Best Credit Cards 2019
From lowest interest rates to free flights, MoneyHub has analysed the market and selected the best offerings per category, making it easy to find the best card for your needs.
useful guides
Best Balance Transfer Credit Card
BNZ Low Rate Mastercard
MoneyHub says: "This is the best credit card if you want to transfer a balance. You'll get 0% interest for 12 months and a low "life of balance" interest rate thereafter. Even if you're stuck with a small credit card debt, getting this card could save you hundreds of dollars and even up to $1,000 in interest charges alone".
MoneyHub says: "This is the best credit card if you want to transfer a balance. You'll get 0% interest for 12 months and a low "life of balance" interest rate thereafter. Even if you're stuck with a small credit card debt, getting this card could save you hundreds of dollars and even up to $1,000 in interest charges alone".
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The Deal:
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What You Need to Know:
- You need to transfer a balance in the first 30 days to get the 0% interest period.
- You can't transfer a balance from another BNZ card.
- After the 0% ends, it's 13.45% interest on any remaining transferred debt until it’s paid off.
- Don't spend/withdraw cash on this card, the interest rate for new purchases is 13.45%
- For more details or to apply, click here
Want more options? Read our Review of Balance Transfer Credit Cards for the best deals now available.
MoneyHub in the news: Read our Balance Transfer feature in Stuff.co.nz
MoneyHub in the news: Read our Balance Transfer feature in Stuff.co.nz
Best Reward Credit Card
ASB VISA Rewards
MoneyHub says: "Forget the high-end rewards such as Samsung phones - no one is going to spend $300,000 to earn one - and focus on the small rewards. Kiwis spending a standard amount on their credit card every month can redeem cashback earnings through a wide selection of "partner stores".
MoneyHub says: "Forget the high-end rewards such as Samsung phones - no one is going to spend $300,000 to earn one - and focus on the small rewards. Kiwis spending a standard amount on their credit card every month can redeem cashback earnings through a wide selection of "partner stores".
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The Deal:
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What You Need to Know:
Want more options? Read our Review of Reward and Cashback Credit Cards for the best deals available now.
- True Rewards points never expire
- Merchandise and voucher rewards start from 20 True Reward Dollars, with retailer partners including Mobil, Farmers, House of Travel, Vodafone topup - all options are found at the True Reward partner store.
- Want to apply? Review the credit card in detail here (this link takes you to ASB's website).
Want more options? Read our Review of Reward and Cashback Credit Cards for the best deals available now.
Best Cashback Credit Card
The BNZ Advantage Classic - Best Cashback for Annual Spend under $10,000
MoneyHub says: The BNZ Advantage Classic visa card offers the best cashback rate of 0.67% and a low card fee of $40 per year. You can put the cash you earn towards your credit card bill. You will have to spend $6,000 per year to earn back the card's annual fee.
MoneyHub says: The BNZ Advantage Classic visa card offers the best cashback rate of 0.67% and a low card fee of $40 per year. You can put the cash you earn towards your credit card bill. You will have to spend $6,000 per year to earn back the card's annual fee.
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The Deal:
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What You Need to Know:
Want more options? Read our Review of Reward and Cashback Credit Cards for the best deals now available.
- Cash Reward dollars can be used on BNZ financial products, such as bank accounts, credit card bills and Kiwisaver funds.
- Non-cash rewards must be purchased via Flybuys
- Want to apply? Review the credit card in detail here (this link takes you to BNZ's website).
Want more options? Read our Review of Reward and Cashback Credit Cards for the best deals now available.
Best Air New Zealand Credit Card
Kiwibank Air New Zealand Airpoints Platinum Mastercard
MoneyHub says: "We consider this the best card for a number of purposes. Being a Mastercard, it’s widely accepted and even though it earns less Airpoints than the AMEX Platinum ($1 per $75 spend vs $1 per $59 spend), if you spend up to $55,000 the difference in Airpoints Dollars earned won't exceed 200. And this card is packed with the highest status credit earn rate, Koru voucher earning and a reasonable annual fee. In summary, we believe the Kiwibank Air New Zealand Airpoints Platinum Mastercard is the best in class for multiple purposes".
MoneyHub says: "We consider this the best card for a number of purposes. Being a Mastercard, it’s widely accepted and even though it earns less Airpoints than the AMEX Platinum ($1 per $75 spend vs $1 per $59 spend), if you spend up to $55,000 the difference in Airpoints Dollars earned won't exceed 200. And this card is packed with the highest status credit earn rate, Koru voucher earning and a reasonable annual fee. In summary, we believe the Kiwibank Air New Zealand Airpoints Platinum Mastercard is the best in class for multiple purposes".
