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Spending with your credit card gives you lots of flexibility and if you’re clever with how you manage your card, it makes a lot of sense to use it frequently as a method of payment.
Here are some tips on how your credit card works to your best advantage.
Good credit card management could involve paying off your balance each month. If you do that, you won’t pay interest on your purchases, and depending on when you purchase in your billing cycle, you could get up to 55 days interest free on purchases on personal credit cards.
Just note that you will start to incur interest from the day you make a cash advance, (e.g. getting cash out at an ATM,) if you transfer money from your card to an account in FastNet Classic, or on dishonoured payments.
A balance transfer to an ASB credit card could be a great way to save interest and make your money management easier.
A balance transfer involves transferring your credit card debt (a balance) from another bank credit card or selected store card, to an ASB credit card.
The advantage to you is that the balance transferred to an ASB credit card could be at a reduced interest rate for a set period of time; let's say, for example, 8.95% p.a. for six months. After the initial six month period the standard purchase interest rate will be applied.
By doing this, you are effectively using funds available from your ASB credit card to pay off what could be more expensive debt from another bank's credit card, or selected store card. This may save you money if the interest rate applied to the amount transferred is lower than the purchase interest rate you would have paid on your other card. You can 'balance transfer' up to 90% of your available ASB credit card limit.
When making repayments ASB applies your payment to the expenses that might attract a higher interest rate before expenses on a lower interest rate – cash advances and purchases (other than Smart Rate purchases for Visa Light) are paid before balance transfers and Smart Rate purchases. Any extra payments could help reduce the balance transfer, so when the fixed interest rate term ends you may have less or no balance remaining. Any remaining balance on the balance transfer at the end of the fixed interest rate term will attract the standard purchase interest rate.
By allocating payments this way, it helps you to continue using your ASB credit card for your everyday purchases (note the standard purchase interest rate and cash advance rate will apply).
ASB charges interest on cash advances (taking money out of an ATM) from the date of the cash withdrawal, so it may be a better option to keep your credit card for purchases. If you do need cash on the day and use your credit card to withdraw it; pay off the outstanding amount on your card as soon as you can to reduce the interest you're paying.
If you're out shopping and want to manage your spending, consider using Card Control to set a per transaction spending limit on your card, and turn off ATM cash withdrawals too (you can turn them on again at any time).
You can turn online transactions on or off too as it suits you. So if you're not sure where your card is, and you're concerned it may fall into the wrong hands, you can temporarily lock it from your mobile phone, and unlock it again if it turns up in your jacket pocket.
Card Control commands happen instantly and take effect immediately, no waiting and no fuss, so you really are in charge of your credit card.
ASB Visa credit and Debit cards are great when you are travelling. You can access money and pay for goods or services at millions of locations around the world; especially handy for purchases if you are short of cash and accessing an ATM isn’t easy. Fees apply to these transactions.
Travel insurance is important when you're travelling overseas. The cost of unexpected events, such as lost luggage and medical emergencies, can be very high in some countries. If you have an ASB Visa Platinum card or an ASB Visa Gold card, you can get access to overseas travel insurance per return trip. You need to activate the travel insurance by paying for at least 50% of your overseas return travel tickets using your ASB Gold or ASB Visa Platinum credit card. There are also other ways to activate this cover. Find out more about how to activate credit card travel insurance and further details about this cover.
Your ASB Visa credit or debit card are a great way to pay for your online shopping. You may never need to visit a store if you don’t want to. Visa credit and debit cards provide convenient ways to pay, particularly if you set up Visa Checkout and the merchant you are buying from has this available. It’s a secure way to pay online.
Check our guide on Security and cyber-fraud management and find out more about Visa Checkout.
ASB's Lending Criteria and Credit Card Conditions of Use apply. Terms and conditions apply to travel insurance, please refer to the Gold Travel Policy wording or Platinum Travel Policy wording for further details. Exclusions and limitations apply. Gold and Platinum Travel Insurance are underwritten by Tower Insurance Limited.
ASB Travel Insurance is underwritten by Tower Insurance Limited. For full details, refer to the relevant travel insurance policy document which is also available on request from any ASB branch or by calling 0800 200 252. The availability of insurance cover is subject to your application being approved. Exclusions apply. See further information regarding Tower's financial strength rating.
From 1 April 2018, Cigna Life Insurance New Zealand Limited will become the underwriter of ASB Visa Gold and ASB Visa Platinum Rewards Credit Card Travel Insurance. For further information on the changes, please refer to the 'Important information you need to know' section here. For full details, refer to the relevant travel insurance policy document.