Advantages of 0 Balance Transfer Credit Cards

Australian zero balance transfer credit cards allow users to consolidate their debts onto one card without paying any interest for a period of time - usually between 6 and 15 months; during this time you can clear the new principle debt completely without paying any interest.

This is attractive to people who have debts on other credit cards and are paying high interest rates (often around 20%) because these debts may be growing larger all the time; with 0 balance transfer cards you can "buy" a little time on your debt without it growing, helping you to get your personal finances in order.

Potential Negatives of 0 Balance Transfer Cards

If you are considering a 0 balance transfer card you need to be committed to clearing the debt within the introductory period. The penalties for not paying off the transfer amount within the specified period can be high interest rates on the remaining balance.

You also need to be alert. Read the small print and find out what ALL the other features of the card are – including all fees and penalties.

There will be a fee for making the original transfer as it deters people from "surfing" through the various deals and changing each time they expire. The fee is usually a percentage of the balance to be transferred, but it may be capped.

Finally you need to be disciplined. Many of these cards incorporate high interest rates for making new purchases.

Bear in mind that if you have a bad credit rating from racking up large debts on other cards your application for a new card may be declined.

The Lower Bills Promise

We can't promise you'll be approved but we can promise to provide you with the right information so that you apply for the best credit cards possible!