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The Deal:
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What You Need to Know:
With every card account, you are entitled to:
Want more options? Read our Review of Air New Zealand Credit Cards for the best deals now available.
With every card account, you are entitled to:
- Two Koru Club vouchers for every $20,000 spent (valid for 1 year for the cardholder and a guest)
- Make an Airpoints Dollars™ top up if you’re short for a free flight
- Complimentary overseas travel insurance (as long as you use the credit card when paying for your travel costs).
- Earns 1 status point for every $200 spent, which assists reaching Silver, Gold and Gold Elite tier levels. If you spend $45,000 in one year, you’ll earn 225 Status points which is half the points you’ll need to reach Silver. Please note, to reach a tier, 50% of status points must be earned on Air New Zealand, Star Alliance and/or other Qualifying flights - for more details click here.
- Want to apply? Review the credit card in detail here (this link takes you to Kiwibank's website).
Want more options? Read our Review of Air New Zealand Credit Cards for the best deals now available.
Best Low Interest Credit Card
ASB Visa Light
MoneyHub says: "This is by far the best low interest credit card on offer. Not only is it fee-free, you also qualify for ongoing six month interest free terms on any purchase over $1,000. While it may not beat the market with the interest rate compared to the Co-Operative Bank and AMEX low interest options, it's no more than 0.50-0.75% higher than them and the lack of fees more than compensate for this".
MoneyHub says: "This is by far the best low interest credit card on offer. Not only is it fee-free, you also qualify for ongoing six month interest free terms on any purchase over $1,000. While it may not beat the market with the interest rate compared to the Co-Operative Bank and AMEX low interest options, it's no more than 0.50-0.75% higher than them and the lack of fees more than compensate for this".
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The deal:
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What you need to know:
Want more options? Read our Review of Low Interest Credit Cards for the best deals now available.
- Balance Transfers: You must request a balance transfer in the first 30 days to get the 0% interest period and you can't transfer a balance from another ASB card.
- Want to apply? Review the credit card in detail here (this link takes you to ASB's website).
Want more options? Read our Review of Low Interest Credit Cards for the best deals now available.
Best Student Credit Card
ASB Visa Light
MoneyHub says: "The ASB offers fantastic benefits with its student account, which comes with a fee-free Visa Light credit card. With 6 months interest-free on individual purchases over $1,000 and a low interest rate of 13.50%, the ASB delivers a package that powers student living".
MoneyHub says: "The ASB offers fantastic benefits with its student account, which comes with a fee-free Visa Light credit card. With 6 months interest-free on individual purchases over $1,000 and a low interest rate of 13.50%, the ASB delivers a package that powers student living".
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The Deal:
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What You Need to Know:
Want more options? Read our Review of Student Bank Accounts and Credit Cards for the best deals available now.
MoneyHub in the news: Read our Student Bank Account feature in Stuff.co.nz
- You will need to be a student to qualify for the student bank account, but the ASB Visa Light is available for anyone to apply and is a fee-free card.
- Balance transfers are permitted.
- Want to apply? Review the credit card in detail here (this link takes you to ASB's website).
Want more options? Read our Review of Student Bank Accounts and Credit Cards for the best deals available now.
MoneyHub in the news: Read our Student Bank Account feature in Stuff.co.nz
Minimum Payments - What You Need to Know
When you get your credit card bill, you'll have the choice to pay the entire balance due, pay the Minimum Payment or make a payment of another amount. Whatever balance due that remains unpaid will be charged interest immediately after the due date. With credit card interest rates averaging around 20% p.a, NOT paying off a credit card in full is a very expensive option in the short and long term. If you haven't paid a credit card in full, you'll see an "interest charges" item on your next credit card bill.
Cheaper and Faster Repayments - How Banks Differ
It's important that we highlight how banks offer different "minimum payments" as a percentage of your bill. If you can't pay the balance in full and choose the minimum balance option, it's important to know what the percentage is and how it affects your debt. In short, the lower the minimum payment percentage, the less the amount of your balance that will clear, and the longer you'll be in debt.
