Best Balance Transfer Credit Cards

Before you commit, it’s important to compare your options to make sure you’re getting the best balance transfer credit card based on your goal. For example:

Below are some of the main factors to look at when choosing the best balance transfer credit card for your situation.

This will depend on your starting balance and the timeframe available – i.e. the duration of the 0% balance transfer offer. But to give you an idea, below are some hypothetical examples based on sample card balances and common balance transfer offer lengths.

Now that you’ve transferred your existing credit card balance to a new card, you’ll want to pay down the balance as quickly as possible, without building up any new debt.

Here are some steps to consider to help you clear your credit card balance faster, with expert tips from financial coach David Rankin.

Cancel your old card immediately

“If you decide to apply and your application is successful, and if the limit of the new card is sufficient to transfer the whole balance of the old card across to the new one, now is your chance to close that old card,” Rankin says.

Contact your provider and ask them to cancel the account completely. Simply cutting up the card or removing it from your mobile wallet won’t mean the account is cancelled. You’ll still technically have a credit card account and you could still be charged fees.

One thing to watch out for here is whether your old card came with complimentary insurance (e.g. there are some credit cards with travel insurance) you rely on. Once the card is cancelled you will lose that cover.

Pay more than the minimum repayment amount

If you only pay the minimum monthly amount, you won’t clear the debt during your credit card's balance transfer period.

Rankin suggests a different approach: "Work out how much needs to be repaid on the new card by the monthly due date to pay off the whole balance within the interest-free term."

You can also make one-off transfers to your credit card if you have any extra cash built up.

"At 0% interest, every dollar you repay is a dollar off the balance, so – if you have the discipline to do so – it’s an opportunity to become debt-free quicker," Rankin says.

Avoid new purchases on your balance transfer card

This is an important one. New spending on a balance transfer card can be bad news for a couple of reasons:

Adding to your balance will make it harder to clear. New purchases generally incur interest. In other words, they are not eligible for the low interest balance transfer offer you signed up for.

"The aim of any balance transfer application is to lower your overall credit footprint, not increase it", Rankin explains.

"The new card should be used solely to pay down the old debt, so cut up the new card or do whatever it takes to ensure you don’t spend on it."

Create a spending budget and plan

These steps will be easier to do if you have a budget to help manage your spending. It can be helpful to have a written budget (or there are apps you can use) that outlines your regular spending.

By working out how much you need for your essential spending each month, fortnight or week (and some extra for other optional costs if you want) you’ll have a firm budget to work from. For some people, this can be an effective way of avoiding overspending.