What is a credit card revert rate?

When credit card debt starts accumulating, you could consider a balance transfer, where you roll your debt onto a card charging low or no interest during its introductory period so you can pay it off quicker. However, you’ll also need to consider the card’s revert interest rate in case you don’t pay off your debt during the introductory period.  

The revert rate is the interest rate that your balance transfer credit card will switch back to once its introductory period ends. This new ongoing rate is usually much higher than the original introductory balance transfer rate, and in some cases may even be higher than the interest rate on the credit card you were transferring your balance from.

If you haven’t paid off your transferred balance before the introductory period ends, you’ll start being charged interest on any balance that’s remaining at the higher revert rate. This could risk undoing the good work you’ve done paying off your credit card balance if interest charges are allowed to build back up again.

Keep in mind that many balance transfer credit cards also charge annual fees. This means the longer it takes you to clear your transferred balance, even at 0% interest, the less savings you may be able to enjoy.

Additionally, if you make purchases on your card, you may be charged interest at the card’s revert rate, even if it’s still in its introductory balance transfer period. You also may not be able to benefit from any interest-free days on these purchase – much like using your credit card to make cash advances, you may be charged interest on your purchases immediately. This could make shopping on your balance card a pricey – and risky – proposition.

Once you’ve used a balance transfer credit card to help you pay off an outstanding credit card balance, it may be worth comparing what other options are also available on the market. The card’s revert rate may be significantly higher than what’s being offered by other credit cards, and you may not be enjoying as many features, benefits, or rewards for your trouble.

Consider comparing credit card offers and consider your personal spending style to work out which options may best suit your financial needs. Depending on how you want to use your credit card, it could be worth considering another option once you’ve successfully transferred and paid off your old card’s balance.