Best Free Credit Cards

Compare the free credit cards that won't charge you an annual fee, with many offering a number of specific bonuses and rewards

Updated 2 April 2021

A free credit card means a card which doesn't charge an annual fee, which is quite rare. As the majority of credit cards charge annual fees, alongside interest and late fees, finding a free credit card isn't always easy. Our guide outlines the free credit cards available right now, as well as the benefits and limitations of a free card.

Important: Our definition of a "free credit card" is a credit card that doesn't charge an ongoing card issuing fee. A free credit card will still charge interest on uncleared balances, fees for international currency use and late or default fees. The cards listed below are all free but do charge interest on unpaid balances, as well as applying specific-use fees. Additionally:
  • Many free credit cards offer rewards, such as cashback, shopping discounts or Airpoints Dollars. This means you'll benefit from everyday spending.
  • Interest rates vary; if you think you may struggle to always repay the balance, look for a free credit card with the lowest interest. ​

Which free credit card is the best?

Our research has shortlisted the best deals available right now in a number of categories:
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Four Must-Know Rules of Free Credit Cards

Before you apply for a free credit card, our four rules and tips ensure you do everything the right way for the short term and your future.

Prioritise repaying your balance on time (unless you have more expensive debts somewhere else)

A free credit card still charges interest on balances that you've not paid off. If the interest rate is 20% p.a., a $1,000 balance left unpaid for a year will cost you $200 in interest costs. Unless you're paying off more expensive debt somewhere else, it makes complete sense to clear your credit card on a monthly basis.

If you're struggling, make sure to meet the monthly minimum repayments

A free credit credit card will have a minimum payment of between 2% and 5% of the closing balance. For example, if you owe $1,000 you'll need to pay between $20 and $50 depending on your card's term. If you don’t, you’ll be charged penalties. You should plan to pay more than the minimum unless you have more expensive debt to pay. Read our guide to minimum credit card payments to learn more.

Get your credit score in good condition before you apply

Just because free credit cards don't cost anything doesn't mean there's not a strict assessment of your application. The key when applying for any credit card is to have strong credit; evidence of defaults or late payments will raise red flags for banks who may refuse to accept your application. Read our guide to credit scores and credit reports where you can request your details and fix any errors.

If you think you'll struggle to pay off the balance, consider a free credit card with a low interest offer

There's no point in incurring expensive credit card interest costs when many banks offer low-interest deals. We have listed the best free credit cards alongside their interest rates, so you can clearly isolate which one is best for your needs.

Best Free Credit Cards

Our research has shortlisted the best deals available right now. has shortlisted the best deals available right now in a number of categories:

ANZ Low Rate Visa Card

Our View: With the lowest interest rate among all free credit cards, we've ranked this card first. You won't get any rewards or bonuses however, so for anyone planning to pay off a credit card every month in full, there are better options.

Selling Point: Best for Low Interest Rates

​​The deal:
  • Interest rate: 12.90% p.a.
  • Interest-free days: 55
  • Bonus/Rewards: None
  • ​Monthly payments: Must be above the monthly minimum (either 3% or $10 of the closing balance owing - whichever is greater)

For more details or to apply, click here. 

The American Express Airpoints Credit Card

Our View: The only free credit card to award Airpoints Dollars at a simple to understand 100:1 rate. For example, if you spend $500 in one month on the card, you'll earn 5 Airpoints Dollars which are automatically credited to your Air New Zealand Airpoints account. The interest rate is one of the highest in the market, but if you don't believe you'll have trouble paying off the balance every month and want free flights, this free credit card is an attractive offer.

Selling Point: Best for Earning Airpoints Dollars

​The deal:
  • Interest rate: 21.95% p.a
  • Interest-free days: 55
  • Bonus/Rewards: 1 Air New Zealand Airpoint Dollar per $100 spent. 50 Airpoints Dollars bonus if you spend $750 in the first three months of the card.
  • Monthly payments: Must be above the monthly minimum (either 3% or $10 of the closing balance owing - whichever is greater)

For more details or to apply, click here. 

ASB Visa Light

Our View: An excellent offering - 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 lead the market with its interest rate, the interest-free offer for spends above $1,000 will appeal to many New Zealanders. 

Selling Point: Best for Interest-Free Purchases

​The deal:
  • Interest rate: 13.50% p.a
  • Interest-free days: 55
  • Bonus/Rewards: 6 months interest free on purchases over $1,000
  • Monthly payments: Must be above the monthly minimum (either 3% or $10 of the closing balance owing - whichever is greater)

For more details or to apply, click here. 

Kiwibank Zero Visa Credit Card

Our View: This low interest rate card doesn't offer any rewards or bonuses, but is still a strong free credit card offering from Kiwibank. 

​The deal:
  • Interest rate: 13.95% p.a
  • Interest-free days: 55
  • Bonus/Rewards: None
  • Monthly payments: Must be above the monthly minimum (either 5% or $10 of the closing balance owing - whichever is greater)

For more details or to apply, click here.

SBS Visa Credit Card

Our View: This only free credit card offering cashback, you'll get back 67 cents for every $100 you spend on the card. The higher-than-average interest rate is best avoided by anyone who struggles to pay off their monthly balance.

Selling Point: Best for Cashback

​The deal:
  • Interest rate: 18.50% p.a
  • Interest-free days: 55
  • Bonus/Rewards: $1 Cashback for every $150 spent on the card
  • Monthly payments: Must be above the monthly minimum (either 5% or $10 of the closing balance owing - whichever is greater)

For more details or to apply, click here.

Free Credit Cards Best Practice

  • Free credit cards can become expensive if you don't pay off the balance - 20% per year on $1,000 adds up to $200, and there may be late fees on top of that too. The best way to handle a credit cards is to only use it for things that you need and can afford.
  • Set a credit limit you're comfortable with, which will be the maximum amount you can spend on it. $500 or $1,000 is a good place to start.
  • The best approach is to set up a direct debit to pay off the balance every month. This means you'll avoid interest charges and late fees (as long as you have enough money in your bank account to pay the balance). 
Do you use a free credit card?
If you would like to share any tips or insights from your personal experience, please email our research team. 
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