The Best Balance Transfer 0% Interest Rate Credit Cards

Get up to 12 months at 0% interest; our guide to New Zealand's best deal balance transfer credit cards lists the best cards, their fees and default interest rates, and qualifying information

Updated 6 December 2021

Summary of Balance Transfer Credit Cards

Balance transfers can save hundreds (if not thousands) of dollars in fees and interest if used intelligently.
Many banks offer a 0% or low-interest deal for 6 to 12 months, offering relief to those battling credit card or store card debt.
You can't apply for a balance transfer credit card if you are a customer of the bank offering a deal. For example, if you have a BNZ credit card, you will need to apply with other banks such as Westpac or ASB.
If you've got credit card debt that's causing pain and making repayments is a struggle, a balance transfer may be right for you.
Check our credit card interest calculator to see how much you are paying and what you can save.

Credit card interest rates hover around 20% per annum, so transferring your balance can save you hundreds or thousands a year on existing credit card debt. Credit card balance transfers are new cards which you can apply for, and once approved, your existing debt from one card moves to the new card. You get a lower interest rate, meaning you can be free of debt faster.

This guide walks you through the process of moving your debts to a balance transfer credit card, and compares the various offers currently available and the fees and limitations. The guide explains and answers:

BEST BALANCE TRANSFER DEALS

What is a Balance Transfer Credit Card?

A balance transfer happens when you receive a new credit card which takes the balance from an existing card. In the process, you owe the new credit card the money, and the existing card is repaid.
The new credit card will have a low interest rate, often 0%. You may be charged a “transfer fee” of around 1% or 2%, but this is a one-off fee. You may also be charged an annual fee for the new card.
With a balance transfer credit card, your interest rate is low, or 0% for a set period. This lets you pay the debt off faster as you’re not paying interest on top. Balance transfer credit cards are a fast way to clear debts.

Picking the Best Balance Transfer Credit Card

The trick is to pick a card with a small transfer fee and a long low-interest rate period so that you maximise the savings available.
We recommend going for the longest low-interest rate period (i.e. 12 months vs 6) even if the transfer fee and/or annual fee is higher. Credit card interest is a killer, so locking in the balance interest-free for longer is going to save a lot.
Most importantly, as the old card is now free of debt, we recommend lowering the credit limit so you can still use it but only for emergencies. It’s pointless to clear the balance only to build up new credit card debt afterwards!

What cards are eligible for a balance transfer?

You can apply for a balance transfer with any Visa, MasterCard, American Express, Farmers Card, GEM Visa, Q Card, Q Mastercard, and/or most other store cards. Some banks may limit what other cards they will transfer - it is essential to check with the bank offering the balance transfer credit card BEFORE submitting an application.

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BEST BALANCE TRANSFER DEALS

The 9 Rules of Credit Card Balance Transfers

Before you apply for a balance transfer credit card, we have outlined 9 rules for doing it right. If you do it wrong, you could be in a worse situation than before.

Prioritise repaying the debt (unless you have more expensive debts somewhere else)

An interest-free debt is fairly rare, so you have the perfect conditions for repaying it. If the debt is $5,000, budgeting $500 a month will have it paid in less than 12 months. Calculate what you need to repay per month by taking the debt amount, and divide it by 12 (months). If it’s higher than you can afford, pay the maximum you can.

Meet the monthly minimum repayments

Your transfer may be low-interest, but like any credit card, you’ll need to make the minimum payments. If you don’t, you’ll be charged penalties. If you are serious about repaying the debt, divide the balance by the number of months of the interest-free or low-interest period. Even if you can't afford what you should pay, repaying as much as you can per month is the only way to clear the debt.

Only making minimum repayments, usually anywhere from 2% to 5% of the balance, is unlikely to make much of a dent in the debt. You should plan to pay more than the minimum unless you have more expensive debt to pay.

Don’t use the card for purchases, and don’t withdraw money on it

You will be hit with the full interest cost of the purchases if you can’t pay the bill, as the low-interest offer only applies to the transferred balance. If you take money out of an ATM with your credit card, interest rates of 22%+ are likely to kick in.

Get a low-interest credit card if you need to spend

Avoid the pricey interest rates everyone else offers and get an offer that helps your finances. Our guide to low-interest credit cards sets out what you need to know and the current best buys and offers.

A balance transfer card offering a “life of the balance” interest rate is worth considering

Some banks offer 0% for a number of months, then around 6% for the life of the balance until it’s paid off. If you expect to have around $1,000 - $2,000 owing at the end of the interest-free balance, paying $60-$120 a year on interest may suit your needs for the convenience when it comes to repaying the balance. It also means you can avoid applying for another balance transfer credit card and paying the annual fee.

If you have a balance owing after the low-interest period, apply for another balance transfer credit card

Don't be afraid to transfer to another bank to save on interest costs. If you don’t, the remaining balance will be hit with 13.45%+ per year interest charges unless you have a low 'life of balance' deal.

You can’t apply for a balance transfer with your existing bank

For example, if you have a Mastercard with the BNZ and see the BNZ offers a balance transfer, you will not be able to apply as every bank limits balance transfer offers to new customers only.

You can usually get a balance transfer of up to 90-95% of your approved credit limit

This means that if you apply for a balance transfer credit card and get a $5,000 limit, you will be able to transfer around $4,500 to $4,750.

