Overview of our best balance transfer credit cards

12 May 2008

Credit cards often offer generous balance transfer deals to tempt customers these days, but sometimes this may be hiding an otherwise inferior card. Long interest free balance transfers are excellent for debt reduction, but they can also see you caught up in debt all over again if you choose credit cards which have many disadvantageous features. This overview of balance transfer credit cards contains cards that all have up to 6 months interest free on balance transfers, but they do not all offer the same all-round value.

The ANZ Low Rate MasterCard offers a low rate of 12.99% on purchases with up to 55 interest free days for $58 each year in annual fees. The cash advance rate is reasonable at 20.99% p.a. which is within the usual range of most credit cards. This card also allows for an additional three cardholders at no extra cost.

The NAB Low Rate Visa Credit Card has a 12.79% p.a. interest rate on purchases with a cash advance rate of 19.19% p.a. It also gives the benefit of up to 55 interest free days on purchases, costing very little in annual fees at $49 per year. Unfortunately, while the NAB Low Rate Visa Credit Card has many attractive features, any unpaid amount from balance transfers after the interest free period has ended will be charged interest at the cash advance rate. If you are unsure about whether you can pay in full in 6 months, you may need to think carefully about whether this credit card is right for you.

The Citibank Clear Card offers lower interest rates than the previous two cards of 11.99% p.a. on purchases and 18.49% p.a. on cash advances, but it costs a bit more at $65 in annual fees. With up to 55 interest free days on purchases, you will want to consider whether you need a low interest rate, or if interest free days will be all you need.

The Aussie MasterCard provides the same low interest rate on purchases as the Citibank Clear Card, but also a lower cash advance rate of 15.99% p.a. and an annual fee of just $49. This is excellent value, and also gives you up to 55 interest free days on purchases.

For a low purchase rate, you cannot go past the St. George Vertigo MasterCard at only 10.99% p.a. but avoid cash advances as the rate is 20.49% p.a. For $45 in annual fees and up to 55 interest free days on purchases, you cannot ask for better value in purchase interest. You will need to pay off your balance transfers before benefiting from the card, however, as interest free days on purchases do not apply while any outstanding balance transfer amounts exist on the card.

Remember that you do not need to be an existing customer of an issuer to be accepted for one of their credit cards. You may stay with your current bank and still benefit from the advantages that another bank offers with its credit cards.

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