Low Rate Credit Cards - Kiwibank Comes Out Fighting
Now if you are in the unfortunate position of giving your hard earned cash to the bank in the form of credit card interest, this could help you save a bit of interest.
Kiwibank has a pretty attractive offer until 30th June, 2008. 5.99% for the first 6 months if you transfer your credit card debt to them. Plus the lowest yearly fee for low rate card ($50) and the second lowest low rate after your 6 months of 13.30%. That makes the Kiwibank card the best performer. So if you can pay off that credit card debt in 6 months (you know you should, and can!) then you can transfer to the Kiwibank low rate card and get that credit card paid off.
Check out the summary of the other banks balance transfer offers below:
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Balance Transfer Deals
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Current Interest Rate
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Yearly fees
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Deal timeframe
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Kiwibank
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5.99%
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$50
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6 months
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BNZ
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5.99%
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$60
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6 months
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ANZ
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8.75%
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$25-58
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6 months
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NBNZ
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8.75%
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$20-$78
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6 months
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Westpac
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9.95%
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$65
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Until transferred balance is paid off
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(interest rates at publication date, subject to change)
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*Yearly fee depends on card choice. Low rate or standard. Interest rates vary accordingly.
If it is going to take more around a year or more to clear that debt (no more card use!) then the Westpac may work out cheaper. The Westpac card has no time limit; the rate applies until the transferred balance is paid off. Any new spending does not get the low transfer rates of course! But hey you should not be spending any more anyway! Do the numbers for your situation, pay off the plastic, then get rid of it!
Speaking of low rate cards, watch out for the rates and card fees!
The normal “Low Rate” credit cards are offered by all the major banks. If you are paying interest they are cheaper than standard credit cards (up to 9.45%) but check for the fees. The rates and fees vary a bit. Check out the summary table.
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Low Rate Credit Cards
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Current Interest Rate
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Yearly Fee
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ANZ
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14.90%
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$58
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ASB
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12.50%
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$60
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BNZ
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13.49%
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$60
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Kiwibank
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13.30%
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$50
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National Bank
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14.90%
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$78
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Westpac
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13.90%
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$65
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(interest rates at publication date, subject to change)
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Cash Control Beat My Banker Reminder!
We do the work for you. If you are going to transfer your credit card balance to Kiwibank (or other) and want a reminder when the low rate "interest honeymoon" is over, email info@cashcontrol.co.nz with the subject Remind Me. In just over 5 months time we will send you an email to remind you that your 6 month low rate will be ending soon. We will also give you an update on the best deals on the market and to help you save some more casharusack!
Final Word – Remember at Cash Control we think plastic is terrible, bad and to be avoided! So pay off that credit card and then either get rid of it or lasso it under your bed where you can’t get it easily!
Cam Milnes
CASH CONTROL
Automate your money, free up your life