Compare credit cards

Compare credit cards from New Zealand's leading banks and find the right card for your lifestyle. Earn rewards points, get cashback, save money with a balance transfer, and more.

By   |   Verified by David Boyd   |   Updated 30th October 2020

Comparing credit cards

American Express Airpoints Platinum Credit Card

On American Express' website

Apply by 2 November 2020

American Express Airpoints Platinum Credit Card

Balance transfer

N/A

Purchase rate

19.95% p.a. ongoing

Annual fee

$195.00 p.a. ongoing

Highlights

  • Earn 1 Airpoints Dollar every $59 you spend on eligible domestic and overseas purchases. Every $250 spend earns 1 Status Point..
  • $195 p.a. annual fee.
  • Complimentary Smart Phone Screen Insurance, Domestic and International Travel Insurance.

Bank promo

  • Be rewarded with 400 bonus Airpoints Dollars when you apply online by 2 November 2020, are approved, and spend $1,500 on your new Card within the first 3 months. This offer is available to new Card Members only.
American Express Airpoints Credit Card

On American Express' website

American Express Airpoints Credit Card

Balance transfer

N/A

Purchase rate

6 months at 0% p.a.

Annual fee

$0.00 p.a. ongoing

Highlights

  • Get 50 bonus Airpoints Dollars when you are approved and spend $750 within the first 3 months. Available to new Card Members only.
  • Take advantage of 0% p.a. on purchases for the first 6 months.
  • No annual card fee.
American Express Platinum Edge Credit Card

On American Express' website

American Express Platinum Edge Credit Card

Balance transfer

N/A

Purchase rate

6 months at 2.99% p.a.

Annual fee

$149.00 p.a. ongoing

Highlights

  • 20,000 bonus Membership Rewards points when you are approved and spend $750 within the first 3 months. Available to new Card Members only.
  • Earn up to 3 Membership Rewards points per dollar spent on eligible domestic and overseas purchases.
  • Enjoy 2.99% p.a. on purchases for the first 6 months reverting to 19.95% p.a. thereafter.
American Express Platinum Card

On American Express' website

American Express Platinum Card

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Annual fee

$1,250.00 p.a. ongoing

Highlights

  • Get 80,000 bonus Membership Rewards points when you are approved and spend $1,500 within the first 3 months. Available to new Card Members only.
  • Earn 2 Membership Rewards points per $1 spent on eligible domestic and overseas purchases.
  • Receive a $200 travel credit each year.
ANZ Low Rate Visa Credit Card

ANZ Low Rate Visa Credit Card

Balance transfer

24 months at 1.99% p.a.

Purchase rate

12.9% p.a. ongoing

Annual fee

$0.00 p.a. ongoing

Highlights

  • 1.99% p.a. on balances transferred for 24 months, with no balance transfer fee.
  • Low ongoing variable purchase interest rate of 12.90% p.a..
  • $0 annual fee. $0 p.a. additional cardholder fee
ANZ Cashback Visa Platinum Credit Card

ANZ Cashback Visa Platinum Credit Card

Balance transfer

N/A

Purchase rate

19.95% p.a. ongoing

Annual fee

$125.00 p.a. ongoing

Highlights

  • Get up to 1% cashback on spending.
  • $125 p.a. annual fee.
  • Comes with complimentary overseas travel insurance.
ANZ Cashback Visa Credit Card

ANZ Cashback Visa Credit Card

Balance transfer

N/A

Purchase rate

19.95% p.a. ongoing

Annual fee

$60.00 p.a. ongoing

Highlights

  • Get 1% cashback when you spend between $10,000 and $30,000.
  • Get 0.5% cashback when you spend between $5,000 and $9,999.
  • $60 p.a. annual fee.
ANZ Airpoints Visa Platinum Credit Card

ANZ Airpoints Visa Platinum Credit Card

Balance transfer

N/A

Purchase rate

19.95% p.a. ongoing

Annual fee

$150.00 p.a. ongoing

Highlights

  • Earn 1 Airpoints Dollar for every $75 spent on eligible purchases.
  • $150 p.a. annual fee (with $75 charged every six months).
  • Comes with complimentary overseas travel insurance.
ANZ Airpoints Visa Credit Card

ANZ Airpoints Visa Credit Card

Balance transfer

N/A

Purchase rate

19.95% p.a. ongoing

Annual fee

$65.00 p.a. ongoing

Highlights

  • Earn 1 Airpoints Dollar for every $120 you spend on eligible purchases.
  • $65 p.a. annual fee.
  • Up to 44 days interest free on purchases.
Q Mastercard

Q Mastercard

Balance transfer

N/A

Purchase rate

25.99% p.a. ongoing

Annual fee

$50.00 p.a. ongoing

Highlights

  • Enjoy a minimum of 3 months zero interest, zero payments on all purchases, always.
  • No minimum spend.
  • You can use your Q Mastercard everywhere Mastercard is accepted, in-store and online.

