0% Balance Transfer Credit Cards in NZ

Zero balance transfer credit cards are credit cards with 0% balance transfer interest rates for a fixed period of usually between 6 to 12 months. 0% balance transfer credit cards might be a suitable option for you if you have significant credit card debt. Remember, you would still need to make your minimum repayments or you would be charged a penalty fee and the 0% balance transfer offer could be nullified.

We’ve compiled a list of 0% Balance Transfer Credit Cards below to help you find the Best 0% Balance Transfer Credit Card to suit your needs. Our Balance Transfer page includes a list of all balance transfer credit cards in NZ. Compare Zero interest balance transfer credit cards.

Get 0% p.a. on purchases for the first 6 months with the Amex Airpoints Credit Card, plus NO ANNUAL FEE and you earn 1 Air NZ Airpoints Dollar^TM for every $100 you spend with the Card. CURRENT OFFER: 50 bonus Airpoints Dollars™ when you apply, are approved and spend $750 on your new Card within the first 3 months. New Card Members only.

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*Terms and conditions apply

Updated: 25 Dec, 2024

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Card	Description	Purchase Rate (p.a.)	Balance Transfer	Cash Rate (p.a.)	Annual Fee	Interest Free Days
TSB Low Rate Mastercard Credit Card Gold Award	The TSB Low Rate Mastercard has a very low interest rate of 11.95% p.a. for purchases and cash advances.	11.95%	0% for 6 months	11.95%	$20.00	55 days More Info » Apply Now »
Co-operative Bank Fair Rate Credit Card Gold Award	The Fair Rate Credit Card has a very low purchase rate of 12.95% p.a. plus a balance transfer rate of 0% p.a. for 6 month. This might be a good card if you are looking for a credit card with a low interest rate and/or a card with a 0% p.a. balance transfer offer.	12.95% p.a.	0% p.a. for 6 months	12.95% p.a.	$20.00	55 days More Info » Apply Now »
ASB Visa Light Credit Card Gold Award	The ASB Visa Light credit card has no annual fee, a low purchase rate and 0% balance transfer for 6 months plus 0% p.a. for 6 months when you spend $1,000 or more on any single eligible purchase	13.5% p.a.	0% p.a. for 6 months	22.95% p.a.	$0.00	55 days More Info » Apply Now »
ASB Visa Platinum Rewards Credit Card Gold Award	Choose between True Rewards or Everyday Rewards points. Earn 1 True Rewards Dollar for every $100 you spend or 1 Everyday Rewards point for every $1 spent on your ASB card. This card also comes with travel insurance for you, your spouse and your dependent children. Reward Points Cash Equivalent: $100 spend earns $1.00 cash equivalent in True Rewards points^.	19.95%	0% p.a. for 6 months	22.95%	$80.00	55 days More Info » Apply Now »
ASB Visa Rewards Credit Card Gold Award	Get one True Rewards Dollar for every $150 you spend on your ASB Visa Rewards. One True Rewards Dollar equals one New Zealand dollar. Reward Points Cash Equivalent: $100 spend earns $0.66 cash equivalent^.	20.95%	0.00% for 6 months	22.95%	$40.00	55 days More Info » Apply Now »

^ To help you compare reward points across different credit cards and rewards programs, we provide an estimate of the cash-equivalent of the reward points that you will get back for every $100 you spend on eligible purchases with your card. The cash equivalent value given is an estimate only based on a specific redemption example. In some cases you might earn less or more depending on how you redeem your ponts and some reward points cannot be redeemed for cash directly. Click on the card to find out how the estimate was calculated.

Get 0% p.a. on purchases for the first 6 months with the Amex Airpoints Credit Card, plus NO ANNUAL FEE and you earn 1 Air NZ Airpoints Dollar^TM for every $100 you spend with the Card. CURRENT OFFER: 50 bonus Airpoints Dollars™ when you apply, are approved and spend $750 on your new Card within the first 3 months. New Card Members only.

More Info »

*Terms and conditions apply

Understanding 0% Balance Transfer Credit Cards

What is a 0% Balance Transfer Credit Card?

