Ask Miles: Do I earn points on balanace transfers?

Ask Miles: Do I earn points on balance transfers?

Do I earn points on balance transfers?  


Without being the bearer of bad news, unfortunately, you can't earn points on debt transferred from one credit card to another. Let's say you have $4,000 of debt on one card and successfully acquire a balance transfer credit card. Once the $4,000 is transferred to your balance transfer credit card, you will not earn points on that $4,000. Note: this is a rule of thumb for all balance transfers.

Don't fret, it's not all bad news. The good news is the fact you can obtain a frequent flyer balance transfer card. This means you can transfer your debt, pay 0% p.a. on the balance transfer for a certain period of time and earn sign up bonus points. 

However, before you signup for a new card, you're best to remember that in order to earn sign up bonus points, you must spend money on eligible purchases. For example, a card might offer 100,000 bonus sign up points, but in order to get the points, you must spend $3,000 on eligible purchases in the first three months. 

It's worth considering if you can afford to spend this on top of your balance transfer debt as the 0% p.a. on balance transfers offer will only last for a set period of time, then after that, it will revert to a standard rate. When this happens you'll pay interest on your balance, which potentially could be a lot of money if you don't pay off as much as possible. On the flip side, you'll be able to earn points on eligible purchases eg. 1pt per $1 spent.

In short: it's great to combine a balance transfer with a sign up bonus points offer provided you can pay as much off as possible during the window of 0% interest.

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0% on Balance Transfers for 22 months!

with 0% Balance Transfer fee
HSBC Platinum Credit Card Balance Transfer Offer

0% p.a. on balances transferred for 22 months, with no balance transfer fee.

$129 p.a. annual fee which is refundable each year when you spend $6,000 on eligible purchases.*

Earn 2 pts per $1 spent on overseas purchases.

Earn 1 Rewards Point per $1 spent.

High credit limit for bigger spenders.

This credit card offer is subject to change and may not be directly related to the content of this article.


The products, banks and companies mentioned in this Ask Miles question and answer were correct at the time of publishing. The information published is general advice only and should not be taken as specific personal finance advice.