Kiwibank Low Rate Credit Card

Roland Bleyer

Credit Card Expert with over 15 years card experience and the founder of Creditcard.co.nz. Ask Roland a Question about this card.

The Kiwibank Low Rate Credit Card

Designed to help cardholders save on interest, the Kiwibank Low Rate Visa features Kiwibank’s lowest purchase rate and cash advance rate. With a low account fee, the card offers further money saving with up to 55 days interest free on purchases, and 1.99% p.a. on balance transfers for six months.

What we love...

The Kiwibank Low Rate Visa is a low cost card, helping cardholders keep outgoing costs to a minimum while still enjoying access to credit. Let’s take a closer look at the various money saving features this card offers, to then discuss who they might work well for.

Low Purchase Rate: The Kiwibank Low Rate Visa has Kiwibank’s lowest purchase rate, making it a great choice for cardholders who tend to carry a balance. While clearing your balance offers the best way to save money, if you aren’t able to pay off what you owe month to month, a low rate card could help you save on the amount of interest you pay.

Low Cash Advance Rate: While most credit cards charge a higher rate of interest on cash advances, the Kiwibank Low Rate Visa currently charges the same rate on both purchases and cash advances. But, while this rate may be lower than on most cards, cash advances are usually best avoided as they accrue interest from the day they are made, and usually involve fees.

Low Account Fee: As a low cost card, the Kiwibank Low Rate Visa has a nice, low account fee, charged every six months. This can work well for cardholders who want to save on outgoing costs, as well as those who prefer a low feature card that is easy on the wallet. This account fee is waived in the first year for Tertiary or Graduate Pack customers who are taking up a Kiwibank Credit Card for the first time.

Interest Free Period: Like most credit cards, the Kiwibank Low Rate Visa offers an interest free period on purchases, allowing cardholders to manage their cash flow more effectively. With this card, you can take advantage of up to 55 days interest free on purchases as long as you clear your balance by the due date, and don’t have a balance transfer on your account.

Balance Transfer Offer: New cardholders can benefit from 1.99% p.a. on balance transfers for six months. With this low rate, it can suit cardholders who want to pay down existing credit card debt transferred from other non-Kiwibank credit cards, allowing them to save on interest to pay off what they owe faster.

What’s not so great...

The Kiwibank Low Rate Visa is a simple card. While there is certainly nothing wrong with a no frills option such as this, it won’t suit every cardholder. Cardholders who want to earn rewards or enjoy extras – and who don’t mind paying a higher annual fee for the privilege – may be better off looking at other options.

Why should you choose this card?

If you are looking for a low cost card that only offers the basics, the Kiwibank Low Rate Visa could be an excellent fit. With a minimum credit limit of $500, it could be a good choice for cardholders who perhaps don’t spend that much on their card, while cardholders who tend to carry a balance could benefit from its super low purchase rate.

Overall Rating

A basic card, the Kiwibank Low Rate Visa helps to keep costs down with Kiwibank’s lowest purchase rate, a low account fee, up to 55 days interest free on purchases and 1.99% p.a. on balance transfers for six months.