The ASB Visa Light offers one of the lowest credit card interest rates in New Zealand at 12.9% p.a. Here’s whether it’s the right low-rate card for you.
The ASB Visa Light (12.9% p.a.) is one of the two lowest interest rate credit cards in NZ — alongside the ANZ Low Visa at the same rate. It suits ASB customers who sometimes carry a balance. If you always pay in full, a no-fee no-rewards card like the Kiwibank Zero Visa is a better choice.
ASB Visa Light — Key Facts
| Feature | Detail |
|---|---|
| Annual fee | Check current terms at asb.co.nz |
| Interest rate | 12.9% p.a. |
| Interest-free period | Up to 55 days |
| Card network | Visa |
| Rewards | None |
| Foreign transaction fee | ~2.5% |
| Minimum credit limit | Check with ASB |
| Contactless / Apple Pay | Yes |
Note: Always verify current fees and rates with ASB directly before applying — terms can change.
The 12.9% Rate in Context
Most standard NZ credit cards charge 20.95% p.a. The ASB Visa Light’s 12.9% rate is a significant reduction:
| Balance | 20.95% card | 12.9% ASB Visa Light | Annual saving |
|---|---|---|---|
| $1,000 | $209.50 | $129 | $80.50 |
| $2,000 | $419 | $258 | $161 |
| $5,000 | $1,047.50 | $645 | $402.50 |
If you carry a balance of $2,000, the ASB Visa Light saves you $161/year in interest compared to a standard card.
Who the ASB Visa Light Is For
Good fit:
- ASB customers who occasionally carry a credit card balance
- Those who want a safety-net card for times when they can’t pay in full
- People doing a large purchase (appliance, trip) they’ll pay off over 3–6 months
- Those who want the peace of mind of a very low rate without managing two cards
Not a good fit:
- Always pay in full? → A no-fee card like Kiwibank Zero Visa or BNZ Low Rate Mastercard is better
- Want rewards? → Low-rate cards don’t offer Airpoints or cashback — that’s the trade-off
- Not an ASB customer? → ANZ Low Visa also offers 12.9%; BNZ Low Rate MC offers 13.45% at $0 fee
ASB Visa Light vs Key Competitors
| Card | Annual fee | Interest rate | Best for |
|---|---|---|---|
| ASB Visa Light | Low | 12.9% | ASB customers carrying a balance |
| ANZ Low Visa | $30 | 12.9% | ANZ customers; same rate as ASB |
| BNZ Low Rate Mastercard | $0 | 13.45% | No-fee + low rate combo |
| Westpac Low Rate Mastercard | $0 | 13.9% | No-fee option at Westpac |
| Kiwibank Zero Visa | $0 | 25.99% | Pay in full; no foreign fees |
Key insight: If the ASB Visa Light’s annual fee is higher than the BNZ Low Rate Mastercard’s $0 fee, and you only carry a small balance, the BNZ card might save more money overall (despite the slightly higher rate). Run the numbers for your specific balance.
Break-Even Analysis: When Is the Annual Fee Justified?
If the ASB Visa Light has an annual fee, you need to save more in interest than the fee costs:
Example: ASB fee = $20/year, rate = 12.9% vs a $0 fee card at 13.9%:
- Interest difference on $2,000 balance: $20/year
- Fee: $20/year
- Break-even: $2,000 balance for a full year
On larger balances, the ASB Visa Light’s lower rate beats the no-fee cards. On smaller balances, the no-fee cards win.
If You’re Switching to Reduce Interest
If you currently have a balance on a standard 20.95% credit card, switching to the ASB Visa Light at 12.9% can significantly reduce your interest bill. Steps:
- Apply for the ASB Visa Light (or check if ASB offers a balance transfer promotion)
- Avoid using the old card for new spending
- Pay down the balance aggressively using the interest saved
- Once clear, decide whether to keep the low-rate card as backup or cancel it
Verdict
The ASB Visa Light is one of NZ’s best low interest credit cards — matched only by the ANZ Low Visa at 12.9%. It suits ASB customers who carry a balance, occasionally miss a full payment, or want a low-rate safety net. If you always pay in full, there’s no reason to pay the annual fee — a no-fee card serves you better.
Next Steps
- Best low interest credit cards NZ — full low-rate card comparison
- ANZ Low Visa comparison — same rate, ANZ’s version
- How credit card interest works NZ — understand exactly how interest is calculated
- Best no annual fee cards NZ — if you’ll always pay in full