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.
Updated: 14 Oct, 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
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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
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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
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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
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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
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^ 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.
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.
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:
Zero percent balance transfer credit cards offer several advantages as detailed below:
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.
Before applying for 0 balance transfer credit cards, ensure you meet the eligibility criteria. Generally, you must:
Applying for 0 interest balance transfer credit cards involves several steps:
When applying for no interest balance transfer credit cards, you will typically need the following documents:
Having these documents ready will speed up the process for your 0 credit card transfer application.
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.
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.
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.
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:
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.
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.
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.
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 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 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 experts agree that 0% balance transfer credit cards can be a powerful tool for debt management if used correctly. They advise potential users to:
By following these guidelines, you can make an informed decision and potentially save a significant amount of money on interest payments.
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.
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.
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.
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.
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.
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.
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