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Balance Transfer Rate Compared

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Learn About Balance Transfer Credit Cards

Balance transfer credit cards rank as the best way off paying off credit card debt. Basically a balance transfer as the name suggests, enables borrowers to transfer existing outstanding balances onto a new card that charges a low introductory interest rate for a limited time only.

The introductory interest rate applies anywhere between six to twelve months. Card issuers use balance transfer offers to attract new customers. Balance transfers are particularly suitable for borrowers looking to pay off debt rapidly and for this type of borrower these deals are good.

Borrowers should be aware of a couple of things when comparing balance transfer credit cards. First, missing even a single payment is going to result in much higher interest rates. Secondly when transferring balances, card issuers charge a fee based on the amount of debt being transferred. This charge varies between issuers; however the average is 3%.

Borrowers should be realistic about balance transfer deals. For example, a borrower who transfers existing debt onto a new lower interest card should be realistic about whether they are able to pay most if not all of the debt during the introductory period.

Some credit cards even offer balance transfer deals with a zero per cent interest rate, however these tend to be very few and far between and such deals usually come with very strict terms and conditions, including a shorter introductory period, higher transfer fees and more expensive annual fees.

If you cannot find a balance transfer deal that offers zero per cent then there are still plenty of other cards which have very low introductory interest rates on balances transferred, and are much better than the 20% borrowers are likely paying on their existing debt.

Regardless of which type of credit card you are looking for, Money-AU will link you with a variety of lenders who offer a range of different options for people looking for the best credit card deals in the market.

Latest Compare Credit Cards News from the comparedinkum Blog

New Report Suggests Many Australians Are Struggling With Credit Card Debt

A new report by ASIC has found that 18.5% of Australians are struggling with credit card debt. The outstanding credit card debt in Australia totals $45 billion with $31.7 billion of that incurring interest. ASIC Deputy Chair Perter Kell says the findings prove that credit cards can result in financial difficulties for many Australians. Other research suggests that one fifth of all cardholders in the country are in a long-term debt trap with 1 in 10 carrying credit card debt for over a decade. Continue reading

Australians Not Using Balance Transfer Cards Properly

Balance transfer cards are popular with Australians seeking to pay down their credit card debt because they come with an interest free period. That does sound good doesn’t it? Unfortunately, the reality is most Australians are seriously misusing these cards and its costing them a packet. According to RateSetter 44 per cent of Aussies who use these cards to try to pay down debt fail to do so within the interest free period because they are unable to resist the temptation of spending more. A further 12 per cent simply lack the discipline to make the monthly minimum payment. Continue reading

Common Balance Transfer Pitfalls

Balance transfer cards are useful because they allow credit card borrowers to consolidate their debt onto a single card that usually has a long interest free period. This means the borrower is able to pay off their debt without incurring additional interest rate charges. This does sound too good to be true doesn’t it? Well to some extent it is, there is a catch, lenders are increasingly tacking on fees to transfer a balance, which is usually some fraction of the balance being transferred. Continue reading

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