Overview

Using credit cards is a globally accepted method of making purchases using money borrowed from a lender (usually a bank). Unlike a one-off loan, a credit card offers you a fixed amount of money (i.e. a credit limit) that you can borrow for a brief period and use every month for expenses. You can physically use your credit card to pay for the expenses you have incurred by swiping across a payment terminal (or simply holding it close to the reader in case of a contactless card). You can also use your credit card for online purchases by providing your card details. But it's highly recommended that you only provide your card details to reputable websites and trustworthy online vendors.

In either case, your credit card issuer actually pays the shop/vendor on your behalf, and you then owe money to the card issuer. How you repay your credit has a lot of impact on how much this arrangement is costing you. It also helps you build your credit history (either good or bad), which affects your chances of being approved for a loan, mortgage, or another credit card. It's unsecured debt since you are not borrowing against collateral, and there isn't a guarantor that can take the fall if you are unable to pay off your debt.

Cost of using a credit card

There are several things you need to understand about the costs of using credit cards in New Zealand, but let's start with the simplest scenario.

When you compare credit cards, one of the features you will commonly see listed is 'interest-free days'. While the term seems self-explanatory, it's often misunderstood. Most credit cards come with either 44 or 55 interest-free days.

Let's say you choose a credit card with 44 interest-free days. If you make a purchase using your credit card on the first day of your billing cycle, you will have 44 days interest-free on that purchase. If you pay off your debt within this time, you will not pay any interest charges. But understand that these 44 days didn't start from the day you made the purchase. They started with your billing cycle. If you buy something ten days in your billing cycle, you will have only the remaining 34 days in your 44-day interest-free cycle, in which to pay off your debt interest-free.

So if you use credit cards to make purchases and pay off your debt completely within your interest-free period, it costs you nothing to use your credit card. Well, apart from an annual account fee (or simply annual fee), which for a basic card is usually $20 to $30 a year.

Tip: Some banks offer credit cards with no annual fees to pay.

But life is rarely that simple. What happens when you cannot pay off your credit within the interest-free period? First of all, you will lose your interest-free days for the next billing cycle, at least until your previous debt is paid off. Secondly, you will start accumulating debt according to your card's purchase interest rate (calculated daily based on the per annum rate). Also called the Annual Percentage Rate (APR), it's the interest that you are charged for purchases you made using your credit card until you pay off your carried-over debt completely.

Meanwhile, you will have to make regular minimum payments on your credit card, to ensure that you are only charged the purchase rate interest, and not incurring additional late payment penalties and interest. But if you just pay the minimum payment due (typically a small percentage of your outstanding balance), you will keep accumulating interest on your outstanding debt.

Interest calculation and minimum payments

While the rate is expressed as a percentage per annum, it's calculated on a daily basis. If your credit card's purchase rate is 20% p.a., the daily interest you will accumulate (once your interest-free period has expired) is 0.055% (20% divided by 365 days). If you have an outstanding debt of $2000, you will accumulate $1.10 daily, up until the end of your monthly billing cycle. Your interest amount in the following month will be calculated based on the debt remaining after the minimum payment has been deducted.

Assuming you have a 2.5% minimum monthly payment, you will need to pay $50 when your credit card bill arrives. That amount will be subtracted from your outstanding balance. So $2,000 now becomes $1,950. But you have also accumulated interest at a rate of 0.055% per day for the number of days in the billing cycle (e.g. 30 days)

So: 0.055% x $2,000 x 30 = $33, which will be added to the balance, making it $1,983.

As you can see, the cycle will continue, especially if you keep putting off repaying your debt completely and just pay the minimum amount. Every month the minimum repayment will be subtracted from the outstanding balance, but new accumulated interest will be added. It increases your chances of getting caught in a long-term debt trap, and you can end up paying way more than the principal amount you borrowed if you don't pay off your outstanding credit in sizeable chunks.