If you have a bad credit score, getting a balance transfer may be more difficult

The key to getting a good deal is having strong credit; evidence of defaults or late payments will raise red flags for banks who may refuse to accept your application. If you are refused, we recommend contacting your existing bank and asking them about any promotions available. If they have a low-interest option, you can ask to switch to that. You probably will be able to skip most of the credit checks and application process as you have an existing relationship with the bank.

Best Balance Transfer Credit Cards Available Right Now

0% for 6 months - ASB Visa Light

Our view: The ASB offers an attractive balance transfer for short-term debt with no fee, but you'll need to pay the balance off within 6 months to avoid the 13.50% interest rate being charged on the remaining balance.

The deal:

Interest rate: 0% for 6 months, then 13.50% afterwards
Annual fee: $0
Balance transfer fee: none
Monthly payments: Must be above the monthly minimum (either 2% or $5 of the balance owing - whichever is greater)

What you need to know:

You need to transfer a balance in the first 30 days to get the 0% interest period.
You can't transfer a balance from another ASB card.
After the 0% ends, it's 13.50% interest on any remaining transferred debt until it’s paid off.
Don't spend/withdraw cash on this card, the interest rate for new purchases is 13.50%
For more details or to apply, click here.

Best Balance Transfer offering a Low Ongoing Interest Rate - 0% for 6 months - The Co-operative Bank Mastercard

Our view: The Co-operative Bank's credit card charges an annual fee of $20 and offers an attractive long-term low interest rate.

The deal:

Interest rate: 0% for 6 months, then 12.95% afterwards
Annual fee: $20
Balance transfer fee: None
Monthly payments: Must be above the monthly minimum (either 3% or $10 of the balance owing - whichever is greater)

What you need to know:

You can't transfer a balance from another Co-operative Bank card.
The minimum credit limit is $1,000. The minimum balance transfer amount is $100, and the balance transfer amount can't be above 80% of your credit limit.
After the 0% ends, it's 12.95% interest on any remaining transferred debt until it’s paid off.
Don't spend/withdraw cash on this card, the interest rate for new purchases is 12.95%
For more details or to apply, click here.

5.95% balance transfer interest rate for the life of the balance - applicable to all Westpac credit cards

The deal:

Interest rate: 5.95% for the life of the balance
Annual fee: From $0
Balance transfer fee: None
Monthly payments: Must be above the monthly minimum (either 2% or $5 of the balance owing - whichever is greater)

What you need to know:

You need to transfer a balance in the first 30 days of the card's validity to activate the 0% interest period.
You can't transfer a balance from another Westpac card.
Don't spend/withdraw cash on this card - the interest rate for new purchases is 12.90%.
For more details or to apply, click here.

Best Low Rate for 12+ months - ANZ Low Rate Visa - 1.99% for 24 months

Our view: The ANZ offers an attractive balance transfer for short-term debt with no annual fee in the first year. You'll need to pay the balance off within 24 months to avoid the 12.90% interest rate being charged on the remaining balance.

The deal:

Interest rate: 1.99% for 24 months, then 12.90%* afterwards
Annual fee: $0 for the first year, then $35 every year afterwards (charged at $17.50 every six months)
Balance transfer fee: none
Monthly payments: Must be above the monthly minimum (either 3% or $10 of the balance owing - whichever is greater)

What you need to know:

You need to transfer a balance in the first 30 days to get the 0% interest period.
You can't transfer a balance from another ANZ card.
After the 0% ends, it's 12.90% interest on any remaining transferred debt until it’s paid off.
Don't spend/withdraw cash on this card, the interest rate for new purchases is 12.90%
For more details or to apply, click here.

Kiwibank - 1.99% p.a. for the first 6 months (selected cards)

Our view: Kiwibank offers a balance transfer rate of 1.99% for six month

The deal:

Interest rate: From 9.95% to 20.95% depending on credit card
Annual fee: From $0 to $80 depending on credit card and paid in half every 6 months
Balance transfer fee: 1.99% p.a. for 6 months
Monthly payments: Minimum monthly repayment as either 5% of the closing balance or $10, whichever is greater.

What you need to know:

The minimum amount you can transfer is $200.
For more details or to apply, click here.

Q Mastercard - 0% p.a. for 36 months

Our view: Q Mastercard offers 0% p.a. for 36 months for balance transferred until 30 November 2021

The deal:

Interest rate: 25.99% p.a. applies from the end of the interest and payment free period
Annual fee: $50 annual account fee in two 6 monthly instalments
Balance transfer fee: 0% p.a. for 36 months
Monthly payments: Minimum monthly payments as either 3% or $10, whichever is the greater amount.

What you need to know:

The minimum amount you can transfer is $500 per each card.
Eligible approved customers for the offer will be able to transfer up to 5 eligible credit card balances over to their new Q Mastercard Account.
Q Mastercard is unable to accept balance transfers from Farmers Mastercard, Farmers Finance Card, Q Card or Flight Centre Mastercard.
For more details or to apply, click here.

Balance Transfer Best Practice

If you can pay off the debt balance you have transferred before the 0% interest period finishes, you'll slash the costs of your debt. The most popular approach is to pick the card that offers the longest interest-free period.
Don't add new debt to the credit card balance - this will defeat the purpose of the balance transfer and risk leaving you worse off than before you applied for the balance transfer.

Do you have an experience with balance transfer credit cards you would like to share with our readers? Email our research team who would be delighted to hear from you.

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