ANZ 12 month balance transfer 0% interest for new and existing cards

[Franko Costa]

Title says it all - I knew now why I saved my ANZ platinum card. Good deal as it includes existing cards too

Credit Card Offers - Compare ANZ's Credit Card Deals | ANZ

On a side note, can one claim to balance transfer a higher limit than they have on their card?

 

[deejo77]

I wonder if they just send a cheque or if they take control of the card you want to pay off and cancel it?

 

[Franko Costa]

I called up to ask.

They can pay up to 95% of your ANZ credit limit - all they require is the account numbers, bpay numbers, and total amount. I asked what would happen if I gave a figure too much, to which he responded then the old credit card would have excess funds, but ANZ would not know.

Thus, I just applied for a credit increase and will request a balance transfer for the 95% of my ANZ card and put the surplus funds on my mortgage for 12 months

 

[opusman]

I'm bothered by this statement on the website:

If you have a credit card that offers interest free days on purchases and your balance transfer has been successfully processed for this credit card, you must pay the full Closing Balance (including the full outstanding balance transfer amount) by the due date in order to continue getting the interest free days on purchases on your credit card.

That suggests that even though the balance transfer amount has 0% interest for 12 months, you'll actually lose your interest free period for any other charges - meaning that if you continue to use the card as normal you'll be paying interest on day-to-day purchases.

 

[Franko Costa]

Don't use the card for 12 months then

 

[opusman]

Don't use the card for 12 months then

And miss out on all those points? Never!

 

[casanovawa]

A problem if you ANZ card is the main card u use for earning QF points and managing your finances... Guess you can always ask for another one...

 

[Franko Costa]

Just apply for another card with another bank - ANZ is rubbish for earning points

 

[drsmithy]

I'm bothered by this statement on the website:



That suggests that even though the balance transfer amount has 0% interest for 12 months, you'll actually lose your interest free period for any other charges - meaning that if you continue to use the card as normal you'll be paying interest on day-to-day purchases.

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It's my understanding the (relatively) recent changes to credit card regulations meant that any payments to a credit card must be used by the institution to pay for the highest-interest-owning portion of the debt first.

So in theory as long as you put enough payments into the card to cover A) any purchase and b) the subsequent minimum payment, you should be fine.

But I'd want confirmation from the bank as well - a big balance transfer is a lot of money to have racking up 20% interest !

 

[drsmithy]

Thus, I just applied for a credit increase and will request a balance transfer for the 95% of my ANZ card and put the surplus funds on my mortgage for 12 months

How does that work ? Do you balance transfer from a card with nothing on it to put it into credit then pull that amount out of it as cash advances ?

 

[Franko Costa]

How does that work ? Do you balance transfer from a card with nothing on it to put it into credit then pull that amount out of it as cash advances ?

Kind of. When your credit card has funds in it (ie credit), then withdrawing funds from the credit card to the mortgage is not a cash advance - I have done this multiple of times with different credit cards

 

[drsmithy]

Kind of. When your credit card has funds in it (ie credit), then withdrawing funds from the credit card to the mortgage is not a cash advance - I have done this multiple of times with different credit cards

This requires the credit card and mortgage to be with the same institution I assume ?

Is it extra mortgage payments, or do you transfer into an offset account ?

 

[JohnK]

Great news. I have 4 months to go on an existing balance transfer but it is not going to hurt locking in a new 0% balance transfer for another 12 months.

It's my understanding the (relatively) recent changes to credit card regulations meant that any payments to a credit card must be used by the institution to pay for the highest-interest-owning portion of the debt first.

Unfortunately that change to the regulation only affects new credit card applications.

 

[drsmithy]

Great news. I have 4 months to go on an existing balance transfer but it is not going to hurt locking in a new 0% balance transfer for another 12 months.


Unfortunately that change to the regulation only affects new credit card applications.

I had assumed the typical person doing a balance transfer would be doing it onto a new card.

 

[JohnK]

On a side note, can one claim to balance transfer a higher limit than they have on their card?

Yes you can.

They have no idea what your credit limit is on the other card or your current balance.

 

[Franko Costa]

This requires the credit card and mortgage to be with the same institution I assume ?

Is it extra mortgage payments, or do you transfer into an offset account ?

No it can be any bank. I would usually transfer from credit card to saving account then to my offset account if with another bank

 

[opusman]

It's my understanding the (relatively) recent changes to credit card regulations meant that any payments to a credit card must be used by the institution to pay for the highest-interest-owning portion of the debt first.

So in theory as long as you put enough payments into the card to cover A) any purchase and b) the subsequent minimum payment, you should be fine.

But I'd want confirmation from the bank as well - a big balance transfer is a lot of money to have racking up 20% interest !

Well the balance transfer is 0% for 12 months, but it's other charges that would lose their interest free period.
Say you put a $10k ATO payment on the card. Normally you might have 4-5 weeks interest free before the bill comes and is due. With the balance transfer sitting there, even though it's at 0% itself, that $10k payment would be accruing interest on a daily basis until you paid the bill.

 

[serfty]

These pages have more info for existing customers:

Offer centre - Take a look at our special offers | ANZ

ANZ Balance Transfer Credit Cards & Balance Transfers | ANZ

 

[drsmithy]

Well the balance transfer is 0% for 12 months, but it's other charges that would lose their interest free period.
Say you put a $10k ATO payment on the card. Normally you might have 4-5 weeks interest free before the bill comes and is due. With the balance transfer sitting there, even though it's at 0% itself, that $10k payment would be accruing interest on a daily basis until you paid the bill.

Ah, OK, you're just talking about interest on purchases. I was more thinking that if you "break the rules" (eg: by not making the minimum payment for a month) the whole outstanding balance might become subject to accruing interest.

Reading your quoted statement again, I can see it going either way, depending on what they mean by "due date" (ie: is it the monthly payment cycle, or the due date for the interest-free balance transfer to expire). Is the term more explicitly defined anywhere ?

 

[Franko Costa]

For existing customers, just don't use the card again. Even if you don't have another credit card, the points generated on the ANZ card would unlikley match the interest savings (depends on the limit and spending per month obviously)