Balance transfer credit cards allow you to transfer the balance from one or more high-interest credit cards to a new card with a lower interest rate that typically lasts for a year or more.
Some banks are sweetening their Qantas credit card offers to attract more new customers by adding balance transfers in addition to sign up points bonuses.
A balance transfer card that earns Qantas Points offers an opportunity to earn Qantas Points quickly while also paying off credit card debt at a lower interest rate. But, as with any financial product, it's important to weigh the pros and cons before deciding.
Pros and cons
Pros
- Boost your Qantas Points quickly. By triggering the sign up bonus — a feature of many Qantas credit cards — you can earn a significant number of Qantas points quickly.
- Reduce your credit card interest rate. The promotional interest rate offered on balance transfers can be significantly lower than the rate on your existing credit card, which can help you pay off your debt faster.
- Earn Qantas Points on purchases made with the card. Some balance transfer credit cards also offer the opportunity to earn Qantas Points on purchases made with the card.
Cons
- Balance transfers do not earn points. This has always been the case regardless of what card you apply for.
- Balance transfer fees may apply. Typically 1-2% of the amount transferred. It's important to take this into account when comparing different cards. Not all cards have this fee. Those that don't tend to have shorter introductory periods.
- Sign up bonuses come with strings attached. You'll probably have to use the card to spend a certain amount within a certain period of time before triggering the bonus.
- Possible additional fees. Annual fees, foreign transaction fees, and cash advance fees are all worth checking before applying.
How to choose the right balance transfer credit card that earns Qantas Points
These are some of the most important factors to consider when comparing.
- Balance transfer fee and interest rate. Compare the balance transfer fee and interest rate of different cards to find the one that offers the best value.
- Earn rate. Compare different cards' earning potential and determine which offers the most value.
- Additional benefits. For example, does the card come with airport lounge access or international travel insurance?
FAQs
What is the best balance transfer credit card that earns Qantas Points?
The best balance transfer credit card that earns Qantas Points will depend on your individual needs and preferences. That's why it's important to compare the balance transfer fee, interest rate, and earning potential before deciding.
Do balance transfers earn Qantas Points?
No. There are no credit cards that earn Qantas Points from balance transfers.
Do cash advances earn Qantas Points?
No. There are no credit cards that earn Qantas Points from cash advances.