Order of payments

If you have accumulated different kinds of credit debt on a single card, your repayment can get a little more complicated. For example, if you have both outstanding purchase debt and cash advance debt (charged at a higher interest rate), the latter will be paid off first when you make a payment towards your outstanding balance.

Purchases and cash advances

The most common use of a credit card is to pay for goods or services, which is why its default interest rate is dubbed the purchase rate. Another frequent use of a credit card is to take out a cash advance. Cash advances are typically charged at a higher interest rate, and don't qualify for interest-free days. Just like a personal loan, you will start incurring interest from the moment you take out a cash advance, and it will keep accumulating until you pay it off completely. Credit cards are expensive when they aren't paid off in time. But they are even more expensive when used for cash.

Balance transfers

Another common way to use a credit card is to make a balance transfer. That is, if you transfer your outstanding debt from one card to another with a promotional balance transfer offer, you may be able to pay zero or low interest for an introductory period. It's not available on every credit card and may have some other more stringent requirements.

When considering a balance transfer option, compare credit cards for all the terms and interest rates. Also, consider your ability to pay off your outstanding balance before the revert interest rate kicks in.

International spending

While Visa, Mastercard, and American Express cards issued in New Zealand can be used internationally, it's a good idea to look into your card's terms and conditions, and the additional charges incurred for international use. Two typical fees associated with international use are currency conversion assessment and foreign currency margin. The extra cost is typically 1.80-4.5% added to your original purchase amount after conversion to NZD.

Credit card features

While credit cards serve a common purpose, there are a few different types of credit cards available in New Zealand. The right credit card type depends upon your spending habits and your overall financial goals. There are a few features you can compare in different credit cards to help you decide which one suits your needs best.

  • Credit limit: While it's always advisable to stay well within your credit limit, a higher credit limit may sometimes be needed, especially if you are a heavy spender. However, a higher credit limit might be an issue when you are applying for a mortgage because banks in New Zealand calculate your ability to repay your mortgage based on your available credit limit, and not on how much credit you actually use per month.
  • Low interest: Low interest cards are best suited to people who use their cards frequently but rarely pay them off in full, i.e., they mostly make the minimum repayment with an occasional overpayment, but they typically always carry a revolving balance. In cases such as these, the lower the interest rate the better, since it keeps the debt more manageable.
  • Low fee: In a lot of cases, low-interest cards inherently have a low-fee or no-fee feature. In New Zealand, the ASB VISA Light is an example of a no-fee and low interest rate credit card.
  • Balance transfer: A good balance transfer credit card would ideally have a decent zero-interest period, and low interest rates afterward, compared to the card you currently have. Even if you stick with the bad habit of making minimum payments for several consecutive months, transferring your debt to a card with better terms/rates can save you hundreds, or even thousands of dollars.
  • Interest-free: Permanently interest-free or 0% interest credit cards don't exist. A few credit cards come with an interest-free period (typically for the first six months), but that's rare for a new card. This feature is usually only available on balance transfers.
  • Rewards, benefits and cashback: To stay ahead of the competition, and to provide incentives other than low interest rates, many banks offer very lucrative rewards and incentives. When you are making a comparison between different credit cards, be sure to consider the rewards that each card is offering. These rewards can be Airpoints dollars, in-store discounts, luxury rewards (like high-end smartphones), online purchase discounts, and cashback per dollar spent. Apart from providing good points of comparison, sometimes credit card rewards and benefits can be a very financially savvy decision when choosing one card over another.

Credit card alternatives

Despite all the added benefits, credit cards have the inherent risk of incurring and increasing your debt obligation, especially if you can't or don't pay off your debt in full on the due date. However, if used wisely, and while exercising strict financial discipline, credit cards can be efficient tools for managing your finances.

