Credit card interest can be a huge barrier to paying off the balance, with the average standard interest rate at 19.94% p.a. according to data from the Reserve Bank of Australia (RBA).
On a $5,000 balance, that means you’d be paying $83.03 in interest to start with. And if you were paying, say, $200 off the card each month, it would take you almost 3 years (33 months) to pay off the balance and cost you $1,515.39 in interest.
But you can save on interest by moving your balance to a card with a low or 0% introductory interest rate. Right now, there are 100 credit cards with 0% balance transfer offers in Finder’s database, with interest-free periods ranging from 6 to 36 months.
So, here’s our pick of balance transfer offers you can get in July 2021.
How did we pick this month’s line-up?
We selected the July line-up based on the length of the 0% p.a. balance transfer period, the annual fee and other valuable features on credit cards offered through Finder in July 2021.
A good balance transfer deal has a lengthy 0% p.a. interest offer, no balance transfer fee and a low or $0 annual fee. We’ve picked cards available through Finder with the longest 0% period and then weighed up their other features. There’s no one best credit card for everyone, so check details that matter to you. (And remember: you may not be eligible for a balance transfer offer from your current credit card issuer or bank.)
Best long-term balance transfer offer
HSBC Platinum Credit Card
- Balance transfer offer: 0% p.a. for 36 months with no balance transfer fee.
- Revert rate: 21.99% p.a.
- Annual fee: $29 in the first year ($129 after that).
- Purchase rate: 19.99% p.a.
- Eligible debts: You can transfer up to 90% of your approved credit limit from credit cards and store cards not issued by HSBC.
The HSBC Platinum Credit Card currently offers you 3 years to pay off your balance transfer with a 0% interest rate. There is no balance transfer fee and you also get a reduced $29 annual fee in the first year, which saves you $100 on the annual fee that applies from year 2 onwards ($129).
As an example of the value you can get from this offer, if you were paying $200 a month towards a $5,000 balance, you could have it paid off in around 26 months with this card (including the annual fee cost).
That would save you $1,515.39 in interest and cut 7 months off your repayments compared to a card with a 19.94% interest rate. You can use a repayment calculator (or Finder’s balance transfer comparison table) to see how much you can save based on your actual card details.
This platinum card also offers 2 complimentary airport lounge passes, a rewards program and HSBC Instant Savings when you spend with participating businesses in Australia and New Zealand – although you’ll get more value from the balance transfer offer if you pay off what you owe before making use of these perks.
To get this long 0% balance transfer offer, you need to apply while the promotion is in place and include your balance transfer request when you apply. While HSBC has not listed an end date for the offer, it could change at any time.
And if you want to see how it compares to other super-long BT offers, the humm90 Mastercard is currently the only other credit card with 0% interest for 36 months.
Best 0% p.a. balance transfer and $0 annual fee offer
St.George Vertigo Credit Card
- Balance transfer offer: 0% p.a. for 30 months with no balance transfer fee.
- Revert rate: 21.49% p.a.
- Annual fee: $0 in the first year ($55 after that).
- Purchase rate: 13.99% p.a.
- Eligible debts: You can transfer from $200 up to 80% of your approved credit limit from credit cards not issued by St.George, Bank of Melbourne or BankSA.
The St.George Vertigo Credit Card combines a long 0% balance transfer period with no annual fee in the first year. There is no balance transfer fee with this offer, which gives you 30 months to pay off your debt interest-free.
To give you another idea of how much you could save, if you owed $5,000 on a card with a 19.94% interest rate and were only paying the minimum amount each month, you could save $1,885.12 in interest charges with this offer.
After the first year, the annual fee goes to $55, which is competitive with other credit cards that currently offer 0% on balance transfers for 30 months or more.
The St.George Vertigo is also a low rate card, with a 13.99% interest rate for new purchases. That’s 5.95% lower than the standard average credit card rate.
But if you have any balance transfer debt left after the introductory period, a very high interest rate of 21.49% p.a. will apply until it’s paid off. In most cases, this means you’ll save the most by focusing on repaying what you owe within the 30-month introductory period.
If you want this offer, you’ll need to apply for the St.George Vertigo by 30 November 2021 and request the balance transfer as part of your application.
Best 0% balance transfer and 0% purchase rate offer
Bankwest Breeze Mastercard
- Balance transfer offer: 0% p.a. for 15 months with no balance transfer fee.
- Revert rate: 9.90% p.a.
- Annual fee: $0 in the first year, then $49.
- Purchase rate: 0% p.a. for 15 months, then 9.90% p.a.
- Eligible debts: You can transfer a minimum of $500 from credit cards not issued by Bankwest, with a maximum amount of up to 95% of your approved credit limit.
Right now, the Bankwest Breeze Mastercard gives you 0% interest on balance transfers and purchases for the first 15 months, with no balance transfer fee. You’ll also save with a $0 annual fee in the first year, which then goes to $49.
So, how much could this offer save you? Moving a $5,000 debt from a card that had a 19.94% interest rate would save you $1,034.14 in interest if you only paid the minimum each month. Or, if you wanted to clear this balance in the 15-month introductory period, you could do it by paying $333 per month – plus the $49 annual fee after the first year.
While 15 months is not a long introductory period for balance transfer offers at the moment, it’s strong for a card that offers 0% interest on both balance transfers and purchases.
Plus, at the end of the introductory period, both the purchase rate and the balance transfer rate revert to a low 9.90% p.a. That is a whole 10.04% lower than Australia’s standard average credit card rate.
If you want this offer for a balance transfer and/or new purchases, you’ll need to apply as a new customer during the promotional period. While Bankwest hasn’t listed an end date, like most 0% interest rate offers, it is only available for a limited time.