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:
| Company | Card | Deal Rate | Deal Period | Revert Rate | Annual Fee | ||||
|---|---|---|---|---|---|---|---|---|---|
| TSB | Low Rate Mastercard | 0% | 6 months | 11.95% | $20 | ||||
| ANZ | ANZ Low Rate Visa | 1.99% | 24 months | 13.90% | $0 | ||||
| ASB | ASB Visa Light | 0% | 6 months | 13.50% | $0 | ||||
| Kiwibank | Kiwibank Zero Visa | 1.99% | 6 months | 12.90% | $0 | ||||
| The Cooperative Bank | Fair Rate Credit Card | 0% | 6 months | 12.95% | $20 | ||||
| Westpac | Westpac Fee Free Mastercard | 5.95% | Life of transferred balance | n/a | $0 | ||||
| Rates and fees correct as of 27/03/25. | |||||||||
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 word wisely. While balance transfer deals 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 most. Also consider that applying for a credit card balance transfer deal, or any extra credit, can negatively affect your credit rating.
And don’t forget to check the interest rate the card reverts to after the introductory period expires. 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.
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
Bruce Pitchers is Canstar NZ’s Content Manager. An experienced finance reporter, he has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and NZ, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. As a freelancer, he has worked for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines and newspapers, including Woman’s Day and New Idea. He is also the co-author of the murder-mystery puzzle book 5 Minute Murder.
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