Cheap Credit Cards

Cheap Credit Cards – Compare Cheap Credit Cards in NZ

A cheap credit card can be a low interest credit card, no annual fee credit card or a low annual fee credit card.

We have compiled a list of cheap credit cards in New Zealand below to help you choose the best cheap credit card for you but if you are interested specifically in a low interest rate credit card or low annual fee credit card follow the links above to see a specific list of those cards. You may also be interested in a 0% interest credit card.

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Updated: 27 Jan, 2025

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Card	Description	Purchase Rate (p.a.)	Balance Transfer	Cash Rate (p.a.)	Annual Fee	Interest Free Days
TSB Low Rate Mastercard Credit Card Gold Award	The TSB Low Rate Mastercard has a very low interest rate of 11.95% p.a. for purchases and cash advances.	11.95%	0% for 6 months	11.95%	$20.00	55 days More Info » Apply Now »
Westpac Fee Free MasterCard Credit Card Platinum Award	Comes with a low rate of just 12.90% p.a. plus 5.95% p.a. for the life of the balance transferred to this card. it also comes with no annual fee, no cash advance fee and no foreign transaction fees.	12.90% p.a.	5.95% for life of balance transferred	19.95% p.a.	$0.00	55 days More Info » Apply Now »
Kiwibank Zero Visa Credit Card Platinum Award	A low rate credit card with no annual fee and a 1.99% balance transfer for 6 months	12.90% p.a.	1.99% p.a. for 6 months	12.90% p.a.	$0.00	55 days More Info » Apply Now »
Co-operative Bank Fair Rate Credit Card Gold Award	The Fair Rate Credit Card has a very low purchase rate of 12.95% p.a. plus a balance transfer rate of 0% p.a. for 6 month. This might be a good card if you are looking for a credit card with a low interest rate and/or a card with a 0% p.a. balance transfer offer.	12.95% p.a.	0% p.a. for 6 months	12.95% p.a.	$20.00	55 days More Info » Apply Now »
ASB Visa Light Credit Card Gold Award	The ASB Visa Light credit card has no annual fee, a low purchase rate and 0% balance transfer for 6 months plus 0% p.a. for 6 months when you spend $1,000 or more on any single eligible purchase	13.5% p.a.	0% p.a. for 6 months	22.95% p.a.	$0.00	55 days More Info » Apply Now »
BNZ Lite Visa Credit Card Gold Award	BNZ Lite Visa Credit Card is a low interest rate credit card with a purchase rate of 13.50% p.a.	13.50% p.a.	N/A	22.95% p.a.	$10.00	55 days More Info » Apply Now »
ANZ Low Rate Visa Card Gold Award	Features a low interest rate of 13.90% and a balance transfer rate of 1.99% for 24 months	13.90%	1.99% p.a. for 24 months	20.95%	$0.00	55 days More Info » Apply Now »

^ To help you compare reward points across different credit cards and rewards programs, we provide an estimate of the cash-equivalent of the reward points that you will get back for every $100 you spend on eligible purchases with your card. The cash equivalent value given is an estimate only based on a specific redemption example. In some cases you might earn less or more depending on how you redeem your ponts and some reward points cannot be redeemed for cash directly. Click on the card to find out how the estimate was calculated.

Advantages of Cheap Credit Cards

Cost-Effective

Lower fees and interest rates make these cards more affordable as the cost less to in fees and in interest.

Easier to Qualify

Often, the eligibility criteria for cheap credit cards are less stringent.

Financial Flexibility

Cheap credit cards especially those with no annual fees allow you to own a credit card simply as a backup payment method without incuring any fees.

Disadvantages of Cheap Credit Cards

Limited Benefits

Cheap credit cards may not offer an extensive list of benefits that the more premium cards do.

Lower Credit Limits

These cards often come with lower credit limits, which may not be suitable for all users.

Potential for Higher Costs

If not managed properly, the interest rates, even if lower than other premium cards, can still accumulate and lead to debt.

Applying for a Cheap Credit Card

Eligibility Criteria

Check your credit score

Before applying for a credit card, it is important to ensure that your credit score is in good condition. Evidence of defaults or late payments can raise red flags for banks and potentially result in a disapproval of your application. If you are unsure about youre credit score you can check your credit score for free.

