NAB Low Rate Credit Card – Balance Transfer Offer

Pauline Hatch

Pauline is a personal finance expert at CreditCard.com.au, with 8 years in money, budgeting and property reporting under her belt. Ask Pauline a Question about this card.

The NAB Low Rate Credit Card - 0% Balance Transfer Offer

The NAB Low Rate Credit Card focuses on being a low-cost, money-saving card. It has an affordable annual fee and NAB’s lowest everyday purchase rate, as well as some good introductory offers. The balance transfer offer has one of the longest interest-free periods out there at 28 months, which makes it very effective for stopping the debt snowball if that's your goal.

Let’s have a look at the pros and cons of NAB's low-rate card.

What we love...

0% p.a. on balance transfers for 28 months. You can transfer up to 90% of your credit limit, and you won't pay interest for 28 months on the amount transferred (that is an epic timeframe for paying off tricky debt). A one-off balance transfer fee of 2% applies which is based on the transferred amount and charged to your NAB credit card account when the balance transfer is completed. But, any unpaid amount after the 28 months ends will be charged the cash advance rate, which is very, very high at 21.74%. Moral of the story: make a plan to pay off your debt before the 28 months end, and bask in the relief of being debt-free.

No annual fee the first year. The annual fee is very competitive at $59 per year (other cards with similar offers can be around $80+ per year) but NAB is giving you the first year free, which is a nice extra.

The low minimum credit limit. Having a lower credit limit helps keep a cap on your spending, and looks better to lenders if you're in the market for a loan. The low credit limit is a good bonus if you're a first time credit card user, and want to set a 'safety limit' while you're working out how to use the card and build your credit score.

Visa Offers + Perks. You can sign up to Visa Offers + Perks to get personalised discounts on retail, dining and experiences. For instance, you can get 10% cashback on Booking.com.

You'll also get:

• 55 days interest-free on purchases after the intro period ends
• One free additional cardholder over 16 years old
• 24/7 emergency travel assistance with Visa Customer Assistance Services
• A wide range of digital wallets to choose from

What’s not so great...

First, be aware that any balance transfers left unpaid at the end of the 28 months will revert to the variable cash advance rate. Having a high rate of interest applied to your balance can quickly take you backwards, so do your best to pay it off before the cash advance rate kicks in.

Also, bear in mind this card is a low-rate, low-annual fee card. Don’t expect flashy features and rewards, because it just doesn't have them (as is the case for most cards in the low-rate market). But, it does a good job of being a low-cost card that helps you get on top of debt using its balance transfer offer.

Overall Rating

The NAB Low Rate card with 0% p.a. balance transfer offer sits neatly in the low-rate space. Its purchase rate is one of the lowest and its annual fee is very competitive (and free for the first year). It's a card designed to keep costs down, but it also helps you save money. If you use the balance transfer offer wisely, you can use the generous period to pay off your debt without forking out interest. It's an excellent offer on a solid performer.