I have CC with Bankwest $12k limit. Last month, I used all $12k. I always pay my CC in full each month. No interest ever.
I'm considering signing up with Kogan Black credit card, with 12mo 0% balance transfer. I have never done a BT before. Does this mean I pay nothing, and pay no interest for 12 mo? Or is there a minimum? Is this minimum equal to the full balance owing, or a smaller amount? I didn't see a ph # to call Kogan to ask…
If you pay it off in full each month you would not pay interest now so is a 0% balance transfer any benefit to you? Or are you thinking of using say 12k , transferring the balance to Kogan to give access to another 12k? If you can afford that can you just increase the limit instead of adding another credit card with annual fee (if any?)?
There's usually a 1%fee for balance transfer (maybe that's just for amex)
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I was hoping to pay 1/12th of the balance each month, for 1 year. Hopefully this results in me paying no interest, and I can pay it off over 12 mo.
Yes this should be fine. Paying 1/12th the balance each month should cover the minimum monthly payment like what John said below.
Yes…thats the way to do it. Remember if you havent paid the balance by the end of 12 months, you will get charged Cash advance rate. Also dont ever use balance transfer card for retail purchases. Dont even keep the card in your wallet. Keep it at home.
Paying 1/11 a month could provide you with a safety cushion to avoid any monthly timing penalties at the end of the 12 months,
Also it's good to confirm in writing that the balance has been paid and there is $0 outstanding.
I got an offer of 0% too, But I dont really wanna be using the Credits like that
It's just like any other credit card, you have to pay the minimum monthly to avoid interest, which is usually 2 to 3 per cent of the balance. You can choose to pay more if you like.
Why only 12 months? You can get longer eg 36 months
FYI in addition to balance transfer fees, there can also be annual fees and balance transfer limits to be aware of.
Just Google "how do balance transfers work". Or something like this to help find the best deal.
https://www.finder.com.au/credit-cards/balance-transfer-cred…
Just remember to chop off the card and not use it during your balance transfer period. Otherwise you will get charged interest on purchases straight away — there is no interest free period.
Although some have 0% on purchases too.
Not the Kogan Black one mentioned by OP though, unfortunately:
No interest free days on retail purchases apply while you have a balance transfer
Cant use it for both.
Why not?
Your total Balance Transfers may not exceed 80% of your credit limit.
So make sure you apply for a limit of at least $15,000
no, you transfer the amount over, you will continue to have monthly payments on the card
if you pay down that entire balance transfer amount by the end of the promotional period, you wont pay any additional interest on that transferred amount
there is no PH# for kogan, all comms is via their app