10 Credit Cards With Low Interest Rates In NZ

Date Jun 25, 2021
Blog category credit cards
By Staff writer
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Contents: 

If you think that you’re capable of paying your credit in full and on time, it shouldn’t be difficult to find a credit card that suits your lifestyle. However, if you have a habit of carrying a balance every month (as not all cardholders are perfect), switching to a credit card with a low-interest rate is a good idea. 

Many credit cards are tailored for different types of cardholders. All you have to do is do your research and compare options to find the best card for you.

But before you select a credit card, you should be aware of the following interest charges that may be imposed on each card. 

What is purchase interest rate?

This is the interest rate charged on regular purchases made with a credit card. At the end of each billing cycle, this rate is applied to any outstanding purchase balances that haven’t been paid. Purchase rates can be determined by the creditworthiness and credit history of the borrower.

What is cash advance interest rate?

A cash advance fee is a fee charged by a bank for using a credit card to withdraw cash. Given that there’s typically no grace period with a cash advance, the cost of the loan is higher. Interest begins to accrue as soon as the money is withdrawn from the account.

To get the best out of your money, here’s a list of credit cards with low-interest rates in New Zealand that can help you save money on your bill.

1. Kiwibank Low Rate Visa 

  • Purchase interest rate: 12.90% p.a.
  • Free of interest on purchases up to 55 days 
  • Minimum credit limit: $500
  • Balance transfer interest for 2 years: 1.99% p.a.

2. ANZ Low Rate Visa 

  • Purchase interest rate: 12.90% p.a.
  • Free of interest on purchases up to 55 days 
  • Minimum credit limit: $500
  • Balance transfer interest for 2 years: 1.99% p.a.

3. Co-operative Bank Fair Rate Credit Card 

  • Purchase interest rate: 12.95% p.a.
  • Cash advance interest rate: 12.95% p.a.
  • No Balance transfer interest for 12 months (applicable by June 11, 2021)
  • Individual account fee for 6 months: $10

4. ASB Visa Light

  • Purchase interest rate: 13.50% p.a.
  • Cash advance rate: 22.95% p.a.
  • No fixed interest for 6 months on any purchase of $1000 or more
  • No Balance transfer interest for 6 months
  • No Individual account fee for 6 months

5. SBS Visa Credit Card

  • Purchase interest rate: 18.50% p.a.
  • Free of interest on purchases up to 55 days 
  • Cash advance interest rate: 21.50% p.a.
  • Earn $1 for every $150 spent on Eligible Transactions
  • Uses Visa payWave. Helps you save time at the checkout by not requiring you to enter your PIN for purchases under $80
  • No annual card fee 

6. TSB Visa Classic Credit Card 

  • Purchase interest rate: 18.50% p.a.
  • Free of interest on purchases up to 55 days 
  • Cash advance rate: 18.50% p.a.
  • No Balance transfer interest for 6 months
  • Individual account fee for 6 months $15

7. ASB Visa Platinum Rewards 

  • Purchase interest rate: 19.95% p.a.
  • Cash advance interest rate: 22.95% p.a.
  • No Balance transfer interest for 6 months
  • Individual account fee for 6 months: $40

8. ANZ CashBack Visa 

  • Purchase interest rate: 19.95% p.a.
  • Minimum credit limit: $500
  • Annual card fee: $60
  • Earn up to 1% cash back on eligible purchases up to $30,000. To qualify, you must spend at least $5,000.

9. ANZ CashBack Visa Platinum

  • Purchase interest rate: 19.95% p.a.
  • Minimum credit limit: $8,000
  • Annual card fee: $80
  • Earn up to 1% cash back on eligible purchases with no cap on the amount of CashBack rewards you can earn. To qualify, you must spend at least $5,000

10. ASB Visa Rewards

  • Purchase interest rate: 20.95% p.a.
  • Cash advance interest rate: 22.95% p.a.
  • No Balance transfer interest for 6 months
  • Individual account fee for 6 months: $20

Can I apply for a credit card without a bank account?

When applying for a credit card, having an account with the issuing bank can help you get approved faster. However, in some cases, it’s not at all required. It’s the protocol for some banks to check applicants’ credit history when it comes to getting a credit card. So, if you’re thinking of getting one for yourself, it would be smart to open a bank account first and proceed with your credit card application. This way, you can also pay more easily through local branches and via your bank’s online portal. 

If you really want to separate your money for shopping and paying bills without incurring any interest, you can get a prepaid credit card instead.

What’s a prepaid credit card?

A prepaid credit card is a type of credit card that has a credit limit based on the deposit made by the account holder. It functions similarly to a regular credit card, except that instead of purchasing items on credit, account holders use money that has already been deposited or transferred onto the card.

Here’s a list of prepaid credit cards you can apply for in NZ:

  • NZ Post Load
  • NZ Post Prezzy Card Online
  • NZ Post Prezzy Card Postshop
  • Westpac Express
  • Westpac Travel
  • Westpac Prepaid Visa 
  • Westpac Airpoints 
  • Air New Zealand onesmart

What can I buy with prepaid credit card?

Prepaid cards linked to major card networks such as Visa, Mastercard, American Express, and Discover can be used anywhere. You can buy groceries, shop online, fill up your car, and pay bills online.

Prepaid cards are also an excellent alternative to cash and travellers’ checks. Some prepaid cards allow you to pay in local currency (US dollar, Hong Kong dollar, Australian dollar, Singapore dollar, Euro, Pound Sterling, Yen, and Reminbi), avoiding currency exchange rate fluctuations and saving you hundreds of dollars. Simply ensure that you have more than enough fuel for your trip. You never know when an emergency will arise, and bring your credit card with you for added security.

Compare credit cards in NZ with our comparison tool here at glimp!

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