Balance Transfers For Existing Customers

A balance transfer credit card allows you to move outstanding balances from one credit card to another, often at a lower interest rate which can give you a chance to pay off your debt more efficiently at a lower rate.

While the most attractive balance transfer offers, such as 0% interest for extended periods, are typically offered by banks for new customers, existing customers can still take advantage of this feature with their current credit cards.

What existing customers can expect

For existing customers, balance transfer terms differ significantly from the promotional offers designed to attract new cardholders.

Be mindful that terms can differ widely across providers, so it’s wise to review your bank’s specific conditions before proceeding. Here are the 3 things for you to expect:

How to request a balance transfer as an existing customer

Requesting a balance transfer with your existing credit card is typically a simple process, often completed through your bank’s digital platforms. Here’s a general guide:

1. Log in. Access your account via mobile or online banking.
2. Locate the option. Find the balance transfer section which is usually under account management or credit card services.
3. Submit details. Complete the form with details of the card you’re transferring from and the amount you wish to move.

Processing times vary by bank, ranging from a few days to two weeks. During this time, continue making payments on the original card to avoid penalties.

Banks that offer balance transfers for existing customers

Here’s how it works with some major Australian banks that offer balance transfers for existing customers:

• ANZ. Complete an online application, possibly requiring a promotional code (e.g., BT200).
• CommBank. While traditional balance transfers are no longer offered, you can consolidate existing CommBank credit card accounts.
• NAB. Transfer up to 100% of your available credit limit via the NAB app under Usage Controls.
• Westpac. Apply through Online Banking, with decisions often provided within 60 seconds.

What is the eligibility criteria?

Before initiating a balance transfer, understand the rules that apply:

• Same-bank restriction. You cannot transfer a balance between two cards issued by the same bank (e.g., from one Westpac card to another).
• Eligible debts. Balances from store cards (e.g., Coles, David Jones), charge cards (e.g., American Express), and, in some cases, personal loans or Buy Now, Pay Later (BNPL) accounts can be transferred. However, personal loan and BNPL transfers are limited to select banks like Citi and its partners (Virgin Money, Coles, Qantas Money).
• Overseas cards. Balances from overseas-issued cards cannot be transferred.

Are balance transfers worth it?

Whether a balance transfer with your existing card makes sense depends on your financial circumstances. Here are some scenarios where it might be beneficial:

• Leveraging benefits. Keep using a rewards card while managing debt.
• Protecting credit. Avoid a new credit enquiry if your score is a concern or if you’ve been declined for credit recently.
• Simplifying finances. Consolidate small debts from multiple cards onto one, reducing complexity and potentially closing unused accounts.

However, if you have significant debt and need a long 0% interest period, a new balance transfer card might save more, though it risks a credit check and may not cover all your debt if the limit is insufficient. Assess your debt size, repayment timeline, and the terms offered before deciding. If unsure, a financial advisor can provide tailored advice.