Rewards the most-sought credit card feature
CANSTAR releases Credit Card Rewards Star Ratings, reporting on 45 credit cards from 10 financial institutions.
Forget a low interest rate or a modest annual fee; the credit card feature that is most-commonly sought by Kiwis is a
rewards program*.
"We spend around 3 billion per month on our credit cards so it does make sense that around forty percent of us are
specifically looking for a credit card that has a rewards program," said CANSTAR General Manager – New Zealand, Jose
George.
"With Kiwis making around 170,000 overseas trips each month and spending around $400 million a month in overseas-based
transactions it's also not surprising that inbuilt travel insurance is popular, with almost one-quarter of those in the
market for a credit card wanting this feature."
CANSTAR has crunched the numbers on the relative rewards value provided by 45 credit cards across 10 financial
institutions, finding the average annual reward available at various spending levels as follows:
Rewards ProfileAnnual Spending ($)Average Annual FeeAverage Purchase Rate (p.a.)Average Reward ReturnFlight Rewards12,000$74.5019.95%$203.20Flight Rewards24,000$74.5019.95%$327.75Flight Rewards60,000$148.3320.95%$779.93Flight Rewards120,000$270.0018.95%$1,846.60General Rewards12,000$32.5019.97%$107.72General Rewards24,000$105.0019.47%$292.29General Rewards60,000$226.6718.28%$829.24General Rewards120,000$226.6718.28%$1,788.47
Source: CANSTAR. Based on products assessed for 2016 Credit Card Rewards Star Ratings. Represents the average of the 5
star rated products assessed.
"The more you spend on your credit card, the higher the average dollar value of reward you can receive. So if you spend
a lot of money on credit each year you may get value from having a platinum card with a higher earn rate and no cap on
the number of points that you can earn," said Mr George.
Check the earn rate
According to CANSTAR's analysis there is a significant difference between the earn rate on a five star-rated product and
a lesser-rated product.
"Based on the products we assessed, someone spending $60,000 per year on a rewards credit card could potentially earn as
much as $920 in flight rewards or as little as $170," said Mr George.
"For general rewards, they could potentially earn as much as $915 and as little as $250 on the same dollar value of
spending.
"Don’t assume that just because your credit card is platinum or has the word 'premium' in its name that you're getting
the best value. Check what the rewards earn rate is on your card and compare that to what else in on offer in the
market. Make sure that the card you choose matches your spending habits."
The cards that offer outstanding value
CANSTAR has assessed 45 rewards credit cards from 10 financial institutions and rated them against four levels of
spending to determine which ones offer outstanding value for money.
General RewardsCompanyProduct$12,000 spendWarehouse MoneyWarehouse Money Purple Visa Card$12,000 spendGE MoneyOnecard Visa Rewards$24,000 spendBNZAdvantage Visa Platinum$24,000 spendGE MoneyOnecard Visa Rewards$60,000 spendBNZAdvantage Visa Platinum$60,000 spendWestpachotpoints World MasterCard$120,000 spendBNZAdvantage Visa Platinum$120,000 spendWestpachotpoints World MasterCardFlight RewardsCompanyProduct$12,000 spendAmerican ExpressPlatinum Edge Credit Card$12,000 spendAmerican ExpressAir New Zealand Credit Card$24,000 spendAmerican ExpressPlatinum Edge Credit Card$24,000 spendAmerican ExpressAir New Zealand Credit Card$60,000 spendKiwibankAirpoints Platinum MasterCard$60,000 spendWestpacAirpoints Platinum MasterCard$60,000 spendANZAirpoints Visa Platinum$120,000 spendWestpacAirpoints World MasterCard$120,000 spendKiwibankAirpoints Platinum MasterCard
Source: CANSTAR. Based on products assessed for 2016 Credit Card Rewards Star Ratings.
"There is a huge difference between products on offer and we congratulate the institutions that are offering outstanding
value to New Zealand consumers," said Mr George.
Consumers can download the Credit Card Rewards Star Ratings at http://www.canstar.co.nz/star-ratings-reports/credit-card-rewards/
* Statistics based on analysis of more than 2,000 visitors to the Canstar credit card selector pages between 1 Jan – 30
April 2016.
ENDS