Compare credit cards

Find some of the terms in this table confusing? We get it. Jump down to our glossary to learn about key features and how to compare cards.

What types of credit cards are there?

Every credit card is slightly different and you should find one that has features that matter to you. There are 5 primary types of credit cards. Here is a quick explanation of each one. Below, we go into more detail and highlight our current top picks.

Card type	Principal use	Pros	Cons
Balance transfer	Pay off existing debt with no / low interest	Save money on interest and pay down debt faster	Minimal perks and no interest-free days on new purchases
Rewards / frequent flyer	Earn points (e.g. Airpoints) for your spending	Get rewarded for money you’d spend anyway	High interest rates & annual fees
No annual fee	Credit without an upfront cost	Costs nothing if you pay it off in full or don’t use it at all	Minimal perks and higher interest rates
Low rate	Pay off purchases over time while paying less interest	Saves you money if you carry a balance from month to month	Minimal perks
Business	Managing cash flow and separating spending	Offer distinct features for business (like accounting feeds)	Stricter eligibility requirements

Balance transfer credit cards

If you’re struggling with existing credit card or loan debt and are being charged a lot of interest, it might be time to consider balance transfer credit cards. This allows you to move your existing credit card debt over to a new balance transfer credit card, where you’ll pay low – or no – interest for a certain amount of time.

These cards don’t usually offer a lot of other perks or interest-free days. So it’s wise to pay off the debt before making new purchases on the card.

⭐ Hot tip: Look for a balance transfer card with a low annual fee and a long introductory period.

Rewards credit cards

If you’re likely to spend more money on your credit card and pay your bill in full each month, rewards credit cards could be a good option for you. These cards let you earn points on everyday spending, which you can redeem for gift cards, petrol, frequent flyer points and more.

Since these types of rewards programs cost the credit card company money to operate, rewards credit cards usually charge an annual fee and higher interest rates than some other cards.

⭐ Hot tip: Look for cards with an introductory or bonus points offer. This is usually the quickest way to build up rewards points.

Frequent flyer credit cards

Love to travel? Love to shop? Combine your passions and explore frequent flyer credit cards. When you make a purchase on your card, you’ll earn points that you can redeem on sweet rewards such as free flights, seat upgrades or even the newest iPhone.

Like other rewards programs, frequent flyer points are expensive to offer to customers. So, most frequent flyer cards charge an annual fee and a higher than average interest rate.

⭐ Hot tip: Look for bonus points offers and other perks such as insurance and airport lounge passes.

No annual fee credit cards

This one kind of speaks for itself – you’ll pay no annual fees on this card, either ongoing or just for the first year. If you’re only going to use your card a few times a year and plan on paying back your balance in full each month, a no annual fee card could be right up your alley as you’ll have almost no additional expenses.

Since credit card companies don’t make any money up front, no annual fee cards typically don’t offer much in the way of perks.

⭐ Hot tip: Keep an eye on interest rates if you carry a balance – they can be pretty high on these cards.

Low interest rate cards

Think you’ll carry a balance sometimes? A low interest credit card could help. These cards will allow you to buy what you need and save on interest charges compared to other cards.

Low interest credit cards typically don’t offer much in the way of perks and charge relatively low annual fees.

⭐ Hot tip: Look for cards with interest rates of 13.00% p.a or less.

Business credit cards

If you run a business and want to separate personal spending, there are business credit cards and charge cards that offer data feeds for accounting software like MYOB or Xero, cards for employees and points per $1 spent. You could also look at expense management cards and plans, with some similar features but a focus on virtual cards and simple apps.

⭐ Hot tip: Unlike personal cards, many business cards offer rewards points for government spending.

How to compare credit cards

Here’s a breakdown of features and charges you should know about.

Do I need a credit card?

We’re going to be straight up – not everyone needs a credit card.

You don’t want to take on debt you don’t really need, especially if you’re paying interest on it.

There are also some people who might be more susceptible to spiralling debts. For example, people who tend to impulse shop could rack up unnecessary debt, which can take years to pay off and cost a lot of interest.

If you have a plan for how you’re going to use your card and how you’re going to pay it off, a credit card can be a great addition to your wallet, helping you improve your credit score and accrue rewards points and benefits.

Pros & Cons

Bottom line? Credit cards have a mix of great perks and understandable risks. A good rule of thumb (if you get a card) is to have a plan for paying it off and using the benefits.

How to use a credit card (and avoid debt)

A credit card is convenient, but it also comes with a risk of debt. Here are 4 tips to help you stay on top of payments and make the most of your credit card.

• Ask for a credit limit you know you can manage. Credit card companies determine your limit based on what you could “reasonably” afford to pay off over 3 years. Sometimes that means they offer you a higher credit limit than you need. But requesting a specific credit limit when you apply (if you can), or changing it later, puts you in control.
• Pay more than the minimum. Each month you’ll get a statement showing how much money you owe, the minimum you need to repay and a payment due date. If you only pay the minimum, your credit card debt could take years to repay, so aim to pay off as much as possible.
• Plan your repayments. Set a reminder in your calendar each month for the due date, or better yet, set up automated payments.
• Get help if you need it. If you’re struggling with your credit card, call your bank or provider to see what support is available. You can also get free financial advice by calling MoneyTalks on 0800 345 123.

Have questions? We have answers

• What do I need to get a credit card?

  You need to be over the age of 18 and meet some standard eligibility requirements that include your income, identification, New Zealand residency status and credit history. If you're looking at a card with more perks and features, you'll come across stricter requirements than your typical card. When you're applying, you also need to include details about your assets, expenses and liabilities.

• Can I get a credit card if I have a bad credit history?

  Yes, but it's typically more difficult. It's a good idea to provide as much detail as possible on the application to show you can manage the account. You could also chat to your current bank before applying so they can guide you. If you can't get a credit card, an unsecured personal loan could also be an option.

• How do I actually apply for a credit card?

  The easiest way to apply for a new credit card is online. Click the "Apply" button, agree to some standard terms and conditions and go through a few pages of a form. The whole process takes about 15 minutes and you'll answer basic questions about your address, job, living costs and other credit products (if you have any). You'll be asked to submit some documents to prove your identity and address as well.