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Banks rush to pull balance transfer credit card offers as COVID-19 bites - Money Hub

Fuseworks Media
Fuseworks Media

A review of balance transfer credit card deals highlights less banks are offering debt-heavy New Zealanders attractive interest-free deals

A review of balance transfer credit cards by MoneyHub reveals at least two major banks have dumped their long-standing balance transfer credit card offers. Other balance transfer deals, which have the potential for New Zealanders to save hundreds if not thousands of dollars on credit card fees, still exist but the choice is lower.

ASB, ANZ and Wesptac lead the field, helping to move costly debt balances to 0% (or very low) interest deals.

MoneyHub’s Senior Researcher, Christopher Walsh said:

"Westpac, ANZ and ASB still offer interest-free credit cards, with market-beating interest rates for balances after the interest free period ends. The deals make credit card debt repayment much easier, and avoid 20%+ per annum interest rates on runaway debt which could be better served on mortgage and rent costs".

"COVID-19 is creating a consumer debt nightmare, but a simple balance transfer of credit card debt can relieve pressure on personal finances when it’s most needed".

"Right now, ANZ offers a 1.99% deal for 24 months, but like most balance transfer deals, the prerequisite is you can’t be an existing customer of the bank offering an interest-free balance transfer deal".

"Banks offering credit card transfers don’t discriminate on how the existing credit card debt was incurred, and this extended to debt from cash advances as well. The most important factor was making sure applicants were in a good financial position".

"MoneyHub believes balance transfer credit cards are an attractive way to manage debt if individuals cancel their existing card after the balance transferred to a new bank - running up new debt would be a fast way to money troubles later on".

MoneyHub published a number of different balance transfer credit card options, as well as a number of tips to make a 0% offer the most cost-effective. The dedicated page is updated on an ongoing basis as deals change and new information becomes available.

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