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Low Interest Credit Cards

Compare low-interest credit cards, starting from a record-low of around 10% p.a. with the option to also balance transfer existing debt.
Updated 5 June 2025 

If you're looking to make a big purchase or find it a little tricky to keep up with credit card payments, a low-interest credit card can certainly help relax your finances. This guide walks you through the benefits and limitations of a low-interest credit card, and compares the offers, deals and fees from the most affordable cards currently available.

​Our guide covers:
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MoneyHub Founder Christopher Walsh shares his views on Low Interest Transfer Credit Cards:

"There is no 'cheap' credit card - all of the 'low interest' cards available in New Zealand charge above 10% p.a. to spend your own money. However, there are times when the right low-interest credit card will be cheaper than other forms of financing. We've published a list below to help you find the right card for you". 

"Credit card interest adds up - if you spend $5,000 on a 13% p.a. credit card and don't make full repayments, you'll be repaying $650+ a year in interest costs until it is repaid. While this is cheaper than a 20% to 25% p.a. credit card, it's still extremely expensive and a total waste of money". 

"Banks are picky about who they give out credit cards to, as, after all, it's an unsecured debt they're lending. We've shortlisted the deals below based on the interest rate and fees".

"I get emails from everyday New Zealanders who can't seem to pay off their credit card debts. These tend to be average income earners who have around $5,000 to $10,000 on store cards, Q Card/GEM Visa and/or credit cards, which usually charge around 25% p.a. Repaying debt isn't easy when you're paying high-interest rates on the money you owe. A low-interest credit card will help, but it's by no means a solution". 

My view is simple:
  • Whatever you do, please repay the balance you spend every month. There's too much risk and cost to drag balances from month to month.
  • Low-interest credit cards offer something of a safety net from aggressively high credit card interest rates, but they are still expensive to service.
  • This guide is designed to help you find the right card and minimise any debt - please follow it carefully.
MoneyHub Founder
Christopher Walsh
In the video below, MoneyHub Founder Christopher Walsh explains low interest credit cards in detail:

What is a Low Interest Credit Card?

  • A low interest credit card is exactly what is says.
  • It won't offer any perks like rewards, cashback or Airpoints dollars, but the interest rate will be considerably lower.
  • Most low interest credit cards come with some form of balance transfer, so you get the best of interest-free periods on existing debt and low interest on ongoing debt. 
  • Like any credit card you can avoid interest altogether by clearing your balance in full every month.
 
Picking the Best Low Interest Credit Card
  • The trick is to pick a card with a low interest rate, a zero (or very low) fee, interest free terms on balance transfers and some sort of interest-free period for new purchases. When chosen correctly, the right card will maximize your savings available.
  • Credit card interest is a killer, so the lower that is, the better the card. But watch the fees - our best buys below consider fees and interest rates to ensure you get the best deal.
  • We recommend you consider lowering the credit limit so you can still use but restrict it somewhat so it stays focused on more essential purchases. Even 12% p.a. interest rates are a high form of finance. 

Four Rules of Low Interest Credit Cards

Before you apply for a low interest credit card, we have outlined 4 rules for doing it right and protecting your finances in the long term.

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

A low interest credit card offers the perfect conditions NOT to repay, but 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

Your low interest 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 payments here. 

Get your credit score in good condition before you apply

The key when applying for low interest credit cards 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.

Combine a low interest offer with a balance transfer

All of our best buy offers below come with a balance transfer, and they're a great option if you need some breathing space. But, balance transfers work best when you make regular repayments. Divide any transferred balance by 12 (if it's a 12 month offer) and be sure to keep some money aside to make regular installments to pay it off. Otherwise interest is charged from day 1 of the interest-free period ending. 

Best Buy Low Interest Credit Cards

Our research has shortlisted the best deals available right now.

We believe the best deal is:
Other options include:

Lowest Interest Rate Credit Card - Lowest Interest Rate - ASB Visa Flex

Our View: An outstanding offering with zero annual fees, zero overseas FX fees and a low interest rate, and up to 55 days interest free.

