for example, you would pay an extra $50. A card with a 3% fee, on the other hand, would set you back $150 before any other charges are even applied.
Will I still get interest-free days while I have a balance transfer?
Some banks will let you keep your 44 or 55 days interest-free on new purchases as long as you pay off your account in full each month. Others will take away your interest-free days, so you’ll pay interest on all new purchases while you have an active balance transfer. In that instance, it’s best to put all your effort into paying off your balance rather than adding new purchases and interest charges to your card.
How long does the balance transfer process take?
It may take up to 10 business days to process a balance transfer. Sometimes you’ll have to apply for the balance transfer during the application process, and sometimes you can request it after you’re approved. It’s all up to the credit card provider and the particular balance transfer offer.
Do I need to cancel my old card?
Yes! You’ll need to close your old credit card account down yourself. Otherwise, you’ll be charged the annual fee forevermore, which is a sad waste of money.
For more information on this, check out our post on closing the balance transfer card when the promo ends.
Pauline Hatch
Pauline is a personal finance expert at CreditCard.com.au, with 9 years in money, budgeting and property reporting under her belt. Pauline is passionate about seeing Aussies win by making their money – and their credit cards – work smarter, harder and bigger.
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