Skip to content
basics

Balance Transfers, Interest-Free Deals and Buy Now Pay Later in Australia

By PointsExplainedLast reviewed

Work out the total cost

Add the transfer fee, any annual fee and the rate that applies after the promotional period, then compare that with what you pay now.

Set a repayment that clears it in time

Divide the transferred balance by the months in the promotional period and automate that repayment.

Don't use the new card for purchases

New purchases can attract a higher rate and may not get interest-free days while the transferred balance remains.

Close the old card

Pay it to $0, redirect any direct debits and cancel it.

Diarise the end date

Set a calendar reminder a few months before the promotional rate ends.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Moneysmart (ASIC): Credit card balance transfers

    Balance transfer definition; 0% or low rate; promotional period usually 6-24 months; minimum repayments to keep the rate; maximum transfer example (80%); one-off fee as a percentage; higher rate if not paid off in the promotional period; missing a required repayment may forfeit the rate and the new rate may be higher than the original card's; repayments likely need to exceed the minimum; purchase rate on new purchases and repayments may go to new purchases; cancel the old card; transfer added to credit report.

    moneysmart.gov.au · Accessed
  2. Australian Banking Association: Banking Code of Practice (effective 28 February 2025)

    Paragraph 154: at least 30 days' notice before an introductory balance transfer offer ends.

    ausbanking.org.au · Accessed
  3. ASIC Report 580: Credit card lending in Australia (July 2018)

    2018 finding: new purchases on a card with a 0% transferred balance generally don't get an interest-free period unless the closing balance is paid in full; over 63% of consumers who transferred balances did not cancel any other card.

    download.asic.gov.au · Accessed
  4. ASIC Report 788: Credit card lending in Australia: Staying in control (July 2024)

    Four of 13 lenders did not apply the interest-free period to new purchases while a balance transfer remained; two stopped offering balance transfers from 2022 (review period to December 2022).

    download.asic.gov.au · Accessed
  5. Moneysmart (ASIC): Interest-free deals

    How interest-free deals work; fees; interest after the period can be as high as 26%; minimum repayments won't clear it; the lender doesn't have to remind you.

    moneysmart.gov.au · Accessed
  6. Moneysmart (ASIC): Buy now pay later services

    BNPL pays by instalments with fees instead of interest; providers must have complaints and hardship services; BNPL may appear on credit reports; link BNPL to a debit card.

    moneysmart.gov.au · Accessed
  7. ASIC media release 25-069MR: ASIC releases new regulatory guidance to support buy now pay later industry reforms

    From 10 June 2025 the National Credit Code extends to BNPL contracts; providers need a credit licence (unlicensed conduct risk); low cost credit contract providers can elect modified responsible lending obligations.

    asic.gov.au · Accessed
  8. Moneysmart (ASIC): Choosing a credit card

    Applications added to your credit report; several in a short period can harm your score.

    moneysmart.gov.au · Accessed
Questions

About this guide

What happens when a balance transfer offer ends?

Any balance left is charged a higher interest rate. If you lose the promotional rate early by missing a required repayment, Moneysmart warns the new rate may be even higher than your original card's. Banks that follow the Banking Code of Practice give at least 30 days' notice before an introductory balance transfer offer ends.

Is buy now pay later regulated in Australia?

Yes. New laws that took effect on 10 June 2025 extended the National Credit Code to buy now pay later contracts, and ASIC has told providers they need a credit licence. Moneysmart adds that all providers must have complaints and hardship services.

Will a balance transfer affect my credit score?

Applying for a balance transfer is added to your credit report. Several applications in a short time can harm your score.

Will the store remind me when my interest-free period ends?

Not necessarily. Moneysmart says the lender doesn't have to remind you, so check the end date on your statements.
Keep reading

Card Surcharges in Australia: The 1 October 2026 Changes

Choosing Your First Credit Card in Australia

Your Credit Card Protections in Australia