Check the Income Requirements

Make sure you meet the minimum income criteria set by the credit card issuer before you apply for the credit card.

Age and Residency Requirements

Verify that you meet the age and residency requirements. You have to be 18 and over to get a credit card in New Zealand.

The Application Process

Applying for a cheap credit card is usually no different from applying for other credit cards and are usually quick and straight forward.

Research and Compare: Investigate various credit card options to find one that suits your needs.
Gather Necessary Documents: Prepare documents such as proof of income, identification, and residency.
Complete the Application: Fill out the application form accurately and submit it online or in person.

Approval Timeframe

The approval timeframe for a cheap credit card can vary. Generally, you can expect the following:

Immediate Approval: Some applications may be approved instantly if you meet all criteria.
Standard Processing: Typically, it takes a few business days to a week for the application to be processed.
Additional Verification: In some cases, further verification may be required, extending the approval timeframe.

Managing Your Credit Card Wisely

Tips for Avoiding Debt

Low-interest credit cards may offer a safety net from high interest rates, but they can still be costly if not managed properly. Below are some tips to better manage your credit card:

Repay the balance you spend every month: Avoid dragging balances from month to month to minimise fees and interest charged.
Treat your credit card as a payment tool: Use it for convenience rather than as a line of credit for unaffordable purchases.
Know yourself: Be honest about your spending habits and avoid borrowing money irresponsibly.

Make the Most of Rewards

Cheap credit cards can come with rewards. To maximise these benefits, consider the following:

Understand the rewards structure: Be clear about how much you will spend within the reward categories.
Avoid changing spending habits: Do not alter your spending just to prioritise a particular benefit; the card should fit your spending patterns.

What to consider when getting a Cheap Credit Card

Interest Rates

When comparing cheap credit cards, one important factor to consider is the interest rate. Interest rates can significantly impact the overall cost of using a credit card. Look for cards with low purchase rates. Some cards offer introductory interest free periods.

Annual Fees and Hidden Costs

Annual fees and hidden costs can quickly add up, negating the benefits of a low-interest rate. Be sure to read the fine print and understand all the fees associated with the card. Some common fees to watch out for include:

Annual fees
Balance transfer fees
Foreign transaction fees
Late payment fees

Customer Reviews and Ratings

Customer reviews and ratings provide valuable insights into the real-world performance of a credit card. Comparison website also help by providing transparent information about the cards. Look for reviews that discuss customer service, ease of use, and any issues with fees or interest rates. High ratings and positive reviews can indicate a reliable and cost-effective credit card option.

Common Mistakes to Avoid with Cheap Credit Cards

Missing Payments

One of the biggest mistakes you can make with a any credit card is missing payments. Not only does this negatively impact your credit score, but it can also lead to late fees and higher interest rates. To avoid this, consider setting up automatic payments or reminders.

Ignoring Fees

Seemingly cheap credit cards can come with various fees that can add up quickly if ignored. These may include fees such as late payment fees and foreign transaction fees. Always read the fine print and be aware of all potential charges associated with your card.

Frequently Asked Questions

What is a cheap credit card?

A cheap credit card typically has low annual fees, low interest rates, and minimal hidden costs.

How can I apply for a cheap credit card?

You can apply for a cheap credit card online or in person. The application process usually involves filling out a form with your personal and financial information, and it may require a credit check. Approval times can vary.

What are the benefits of using a cheap credit card?

The main benefits include lower interest rates, reduced annual fees, and fewer hidden costs. These cards can make managing your finances easier and more affordable, especially if you pay off your balance in full each month.

Are there any drawbacks to cheap credit cards?

While cheap credit cards offer lower costs, they may also come with fewer rewards and benefits compared to premium cards. Additionally, if you carry a balance, the interest rates, even if lower, can still add up over time.

How can I avoid debt with a cheap credit card?

To avoid debt, always try to pay off your balance in full each month. Keep track of your spending, set a budget, and avoid using the card for unnecessary purchases.

What should I do if I can’t pay off my credit card balance?

If you can’t pay off your credit card balance, consider contacting your card issuer to discuss your options. They may offer a payment plan or lower interest rates.