Credit card offers provide different benefits depending on what your needs are. There are rewards cards, no annual fee cards, low interest cards and much more. However, if you are looking to lower your interest rates then a balance transfer offer at 0% and a purchase credit card offer also at 0% would certainly provide a lot savings.
Featured Balance Transfer & Purchases Credit Card
Double your benefits with the ANZ Platinum Credit Card which gives you a low introductory rate on both purchases and balance transfers up to 55 days interest free on purchases.
- 0% p.a. for 6 months (reverts to 19.24%p.a.) on purchases
- 0% p.a. for 6 months on balance transfers
- $0 annual fee for the first year( $87 thereafter) annual fee
- 20.99% p.a. on cash advances
Featured 0% Purchases Credit Cards:
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
 ANZ Platinum Credit Card |
An introductory purchase rate adds to its Platinum features. Also comes with a $0 Annual Fee in the first year and the ability to waive this in subsequent years. | 0% for 6 months (reverts to 19.24%) | 0% for 6 months | $0 annual fee for the first year( $87 thereafter) | 20.99% |   |
 Westpac 55 Day Credit Card – Special Offer |
No annual fee for the first year, plus a promotional rate on balance transfers and purchases. | 0% for 5 months (reverts to 19.59%) | 3.99% for 6 months | $30 | 21.49% | |
 American Express Platinum Edge Credit Card |
A low interest rate platinum credit card with bonus point reward offer | 0% for 6 months (reverts to 20.74%) | $149 | |
||
 St George Gold Low Rate Card |
An introductory offer on balance transfers and purchases, Plus a low annual fee. | 15.99% | $79 | 20.24% | |
|
 NAB Low Rate Visa Card |
A credit card with a low 12 month introductory purchase rate offer, reverting to a low ongoing rate. | 2.99% for 12 months (reverts to 13.24%) | 4.99% for 6 months | $59 | 21.74% | |
 American Express Gold Ascent Card |
Enjoy the benefits of earning Membership Rewards Points without having to pay an annual fee. No points capping or expiry as long as your account is active. | 0% for 6 months (reverts to 20.74%) | $0 | |
||
 American Express Platinum Reserve Credit Card |
Receive a complimentary domestic or international return flight every year OR choose to receive a Complimentary 1 night stay at one of the selected luxury hotels in Australia. | 0% for 6 months (reverts to 20.74%) | $395 | |
||
 ANZ Low Rate MasterCard – Balance Transfer |
A credit card with a low interest rate on balance transfers and purchases. | 0% for 3 months (reverts to 13.24%) | 0% for 3 months | $58 | 21.49% | |
 ANZ First Visa Credit Card |
A great first credit card option. A low interest rate on balance transfer and purchases. | 0% for 3 months (reverts to 19.24%) | 0% for 3 months | $30 | 20.99% | |
 Citibank ReadyCredit |
Introductory low rates on purchases and balance transfers for the first 12 months. | 18.99% | 2.9% for 15 months | $0 | 18.99% | |
 Bankwest Zero MasterCard |
A great $0 annual fee credit card, with great introductory offer. | 1% for 6 months (reverts to 17.99%) | 4.99% for 12 months | $0 | 18.99% | |
0% balance transfers are an excellent way to pay down your debt and pay it down fast. And, 0% purchases offers make it possible for you to use a credit card without the hassle of paying interest fees even if only for a limited time. Wouldn’t it be wonderful if there were cards that offered these two components at the same time? There are!
You can find credit cards that offer both 0% balance transfers AND 0% purchases for a certain term. The immediate benefit is the ability to use the same card for two completely different purposes. These cards make eliminating debt easier and if you need to make purchases you do not have to switch to a different card and you do not have to pay those pesky interest charges.
It is important to be able to distinguish the different types of offers. There are 0% balance transfer offers that exist on their own and there are offers that exist with the combination of both offers. Let’s look at how each function.
The Straight 0% Balance Transfer Offer
There are many types of balance transfer offers out there that give varying terms as part of the agreement. Some providers offer 6 months at no interest, some offer 9 months and there are even 12 month no interest offers. The most common offer, however, is the 6 month deal and you might be hard-pressed to find the longer ones in abundance at this time. These are not recommended for use as purchase cards. Here’s why.
The Hierarchy of Payments
When you receive a 0% balance transfer card, there is a provision in the Terms and Conditions that calls for payments being applied to balances in a certain order. For example. when you look at your your credit card statement, you will see that your balances are separated into different categories. They are listed by different percentage rate. The 0% transfer balance will be at 0% until the end of the term. However, other balance that are made through purchases will be charged at a different interest rate and will be listed separately from your 0% transfer balance. When you make a payment, your payment will be applied to the balance that has the lowest rate first. This means that your other balance will continue to accrue interest at the higher rate until your balances at the lower interest rates are paid off.
