Here's what to look for when you’re switching credit cards.
Work out what you need
- If you’re carrying significant debt, consider a low-interest card and stick to a budget to pay off the balance.
- If you don’t use your card much and pay it off each month, look for a no-fee or low-fee card.
- If you use your card frequently and always pay it off, a card offering rewards may be worth considering. Check out our picks for flights rewards, shopping voucher rewards and cash back.
Shop around
Find the best card for your needs – use our credit card comparison tool or check the banks’ websites.
Calculate your costs
If you’re paying off debt, use the credit card calculator on www.sorted.org.nz to compare the interest costs of different cards. On top of interest, you’ll need to include the annual card fee and any other fees the bank charges.
Automatic payments
Are there regular payments going through your credit card account? You’ll need to arrange for these to be made through your new card. To get the paperwork for this, contact the organisations that the payments go to.
Honeymoon rates
Many banks offer special “teaser” low interest rates on outstanding balances if you switch your credit card account to them. Check the terms and conditions carefully. Find out how long the honeymoon period lasts and what the interest will be when it ends. Honeymoon rates are usually for a six-month period and apply only to the debt you transferred – not to new purchases.
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