So what are the reasons that you may need a balance transfer card, personally the reasons could be lengthy. Such as trying to pay down your debt or not let your debt explode to uncontrollable levels if your current situation changes such as a reduction in money coming into the household.
There are many balance transfer cards on the market today and they all are offered by the major banks across Australia.
The issue is which card is the one for your particular lifestyle, do you want a balance transfer card that will allow you to also generate rewards points to go travelling with or maybe you really only want a card that has a lower rate than most of the others on the market, giving you the greatest chance to pay off the debt in the shortest time possible.
Banks will try their best to lure customers to their products over the other banks. They do this by offering lengthy blocks of time with 0% interest on the balance that you transfer over to the new card as an incentive to eventually spend money with them and then in turn end up getting into some more debt.
This can be a very enticing proposition to see that you don’t need to pay any money for a very long time and your debt will remain the same, however is it a good enough reason to change over to the new bank in the first place? The answer is that perhaps it could be however this depends on what the interest rate will shoot up to after this ‘honeymoon’ period is over. Banks know they will probably make more money in the long run from a customer who has a previous history or racking up credit card debt, so they want them on their books and will offer situations that look favourable to get these customers on board.
Always be sure to read the fine print when it comes to securing any balance transfer card from any bank as there could be some hidden catches that may favour them more than you.
The most important thing you should know about are the interest rates from when you sign up, then once the period of 0% interest if over. It is also wise to find out about cash withdrawals from the card and at what rate they will charge you to do this, if you need some money immediately. Then of course what will the rate be once you have paid of the balance that was transferred to the card in the first place. This last point is very important, because it could highlight that the balance transfer card has now served its purpose and getting a no annual fee card or something like that would be the next logical step for you to choose.
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