Whenever you apply for a new credit card or balance transfer offer, you need to be aware that these applications – both successful and unsuccessful – will appear on your credit report. Therefore, when you are considering six month balance transfer offers, it is important to look at the promotional interest rate, but also the card’s additional features, so you will be happy to keep the card after the end of the six month period, and avoid another credit application.
With a 4.99% interest rate, these six month balance transfer offers are not the cheapest around, but if you are looking to compare balance transfers, and credit card packages you can enjoy for the long term, then simply note that as the balance transfer period is so short, there is very little time for you to accrue interest from the low rate.
Featured 4.99% for 6 Months Balance Transfer Credit Card
Save on interest with the NAB Low Rate Visa which features a 4.99% p.a for 6 month balance transfer offer. You will continue to make savings on everyday purchases with a low ongoing rate on purchases, up to 55 days interest free and a low annual fee.
- $59 annual fee
- 2.99% p.a. for 12 months (reverts to 13.24% p.a.) on purchases
- 4.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.74% p.a.
- 55 days interest free
- Built in NAB Visa payWave contactless technology allows you to make small purchases on the go
Best 4.99% Interest for 6 Months Balance Transfer Offers:
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Cash Advance Rate (p.a.) | ||
|---|---|---|---|---|---|
 NAB Low Rate Visa Card |
2.99% for 12 months (reverts to 13.24% ) | 4.99% for 6 months | $59 | 21.74% |
  |
 NAB Velocity Gold Card |
20.24% | 4.99% for 6 months | $150 | 21.74% |
|
 NAB Qantas Gold Card |
20.24% | 4.99% for 6 months | $145.50 | 21.74% |
|
 NAB Velocity Standard Card |
20.24% | 4.99% for 6 months | $65 | 21.74% |
|
 St George Platinum Card |
15.99% | 3.99% for 6 months | $89 | 21.49% |
|
What is a 4.99% Interest for 6 Months Balance Transfer Offer?
To take advantage of a 4.99% interest for six months balance transfer offer you must be transferring a credit card or store card balance from another provider. Balance transfer offers are for eligible new customers only, where you can enjoy a low interest rate charged on your credit card balances for six months, when your standard interest rate could be three times as much.
With a 4.99% interest balance transfer offer for six months, look at how much you could save:
With a $2,000 balance at 18% interest your minimum monthly repayment will be around $90 and assuming you don’t make any new purchases on your card:
- You will pay off your balance in 2.3 years, or by making 28 repayments.
- In that time you will have paid more than $451 in interest.
With a 4.99% interest rate you can repay your balance in 6 months by:
- Making repayments of $350 per month.
- You will pay just $28 in interest, plus be debt free.
Even if you paid the higher $350 monthly repayment on your standard credit card:
- Your balance will be repaid in seven months.
- You will have paid $106 in interest.
How to Choose the Best 4.99% Interest for Six Months Balance Transfer Offer
As well as comparing the balance transfer interest rate and term, there are a number of other features which can help you decide on the balance transfer offer and credit card which is right for you.
Compare the annual fee:
- NAB Low Rate Credit Card has an annual fee of $59.
- NAB Standard Credit Card has an annual fee of $30.
- NAB Velocity Credit Card has an annual fee of $65.
- NAB Velocity Gold Credit Card has an annual fee of $150.
- NAB Qantas Gold Credit Card has an annual fee of $145.50.
Compare the transfer fees:
- Some credit card providers will charge you a fee or the percentage of the balance transfer amount to take over your old credit card balance.
- The NAB credit cards offering a 4.99% interest for six months balance transfer offer do not charge a balance transfer fee.
The revert rate will apply to any balance left unpaid at the end of the six month transfer period:
- NAB Low Rate Credit Card reverts to the card’s cash advance rate of 21.74% p.a.
- NAB Standard Credit Card reverts to the card’s cash advance rate of 21.74% p.a.
- NAB Velocity Credit Card reverts to the card’s cash advance rate of 21.74% p.a.
- NAB Velocity Gold Credit Card reverts to the card’s cash advance rate of 21.74% p.a.
- NAB Qantas Gold Credit Card reverts to the card’s cash advance rate of 21.74% p.a.