​The deal:
  • Interest rate: 9.95% p.a. 
  • Annual fee: $0
  • Bonus offer: Up to $150 cashback
  • Integration: Apple Pay, Google Pay, Fitbit Pay and Garmin Pay
  • Monthly payments: Must be above the monthly minimum (either 3% or $10 of the balance owing - whichever is greater)
  • For more details or to apply, visit ASB's website. 

Worth Considering: All-Rounder Low Interest Credit Card - The Co-operative Bank Fair Rate Credit Card

Our View: With a 12.95% interest rate, a low $20 annual fee and a 0% balance transfer for up to 6 months, The Co-operative Bank's Fair Rate Credit Card offers a market-busting interest rate with low fees.

The deal:
  • Interest rate: 12.95% p.a. 
  • Annual fee: $20
  • Interest Free Offers on Purchases: Up to 55 days interest free
  • Balance transfer offer: Up to 6 months at 0%
  • Monthly payments: Must be above the monthly minimum (either 3% or $10 of the balance owing - whichever is greater)

What you need to know:
  1. For more details or to apply, click here. 

Worth Considering: Low Interest Rate, Balance Transfer Options and Zero Fees - Westpac Fee Free Mastercard

Our View: An excellent offering with zero annual fees, zero overseas FX fees and a low interest rate.

​The deal:
  • Interest rate: 12.90% p.a. 
  • Annual fee: $0
  • Balance transfer offer: 5.95% for the life of the balance
  • Monthly payments: Must be above the monthly minimum (either 2% or $5 of the balance owing - whichever is greater)
  • For more details or to apply, click here. 

Worth Considering: Low-Interest and Zero Fee Credit Card - 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 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.

​The deal:
  • Interest rate: 13.50% p.a. 
  • Annual fee: $0
  • Interest Free Offers on Purchases: Yes, 6 months interest free on purchases over $1,000
  • Balance transfer offer: Up to 6 months at 0%
  • Monthly payments: Must be above the monthly minimum (either 3% or $10 of the balance owing - whichever is greater)

What you need to know:
  1. 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. 
  2. For more details or to apply, click here. 

Worth Considering: Kiwibank Zero VISA

Our View: Kiwibank Low Rate Zero Visa interest rate is 12.90% but it has no annual fee and the balance transfer offer is attractive with up to 55 days of interest free. ​

​The deal:
  • Interest rate: 12.90% p.a. 
  • Annual fee: $0
  • Interest Free Offers on Purchases: No
  • ​Monthly payments: Must be above the monthly minimum (either 5% or $20 of the balance owing - whichever is greater)
  • Balance transfer offer: Up to 6 months at 1.99%
​
What you need to know:
  1. For more details or to apply, click here. ​

Worth Considering: BNZ Lite Visa Card

Our View: BNZ's offering includes 0% interest free for 12 months on balance transfers, six months of card fee waivers and 12.90% p.a. interest. This represents a great deal in the short term and ongoing. 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 0.50-1.00%.
​
​The deal:
  • Interest rate: 13.50% p.a. 
  • Annual fee: $10
  • Interest Free Offers on Purchases: Not offered
  • Balance transfer offer: Temporarily unavailable
  • Monthly payments: Must be above the monthly minimum (either 2% or $25 of the balance owing - whichever is greater)

What you need to know:
  1. ​For more details or to apply, click here

Best of the Rest - AMEX and ANZ Low Interest Credit Cards

​AMEX and ANZ both offer Low Interest Credit Cards:
  • ANZ Low Rate Visa: The rate of 13.90% p.a applies.  Read more on the ANZ website. 
  • ​AMEX Low Rate Credit Card: Despite offering the lowest interest rate of 12.69% p.a., there is a $59 annual fee. Read more on the AMEX website.

Low Interest Credit Cards Best Practice

  • If you have an existing credit card that you're struggling to pay off, applying for a low interest credit card is a recommended way to keep ongoing interest costs down.
  • Combine it with a balance transfer offer and you can save even more in the short term.
  • Set a credit limit you're comfortable with, and be sure to make MORE than the minimum payments every month to save on interest costs. A direct debit to settle the entire balance owed is the best way to avoid interest charges.
Do you use a low-interest 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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