![]() ![]() That's close to $1.5m a day paid out to credit card companies. With over $3 billion outstanding every month, New Zealanders spend approximately $500 million a year on just servicing the interest. according to data published by the Reserve Bank. What's worse - interest rates average around 18% p.a. I frequently receive complaints about poor value bank "cashback" and "reward" cards, just as I do about bank savings account interest rates (as outlined in this .nz column). cashback on your spend), and cardholders earn 2 points per $1 spent.īanks (arguably) offer credit cards aggressively to their customers, but my view is that these cards don't deliver the value they should in many situations. As a background, 200 points = $1 of statement credit (i.e. If you're a business owner, the annual fee is tax deductible while the benefits/rewards are not subject to fringe benefit tax. However, the card fee is not cheap ($1,250/year) but cardholders enjoy extensive reward, travel, hotel, dining and insurance benefits. Do you spend $5,000+ a month, own a (profitable) business and/or charge back a lot of work-related expenses? If so, we suggest considering the top-tier American Express Platinum Charge Card, a unique and rewarding option.Do you spend $1,500+ a month? We suggest considering an Airpoints card ( The American Express Airpoints Platinum Card leads by way of fees, rewards and benefits).There is a bonus offer for new card members of 300 bonus Airpoints Dollars when you apply, are approved and spend $1,500 on your new Card within the first 3 months. Do you spend between $500 and $1,500 a month? We suggest considering The American Express Airpoints Platinum Card -there is a fee of $195/year but it gives you a wide range of benefits, including 1 Airpoints Dollar for every $59 you spend.There is currently a bonus offer available to new card members, you can receive 50 bonus Airpoints Dollars when you apply, are approved and spend $750 on your new Card within the first 3 months. Do you spend around $500 a month? We suggest considering The American Express Airpoints Card - it costs $0/year and gives you 1 Airpoints Dollar for every $100 you spend.We're campaigning in the media to make people aware of the appalling costs - if you'd like to share your thoughts, please get in touch with our research team. Credit cards interest is expensive, and debts can become impossible to clear. Firstly, do you struggle to pay off a credit card? If so, we suggest considering a balance transfer credit card such as the ASB Visa Light and then avoiding credit cards altogether until your finances impro ve.supermarkets, petrol stations and everyday expenses), we list the most rewarding cards: If you're spending at least $500 a month on credit card-friendly merchants (e.g. Our shortlist has you covered for rewards, cashback and free flights. We don't expect to make any changes to the American Express credit cards given they're not affected by the new legislation. Important: We will update our tables below when all the banks have finalised their new offerings.As bank-issued credit cards become less 'generous', we anticipate American Express cards will become more favourable for anyone looking for rewards, whether in Airpoints Dollars, cashback, awards or statement credit. American Express cards are not affected, as the law is designed to break up the Visa and Mastercard duopoly.This means that the banks can only charge merchants who accept credit cards 0.80% of the transaction value, which we argue limits the rewards, cashback and general perks they can offer to cardholders. From November 2022, changes in the law have capped interchange fees at 0.80% on Visa and Mastercard credit card transactions.In September 2022, ASB announced a plunge in their credit card rewards and earn rates (which was reversed - for now - as reported in this .nz column), while the BNZ is offering 'points' rather than cashback.Kiwibank announced this on 4 October 2022, and the level of rewards has greatly diminished across all of its Airpoints Dollars-earning credit cards. Some banks are cutting back, attempting to cut back or overhauling what they offer per dollar spent, known as the 'earn rate'. ![]() Are you looking for an Airpoints credit card? Things are changing fast if you currently have a bank-issued credit card: ![]()
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