Compare the transfer window:
- To make sure you are eligible for the low balance transfer interest rate, and that the rate is applied to your transferred balance, giving you the maximum balance transfer period, you need to make sure you apply for the balance transfer correctly, at the right time.
- The NAB credit cards offering a 4.99% interest rate for six months require that you apply for the balance transfer in your credit card application.
Compare the purchase rate, if you intend to keep the card after your balance is repaid:
- NAB Low Rate Credit Card purchase rate is 2.99% p.a. for 12 months (reverts to 13.24% p.a.)
- NAB Standard Credit Card purchase rate is 19.74% p.a.
- NAB Velocity Credit Card purchase rate is 20.24% p.a.
- NAB Velocity Gold Credit Card purchase rate is 20.24% p.a.
- NAB Qantas Gold Credit Card purchase rate is 20.24% p.a.
If you are looking at keeping your balance transfer card after your balance is repaid, compare the additional features and benefits of each card:
- Offers up to 55 days interest free for you to repay your purchases and even if you don’t repay them in full, you are charged a very low purchase rate after that anyway.
- You can add a free additional card holder to help you and your family more easily manage your credit balances and accounts.
- You can choose your card colour, either pink or silver.
- Provides you with up to 44 days interest free so you can use the bank’s money rather than your own, and repay your balance in full with plenty of time to avoid interest charges.
- You can link to your Fly Buys account for free and earn points towards rewards.
- Emergency travel assistance is included for you as a card holder, 24 hours a day, seven days a week.
- Up to 44 days interest free, to make purchases and avoid interest charges.
- Includes a companion American Express card to help you earn more rewards points. Your American Express card will earn 1.5 points for every $2 spent and your Visa card will earn one point for every $2 spent where American Express is not accepted. You can redeem your points for flights, entertainment, accommodation and shopping experiences.
- You can also add another card holder for free, to help you earn more points.
NAB Velocity Gold Credit Card:
- Includes up to 44 interest free days to help you manage your cash flow with credit, and your repayments without interest.
- Includes an American Express companion card which earns 2 points for every $2 spent. Your Visa card earns you one point for every $2 spent, and points can be redeemed for merchandise, holiday experiences and shopping vouchers. You can also add an additional card holder for free to help you earn more points.
- You are also covered by overseas travel insurance if you purchase your tickets using your gold card.
- You are covered by free overseas travel insurance, extended warranty protection and purchase protection for items bought on your card.
- You can earn Frequent Flyer points on all of your everyday purchases.
- You receive an American Express companion card which earns up to 2 points for every $2 spent, where your Mastercard earns up to 2 points for every $3 spent.
- You can redeem your points on flights, merchandise and gift vouchers.
How to Use a 4.99% Interest for 6 Months Balance Transfer Offer
The first most important step to using your balance transfer credit card successfully is making the transfer as soon as possible. Not only does this ensure you stop paying high interest immediately, but you are also maximising the amount of the six month balance transfer period, and not missing out on any of those all important low interest days.
Your low balance transfer rate starts from the approval of your credit card application, so be ready to start channelling your repayments. A $350 per month repayment is a small price to pay to be debt free in six months.
It may sound like a lot, compared to the minimum repayments you have been making, but it is important you revise your budget so you can afford this repayment each and every month, for the next six months. You’ll also need to make sure you have an alternate savings fund to cover any emergencies in that time, so you don’t have to dip into your repayment amount. To clear a $2,000 debt in six months at 4.99% you will need to repay $350 per month, to repay $3,000 you will need to pay $550 so do the calculations now for your balances.
The second important step in using a balance transfer credit card is to stop using credit to buy things – anything. A balance transfer credit card will allocate your repayments to your balance transfer amounts first, before any new purchases and cash advances. This means that the savings you are making with a low interest rate on your transferred balance can be cancelled out if you make new purchases, which attract the purchase interest rate right away.
Also make sure not to spend on your old credit card either – firstly because you need to get control of your credit card debt before you know you can use a credit card responsibly, and secondly because if you have to make repayments on two credit cards, you can jeopardise the amount of funds you have to apply to your balance transfer card.
Posted on Thursday, October 14th, 2010 at 11:48 am
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