Credit Cards For
Under 18 In New Zealand
In New Zealand, credit cards for under 18 are not as easily available as in other countries. There are a number of reasons for this, but the main one is that the law in New Zealand requires anyone under the age of 18 to have a parent or guardian co-sign any credit card application. This is to protect young people from getting into debt that they may not be able to repay. Lets look at some of the credit card options available for under 18 in New Zealand.
Credit Card Options For Under 18s ?
There are a few credit cards available for under 18s in New Zealand, but they usually come with strict conditions attached. For example, many require a parent or guardian to be a co-signer on the account, and some have spending limits in place. This is to help ensure that young people do not get into debt that they cannot afford to repay. So the million dollar question is can under 18s get a credit card in New Zealand ? YES
Can under 18s get a credit card in New Zealand?
Yes under 18s can get a credit card legally in Ne Zealand. There are a few options for New Zealanders under the age of 18 who are looking to get a credit card.
The most common option is to get a prepaid credit card, which can be used anywhere that credit cards are accepted.
Another option is to get a debit card linked to your parents’ or guardians’ bank account. This option can be used anywhere that debit cards are accepted.
The third option is to get a secured credit card, which requires you to put down a deposit that is equal to your credit limit. This option can be used anywhere that credit cards are accepted.
What are the benefits of having a credit card for under 18s in New Zealand?
There are many benefits of having a credit card for under 18s in New Zealand.
Firstly, it can help them to build up a good credit history. This is important because it will give them a better chance of being approved for loans and other forms of credit in the future.
Secondly, it can help them to manage their money better. Having a credit card can help them to budget and keep track of their spending.
Thirdly, it can give them a sense of financial independence. They will be able to make their own purchases and learn to manage their own finances.
Fourthly, it can provide them with a safety net in case of an emergency. If they lose their job or have an unexpected expense, they will be able to use their credit card to help tide them over.
Lastly, it can help them to build up their confidence. Having a credit card can help them to feel more grown up and responsible.
Overall, there are many benefits of having a credit card for under 18s in New Zealand.
What are the risks of having a credit card for under 18s in New Zealand?
There are a few risks associated with having a credit card for under 18s in New Zealand.
- Firstly, if you are not financially responsible, you could end up in debt. This could ruin your credit rating, making it difficult to borrow money in the future.
- Secondly, you may be tempted to spend more than you can afford, which could lead to financial problems.
- Finally, if you mismanage your credit card, you could be charged high interest rates and fees, which could add up and cause financial difficulties.
How can under 18s make the most of their credit card in New Zealand?
There are a few things that under 18s can do to make the most of their credit card in New Zealand.
Firstly, they should try and find a card with a low interest rate. This will help them to keep their repayments low and reduce the amount of interest they will have to pay over the life of the loan.
Secondly, they should try and find a card with a rewards program. This will allow them to earn points or cashback on their everyday spending.
Finally, they should make sure to keep their credit card balance as low as possible. This will help to keep their credit score high and reduce the amount of interest they will have to pay on their outstanding balance.
What are the different types of credit cards available for under 18s in New Zealand?
There are a few different types of credit cards available for under 18s in New Zealand.
The most common type is a student credit card, which is offered by most major banks. These cards usually have low credit limits and low interest rates, making them a good option for young people who are just starting out with credit.
Another option for under 18s is a prepaid credit card. These cards can be used anywhere that accepts credit cards, but you can only spend the money that you have loaded onto the card in advance. This can be a good way to help young people learn to manage their money, as they can only spend what they have.
Finally, there are a few credit cards specifically designed for young people. These cards often have very low credit limits and high interest rates, so they should only be used as a last resort.
If you are under 18 and are looking for a credit card, it is important to compare all of the options before you decide which one is right for you.
Companies that offer credit cards for under 18 in New Zealand?
In New Zealand, there are a few companies that offer credit cards for under 18.
They include ASB, BNZ, and Kiwibank. Each of these banks has different requirements for eligibility, so it’s important to compare them before applying.
ASB requires that applicants be at least 16 years old and have a regular income.
BNZ requires that applicants be at least 17 years old and have a regular income.
Kiwibank requires that applicants be at least 18 years old and have a regular income.
Each of these banks has different interest rates and fees, so it’s important to compare them before applying. ASB has an annual fee of $30, a interest rate of 20.95%, and a cash advance fee of $4. BNZ has an annual fee of $35, a interest rate of 21.45%, and a cash advance fee of $5.
Kiwibank has an annual fee of $40, a interest rate of 22.95%, and a cash advance fee of $6. It’s also important to consider the features of each credit card before applying. ASB offers a credit limit of $1,000, a grace period of 20 days, and a minimum payment of 3%. BNZ offers a credit limit of $2,000, a grace period of 21 days, and a minimum payment of 3%.
Kiwibank offers a credit limit of $3,000, a grace period of 22 days, and a minimum payment of 4%.
When choosing a credit card for under 18, it’s important to compare the different offers and find the one that best suits your needs.
Note : rates and fees are subjected to chance so check out individual lenders for current interest rates and fees
What to do if you're struggling to pay off your credit card debt as a under 18 in New Zealand?
If you’re struggling to pay off your credit card debt as a under 18 in New Zealand, here are some things you can do:
1. Talk to your parents or guardians. They may be able to help you come up with a plan to pay off your debt.
2. Talk to your bank. They may be able to offer you a lower interest rate or a repayment plan.
3. Consider transferring your balance to a low-interest credit card. This can help you save money on interest and pay off your debt faster.
4. Make a budget. This can help you figure out where your money is going and where you can cut back in order to put more towards your credit card debt.
5. Make more than the minimum payment. This will help you pay off your debt faster and save money on interest.
6. Talk to a financial advisor. They can help you create a plan to get out of debt and provide guidance on how to stay out of debt in the future.
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