A Balance Transfer Credit Card is a credit card with a significantly lower interest rate for balance transferred from another credit card, and a separate higher rate for newly incurred debt. Essentially, a balance transfer credit card has a separate interest rate for the balance you transfer to it and another for newly incurred debt on the card.
How long do balance transfer offers last?
Balance transfer offers are usually for a fixed period of 6 to 12 months after which the balance transferred begins to incur interest at the higher standard interest rate, but a few New Zealand credit cards providers offer balance transfer rates that last for the life time of balance transferred. You can find a few of these on our balance transfer NZ page.
For a full list of New Zealand balance transfer offers including 0% balance transfer credit cards, low interest balance transfer credit cards visit our credit card balance transfer page where you can compare and filter through the full list of New Zealand balance transfer credit cards.
What’s the catch?
The idea of a balance transfer credit card might seem too good to be true for many and we at Credit Cards Compare NZ often get asked what is the catch with balance transfer offers.
The simple answer is there is no catch as long as you understand that these balance transfer rates only apply to balance transferred and that the standard rate would apply to the balance transferred when the balance transfer offer period lapses.
The new credit card provider is counting on you to stay with them after the balance transfer offer period lapses, at which point you would incur interest at the higher standard interest rate.
Can I keep transferring to another balance transfer credit card?
After your balance transfer period lapses, you can hop on to another credit card provider – provided your balance transfer application is approved by the new provider. In reality, a large proportion of people who transfer their balance end up staying with the new credit card provider after the balance transfer period lapses.
Balance transfer offers that last for the entire duration of the balance transferred tend to have higher balance transfer rates to compensate for this.
How do I transfer my credit card balance?
To transfer your credit card balance, please visit our balance transfer credit card page to find a suitable balance transfer offer. Once you have found a suitable credit card balance transfer offer, you can simply click on the “Go to Site” button to go the credit card provider’s website and apply online for the credit card.
During the credit card application process you can specify details of the credit card balance you want to transfer to your new card. In most cases, your new credit card provider would handle the balance transfer, but it pays to check with your old credit provider that everything is in order.
Considering getting a credit card?
The best credit card for you would depend on your personal circumstance and how you intend to use your credit card. We have put together a list of some of the best credit cards in New Zealand to help you find the best credit card in NZ to suit your individual needs. Alternatively, you can narrow down your search by credit card type such as interest free credit card, low rate credit card, balance transfer, credit card reward or air nz credit card