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 balance transfer rates on offer are 0%. But it's always worth noting the card's revert rate and annual fee. For if you don't manage to pay off your debt completely by the end of the honeymoon period, you don't want to be stuck paying high fees and charges.
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's a round up of the major credit cards that offer balance transfer deals. Those marked with 5 Stars are the winners of Canstar's latest Outstanding Value Credit Card Awards.
Company | Card | Deal Rate | Deal Period | Revert Rate | Annual Fee |
|---|---|---|---|---|---|
ANZ | Low Rate Visa | 1.99% | 24 months | 13.90% | $0 |
ASB | Visa Light  | 0% | 6 months | 13.50% | $0 |
ASB | Visa Rewards | 0% | 6 months | 20.95% | $40 |
ASB | Visa Platinum Rewards | 0% | 6 months | 19.95% | $80 |
Kiwibank | Zero Visa | 1.99% | 6 months | 12.90% | $0 |
Kiwibank | Platinum Visa | 1.99% | 6 months | 12.90% | $50 |
The Cooperative Bank | Fair Rate Credit Card | 0% | 6 months | 12.95% | $20 |
TSB | Low Rate Mastercard | 0% | 6 months | 11.95% | $20 |
Westpac | Fee Free Mastercard | 5.95% | Life of transferred balance | n/a | $0 |
Westpac | Airpoints Mastercard | 5.95% | Life of transferred balance | n/a | $70 |
Westpac | Airpoints Platinum Mastercard | 5.95% | Life of transferred balance | n/a | $125 |
Westpac | Airpoints World Mastercard | 5.95% | Life of transferred balance | n/a | $310 |
Westpac | hotpoints Mastercard | 5.95% | Life of transferred balance | n/a | $40 |
Westpac | hotpoints Platinum Mastercard | 5.95% | Life of transferred balance | n/a | $70 |
Westpac | hotpoints World Mastercard | 5.95% | Life of transferred balance | n/a | $285 |
Rates and fees correct as of 20/08/26. | |||||
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 your debt once the interest-free period expires.
Balance transfer offers aren't to be taken lightly!
Credit card balance transfer deals 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 credit card
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 know 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.
