Best Balance Transfer Credit Cards

If you’re paying a high rate of interest on a credit card debt, have you considered a balance transfer? Switching to a card that offers a low or no-interest introductory period, followed by a low interest rate, can give you the chance to become debt-free sooner.

How balance transfer credit card works

Making the most of a balance transfer involves carrying over your credit card debt to a new card that offers a lower promotional interest rate and paying off the debt before the end of the low-rate period.

The lowest rates are 0% – but it’s worth noting that some 0% credit card balance transfer offers can come with an annual fee that reduces the benefits of the 0% rate.

See below for a list of things to consider before signing up for a balance transfer, including annual fees, the balance transfer fee and revert rates.

The best balance transfer credit card deals on offer

Here are some of the more impressive credit card balance transfer deals around. Also, it’s worth noting that the cards listed all have revert rates at the lower end of the credit card interest rate scale:

What should I look for in a balance transfer?

Obviously, a long interest-free period with low or no annual fee is the Holy Grail. But there are a few other things to consider when signing up for a balance transfer credit card. You need to think carefully and check the:

• Annual fee
• Revert rate
• Long-term cost of the card

You should also avoid temptation by cancelling your previous card and not making any new purchases with your new balance transfer card. Concentrate on paying off as much of the debt as possible during the interest-free period. Check the reversionary interest rate and if it’s pretty high, think about your options for managing this debt once the interest-free period expires.

Balance transfers offers aren’t to be taken lightly!

Credit card balance transfer deals aren’t always a bad thing. They can definitely make it easier for you to pay off your credit card debt if used wisely.

But the emphasis here is on the words wisely. While they can be an effective debt management tool, they can also be just another form of credit card debt. Make sure you consider all your debt reduction options.

What to think about before getting a balance transfer

Before you sign up for a balance transfer card, think about your current situation and goals, and decide which offer will benefit you the most. Don’t forget to check the interest rate the card reverts to after the introductory period has expired. This is the interest that will be charged on any remaining debt that you haven’t managed to pay off during the interest-free (or low interest) period of your balance transfer.

Also, consider that a credit card balance transfer might deal a blow to your credit rating, so think about how much that matters to you before going ahead with any balance transfer. For example, will you be applying for a personal loan or a home loan in the not-too-distant future?

Compare Credit Cards with Canstar

The comparison table below displays some of the low rate credit cards currently available on Canstar’s database for Kiwis looking to spend around $2000 per month (some may have links to providers’ websites). The products are sorted by our latest Star Rating (highest to lowest), followed by provider name (alphabetical). Use Canstar’s credit card comparison selector to view a wider range of credit cards. Canstar may earn a fee for referrals.

Compare Credit Cards with Canstar here!

About the author of this page

This report was written by Canstar’s Editor, Bruce Pitchers. Bruce began his career writing about pop culture, and spent a decade in sports journalism. More recently, he’s applied his editing and writing skills to the world of finance and property. Prior to Canstar, he worked as a freelancer, including for The Australian Financial Review, the NZ Financial Markets Authority, and for real estate companies on both sides of the Tasman.