Our ongoing analysis of online discussion about this card type.
Balance transfer credit cards in Australia are evaluated primarily on their rewards structures and insurance benefits, with annual fees and approval criteria varying substantially across products and applicants.
What's happening with balance transfer credit cards in August
Australians owed $44.2 billion on credit and charge cards in May 2026
Of that, $21.5 billion was still accruing interest, up 0.5% on the month (seasonally adjusted, Reserve Bank of Australia).
About half of all credit card debt in Australia is still generating interest charges, so understanding how a balance transfer card's interest-free period works could be relevant if you're carrying a balance.
A balance transfer credit card lets you move the outstanding balance from one or more current cards to a new card with a lower interest rate. The aim is to clear the balance faster while saving on interest.
Balance transfer offers give a reduced rate on the transferred balance for a set period. The most competitive deals are 0%, with periods typically from six months to two years and sometimes longer. These offers apply to both personal and business card balances.
An expert view on balance transfers
The point of a balance transfer is to clear your card debt. Aim to pay off the transferred balance within the low or 0% period; carry it beyond that and the debt gets more expensive.
Work out your monthly repayment by dividing the balance by the number of months in the offer. Avoid new purchases on the card, since they usually attract a higher rate.
Types of balance transfer cards
0% balance transfer cards charge no interest on the transferred balance for a set period, which can mean real savings if you clear it before the offer ends.
Low-rate balance transfer cards charge a reduced rate rather than 0%. You still pay some interest, but much less than a standard rate.
Some balance transfer cards also earn rewards. When your aim is to clear debt, treat that as a minor extra, not the reason to apply.
What to consider before applying
Interest rate: the low or 0% period usually lasts six months to two years. Check the rate that applies once it ends.
Fees: watch for balance transfer fees, annual fees and other charges.
Credit limit: make sure the new card's limit is enough for the balance you want to move. Your credit score affects whether you qualify and the terms you're offered.
Balance transfer credit card FAQs
A balance transfer credit card lets you move the outstanding balance from one or more current cards to a new card with a lower interest rate, mainly to pay off debt faster while saving on interest.
What happens to my balance transfer if I haven't paid it off when the introductory period ends?
Credit Card CompareEditor19 June 2026
Any amount still owing on the transferred balance reverts to the card's standard purchase or cash advance rate, whichever the issuer applies, and that rate is usually far higher than the introductory offer. Check the card's revert rate before you apply and aim to clear the transferred balance inside the offer period.
Dev19 June 2026
Is it worth transferring the leftover balance again to a new card once the offer ends?
Credit Card CompareEditor20 June 2026
Some people do, but a new application means another credit check and a new card to manage, and issuers can decline a second transfer of the same debt. A repayment plan that clears the balance during the first offer avoids that hassle altogether.
Nilooka Dissanayake
Vidhu Bajaj
David Boyd