  • Cash: The simplest alternative to credit cards is good old cash, but it's becoming less and less a norm as we enter into an era of cashless transactions. According to an estimate, only about seven percent of people in New Zealand use cash in most of their transactions.
  • Debit card: The second, most viable and most used option is a debit card, where you pay for your expenses using your own money. It's smart, efficient, doesn't incur debt and additional expenses, and the best part is that it forces you to stay within your means. With credit cards, you can get into a bad habit of buying things that you don't need, knowing that you don't need to pay for them for a while. Even people that are careful with their spending can get a little carried away with a credit card.
  • Q Card: While not a true alternative to a credit card, Q Card is also very common in New Zealand. It combines the features of a store card and a credit card, but unlike the latter, you can defer paying off your Q Card for up to three months without incurring any interest or additional penalties. That is, if you keep up with the minimum payment. Thousands of vendors in the country accept Q Card payments, and some even offer additional incentives for using Q Cards.
  • Buy now pay later services: One of the most popular credit card alternatives, especially with millennials, are the buy now pay later services. Afterpay, Laybuy, Zip, and Oxipay all operate in New Zealand. These services allow you to spread the cost of a purchase over a fixed term. Unlike a credit card, you know it will be paid off in a fixed amount of time and typically with no interest charged. However, there are serious concerns that these services facilitate impulse spending, which is particularly problematic given that they can be funded with a credit card.
  • Personal loans: Depending on what you want to use the funds for, a personal loan may be a better option. Personal loans provide the funds you need, but since they do not operate like a credit card, you are less likely to get further into debt. They can be used to fund many things like holidays, home renovation work, wedding expenses, buying a car, and much more. They are also popularly used to consolidate multiple debts into one loan.

Cards, including both credit and debit cards, are by far the most common mode of payment in New Zealand. And by adopting some good credit card practices, you can enjoy the added benefits of using credit, without accumulating interest payments and debt.

Learn about credit cards

Answers to common questions about applying for and using a credit card.

  • Pros & cons

  • Tips

  • FAQs

  • Glossary

An expensive way to spend money

If you don't pay off your credit card within the interest-free period, whatever you buy using your card will cost you more with the added interest cost.

Annual and other additional fees

The annual fee is an added expense of using a credit card, along with other fees, penalties, and surcharges you may incur by using your credit card for payments.

Better personal loan alternative

If you only need a small amount (a few thousand dollars), which you can pay back within your interest-free period, using a credit card instead of taking out a personal loan is much more cost-effective and comes with easier repayment terms. You will pay no interest at all on the money you borrow using a credit card, if you can pay it back within the interest-free period.

Buy on your own schedule

With a credit card, you don't have to wait till payday to buy the things you want or need.

Complimentary insurance and other benefits

The more expensive cards usually have valuable complimentary benefits attached. These may include, for example, travel insurance, purchase protection insurance, a price protection program, extended warranty, and extra privileges or discounts when staying at hotels.

Constant debt cycle

If you use your credit card for every financial transaction, and then pay off the credit card with your monthly income, you can get trapped in a constant debt cycle if you face an unexpected expense or your monthly income is discontinued for any reason (such as layoff or business failure). Try to keep your credit card spending well within your income level.

Earn rewards

You can claim several rewards and incentives, such as merchandise, vouchers, cash discounts and Airpoints &c, by using credit cards.

Encourages bad spending habits

Frequently using money you don't have can encourage bad spending habits if you are not financially disciplined, nudging you towards expenses that you can't really afford.

Improve your credit score

Responsible credit card usage is one of the easiest ways to improve your credit score.

Instills bad spending habits

Frequently using the money you don't have can encourage and facilitate some bad spending habits and nudge you towards expenses that you can't really afford.

Be sure to check your credit history

Monitoring your credit history will help you keep track of your credit score as well as your purchase patterns.

Choose a credit card based on your spending habits and everyday needs

Many cards that offer amazing rewards and benefits also come with higher annual fees and interest rates, which can make it difficult to pay them off if you make too many expensive purchases while chasing the rewards.

Don't apply for too many cards

If you can't keep track of them all, or can't pay them off promptly, don't apply for too many credit cards. Having multiple credit cards can help your credit history and your credit score if you can manage them well. But if you can't, more credit cards mean more debt traps. Even for financially disciplined people, it's prudent to keep between three and five active cards at most. And since every application for credit will appear on your report, you can also damage your credit score by applying for cards too frequently.

Don't buy what you can't afford

If you can't pay for it now (with the money you have in the bank), it's unlikely that you will be able to afford it at the time of paying your credit card bill.

Don't take out a cash advance

Cash advance interest is usually charged at a higher rate, and it's calculated from the day you withdraw the cash – there are no interest-free days.

Efficiently use your interest-free period

Make all major purchases at the start of the billing cycle (i.e. at the beginning of your interest-free period) if you possibly can. This will give you the maximum amount of time in which to pay off your full balance and not incur any interest on your purchases.

Keep credit card safety tips in mind

Whether you are using your credit card for online purchases or buying something from your favourite shop, never get complacent about credit card security. For online purchases, only provide your details to a trustworthy website. If unsure, search for the store online to see if there are any reviews about fraud or scams. Similarly, if you hand over your card to someone else, watch them like a hawk. Skimming is a common practice used to steal your credit card info if you aren't vigilant. Cover your hand when you are entering your card PIN (no matter how silly it looks).

