The Complete Guide To No Annual Fee Credit Cards In New Zealand

Jan 15, 2021
credit cards
By Staff writer

Annual fees in your credit card may seem like a small amount, but those who are trying to save know that these, too, add up over time. Having a no annual fee credit card lets you take advantage of a variety of perks including balance transfers, rewards and points, Airpoints, and other travel benefits. It’s a practical choice for those looking to save money and get more on their purchases.

Check out all you need to know about no annual fee credit cards in New Zealand. Compare the best ones from leading banks and get yours today.

What is a no annual fee credit card?

A no annual fee credit card doesn’t charge a yearly maintenance fee for your account. This can save you up to $400 or more per year, depending on your bank. This is great for Kiwis who want to make the most of their credit card use, but want to avoid paying hefty amounts each year.

Make no mistake though: while this rids you of pricey maintenance fees, this increases the standard purchase rate of your card. If you always use your card for your purchases, a low-interest rate credit card from a trusted NZ bank may be a better choice than a no annual fee credit card. No annual fee credit cards are ideal for people who often buy big ticket or one-time purchases, like musical instruments, seasonal clothes, and sports equipment, among others.

How does a no annual fee credit card work?

A no annual fee credit card can work differently depending on which additional features you get. While you can get a straightforward no annual credit card deal, you can often get it with an add-on. Take a look at some of the most common complementary features of no annual fee credit cards.

No annual and no balance transfer fees 

Banks offer not only $0 annual fees, but $0 balance transfer fees, too! This is recommended for keeping your credit low while paying your debts at the same time. It’s a great way to consolidate your debt and repay it with a lower interest rate. 

Read: How To Find The Best Balance Transfer Credit Card in New Zealand

No annual Airpoints credit cards

An Airpoints credit card lets you earn points on your everyday spending. Usually, this comes with higher annual fees. A no annual Airpoints credit card is perfect because you can accumulate points without the high fees.

$0 annual fees and 0% purchase rates

No annual fee credit cards with 0% purchase rates can help you spend money in a short period with a low-interest rate. Typically, this is a popular deal during promotional periods like the holiday. Although, some banks may only do it during an introductory period.

No annual fee credit cards with rewards

No annual fee credit cards can come with rewards too! Depending on your card, you can get as much as 30,000 points in the first three months. The great thing is, some banks offer an exchange rate of as much as 10 points for every $1 spent. 

No annual fee travel credit cards

This type waives annual fees as well as overseas transaction charges. This is especially useful, as you’re not likely to use this every month of the year. You’re only likely to use it when you go on a holiday. This is also best for people who often have to travel for work.

How do you know if a no annual fee credit card is good for you?

From balances, credits, fees, to other hidden charges, here are some of the most important things you need to know.

Do you use your credit card often?

If you don’t use your credit card frequently, this is the perfect deal for you. It prepares you from any unplanned expenses and emergencies like an illness or sudden unemployment. A no annual fee credit card prepares you for the unexpected without having to worry about paying expensive fees.

Do you have outstanding debt?

If you have an existing debt, you may be better off with a balance transfer credit card. A no annual credit card may incur higher interest that can put you into debt even more. This can of course, tempt you to spend more money than what you can pay.

Do you have an existing balance?

Having a balance in a no annual fee credit card can be an expensive financial decision. Interest rates can easily pile up and put you into more debt. If you carry a balance, a low-interest rate credit card may be a better option for you.

What perks do you want in a credit card?

No annual fee credit cards have fewer benefits compared to other credit cards. If you’re after some benefits, this isn’t the best one in the market. If you’re only after a credit card that can help you during emergencies and one-time financial responsibilities, then a no annual fee credit card is the right choice.

What are the pros and cons of getting a no annual fee credit card?

It’s always important to consider the pros and cons of a no annual credit card before getting one for you. Will this truly fit your budget and lifestyle? Check out this side by side comparison.

What are its advantages?

  • It can help you save money - As they don’t have annual fees, it can save you a great deal of money. This can save you thousands of dollars in the card’s lifetime.
  • It’s a more practical choice - No annual fee credit card can be a practical choice. You don’t have to worry about unexpected expenses and other emergencies.
  • It offers great deals and offers - While they don’t offer a considerable amount of perks, they offer great promotional offers such as Airpoints programmes and more.

What are its disadvantages?

  • Interest rates are high - No annual fee credit cards have high-interest rates compared to other credit card types. As mentioned, it’s not ideal for frequent purchases such as paying for grocery and utility bills. 
  • Extra features are limited - While they do offer perks, it’s not as frequent compared to other credit card types. 
  • Limited time with no annual fee - $0 annual fees of your credit card may just be for a time. Sometimes, it’s only a promotional period to tempt you to purchase the credit card.

Commonly asked questions about $0 annual fee credit card

Got some questions to clear out? Before purchasing a no annual credit card, here are some of the most commonly asked questions. 

Can I cancel my credit card before an annual fee starts?

For the most part, it’s possible as long as you don’t have the balance in it. However, you may still have to contact your bank before cancelling your card. There may be some fees you have to pay as indicated in the fine print of your contract.

When is the annual fee charged?

It depends on your provider. Some banks may start charging the fee as soon as your card is activated. Others may charge it a year later. Ask your bank when they will charge this fee before finalising your agreement with your account.

Can I extend the annual fee waiver?

Some banks may waive their annual fees even beyond the promotional period. However, some may only waive this for package mortgage deals, home loan packages, and more. Contact your provider to know the best option for you.

Is a no annual fee credit card free?

While it may seem like free, it’s not. Although, a no annual fee credit card may offer an interest-free period for your purchases. You can make purchases without paying any fees or charges given that you pay off your balance in the due date.

Can I get a no annual fee credit card if I have bad credit?

Having a bad credit score can affect your approval from the bank. It’s important to remember that a no annual fee credit card has higher interest rates that can put you into debt even more. Otherwise, your best alternative is a low-interest rate credit card.

Compare the best no annual fee credit cards in NZ

Ultimately, the best credit card is always relative to your needs. Nonetheless, here are some of the best no annual fee credit cards in New Zealand that you can check.

Purchase Rate Interest-free Period
The Warehouse Money Visa Credit Card 19.95% p.a. Up to 55 days on purchases
ANZ Low Rate Visa Credit Card 12.9% p.a. Up to 55 days on purchases
American Express Airpoints Card 0% for 6 months (19.95% p.a. after) Up to 55 days on purchases
Kiwibank Zero Visa 13.95% p.a. Up to 55 days on purchases
ASB Visa Light 13.5% p.a. Up to 55 days on purchases
SBS Visa Credit Card 18.5% p.a. Up to 55 days on purchases

Get the no annual fee credit card that matches your needs

If a no annual fee credit card is something that can benefit you financially, make sure to get the one that matches your needs. Compare the best deals from the leading banks in New Zealand. Use glimp’s comparison tool and get a tailored result in under 4 minutes.

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