A credit card balance transfer can be a smart way to reduce the interest you pay, simplify your debt and make your repayments easier. However, before you apply for a new card, there are a few things you should consider.

What is a credit card balance transfer?

 A credit card balance transfer is when you move your debt from one credit card to another. The new card might have a lower interest rate for a limited promotional period or reduced fees, making it easier to repay your debt.

For example, Qudos Bank’s Visa Platinum Credit Card has a five month introductory rate of 4.99% p.a.1 and a low annual fee of just $1992.

The benefits of credit card balance transfers

Before you transfer your balance, you should check if there are benefits to you in doing so. With that in mind, here are a few of the benefits you may expect when transferring your balance to a new credit card. For more information about credit cards, check out our post about being credit card smart.

1. Lower interest rates

The average credit card interest rate in Australia is 19.94%3, according to the Reserve Bank. Credit card balance transfers might save you money on interest in the short term, which can help you get on top of your debt.

2. Lower Fees

There are benefits that come with balance transfers as customers can explore their credit card options using comparison sites like Finder to get the best rate and pay lower fees.

Again, this can help make it easier to manage your debt, allowing you to have more flexibility when it comes repayments, or even help you consolidate debt across multiple credit cards and reduce the fees you’re paying for.

Be sure to check the product’s terms and conditions and consider these before signing up.

3. Simplified repayments

Having multiple credit cards can make it difficult to remember when your repayments are due, or how much you owe. A balance transfer where you consolidate multiple credit cards can simplify your repayments, giving you one repayment date and one set of conditions to remember. Much easier to manage!

Things you should consider before a balance transfer

1. The promotional period

Most balance transfers have a promotional or introductory period, during which time you might pay lower fees or enjoy a reduced interest rate. To get access to this, make sure to do your own research to compare the best rates and fees, so using sites such as Finder can help you compare different credit cards.

When this period ends, you may pay higher interest rates and fees if you don’t pay off your debt before the end of the interest-fee period, so it’s important that you consider all the terms and conditions before doing a balance transfer.

2. Balance transfer conditions

Most credit card balance transfers have conditions that you’ll need to consider before applying. For example:

  • You may only earn rewards on new purchases, not the balance that you transferred.
  • Purchases on top of your original balance transfer amount might be subject to the card’s normal interest rate.

Each bank has different balance transfer conditions and the ones listed above are examples of what you could experience when switching to another provider.

It’s also important to remember that your new card’s fees may have different ongoing conditions to your old card, which are worth reviewing before you apply.

3. Fees and charges

Banks can charge a fee when you transfer a balance from another credit card - make sure you know what this is before you apply. For example, the Visa Platinum Card charges a rate of 4.99% for a five-month introductory period on balance transfers. We encourage you to explore your options and read through the terms and conditions before you sign up to a new credit card, so that you’re likely to get the best deal.

4. Rewards

Before switching cards, it’s worth taking a look at the new card’s rewards system to make sure they’re comparable or better to your existing rewards (if that’s something that is important to you). 

Applying for a credit card balance transfer

Once you’ve done your research and made sure that a credit card balance transfer is right for you, it’s easy to apply with Qudos Bank.

To apply for Qudos Bank’s Visa Platinum Card, fill out our Credit Card application form to get started. 



The information on this page is of a general nature and is not intended to be a substitute for personal advice. This information has been produced without taking into account your personal financial circumstances, objectives or needs. You should consider the appropriateness of the information to your financial situation and seek personal advice before acting on any of this information. Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557 AFSL/Australian Credit Licence 238 305.

Before opening a credit card account with us, you should read our Credit Card Conditions of Use, Visa Platinum Credit Card Terms and Conditions , Qantas Points Banking Rewards Terms (as relevant) and Financial Services Guide .


1. Intro rate applies to all transactions (including purchases, cash advances and balance transfers) for the first five months from the first date your account is approved and then reverts to the standard variable rate (currently 18.99% pa).
2. Annual fee charged upon account opening and annually thereafter.
3. https://www.finder.com.au/credit-cards/credit-card-statistics

 Published July 2022