Keep track of your spending

Use your credit card statements to have a better idea of your spending habits. By adjusting your shopping habits and schedule, and your repayment routine, you can ensure that you aren't paying anything extra on your credit card purchases.

Know your credit card terms before travelling abroad

Using your card overseas can trigger some unexpected expenses, like a poor foreign currency exchange rate, foreign transaction fees and Dynamic Currency Conversion. Make sure you are familiar with your credit card terms, exchange rates, and limitations on overseas use. If your card offers travel insurance, you should know what's included in the insurance, whether it will be applicable for your trip, and whom you should contact if you need to make a claim.

Pay off your balance

Kiwis are among some of the most avid credit card users in the world. With such frequent use, you may forget that you are essentially borrowing money by using a credit card to pay for stuff. Unless you pay that money back on time (i.e., pay off your total debt on or before the payment due date) you will incur interest. The interest cost will typically be greater than the money you have saved in rewards and benefits by using the credit card in the first place.

Stay well within your credit limit

Maxing out your credit card will make it harder for you to pay off your outstanding balance, and it will also negatively impact your credit score. Ideally, you should stay within 30% of your total credit limit.

Strategically use balance transfer cards

Take advantage of banks competing with each other for business, run your numbers, and if a balance transfer deal can significantly reduce your interest burden, take it. But be sure that you aim to pay off your outstanding debt as soon as possible.

Use your credit efficiently

If you can afford multiple cards, make sure they all confer to your spending pattern and lifestyle. If you are a frequent traveller, use reward cards that can help you accumulate Airpoints. If you have accumulated a lot of debt, a balance transfer card with a generously long interest-free period can make repayment easier. With multiple credit cards, make sure to maximise the benefits you can get by using the appropriate card in each situation. However, be sure to run the numbers to check out that the cost of holding on to multiple cards does not outweigh the benefits they provide. You can't get everything in one card, but sometimes making peace with the rewards you have with a single card is better than having multiple cards and not be able to keep track of them all.

Can I get a credit card with no credit history or a low credit score?

If you are a student, you may be eligible for a tertiary bank account that includes a credit card. For migrants who have recently arrived in New Zealand, applying for a credit card will require them to provide details about their residency status, residential address, employment, and in some cases, additional financial information. It might make them eligible for basic credit cards with low credit limits, but that would be enough to establish a credit history.

For locals with a bad credit score, the first thing to do is start fixing your credit report. If you're earning enough to qualify for a credit card, then you need to take care of any outstanding debt and liens you have on your name. Until you pay them off, applying for new credit cards only to get rejected will push your credit score down even more. Another option is a prepaid card, where you load your own money onto the card so that you can access the convenience of paying with a card – but it's not actually a credit card.

Can I use a credit card to pay for another credit card?

No, you can't do this. You'll normally need to make your repayments by transferring funds from a bank account (using online banking, phone banking, an ATM, a mobile app or an automated repayment system). But some banks may give you the option of making repayments in cash (over the counter in a branch), or even by using the antiquated cheque-in-the-mail method.

How is interest calculated?

Interest rates on credit cards are calculated on a daily basis. Your interest rate is divided by 365, then applied to your outstanding debt. But if you qualify for interest-free days because you have no debt carried over from the previous month, you won't pay any interest on purchases in the current month.

If you do have carried-over debt, interest accumulates daily on purchases, starting from the transaction date of each purchase, and is added to your balance at the end of your billing cycle.

For cash advances there are no interest-free days, ever. Interest starts accumulating from the day the advance is taken until it is fully repaid.

How should I make payments against my outstanding debt?

On your credit card statement you will usually see two amounts – the full balance  that you can pay off to avoid paying any interest in the following month, or a minimum payment. While repaying the minimum each month  prevents you from suffering late or no-payment penalties, it is not an effective way to stay ahead of your credit card debt.

You can pay any amount between your minimum payment and your total outstanding credit. Even if you can't pay it off fully, try paying as much as you can. The faster you pay off your balance, the less interest you will accumulate. Ideally, pay off all your balance every month, which means you'll never pay any interest.

Is it better to not have a credit card at all?

No. If you are financially disciplined and used to living within your means, then having a credit card and using it efficiently is a good thing. It helps you build a good credit score and makes you eligible for better financial products, loans, and lines of credit.You may also save money by using Airpoints, or reward points, or any complimentary benefits attached to the card.

