Comparing Low Interest Credit Cards in New Zealand
Credit cards can be a convenient financial tool, but the high interest rates associated with many cards can quickly lead to significant debt if balances are not paid off in full each month. For those looking to manage their finances more effectively, low interest credit cards offer a viable alternative. This article compares the best low interest credit cards available in New Zealand, highlighting their key features, benefits, and potential drawbacks.
Overview of Low Interest Credit Cards
Low interest credit cards in New Zealand typically offer interest rates significantly lower than the standard rates found on most credit cards, which can range from 20% to 25% per annum. These cards are designed to help consumers manage their debt more affordably, though they often come with fewer perks than higher-interest cards. Let’s explore some of the top options available in the market.
Key Low Interest Credit Cards
Kiwibank Zero Visa
Key Features:
- Interest Rate: 12.90% p.a.
- Annual Fee: $0
- Balance Transfer Offer: 1.99% p.a. for 6 months
- Interest-Free Period: Up to 55 days on new purchases
The Kiwibank Zero Visa stands out for its combination of a low interest rate and no annual fee. This card is particularly attractive for those looking to transfer existing balances, thanks to its competitive balance transfer rate. However, it does not offer interest-free periods on purchases, which may be a drawback for some users.
ASB Visa Light
Key Features:
- Interest Rate: 13.50% p.a.
- Annual Fee: $0
- Balance Transfer Offer: Up to 6 months at 0%
- Interest-Free Period: 6 months interest-free on purchases over $1,000
The ASB Visa Light is another strong contender, offering a slightly higher interest rate than the Kiwibank Zero Visa but with similar benefits. The card provides a generous interest-free period on large purchases, making it suitable for those planning significant expenditures. Additionally, the 0% balance transfer offer for six months can help manage existing debt more effectively.
TSB Low Rate Mastercard
Key Features:
- Interest Rate: 11.95% p.a.
- Annual Fee: $20
- Balance Transfer Offer: 0% for 6 months
- Interest-Free Period: Up to 55 days on new purchases
The TSB Low Rate Mastercard offers the lowest interest rate among the cards reviewed, at 11.95% p.a. While it does have a small annual fee, the low interest rate can result in substantial savings over time. The card also includes a 0% balance transfer offer for six months and an interest-free period on new purchases, making it a versatile option for managing both new and existing debt.
ANZ Low Rate Visa
Key Features:
- Interest Rate: 13.90% p.a.
- Annual Fee: $0
- Balance Transfer Offer: Special rates for balance transfers
- Interest-Free Period: Up to 55 days on new purchases
The ANZ Low Rate Visa offers a competitive interest rate and no annual fee, similar to the other cards reviewed. ANZ provides a range of balance transfer options, which can be tailored to individual needs. The card also includes an interest-free period on new purchases, adding to its overall value.
Westpac Low Rate Mastercard
Key Features:
- Interest Rate: 12.90% p.a.
- Annual Fee: $0
- Balance Transfer Offer: Up to 6 months at 0%, then 5.95% for the life of the balance
- Interest-Free Period: Up to 55 days on new purchases
The Westpac Low Rate Mastercard combines a low interest rate with no annual fee and a competitive balance transfer offer. The card’s interest-free period on new purchases and the long-term balance transfer rate make it an excellent option for those looking to reduce their overall interest payments.
Additional Considerations
When choosing a low interest credit card, it’s essential to consider factors beyond the interest rate:
- Fees: Look for cards with no or low annual fees to maximise savings.
- Balance Transfer Offers: These can significantly reduce the interest paid on existing debt.
- Interest-Free Periods: Cards that offer interest-free periods on new purchases can help manage short-term cash flow.
- Flexibility: Consider whether the card allows additional repayments without penalties.
- Customer Service: Research customer reviews and satisfaction ratings for each bank to ensure good support.
Conclusion
Selecting the right low interest credit card can make a significant difference in managing your finances effectively. The Kiwibank Zero Visa and TSB Low Rate Mastercard offer some of the lowest interest rates in the market, with additional benefits such as no annual fees and attractive balance transfer offers. The ASB Visa Light and ANZ Low Rate Visa also provide competitive options with unique features that may suit different financial needs.
Ultimately, the best low interest credit card for you will depend on your specific circumstances, including your spending habits, existing debt, and financial goals. By carefully comparing the options and considering all relevant factors, you can choose a card that helps you manage your finances more effectively and reduce your overall interest payments.