Changes to credit card payments and interest


#1

Hi all,

Just wanted to give you a heads up about some changes coming to the way payments are applied to BNZ credit cards, and the way interest is charged on credit cards. All BNZ personal credit card and Business First Lite Visa card customers will receive a letter letting them know about the changes, and all BNZ corporate card customers have been sent an email. But for anyone else who’s interested here’s some detail about what will change:

Changing how payments are applied to BNZ credit cards
From 15 November 2016, we’re improving the way payments are applied to BNZ credit cards, so that any credit card payments you make will go towards paying off your highest interest rate balances on your statement first.

This could help make it easier to tackle your credit card balance if you have a special lower interest rate on your card like a Balance Transfer rate of 0% p.a. for 12 months. Payments will be applied to the balances which have a higher interest rate first, like cash advances and purchases. Once those have been cleared, payments will then be applied to your 0% p.a. transferred balance.

Changing the way interest is charged on BNZ credit cards
For statements with a closing date of 15 December 2016 or after, if you don’t pay your current balance in full by the due date, interest will be charged on the current balance and any new transactions you make from the date of each transaction (rather than from the opening date of the next statement).

This change won’t affect people who always pay off their balances in full by the due date (you don’t pay purchase interest anyway), or people who always pay only a portion of their balance each month (your interest is already calculated in this way). However, people who pay off their balances in full one month and do not the next will pay a little more interest than they previously would have.

Questions? Queries? Leave them below :slight_smile: