Our guide to 0% purchases and balance transfer credit cards

This guide aims to answer your questions and arm you with the knowledge you need to make the right decisions when choosing a balance transfer credit card to suit your needs.

What is a 0% balance transfer credit card?

You may have heard that performing a balance transfer can be a sensible way of managing credit card debt. But what does a balance transfer mean? Put simply, it means moving your balance from one credit card to another.

Typically, if you find yourself owing money on a high-interest credit card, shifting this balance to a card with a 0% balance transfer offer can allow you to make repayments in a measured way without paying interest for a fixed time period.

Always check the terms of the balance transfer offer when it comes to the length of the promotional period and the rates and fees for purchases, cash advances or any initial transfer fees. We offer a range of balance transfer credit cards.

What is a 0% purchase credit card?

A 0% purchase credit card may allow you to buy things upfront and pay off the amount you spent without interest – so long as you make the repayments within a specific timeframe. 

When used correctly, this type of card can help you cover larger purchases on an interest-free basis. Most credit cards come with an interest free period on purchases, this is usually detailed in the rates and fees.

What is a 0% purchases and balances credit card?

A 0% purchases and balances credit card offers the best of both worlds whereby you are able to transfer a balance as well as continue to make purchases while benefiting from the 0% interest for the specified period of time. 

Always check the length of offer when you sign up and be aware of the rates and fees you should expect when the promotional period ends.

Learn more about our low rate purchase and balance transfer credit card.

Who can get a 0% balance transfer 0% purchase credit card?

There are credit cards to suit all needs, but access to this specific type of card will depend on your credit score. 

Typically, the better your score, the more likely you are to be approved. There are also age, residency and minimum income requirements you should be aware of before you apply. 

Should you choose a 0% balance transfer, 0% purchase credit card or the combined offering?

There are plenty of things to consider depending on your personal situation and financial requirements, but when selecting your card you should bear a few important things in mind:

1.    How you plan to use the card
Understanding how you want to use the credit card will help you decide which offer is best for you. If you don’t plan to use the card for ongoing purchases then just a balance transfer may be suitable. If you plan to transfer a balance and aim to use the same card for purchases then a combined offer may be better. You can use our our card selector tool to help you choose the right card for your needs.
2.    Fees
The card may offer zero interest for a set period of time, but that doesn’t mean it comes for free. Most cards will come with annual fees that you should check before signing up.&
3.    Minimum monthly repayments
Depending on the balance transferred and/or purchases made in the billing cycle, there will be a minimum amount for monthly repayments. Make sure you can meet this before committing to any card. Use our credit card repayment calculator to help understand minimum repayments.
4.    Length of the offer
While 0% balance transfer and purchase cards come with some great benefits, remember that they will be for a limited time only. Balance transfer and purchase credit cards commonly last from a couple of months to a year. Learn more about the promotional period of the Citi Clear credit card.

The risks of using a 0% purchases and balance transfer credit card

1.    Applying for too many
While 0% purchase and balance transfer cards can be a useful tool to help manage debt, relying on them as a strategy for ongoing debt management may not be sustainable.
2.    Using the credit card in an ATM
Using a credit card to withdraw cash from an ATM attracts a high interest rate and cash advance fees. Be aware of these before you use your credit card to withdraw cash.
3.    Offers ending
When you sign up for your card, make a note of when the 0% offer begins and structure your repayment plan appropriately to avoid high interest rates.

How to apply?

You can apply for the Citi Clear credit card online. Here’s what you will need to apply:

1.    Around 15 minutes to complete the application
2.    Earn more than $35,000 a year
3.    Be 18 years or older and an Australian resident