Balance transfer offers could be a way to help you get on top of outstanding card balances.
Over the past 12 months, St.George have helped more than 80,000 customers take advantage of a 0% p.a. balance transfer card offer for 12 or 18 months on a Low Rate card1.
Based on an average balance transfer of $7,000 and assuming these customers held a Low Rate product with a card interest rate of 13.49% p.a., this works out as a potential saving of more than $75 million dollars for these customers2.
You can use our balance transfer calculator to get an idea of how much you could save.
So what exactly is a balance transfer?
In a nutshell, a balance transfer is when you move your outstanding credit card balance from one or more credit cards to a new card, usually with a lower interest rate on the transferred amount for a set period of time.
As with all credit products, it’s really important you read the Terms and Conditions upfront. That way you’ll be in a good position to make any offer work for you.
Balance transfers do not refer to transfers of money between St.George credit cards, or between St.George credit cards and any other St.George account.
Paying the balance back
If you're interested in a balance transfer to secure a low (or even 0% p.a.) interest rate on your outstanding balance, it's important to have a plan from the outset about how you intend to pay it down.
It’s a good idea to be realistic about how long it will take you to pay down your total balance. If it isn't likely to be within the balance transfer period, keep in mind what you’ll be paying in interest after the balance transfer offer ends and how this will affect your ability to pay down the balance.
Keep in mind that any purchases you make using your new card won’t be covered by the balance transfer rate – and obviously the larger the balance on your card, the longer it may take to pay off.
Other things to keep in mind
Balance transfers can be a way of lowering interest repayments, but keep the following in mind:
- Generally, you won't be able to do a balance transfer from the same bank or from an overseas credit card
- There is usually a limit to how much you can transfer (with St.George you can transfer up to 95% of your new credit limit)
- You won’t be able to take advantage of any interest free days on purchases.
What happens at the end of the balance transfer period?
This is where it really pays to know what you're signing up for. At the end of the balance transfer period, the interest rate applied to any outstanding balance transferred will generally either revert to the standard variable purchase rate or the standard variable cash rate.
It's important you know which you'll revert to, as there is generally quite a significant difference between the two. The good news is that all St.George credit cards revert the balance transfer rate to the purchase rate (currently 13.24% p.a. for Vertigo Low Rate) at the end of the promotion period, as opposed to the current cash rate of 21.49% p.a.
If you feel as though a balance transfer might help, try using our Balance Transfer calculator to work out the figures involved. If you've already decided, you can apply online now.
Find out how much you could save
Ready to get started with a low rate card?
Conditions, fees and credit criteria apply. The information on our website is prepared without knowing your personal financial circumstances. Before you act on this, please consider if it's right for you. If you need help, call 13 33 30.
1. The promotional balance transfer rates are available when you apply for a new St.George credit card between 21st February 2017 and 1st May 2017 and request at application to transfer balance(s) from non-St.George, Bank of Melbourne and BankSA Australian issued credit, charge or store cards. The variable purchase interest rate applies to balance transfers requested at any other time. Promotional rate will apply to any balance(s) transferred (min $200 up to 95% of your approved available credit limit) for the promotional period, unless the amount is paid off earlier. The variable purchase rate will apply to balance(s) transferred but left unpaid after the end of the promotional period. Card activation will trigger the processing of the balance transfer. St.George will not be responsible for any delays that may occur in processing payment to your other card account(s) and will not close the account(s). Interest free days don’t apply to balance transfers.
2. Based on an average BT balance of $7,000 and the average Low Rate product interest rate of Commonwealth Bank, Westpac, ANZ and NAB of 13.49% as at 14 October 2016.
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