Archive for the ‘Balance Transfers’ Category

Balance Transfer Offers

Thursday, June 18th, 2009

Balance transfer credit card means that you repay one card’s debt with another card. To put it more simply, if you have a debt of $1000/- on card A, and the interest rate is 18%, you opt for card B and get the $1000/- debt transferred to card B, which is charging you a lower rate of interest. By doing so, you save the money on interest. In Australia, a number of balance transfer offers are available for 6 months, 12 months, and permanent ‘for life’.

You are allowed to transfer your old debt at a lower interest. You have to choose the duration in which you will repay the debt. The lower rate will be applicable only till the stipulated time. Make sure that you repay your old debt in the stipulated time; else you will end up paying higher interest.

The golden rules to be remembered with Balance Transfer credit cards are:

  1. Repay the debt as early as possible. In case you are unable to pay one installment, the bank may change the lower interest rate to the normal rate and you will have to pay more interest.
  2. Never use the balance transfer card for purchasing or withdrawing money. Although the balance transfer card allows you to repay the old debt at a lower interest, a higher rate may be applicable for the new debt. When you repay, all the money will go towards cheaper debt, and the new debt with higher interest keeps on accumulating. Ultimately, instead of saving money on interest, you end up paying more. In case, you need a card for shopping, opt for a new card which charges you a lower rate of interest.

In Australia, the balance transfer cards do not attract any transfer fee, unless specified other wise. Thus, if care and caution is used in dealing with the Balance Transfer Credit Card, you will be able to save considerable money in interest.

Want to compare some of the best balance transfer credit cards in Australia?

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Low Interest Platinum With Rewards

Monday, May 11th, 2009

Do you want a platinum credit card with low interest and rewards? Well Citibank have introduced the Citi Clear Platinum, a low interest platinum card with a nice rewards package. The low interest rate comes at less that 12%, that is a low platinum rate when the average card is around 20%. Citibank has set the tone for the futue of Platinum credit cards, by introducing a card with Platinum features, without the platinum price tag.

Not only does the Citi Clear Platinum deliver with a low interest rate, it also comes with a range of platinum benifits. The two rewards programs for this card are, Citibank World Privilages and Citibank Concierge. These reward packages combine to give you premium bookings for restaraunts, movies and concerts. You also get discounts with Citibank partner products and free international travel insurance for your family.

More great features include a 0% on balance transfers for 6 monts and a low platinum credit card annual fee of $85, when some cards come with annual fee upwards of $300. If you are looking for a cheap platinum credit card offer, then the Citibank Clear Platinum will be tough to beat. Want to learn more about the Citibank Clear Platinum?

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Your Guide to Balance Transfers

Friday, May 1st, 2009

Balance transfer credit cards are fast becoming a popular choice for Australians. A balance transfer offers you an easy way out of a high interest credit card trap, by allowing you to transfer you old balance to a new lower interest rate with a special introductory period, that can start as low as 0% for 6 months.  Understanding balance transfer deals can be a difficult task, however here are a few easy tips to help you understand a balance transfer offer.

1. Check the purchase rate on the credit card offer. If you currentl paying 20% interest, then the new credit card you are applying for should be lower. Some balance transfer cards are as low as 10.99%.
2. What is the special introductory offer rate. Balance transfer rates range from 0% to 5.99%, with a period of between 6 to 12 months.
3. Calculate that you can pay off your old balance within the special period time frame. After this period a balance transfer will revert to a cash withdraw rate, that is normally 20% or higher.
4. Check the fine print for fee’s and charges on your new card. Most banks will have some fee’s involved with a transfer. They differ from bank to bank.
5. Check the fine print of your old card. Some credit cards will charge you to get out of the account.

After you have done your research then you can decide for yourself, whether a balance transfer is right for you. It makes sense to transfer to a lower interest credit card, though the only way that you will be in front at the end of the process is to pay off your outstanding balance in the allocated time.  Be sure to get rid of the old card. Most people get into massive credit card debt by keeping the old high interest card and maxing it out again.

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Get a Better Credit Card

Friday, May 1st, 2009

The average Australian credit card debt has risen to roughly $3500 in 2009 making it on of the biggest household debts in Australia. During the credit crunch, families have been struggling to stay afloat, and are using credit cards make it through the month. Currently in Australia the total credit card debt is around 42 Billion dollars. The stat that is most amazing, is that the average amount Australians pay on credit card interest rates is around 19%. The fact that the average credit card interest rate is so high shows, that people are doing one of the following.

1. Unaware of the interest rate they are paying.
2. Not caring about the interest rate they are paying.
3. Unaware of lower interest rate credit cards.
4. Unaware of balance transfer offers.
5. Not shopping around for the best deal, before they sign for a card.

Currently in Australia there are many credit card deals, that offer an interest rate of between 10 and 12 percent. If you are the average Australian paying 19% then you may wish to consider making a change to a lower interest rate offer. Some credit cards, such as the St George Vertigo and Aussie Mastercard, offer a balance transfer rate of 0% for 6 months and 4.99% for 12 months respectively. It makes sense to take advantage of these balance transfer offers while you can, just as long as you are willing to cut the high interest rate card, after you have paid it off.

One reason credit card debt is so high, involves individuals not getting rid of the old, high interest credit card once they have transferred the amount to a new lower rate card. People are getting stuck with, two, three, sometimes four credit card repayments due to tough economic times and bad management of money. Balance transfer deals can work if properly executed, however you must be diligent and follow the rules to make it beneficial for you.

If you are one of the Australians experiencing difficulties with credit card debt, then check this Australian Government Website for debt help

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Voted Best Balance Transfer Credit Card for 2008

Friday, May 1st, 2009

The St George Vertigo MasterCard has recently received Money Magazines prestigious award, for the best balance transfer credit card. At the moment St George is offering a 6 month, 0% interest rate on transfers from your old card balance. Balance transfer offers have been very popular as of late, due to the fact that if you are paying a high interest rate on your current card you are able to transfer to a new, lower interest rate credit card with a low or no interest rate period, where you are able to pay off the outstanding balance.

Other credit cards that have similar offers to that of the Vertigo MasterCard include, ANZ Lowrate, Citibank Clear and the Aussie Mastercard, each of which have a balance transfer deal that will save you money, when utilized correctly. If you are interested in a balance transfer credit card offer or require further information click here.

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