Store Credit Cards in NZ

We’ve reviewed and compiled a list of Store Credit Cards in NZ below to help you find the Best Store Credit Card to meet your need. Store credit card are cards offered by retail or department stores and usually offer incentives for shopping with the retailer or deparment store. Compare Store credit card offers in New Zealand below to find the best store credit card for you.

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Updated: 4 Dec, 2024

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Card	Description	Purchase Rate (p.a.)	Balance Transfer	Cash Rate (p.a.)	Annual Fee	Interest Free Days
Countdown Onecard Visa Credit Card Gold Award	This card has been suspended and no applications are being accepted. Every $1,000 you spend at Countdown earns you $90. Earn 2x Onecard points and AA Smartfuel discounts at Countdown with the Onecard Visa card. Additionally, earn Onecard points wherever Visa is accepted.	19.99%	N/A	22.99%	$65.00	55 days More Info » Apply Now »
Purple Visa Credit Card (Purple Visa NZ) Gold Award	The Purple Card offers 1 purple dollar for every $150 spent wherever Visa is accepted plus 12 months interest free for purchases over $250 from participating retailers. Reward Points Cash Equivalent: $100 spend earns $0.66 cash equivalent^.	26.65% p.a. Plus 12 months interest free for purchases over $250 from select stores	N/A	29.40%	$55.00	55 days More Info » Apply Now »
Farmers Mastercard Credit Card Gold Award	Earn 1 Farmers Club Point for every $10 you spend using your Farmers Mastercard credit card. This card has a $50 annual fee and a $55 establishment fee on your first purchase using Long Term Finance. The establishment fee reduces to $35 for subsequent Long Term Finance Purchases. Reward Points Cash Equivalent: $100 spend earns $0.80 cash equivalent^.	28.50%	N/A	N/A	$50.00	Up to 55 days More Info » Apply Now »
Q Card Gold Award	Q Card offers a 3 months no payments and no interest on purchases made at thousands of select retailers. There is a $50 annual fee and a $55 establishment fee on your first purchase using Long Term Finance. The establishment fee reduces to $35 for subsequent Long Term Finance Purchases.	28.50% p.a. plus 0% interest for 3 months on purchases made from select stores	N/A	N/A	$50.00	3 months More Info » Apply Now »
Farmers Finance Card Gold Award	Farmers Finance Card has no annual account and you get access to exclusive extended payment deals at Farmers!	28.50%	N/A	28.50% p.a.	$0.00	Up to 55 days More Info » Apply Now »

^ To help you compare reward points across different credit cards and rewards programs, we provide an estimate of the cash-equivalent of the reward points that you will get back for every $100 you spend on eligible purchases with your card. The cash equivalent value given is an estimate only based on a specific redemption example. In some cases you might earn less or more depending on how you redeem your ponts and some reward points cannot be redeemed for cash directly. Click on the card to find out how the estimate was calculated.

About store credit cards

Understanding Store Credit Cards

Definition and Features

A store credit card, often referred to as a retail card, is a type of credit card offered by certain retailers. These cards provide perks for shoppers, such as discounts on qualifying purchases, bonus coupons, or low-interest or deferred-interest promotions. Store credit cards can take two forms:

Closed-loop cards: These can only be used at the issuing retailer.
Open-loop cards: These can be used anywhere that accepts credit cards, but they still offer rewards and benefits specific to the issuing retailer.

How They Differ from Traditional Credit Cards

Store credit cards differ from traditional credit cards in several key ways:

Usage Restrictions: Closed-loop store credit cards can only be used at the issuing retailer, whereas traditional credit cards can be used anywhere.
Interest Rates: Store credit cards often have higher interest rates compared to traditional credit cards.
Rewards and Perks: Store credit cards offer retailer-specific rewards and perks, while traditional credit cards offer more general rewards.
Approval Process: Store credit cards can be easier to qualify for, making them accessible to individuals with lower credit scores.

Common Terms and Conditions

When considering a store credit card, it is essential to understand the common terms and conditions associated with these cards:

Interest Rates: Store credit cards typically have higher interest rates than traditional credit cards.
Deferred Interest: Some store credit cards offer deferred interest promotions, where interest is not charged if the balance is paid in full within a specified period.
Fees: Be aware of any annual fees, late payment fees, or other charges that may apply.
Credit Limit: Store credit cards may have lower credit limits compared to traditional credit cards.
Rewards Program: Understand how the rewards program works, including how points are earned and redeemed, and any expiration dates for rewards.

Benefits of Store Credit Cards

Exclusive Discounts and Offers

Store credit cards often provide exclusive discounts and special offers that are not available to non-cardholders. These can include early access to sales, special promotions, and additional savings on purchases. By using a store credit card, you can maximise your savings and take advantage of these unique benefits.

Building Credit History

For individuals with limited or poor credit history, store credit cards can be a useful tool for building or rebuilding credit. These cards typically have less stringent eligibility requirements, making them easier to obtain. By using the card responsibly and making timely payments, you can improve your credit score over time.

Special Financing Options

Many store credit cards offer special financing options, such as interest-free periods or deferred interest plans. These can be particularly beneficial for making larger purchases, as they allow you to spread the cost over time without incurring high interest charges. However, it is important to read the terms and conditions carefully to avoid any potential pitfalls.

Drawbacks of Store Credit Cards

High Interest Rates

Store credit cards often come with significantly higher interest rates compared to traditional credit cards. If you carry a balance, you may find yourself paying interest rates that can exceed 30%. This can quickly lead to mounting debt, especially if you are unable to pay off your balance in full each month.

Limited Usability

One of the primary limitations of store credit cards is their restricted usability. These cards are typically only accepted at the issuing store or a group of affiliated stores. This lack of versatility can be a significant drawback if you prefer the convenience of using a single credit card for all your purchases.

