A 5.99% interest rate is not the lowest you will find for a balance transfer credit card – so why should you choose a balance transfer offer for just five months, and with such a comparatively high rate? Because of the short balance transfer term; over just five months you focus your repayments and curb your spending to become debt free, and even though you are still being charged interest, it is only over a short time, so the interest charges are minimal.
If you’re thinking of taking advantage of a 5.99% interest for 5 months balance transfer offer, but don’t think you’ll repay your balance in full within five months, be aware of card hopping. It can seem like an ideal solution to go from one balance transfer offer to the next until your balance is repaid, always avoiding the revert rate, however, this can make for a lot of credit card applications over a short period of time, and this can hurt your credit rating and report if you go to apply for another form of finance.
Featured 5.99% for 5 Months Balance Transfer Credit Card
Transfer your balance and save with the Commonwealth Bank Low Rate Credit Card which offers a more convenient way for you to shop for less with a low ongoing rate on purchases, low annual fee each year, and up to 55 days interest free on purchases.
- $78 ($48 for qualifying customers) annual fee
- 13.49% p.a. on purchases
- 5.99% p.a. for 5 months on balance transfers
- Cash Advance Rate of 21.74% p.a.
- 55 days interest free
Read the Commonwealth Bank Low Rate Credit Card terms and conditions.
Top 5.99% Interest for 5 Months Balance Transfer Offers:
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Cash Advance Rate (p.a.) | ||
|---|---|---|---|---|---|
 Commonwealth Bank Low Rate Credit Card |
13.49% | 5.99% for 5 months | $78 ($48 for qualifying customers) | 21.74% |
|
 Commonwealth Bank Low Fee Credit Card |
20.24% | 5.99% for 5 months | $24 ($0 for qualifying customers) | 21.74% |
|
 Commonwealth Bank Awards Credit Card |
20.74% | 5.99% for 5 months | $89 ($59 for qualifying customers) | 21.74% |
|
 Commonwealth Bank Gold Awards Credit Card |
20.74% | 5.99% for 5 months | $144 ($114 for qualifying customers) | 21.74% |
|
 Commonwealth Bank Platinum Awards Credit Card |
20.74% | 5.99% for 5 months | $280 ( $250 for qualifying customers) | 21.74% |
|
 Commonwealth Bank Low Fee Gold Credit Card |
20.24% | 5.99% for 5 months | $90 ($0 for qualifying customers | 21.74% |
|
 Commonwealth Bank Low Rate Gold Credit Card |
13.49% | 5.99% for 5 months | $120 ($90 for qualifying customers) | 21.74% |
|
 Westpac 55 Day Credit Card |
0% for 5 months (reverts to 19.59% ) | 3.99% for 6 months | $0 | 21.49% |
|
 St George Platinum Card |
15.99% | 3.99% for 6 months | $89 | 21.49% |
|
What is a 5.99% Interest for 5 Months Balance Transfer Offer?
The benefit of a 5.99% interest balance transfer offer for five months is a much lower interest rate than your standard credit card is currently charging you – more than likely you are currently being charged more than twice this amount of interest. Plus, in committing to a five month balance transfer offer you are able to see the light at the end of a relatively short tunnel, to becoming completely debt free.
This is because with a balance transfer credit card you can consolidate all of your credit cards into one balance transfer credit card repayment, as long as you are transferring from another provider. You will also have to apply for a balance transfer credit card through a standard credit card application, so you can only transfer balances up to the limit of credit for which you are approved on your balance transfer card.
Once your balance transfer is made, the low interest rate is applied for the entire five month period. The 5.99% interest rate is a per annum rate, so over the course of your five month balance transfer, you will be paying less than 5.99% in interest because the interest rate is divided by 12 to calculate the interest charges component of each monthly repayment.
If you are consolidating other credit card debts to the value of $2,500 from cards previously charging you 18% interest, your monthly repayment will be around $113. If you make no new purchases on your credit cards, paying the minimum amount you will repay your balances in 2.3 years, over 28 repayments. However, over that time you will have paid $563 in interest.
With a 5.99% interest balance transfer offer, you will need to repay $510 per month to repay your balance in 5 months. However, you will have only paid $37 in interest, saving you over $500 and more than two and a half years of being in debt.
Even if you had made higher monthly repayments of $510 to your standard credit cards at 18% it would still take you six months to repay your balances. Plus you would still have paid $116 in interest.
How to Choose the Best 5.99% Interest for 5 Months Balance Transfer Offer
To help with your choice of the best 5.99% interest for five months balance transfer offer for your needs, all of the important features, fees and benefits of the top balance transfer offers are compared here. This means that if you have decided that a 5.99% interest for five months balance transfer offer is the right combination for you, you can also match your needs to a credit card which makes your transfer easy to manage, and helps you control your credit card spending for the future.
