Is a balance transfer worth it?

A balance transfer is worth it if you can clear most or all of the balance during the 0% introductory period, and the interest you save is more than the up-front transfer fee (usually 1-3%). On a $10,000 balance at 20.99%, moving to an 18-month 0% card with a 2% fee can save well over $1,500 — but only if you stop spending on the card and pay it down before the rate reverts to 20%+. Use the calculator above to see your fee, the payment needed to clear in time, and your net saving.

What happens when the 0% period ends?

Any balance left when the introductory period ends starts accruing interest at the revert rate, which is typically 20-23% — similar to a standard credit card. That is why clearing the balance within the 0% window is the whole point. If you cannot, work out the monthly payment that clears it in time (this calculator shows it) before you apply.

Does a balance transfer hurt my credit score?

Applying for a new card creates a credit enquiry, which can cause a small, temporary dip. Over time, reducing your balance and paying on time usually helps your score. Avoid opening several cards in a short period, and do not close your old card immediately if it lowers your overall available-credit ratio in a way that hurts you — check your situation.

Balance Transfer Calculator

See whether a 0% balance transfer is actually worth it. Enter your balance and the offer to get the transfer fee, the monthly payment needed to clear before the rate reverts, and your real interest saving.

Last verified: 5 May 2026

Will a balance transfer actually save me money?

Only if you clear the balance before the 0% period ends and the interest saved beats the 1-3% transfer fee. The trap is the revert rate (often 20%+) on anything left over — and new spending on the card, which usually is not interest-free. Source: ASIC MoneySmart.

Worked example. $10,000 at 20.99%, moved to an 18-month 0% card with a 2% ($200) fee, paying $500/month: you clear it inside the intro window, pay only the $200 fee, and save roughly $1,600 versus staying on the old card.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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