This may seem tricky or misleading but it isn’t. It is clearly stated in your Terms and Conditions. Granted, the print is very fine but all of the terms are stated in there. It is up to you, the consumer, to look over Terms and Conditions to make sure you agree to all of the provisions of the credit card agreement.
The Combination 0% Balance Transfer and 0% Purchase Credit Card
There is an alternative to the straight 0% balance transfer card. You can have a 0% balance transfer card AND a 0% purchase card all wrapped into one. There are several advantages to this. First, you have the benefit of using one card for two different types of transactions and secondly, the hierarchy of payments does not apply – at least for a while.
After The Introductory Period…
Once the term of the offer expires, it will go up to the specified interest rate. This should not be of concern to you if you have made the concerted effort to clear your debt within the introductory rate period. This offer will essentially be a no interest loan from the credit card company.
There is an option if you still have a remaining balance on your card. You can scout out additional 0% balance transfers. While this may seem appealing, it is not always the most prudent tactic for your credit report. You can choose to do this in order to maintain your savings on interest but your credit report may be adversely affected as a result. In fact, consumers who do this are often referred to as “credit card tarts.”
Things to Consider and Look Out For
The rate is, without question, a great deal, however, there are other factors that you will want to take into consideration when looking at these offers. They are as follows:
- Balance Transfer Fees: There are sometimes fees assessed when you sign up for a balance transfer offer. Some of them are steep enough to not make it worth your while to go through with the offer. Check out the fees and see if it is still a benefit.
- The Standard APR after Introductory Period: If this rate is too high and you are still carrying a balance after the introductory period, it may be too much to risk in taking the offer.
- Cash Advances: These are not recommended on these types of cards. They will not be covered by the 0% offer and will be subject to the hierarchy of payments.
- Annual Fees: Sometimes the annual fees can be quite high. Make sure that they are not higher than the average card. You may still find it a benefit if you are disciplined about getting your balances cleared, however.
Make Comparisons With Other Cards
Comparing one 0% balance transfer with another may seem like comparing apples to apples but it isn’t. There are aspects to the cards that can be downright confusing or not right for your situation. You should compare carefully so you do not end up with an offer that ends up costing you more than it benefits you. When comparing these cards, you should ask yourself the following questions.
- What is the length of the offer period? You may have what seems like a terrific offer in hand but there may be some points that are missed without careful inspection. Not all cards offer the same deal for the same time period. For example, your balance transfer offer may be at 6 months but your 0% purchase is for only 3. You should check and see that they are both for the same period of time. This is a very important consideration because of the hierarchy of payments factor. Your balances that are at the lowest interest rate will be paid off first and the higher balances will continue to accrue interest while waiting for the lower balances to be paid off. For example, if you have a large balance in your 0% balance transfer area then your purchases that are now at 20% will continue to accrue interest until that large balance is paid down. The offers that provide the longest rates are, of course, the best deals to look out for. And, the introductory rates should ideally run concurrently.
- What is the regular interest rate once the introductory rate ends? This is another important aspect to consider. Let’s say, for example, that you transferred your balance to your new 0% balance transfer card and your previous card was at 15% interest. This is considerable savings depending how big your balance is. However, your new card’s introductory rate expires in 6 months and the regular rate is set at 20%. This is not a good deal for you and you may end up paying more than you had anticipated.
- What are the different balance transfer fees? Each card will provide different fees so it is important to look carefully to see exactly what the balance transfer transaction fee is. If the fee outweighs the benefit of making the transfer then you may need to move on the next best deal.
- What is the interest rate for cash advances? Taking out cash advances is rarely a good choice but there are some rates that are lower than others. If you want to have the option available to you then choosing a card that has the lowest interest rate is the best choice. They are usually charged a rate that is higher than the regular APR. It will then remain untouched behind the debt that is set at a lower interest rate due to the hierarchy of payments. Make sure to choose wisely.
- How long do you have to transfer a balance? When you choose a balance transfer card, there is usually a time limit in which you are given to make a balance transfer. In some cases, it is as short as 30 days. If you do not transfer a balance within the specified time period then opportunity is lost. You will want to act quickly when you first obtain your card.
Other Tips to Get the Most Out of Your Card
Find out exactly how to do a balance transfer – The fastest and easiest way is to do it immediately when you are applying for your card. The application should give you precise details on how to do this. You can also use an online facility if you choose to do after you receive your card. The other option is to do it over the phone with telephone banking. The last option is to use the snail mail method and put it on the paper application that came in the post and mail it directly to the credit card provider.
Make your purchases quickly – If you have plans to make purchases on your 0% purchases card then you should do so quickly so you have time to pay it off during the introductory period.
Pay off your balances as soon as possible – It doesn’t make sense to take advantage of such an offer if you do not plan to pay off your balance within the introductory rate periods. If you are able to, you can stand to save yourself a lot of money.
0% balance transfer and 0% purchase offers are a great asset to any person’s personal finance arsenal. If used appropriately, it can be a tool for managing and saving money.
Posted on Saturday, June 5th, 2010 at 8:04 pm
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