Many banks, building societies and credit unions now offer balance transfer credit cards and in some cases instant approval credit cards with balance transfer options because the credit card industry is a competitive one and while each will lose a portion of customers, many will gain new customers. Thise that can retain the customers will get the most from offering introductory rate balance transfer offers..
During processing of balance transfer request any required fees will be charge.
Studies have shown that most credit card lenders in Australia allow for up to a 95% balance transfer on credit cards. They in almost all cases must be transferred to a card that is owned by an outside financial institutions so the balances actually leave their accounts. If you consider that balance transfer introductory offers exist in an effort to entice new customers this makes sense.
Once a card has had the balance transferred the card that was emptied will have a clear balance and can either be charged on again, or the account can be closed. It will have a $0 balance as soon as the balance transfer process is complete. Unless the new credit card lender has specified that the account be closed as a condition of the balance transfer one is usually best to keep the “empty” credit card account open in case of emergency. New purchases on a balance transfer credit card will incur the standard rate for purchases and will do so until the balance transfer has been paid in full. In some cases this will be without interest free days and in the worst case scenarios can cost so much that the entire balance transfer process was a waste of time in terms of saving money.
How do consumers apply for balance transfer credit cards in order to start the balance transfer process? There are a number of ways, these include:
- Calling your bank, building society or credit union and applying over the phone
- Use your bank’s website and fill out the application, or
- Visit your local branch and ask for balance transfer assistance
The information that will be needed to start the balance transfer are the information of the original card issuer, account number, and the amount that is being requested as a transfer. Australian banks will process an application the same day it is received and in many cases instant credit card approval can be given in around sixty seconds when applying online, but some areas may take as many as 14 days.
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