Get Out Of Debt Fast: How Credit Card Balance Transfer Works

Date Jan 17, 2021
Blog category Credit Card
By Tina M.
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Balance Transfer, a GLIMPse:

  1. Is balance transfer credit card a good idea?
  2. How to get approved for balance transfer credit cards?
  3. What is a balance transfer fee?
  4. How to do balance transfer?
  5. Multiple credit balance transfers
  6. Compare credit card balance transfer in NZ

Credit cards can be a money-saving measure to pay off expenses, but on the other side of that is a cycle of never-ending debt when handled the wrong, uninformed way.

There’s no limit to how many credit cards you can have. You can apply for two or more and use them however you like but sometimes, people are biting more than they can chew. This of course, leads to increasing debt plus piling interests on their credit card bills. 

If you’re overwhelmed by the amount of interest on your current card, it might be time to transfer that balance to another credit card that offers lower interest rates, more reasonable fees, and other benefits. 

Is balance transfer credit card a good idea?

Balance transfer is a financial recourse for card holders with an outstanding balance on their high-interest card (or even multiple credit balances) and would like to transfer to another credit card offering a lower interest rate. It’s a smarter choice for consumers who want to continue using their credit card and build a better credit score, instead of closing the account for good.

How to get approved for balance transfer credit cards?

Generally, you must have a credit score of 670 or higher. Lenders take note of the applicant’s lending history which is necessary in any credit card application. Although you’re pre-approved for a transfer balance card, the credit card company can still decline applications depending on your credit score, or they can issue you a higher balance APR. 

What is a balance transfer fee?

A balance transfer fee is charged to the cardholder when he decides to transfer his existing balance to a new lender. The amount usually depends on the total amount that is transferred with low introductory interest in some credit card companies. Some lending companies waive charges on balance transfer cards to attract more customers to their products, but annual fees are always imposed. 

How to do a balance transfer?

  1. Review your balances and interest rates and research on the different credit cards that can accept the amount you wish to transfer, and an interest rate that is within your income. Of course, this also includes rewards you can avail from time to time.
  2. Check the annual percentage rate or APR of the credit card company. They normally change offers depending on the market trend. It’s best to talk to their agent and inquire about their long-term fees as well.
  3. Read the terms and conditions of your prospective lender. Check the credit card limit and restrictions that they pose, if any. 
  4. Once you’re decided on a lender, you can start applying for a balance transfer card. Most banks and credit card companies have integrated their transactions using Internet banking. You can now monitor their finances as well as do balance transfers online. 
  5. Provide your new credit card company with required information such as the account number of your current card and inform them on the amount of balance you need to transfer. 
  6. Your chosen credit card should send you the details for the approved credit card balance transfer. You can then have your debts transferred right away. Now, you might ask, “what happens to old credit cards after balance transfer?” All balances on your old cards will be removed. However, you still need to pay for monthly fees on your old card to maintain a good credit standing.

Multiple credit balance transfers

You can keep transferring credit balances to another card as you please but this won’t help to pay off your debts. Moving from one account to another is only a band-aid solution to your increasing debt. Remember that you’re not just paying for the principal, but you also need to pay for interest and other card fees. 

Transfer AT HOP card balance to another card

What is AT HOP Card?

This is a cashless fare payment card that’s used in Auckland public transport services. It can be topped up through ticket machines, ticketing offices, retail stores, and through online transfer. 

When lost or stolen, you can have your balance transferred to another card that you registered to your account. But before requesting for a balance transfer, you must first cancel the lost AT HOP card and then transfer balance to an active card. Here’s how you can cancel AT HOP card

Compare credit card balance transfer in NZ

ASB Visa Light 

  • Purchase Rate - 13.5% p.a. 
  • Balance Transfer Rate - 0% p.a. for 6 months only
  • Card Fee - None 
  • Interest - Free for 55 days 

ASB Visa Rewards 

  • Purchase Rate - 20.95% p.a. 
  • Balance Transfer Rate - 0% p.a. for 6 months only
  • Card Fee - $40 yearly
  • Interest - Free for 55 days 

ASB Visa Platinum Rewards 

  • Purchase Rate - 19.95% p.a. 
  • Balance Transfer Rate - 0% p.a. for 6 months only
  • Annual Fee - $80 yearly
  • Interest - Free for 55 days 

ANZ Visa Card

  • Purchase Rate - 12.9% p.a. 
  • Balance Transfer Rate - 1.99% p.a. for 24 months 
  • Card Fee - None 
  • Interest - Free for 55 days 

BNZ Lite Visa

  • Purchase Rate - 12.9% o.a. 
  • Balance Transfer Rate - 0% p.a. for 6 months only
  • Card Fee - $15 half-yearly
  • Interest - Free for 55 days 

The Co-Operative Bank Fair Rate 

  • Purchase Rate - 12.95% p.a. 
  • Balance Transfer Rate - 0% p.a. for 6 months only
  • Card fee - $10 half-yearly for primary card holders; %15 half-yearly for primary with additional card/s
  • Interest - Free for 55 days 

Kiwibank Air New Zealand Airpoints Platinum Visa

  • Purchase Rate - 20.95% p.a. 
  • Balance Transfer Rate - 1.99% for 6 months only
  • Card Fee - $150 yearly 
  • Interest - Free for 44 days 

TSB Visa Classic 

  • Purchase Rate - 18.5% p.a. 
  • Balance Transfer Rate - 0% p.a. for 6 months only
  • Card fee - $15 half-yearly for low account card holders 
  • Interest - Free for 55 days 

Westpac Low Rate Mastercard

  • Purchase Rate - 13.45% p.a. 
  • Balance Transfer Rate - 5.95% for life of balanced transferred
  • Card Fee - $25 yearly 
  • Interest - Free for 55 days 

Westpac Hotpoints MasterCard

  • Purchase Rate - 20.95% p.a. 
  • Balance Transfer Rate - 5.95% for life of balanced transferred
  • Card Fee - $44 yearly 
  • Interest - Free for 55 days 

Westpac Hotpoints Platinum MasterCard

  • Purchase Rate - 20.95% p.a. 
  • Balance Transfer Rate - 5.95% for life of balanced transferred
  • Card Fee - $119 yearly 
  • Interest - Free for 55 days 

Westpac Hotpoints World MasterCard

  • Purchase Rate - 16.95% p.a. 
  • Balance Transfer Rate - 5.95% for life of balanced transferred
  • Card Fee - $390 yearly 
  • Interest - Free for 55 days 

Westpac Airpoints MasterCard

  • Purchase Rate - 20.95% p.a. 
  • Balance Transfer Rate - 5.95% for life of balanced transferred
  • Card Fee - $55 yearly 
  • Interest - Free for 55 days 

Westpac Airpoints Platinum MasterCard

  • Purchase Rate - 20.95% p.a. 
  • Balance Transfer Rate - 5.95% for life of balanced transferred
  • Card Fee - $150 yearly 
  • Interest - Free for 44 days 

Westpac Airpoints World MasterCard

  • Purchase Rate - 16.95% p.a. 
  • Balance Transfer Rate - 5.95% for life of balanced transferred
  • Card Fee - $390 yearly 
  • Interest - Free for 55 days 

There’s always a way to pay off your debts. Lending companies consider each circumstance and provide you options so that you can take care of your expenses fast. Do some research and look into the best features of credit card providers that suit your needs. To find the right credit card for you, use Glimp's credit card comparison tool and compare deals now!

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