The Best Balance Transfer 0% Interest Rate Credit Cards (January 2025)
Get 0% interest to help repay credit card debt; 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 7 January 2025
Summary of Balance Transfer Credit Cards
Summary of Balance Transfer Credit Cards
- Balance transfers can save hundreds (if not thousands) of dollars in fees and interest if used intelligently.
- From time to time, some 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 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:
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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:
- What is a Balance Transfer?
- The 9 Rules of Credit Card Balance Transfers
- Best Buy Balance Transfer Credit Cards
- Balance Transfer Best Practice
Advertising Disclaimer: MoneyHub may earn a referral bonus for anyone that’s approved through some of the below links. Our research and findings are independent of any bank, credit card issuer, or product manufacturer/service provider, and have not been endorsed by any of these entities. Please see our Advertising Policy for more details about how we make money.
MoneyHub Founder Christopher Walsh shares his views on Balance Transfer Credit Cards:
"Certain banks are 'generous' with their balance transfer offers - giving you a 0% interest rate to help you pay off debt is very useful. The problem is you're not winning unless you maximise the 0% interest period and get debt-free".
"You need a strategy to work a balance transfer card to your advantage. My view is simple - a six month deal at 0% is, for most people, better than a 12-month or 24-month deal at 2% or 5%. Why? Because having six months circuit-breaks your spending behaviour and encourages you to get the debt paid off month after month. The risk with a 1-2 year balance transfer offer is you ignore it, don't make any repayments, and end up with a debt bomb". "Banks are picky about who they give balance transfer credit cards to, as, after all, it's an unsecured debt they're lending. We've shortlisted the deals below based on the interest rate and fees, with The Co-operative Bank's Fair Rate Credit Card a top-performer for getting debt down, alongside other 0% offers". "I get emails from everyday New Zealanders who can't seem to pay off their credit card debts. These tend to be average income earners who have around $5,000 to $10,000 on store cards, Q Card/GEM Visa and/or credit cards. The reality is that with the cost of living, repaying debt isn't easy when you're paying high-interest rates on the money you owe. The problem is, the debt isn't going away - I believe a balance transfer credit card, when used correctly, will help clear the debt(s) you've built up". My view is simple: Whatever you do, please clear the balance you transfer. That is the entire point of the card. Balance transfer credit cards are a temporary safety net from aggressively high credit card interest rates - this guide is designed to help you repay what you owe and move on. Please follow it carefully to get rid of arguably the most useless debt you'll ever have". |
MoneyHub Founder
Christopher Walsh |
The video below explains what you need to know about Balance Transfer Credit Cards and how to get your debt sorted:
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.
Our video below outlines the fine print and common terminology used in balance transfer credit card offers:
Our video below outlines the fine print and common terminology used in balance transfer credit card offers:
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.
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Meet the monthly minimum repaymentsYour 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. Our video explains minimum payments (and what they can cost you in the long term) in detail: |
Don’t use the card for purchases, and don’t withdraw money on itYou 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.
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Get a low-interest credit card if you need to spendAvoid 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.
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A balance transfer card offering a “life of the balance” interest rate is worth consideringSome 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.
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If you have a balance owing after the low-interest period, apply for another balance transfer credit cardDon'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.
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If you have a bad credit score, getting a balance transfer may be more difficultThe 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.
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Best Balance Transfer Credit Cards Available Right Now
Best Balance Transfer offering a Low Ongoing Interest Rate - 0% for 6 months - The Co-operative Bank Fair Rate Credit Card
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:
What you need to know:
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%
- You can only transfer from another card once, but you can consolidate multiple cards in one balance transfer.
- For more details or to apply, visit the Co-opperative bank.
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:
What you need to know:
The deal:
- Interest rate: 0% for 6 months, then 13.50% p.a. 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, visit ASB.
Westpac Fee Free Mastercard
Benefits include:
- 5.95% p.a. balance transfer for the life of the balance.
- No annual fee.
- No foreign currency fee.
- A low interest rate of 12.90% p.a.
- Up to 55 days interest free on purchases when you pay off your balance in full by the payment due date
- More details: Fee Free Mastercard
Other Options: 5.95% balance transfer interest rate for the life of the balance - applicable to all Westpac credit cards
The deal:
What you need to know:
- 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, visit Westpac.
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:
What you need to know:
The deal:
- Interest rate: 1.99% for 24 months, then 13.90%* afterwards
- Annual fee: No charge
- Balance transfer fee: 1.99% p.a
- 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 13.90% 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 13.90%
- For more details or to apply, visit BNZ.
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 on a range of cards.
The deal:
What you need to know:
The deal:
- Interest rate: From 12.90% to 20.95% depending on credit card
- Annual fee: From $0 to $90 depending on credit card and paid 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, visit Kiwibank.
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.