0% balance transfer credit cards, also known as zero balance transfer credit cards or zero transfer credit cards, are financial products that allow you to transfer existing credit card debt to a new card with a 0 percent interest balance transfer offer for a specified period. This means you can pay off your debt without incurring additional interest charges during the promotional period.

How does a 0% Balance Transfer work?

A zero percent balance transfer involves moving your existing credit card debt to a new card that offers a 0% interest rate on transferred balances for a set period. Here are the steps involved:

1. Apply for a 0% balance transfer credit card: Choose a card above that offers a zero percent interest balance transfer.
2. Transfer your existing debt: Once approved, transfer the balances from your old credit cards to the new card.
3. Pay off your debt: Make regular payments to try to pay off the transferred balance before the 0% interest period ends.

Key Benefits of 0% Balance Transfer Credit Cards

Zero percent balance transfer credit cards offer several advantages as detailed below:

• Interest savings: You pay no interest on transferred balances during the promotional period.
• Debt consolidation: Combine multiple credit card debts into one manageable payment.
• Faster debt repayment: More of your payment goes towards the principal balance because you are charged 0% interest during the offerr period, allowing you to pay off your debt faster.

Note: it is important to make the minimum repayments on time to avoid penalties and to be aware of any fees associated with the balance transfer, such as annual fees or balance transfer fees. Some cards might even discontinue the balance transfer offer if you do not make your minimum monthly repayments.

How to Apply for a 0% Balance Transfer Credit Card

Eligibility Criteria

Before applying for 0 balance transfer credit cards, ensure you meet the eligibility criteria. Generally, you must:

• Be at least 18 years old.
• Have a good to excellent credit score.
• Be a New Zealand resident or citizen.
• Have a stable income source.

Steps to Apply

Applying for 0 interest balance transfer credit cards involves several steps:

1. Research and Compare: Look for zero interest balance transfer offers that suit your needs. Pay attention to the duration of the 0% interest period and any associated fees.
2. Check Your Credit Score: Ensure your credit score is in good shape to increase your chances of approval.
3. Gather Necessary Documents: Collect documents such as proof of income, identification, and existing credit card statements.
4. Submit Your Application: Fill out the application form with accurate information and submit it online or in person.
5. Wait for Approval: The bank will review your application and inform you of the decision. This may take a few days.
6. Transfer Your Balance: Once approved, initiate the zero interest credit cards balance transfer by providing details of the existing debt you wish to transfer.

Documents Needed

When applying for no interest balance transfer credit cards, you will typically need the following documents:

• Proof of Identity: Passport, driver’s licence, or national ID card.
• Proof of Income: Recent payslips, bank statements, or tax returns.
• Credit Card Statements: Statements from the credit cards you wish to transfer balances from.

Having these documents ready will speed up the process for your 0 credit card transfer application.

Factors to Consider Before Signing Up

Annual Fees

When evaluating a 0% balance transfer credit card, it is impoortant to consider the annual fees associated with the card. While some cards offer no annual fee, others may charge a significant amount. A card with a high annual fee could negate the benefits of the interest-free period, especially if you do not plan to use the card extensively after the balance transfer period ends.

Balance Transfer Fees

Another important factor is the balance transfer fee. This fee is usually a percentage of the amount you are transferring, and it can vary from one card to another. Some cards offer no balance transfer fees, while others may charge up to 3-5% of the transferred amount. It is essential to calculate this cost and weigh it against the potential savings from the 0% interest period.

Revert Rates

The revert rate is the interest rate that applies once the introductory 0% period ends. This rate can be significantly higher than the initial rate and can impact your long-term financial planning. Ensure you understand what the revert rate is and how it will affect any remaining balance after the interest-free period. It is advisable to have a repayment plan in place to clear the debt before the revert rate kicks in and avoid credit cards with high revert rate just case you aren’t able to pay off the debt in time.