Compare the annual fees:
- Commonwealth Bank Low Fee Credit Card has an annual fee of just $24 ($0 for qualifying customers).
- Commonwealth Bank Awards Credit Card has an annual fee of $89 ($59 for qualifying customers).
- Commonwealth Bank Gold Credit Card has an annual fee of $144 ($114 for qualifying customers).
- Commonwealth Bank Platinum Credit Card has an annual fee of $280 ( $250 for qualifying customers).
While the annual fee for a credit card must be paid at the beginning of each year – that is even if you are not planning to hold your credit card account for a full year, you will need to pay the full annual fee, the Commonwealth Bank balance transfer credit cards do not charge you any additional fees to take over your old credit card balances.
Compare the revert rate which applies if you don’t repay your transferred balances in full within five months:
- Commonwealth Bank Low Fee Credit Card applies the cash advance rate of 21.74% p.a.
- Commonwealth Bank Awards Credit Card applies the cash advance rate of 21.74% p.a.
- Commonwealth Bank Gold Credit Card applies the cash advance rate of 21.74% p.a.
- Commonwealth Bank Platinum Credit Card applies the cash advance rate of 21.74% p.a.
With Commonwealth Bank you can be in control of your balance transfer, if you need to align your transfer with a work related payment or a personal timeframe, you can make your transfer in your credit card application, or you can make the transfer after your credit card has been approved through internet banking, over the phone, or by completing a transfer form.
Your balance transfer will be approved within five days of your application being received, and you will begin being charged your new low interest rate from the day payment is made to your old card or cards.
Compare the ongoing purchase interest rates:
- Commonwealth Bank Low Fee Credit Card has a purchase interest rate of 20.24% p.a.
- Commonwealth Bank Awards Credit Card has a purchase interest rate of 20.74% p.a.
- Commonwealth Bank Gold Credit Card has a purchase interest rate of 20.74% p.a.
- Commonwealth Bank Platinum Credit Card has a purchase interest rate of 20.74% p.a.
Compare the additional features and benefits of these balance transfer credit cards, to help you decide whether they could be much more:
Commonwealth Bank Low Fee Credit Card:
- Charges low fees $24 ($0 for qualifying customers) if you spend more than $1,000 in a year.
- Allows you up to 55 interest free days to repay your purchases for the month.
- Looks out for you with chip security technology, and offers pay pass technology for ease of use.
- Allows you to add another card holder for free.
Commonwealth Bank Awards Credit Card:
- Includes up to 55 interest free days to help you manage your budget, your cash flow and spend the bank’s money instead of your own, interest free.
- Offers you an annual fee $89 ($59 for qualifying customers) if you have other eligible Commonwealth Bank products.
- Links an American Express companion card to the account so you can earn 1.5 points for every dollar you spend, and one point for every dollar spent on your Mastercard.
- Earns you bonus points from partnered businesses, which are not capped.
Commonwealth Bank Gold Credit Card:
- Gives you up to 55 interest free days to stay in control of your balance and interest charges.
- Can give you an annual fee $144 ($114 for qualifying customers) if you have eligible Commonwealth Bank products.
- Earns you two points for every one dollar spent on your American Express card, and one point on your Mastercard.
- Allows you to earn up to three points for every $1 spent with bonus partnered businesses.
- Includes three months free travel insurance.
Commonwealth Bank Platinum Credit Card:
- Includes up to 55 interest free days to help you stay out of credit card debt.
- Offers an annual fee $280 ( $250 for qualifying customers) if you hold eligible Commonwealth Bank products.
- Earns three points for every $1 spent on your American Express companion card, and one point for every $1 spent on your linked Mastercard.
- Includes 12 months travel insurance.
- Gives you access to a 24/7 concierge service.
How to Use a 5.99% Interest for Five Months Balance Transfer Offer
You can maximise the benefits of a balance transfer credit card by transferring your balances from multiple cards right away, to save on high interest charges, not to mention time and money spent managing multiple accounts and account keeping fees.
To repay your balances within the five month balance transfer term you will need to be committed to your budget. If you can repay your balance in full before the end of the five month period, you can avoid the high cash advance revert rates being applied to your balance. This means that if you can budget for just over $500 for just five months, you are debt free, and in the sixth month that $500 is yours to enjoy.
You also need to remember that your monthly repayments will be applied to your balance transfer amount first, before any new purchases or cash advances you make on your new card. Commonwealth Bank will make sure the portion of your balance which is attracting the lowest interest rate is repaid first. This also means that you are charged interest on new purchases and cash advances right away, as interest free days only apply if your balance is repaid to zero in the previous month.
When you make a 5.99% interest for five months balance transfer, make sure you are ready to repay your balance as soon as your card is approved, because interest begins to be charged from the date of the transfer.
Posted on Thursday, October 14th, 2010 at 12:46 pm
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