Who can apply for a credit card?

There are a few things that banks/lenders look into when they issue a credit card – starting with your age and citizenship. Most banks offer credit cards to citizens and permanent residents (some will exclude Resident Visa holders) who are over 18 years of age.

Each bank might have its own requirements for issuing a credit card. Generally, you have to produce proof of income, which will tell the bank that you are earning enough to stay ahead of your debt. Other requirements may include a decent credit score. In New Zealand, there isn't a national minimum threshold for a credit score, but generally a score of 500 or above is considered good enough for a basic credit card. Individual banks may have different minimum score requirements, especially when it comes to their premium credit cards.

Based on these requirements, any working adult with a decent credit history may be eligible for most credit cards offered in New Zealand. For students, the options are relatively limited. They can either look for the typical low-fee, and low-interest credit card (if their student bank account allows it), or choose a tertiary student package which sometimes includes a credit card with the credit limit capped at $1,000 or $2,000 at most.

Additional card fee

An additional charge applies to joint accounts and additional cardholders, and it's due annually.

Airpoints Dollars

Based on a predetermined ratio, certain credit cards earn Airpoints. These points can be redeemed for flights with Air New Zealand and its partners.

Annual fee (or Annual account fee)

The annual fee is a fixed amount charged for keeping a credit card on a half-yearly or yearly basis.

Balance transfer

Credit card holders can transfer their outstanding balance from one card to another, typically for better interest rates or even zero interest, for long periods.

Balance transfer fee

A fee charged as a percentage of the balance being transferred.

Billing cycle

The time which elapses between the start and end of the card's billing period. It can start on any day of the month (usually the day on which your account was first approved) and ends around 30 days later (depending on the number of days in the calendar month). A grace period of around 14 or 25 days (depending on whether 44 or 55 interest-free days are allowed) is then added to the billing cycle end date in order to arrive at the payment due date.

Cash advance

A cash advance occurs when you use a credit card to withdraw cash. The maximum amount you can take out as cash is a sum less than your remaining credit limit. Some other transactions that are considered cash advances are gambling transactions, credit card cheques, purchasing prepaid/gift cards, or purchasing foreign currency. The interest rate is also usually higher for cash advances.

Cash advance fee

In addition to interest, a fee is charged for every cash advance transaction.

Complimentary travel insurance

Some credit cards offer built-in travel insurance for up to 40 days. Policies vary, but many cover  medical expenses, property loss, loss of deposit and cancellations, among a few other things.

Credit limit

The maximum dollar limit of your credit card for making purchases. Once you've reached that limit you need to repay some of the balance before you can use your card again for purchases.

Credit score

A numerical score based on your credit history, including the use of credit, repayment frequency, promptness, and any debts in default. Typically, the range is from 0 to 1000 (it can vary depending upon the bureau), but most credit scores start from 300. A higher credit score helps you qualify for better credit cards, personal loans and mortgages.

Dynamic Currency Conversion

A process in which the amount of an overseas credit card transaction made in person is converted by a merchant or ATM to the currency of the payment card's country of issue. It allows you to see how much you've spent in NZD and lock in the exchange rate, but the exchange used may disadvantage the cardholder.

Interest-free days

The number of days a credit card holder has to pay back the bank before any interest is charged on the balance. The number of days is calculated cyclically, and not according to the day of the transaction or purchase. No interest-free days apply to cash advances.

Interest rate

The interest percentage applied to your outstanding balance if you don't fully repay it at every billing cycle. Stated as an annual percentage (APR), but calculated on a daily basis. Different rates may apply to purchases and cash advances on the same card.

Late payment fee

A fee charged if minimum payments aren't made on time.

Minimum payment

The minimum amount you can repay per month. Typically a small percentage of your outstanding balance (e.g. 2% or 3%) or a minimum dollar amount, whichever is higher. Making the minimum payment doesn't prevent interest accumulating on the outstanding balance.

Over-limit fee

For transactions that exceed the credit limit, an over-limit penalty fee is levied upon the cardholder, typically a fixed amount.

Revert interest rate

The interest rate which is applied to any unpaid balance after the expiry of a 0% or low-interest introductory offer. The revert rate can be either the card’s ongoing interest rate on carried-over purchases balances, or its cash advance interest rate.

Rewards

Benefits and incentives you can earn by using a particular credit card, for example Airpoints or cashback.