How to take advantage of your 0% Balance Transfer Credit Card

Creating a Repayment Plan

To fully leverage the advantages of a 0% balance transfer credit card, it is important to create a realistic repayment plan. This plan should aim to pay off the transferred balance before the 0% interest period ends. Here are some steps to consider:

1. Calculate Your Total Debt: Determine the total amount you need to repay.
2. Divide by the Number of Months: Divide your total debt by the number of months in the 0% interest period to find your monthly payment.
3. Set Up Automatic Payments: Ensure you never miss a payment by setting up automatic transfers from your bank account.

Avoid New Purchases

One of the key strategies to maximise the benefits of your 0% balance transfer credit card is to avoid making new purchases. Adding new debt to the card can defeat the purpose of the balance transfer and leave you in a worse financial position. Focus on paying down the existing balance instead.

Monitor Your Credit Score

Regularly monitoring your credit score is useful when managing a 0% balance transfer credit card. Keeping an eye on your credit score can help you understand the impact of your debt repayment efforts and ensure there are no errors or fraudulent activities affecting your credit rating. You can check your credit score for free in New Zealand.

Common Mistakes to Avoid with 0% Balance Transfer Credit Cards

Missing Minimum Payments

One of the most critical mistakes to avoid is missing the minimum payments on your 0% balance transfer credit card. Failing to make these payments can result in the loss of the 0% introductory balance transfer rate, leading to higher interest charges. This is extremely important. To prevent this, set up automatic payments or reminders to ensure you never miss a due date.

Ignoring the Revert Rate

Another common pitfall is ignoring the revert rate, which is the interest rate that applies after the 0% introductory period ends. This rate is often significantly higher, and if you have not paid off your balance by then, you could find yourself in a worse financial situation. Always plan to pay off your balance before the revert rate kicks in but to be safe try to avoid balance transfer cards with high revert rates.

Using the Card for New Purchases

Using your 0% balance transfer credit card for new purchases can defeat the purpose of the balance transfer. New purchases may not be covered by the 0% interest rate and can accrue interest immediately. To maximise the benefits, avoid making new purchases on the card until the transferred balance is fully paid off.

Real User Experiences

Real users of 0% balance transfer credit cards often share mixed experiences. Some find these cards to be a lifeline for managing and paying off debt, while others struggle with the temptation to make new purchases, which can negate the benefits of the 0% interest period. Users frequently mention the importance of having a solid repayment plan and sticking to it to avoid falling back into debt.

Industry Insights

Industry experts agree that 0% balance transfer credit cards can be a powerful tool for debt management if used correctly. They advise potential users to:

• Read the fine print: Understand all fees, including annual fees and balance transfer fees, which can reduce the benefits of the 0% rate.
• Do the math: Calculate whether the savings on interest outweigh any associated costs.
• Create a realistic repayment plan: Ensure you can pay off the balance before the 0% interest period ends to avoid high revert rates.

By following these guidelines, you can make an informed decision and potentially save a significant amount of money on interest payments.

Frequently Asked Questions

What is a 0% balance transfer credit card?

A 0% balance transfer credit card allows you to transfer existing credit card debt to a new card with a 0% interest rate for a specified period, typically between 6 to 12 months.

How does a 0% balance transfer work?

After approval for a 0% balance transfer credit card, you can transfer existing balances from other credit cards. The transferred balances will have a 0% interest rate for a promotional period, helping you save on interest.

Are there any fees associated with 0% balance transfer credit cards?

Yes, there can be fees such as a balance transfer fee, which is a percentage of the amount transferred, and an annual fee for the new card. These fees can reduce the benefits of the 0% interest rate.

What happens if I miss a minimum payment?

Missing a minimum payment can result in penalty fees and may nullify the 0% balance transfer interest offer, causing the interest rate to revert to a higher standard rate.

Can I use a 0% balance transfer credit card for new purchases?

It is generally not advisable to use the card for new purchases, as these transactions will accumulate interest at a high rate, making it more difficult to pay off your debt.

What should I consider before applying for a 0% balance transfer credit card?

Consider factors such as annual fees, balance transfer fees, and the revert rate after the promotional period ends. It’s also important to have a repayment plan to pay off the balance before the 0% interest period expires.