Potential Impact on Credit Score

Applying for multiple store credit cards within a short period can negatively impact your credit score. Each application results in a hard inquiry on your credit report, which can lower your score. Additionally, the high interest rates and potential for carrying a balance can further affect your credit score if not managed responsibly.

How to Choose the Right Store Credit Card

Assessing Your Shopping Habits

When selecting a store credit card, it is crucial to evaluate your shopping habits. Consider the following:

Frequency of Shopping: How often do you shop at the store offering the credit card?
Types of Purchases: Are the items you purchase frequently available at this store?
Spending Patterns: Do you tend to make large purchases or smaller, frequent ones?

Understanding these aspects will help you determine if the store credit card aligns with your shopping behaviour.

Comparing Interest Rates and Fees

Interest rates and fees can significantly impact the overall value of a store credit card. Pay attention to:

Annual Percentage Rate (APR): Compare the APR of different store credit cards to find the most competitive rate.
Annual Fees: Some store credit cards may charge an annual fee. Ensure that the benefits outweigh this cost.
Late Payment Fees: Be aware of the penalties for late payments, as these can add up quickly.

By comparing these factors, you can choose a card that offers the best financial terms.

Reading the Fine Print

Before committing to a store credit card, it is essential to read the fine print. Look for:

Terms and Conditions: Understand the specific terms and conditions associated with the card.
Rewards Program Details: Ensure you are clear on how the rewards program works, including any restrictions or expiration dates.
Special Offers: Be cautious of introductory offers that may change after a certain period.

Taking the time to read and understand the fine print will help you avoid any unexpected surprises and make an informed decision.

Alternatives to Store Credit Cards

When considering alternatives to store credit cards, it is essential to identify what you aim to achieve, whether it is rewards, credit-building opportunities, or in-store benefits. Here are some viable options:

General Rewards Credit Cards

General rewards credit cards offer a broader range of benefits compared to store credit cards. These cards allow you to earn points, miles, or cashback on various purchases, not just at a specific retailer. This flexibility can be advantageous if you shop at multiple stores or want to maximise your rewards.

Cash Back Credit Cards

Cash back credit cards are an excellent alternative if you prefer straightforward rewards. These cards provide a percentage of your spending back as cash, which can be used for any purpose. They often come with higher rewards rates for specific categories like groceries, fuel, or dining, making them a versatile choice for everyday expenses.

Personal Loans for Financing

If you are looking for financing options, personal loans can be a practical alternative to store credit cards. Personal loans typically offer lower interest rates and fixed repayment terms, making it easier to manage your debt. They can be used for various purposes, including large purchases, debt consolidation, or home improvements.

By exploring these alternatives, you can find a financial product that better suits your needs and offers more flexibility and benefits than a store credit card.

Tips for Using Store Credit Cards Wisely

Paying Off Balances Monthly

To avoid accumulating high-interest debt, it is crucial to pay off your store credit card balance in full each month. This practice not only helps you evade interest charges but also ensures that you benefit from any rewards or discounts without the added cost of interest.

Avoiding Impulse Purchases

Store credit cards often come with enticing offers and discounts that can lead to impulsive buying. To use your card wisely, set a budget and stick to it. Make a list of what you need before shopping and avoid deviating from it, even if the discounts seem too good to pass up.

Common Misconceptions About Store Credit Cards

Interest-Free Offers

One common misconception about store credit cards is that they always offer interest-free periods. While some store credit cards do provide interest-free offers, these are often limited to specific promotional periods and may come with stringent conditions. It is crucial to read the fine print to understand the terms and conditions associated with these offers.

Impact on Credit Score

Another misconception is that store credit cards do not affect your credit score. In reality, store credit cards can impact your credit score in several ways. For instance, applying for multiple store credit cards in a short period can lead to multiple hard inquiries, which may lower your credit score. Additionally, high utilisation rates on these cards can negatively affect your credit score.

Ease of Approval

Many people believe that store credit cards are easier to get approved for compared to traditional credit cards. While it is true that some store credit cards have less stringent approval criteria, this is not always the case. Approval depends on various factors, including your credit history and income level. Therefore, it is essential to assess your financial situation before applying for a store credit card.

Frequently Asked Questions

What is a store credit card?

A store credit card is a type of credit card offered by a retailer that allows you to earn rewards and get special perks at that retailer. They are often easier to qualify for than traditional credit cards but usually come with higher interest rates.

How do store credit cards differ from traditional credit cards?

Store credit cards are typically limited to use at the issuing retailer or its partners, while traditional credit cards can be used anywhere that accepts credit cards. Additionally, store cards often have higher interest rates and lower credit limits.

Are store credit cards worth it?

Store credit cards can be worth it if you frequently shop at the issuing retailer and can take advantage of the exclusive discounts and rewards. However, you should be cautious of the high interest rates and limited usability.

Can store credit cards help build credit history?

Yes, store credit cards can help build your credit history if used responsibly. Making on-time payments and keeping your balance low can positively impact your credit score.

What are the drawbacks of store credit cards?

The main drawbacks of store credit cards include high interest rates, limited usability to specific retailers, and the potential negative impact on your credit score if not managed properly.

What should I consider before applying for a store credit card?

Before applying for a store credit card, consider your shopping habits, compare interest rates and fees, and read the fine print to understand the terms and conditions. Make sure the benefits outweigh the potential drawbacks for your specific situation.

What is the best store credit card in NZ?

The best credit card for you would depend on your personal circumstance and how you intend to use your credit card. We have put together a list of some of the best credit cards in New Zealand to help you find the best credit card in NZ to suit your individual needs. Alternatively, you can narrow down your search by credit card type such as interest free credit card, low rate credit card, balance transfer, credit card reward or air nz credit card