Credit Card Glossary
Understand credit card terminology with our comprehensive glossary. Clear definitions of financial terms for New Zealand consumers.
Annual Fee
A yearly charge for having a credit card, ranging from $0 to $600+ in NZ. Premium cards typically have higher annual fees but offer more benefits.
APR (Annual Percentage Rate)
The yearly interest rate charged on credit card balances in New Zealand, typically ranging from 12% to 25% depending on the card type.
Airpoints
Air New Zealand's loyalty program currency. Credit cards earn Airpoints that can be redeemed for flights, upgrades, and other rewards.
Balance Transfer
Moving debt from one credit card to another, often to take advantage of a lower interest rate or promotional period.
Cashback
A percentage of your spending returned to you as cash or account credit, typically 0.5% to 1% in New Zealand.
Credit Limit
The maximum amount you can spend on your credit card, determined by your income, credit history, and bank policies.
Credit Score
A numerical representation of your creditworthiness in New Zealand, used by lenders to assess loan and credit card applications.
Interest Rate
The annual percentage charged on outstanding credit card balances, typically 12-25% in New Zealand depending on card type.
Minimum Payment
The smallest amount you must pay each month on your credit card balance, usually 2-3% of the outstanding balance.
Rewards Program
Credit card benefits where you earn points, cashback, or other rewards based on your spending patterns and card type.
Statement Balance
The total amount owed on your credit card at the end of each billing cycle, before any new transactions.
Travel Insurance
Protection offered by many premium NZ credit cards covering medical expenses, trip cancellations, and other travel-related issues.