A Real Example - the $1,000 credit card bill
If you have a $1,000 credit card bill with a minimum payment of 2%, you'll pay $20 on the day it's due. If your credit card has an interest rate of 20%, you will incur around $16 of interest so the next month your minimum payment will (mostly) go towards interest charges and not the $1,000 balance you owe. Disturbingly, it will take 16 years to repay the $1,000 - and you'll pay over $2,000 in interest costs on top of the original bill. This can trap you into debt unless you bump up the amount you repay.
Minimum Payment % as at March 2018
Best Banks for Clearing Credit Card Debt:
Worst Banks for Clearing Credit Card Debt:
Cheaper and Faster Repayments - How Banks Differ
It's important that we highlight how banks offer different "minimum payments" as a percentage of your bill. If you can't pay the balance in full and choose the minimum balance option, it's important to know what the percentage is and how it affects your debt. In short, the lower the minimum payment percentage, the less the amount of your balance that will clear, and the longer you'll be in debt.
A Real Example - the $1,000 credit card bill
If you have a $1,000 credit card bill with a minimum payment of 2%, you'll pay $20 on the day it's due. If your credit card has an interest rate of 20%, you will incur around $16 of interest so the next month your minimum payment will (mostly) go towards interest charges and not the $1,000 balance you owe. Disturbingly, it will take 16 years to repay the $1,000 - and you'll pay over $2,000 in interest costs on top of the original bill. This can trap you into debt unless you bump up the amount you repay.
Minimum Payment % as at March 2018
Best Banks for Clearing Credit Card Debt:
Worst Banks for Clearing Credit Card Debt:
The Credit Card Debt Trap - Further Examples
5% Minimum Repayments
Kiwibank - Air New Zealand Airpoints Low Fee Mastercard - 16.90%: 8.5 years, total cost $6,900
TSB - Visa Classic Credit Card - 18.50%: 8.5 years, total cost $7,200
3% Minimum Repayments
ASB - Visa Light - 13.50%: 13.5 years, total cost $7,800
ANZ - Low Rate Visa - 13.90%: 14 years, total cost $8,000
2% Minimum Repayments
BNZ - Low Rate Mastercard 13.45%: 18 years, total cost $9,600*
Westpac - Low Rate Mastercard 13.45%: 24 years, total cost $11,000
*Despite the same interest rate and minimum repayment percentage, BNZ's minimum repayment of $25 or 2% (vs Westpac's $5) forces quicker repayment.
As our examples demonstrate, the true cost of only making the minimum repayment is significant, and the lower the percentage of minimum payment required, the longer the debt will linger. We've excluded standard credit cards, with interest rates around 20%, but as a further example the same $5,000 debt with the Westpac Airpoints Platinum Mastercard would take over 55 years to pay off and incur interest costs of around $17,000.
- Our friends at Bankrate have an invaluable credit card minimum payment calculator
- If you have a credit card debt of $5,000 and rely on making minimum payments, we will take you through the true cost of the debt, and how long it will take you to pay it off for a number of popular low interest credit cards available today.
5% Minimum Repayments
Kiwibank - Air New Zealand Airpoints Low Fee Mastercard - 16.90%: 8.5 years, total cost $6,900
TSB - Visa Classic Credit Card - 18.50%: 8.5 years, total cost $7,200
3% Minimum Repayments
ASB - Visa Light - 13.50%: 13.5 years, total cost $7,800
ANZ - Low Rate Visa - 13.90%: 14 years, total cost $8,000
2% Minimum Repayments
BNZ - Low Rate Mastercard 13.45%: 18 years, total cost $9,600*
Westpac - Low Rate Mastercard 13.45%: 24 years, total cost $11,000
*Despite the same interest rate and minimum repayment percentage, BNZ's minimum repayment of $25 or 2% (vs Westpac's $5) forces quicker repayment.
As our examples demonstrate, the true cost of only making the minimum repayment is significant, and the lower the percentage of minimum payment required, the longer the debt will linger. We've excluded standard credit cards, with interest rates around 20%, but as a further example the same $5,000 debt with the Westpac Airpoints Platinum Mastercard would take over 55 years to pay off and incur interest costs of around $17,000.
Our Tip: Only get a credit card if you can afford to pay it off each month. If you can't but need it as a way to meet your bills and other neccessary expenses, keep the limit as low as possible so there's less chance of it being used on non-essentials. Banks make hundreds of millions of dollars every year from New Zealanders unable to pay their credit cards on time - and the examples above show how lucrative it is for banks and shockingly expensive for consumers.
