In the years since the global financial crisis, Kiwis credit card spending has sky-rocketed by nearly 50%. By the end of
2017 it’s projected that we will have spent over $43 billion dollars on our plastic friends in the last 12 months, but
failing to pay off our monthly balances is making it a very expensive way to finance our spending habits.
“Based on the last 12 months, we’ve paid around $700 million in interest payments.” Says Canstar general manager Jose
George. “In the post GFC years we’ve increased our appetite for spending, but unfortunately, not for paying it back.
Typically, we’ve always carried over around 63% of our balances, the difference is in 2009 that was 63% of $28.7billion,
a lot less than the spending levels we are seeing today.
“In recent years a number of credit card providers have introduced more low rate/low fee options to consumers, but
visits to our website suggest that credit cards offering rewards, and often higher rates of interest, remain the most
popular option for Kiwis.”
Canstar research suggests that rewards cards can start to offer value-add for annual spend of at least $8,000 per annum
and for consumers who are disciplined at paying off their balance in full. The annual fees, and the (usually) higher
rates of interest these cards charge can make them unsuitable with other repayment behaviours.
George goes on to say:
“Credit cards can be beneficial financial tools if used well, but discipline around spending as well as paying off
outstanding balances is paramount in order to steer clear of debt.
“If you’re already carrying debt on an existing card, a balance transfer deal offering a lower rate of interest may be
worth investigating. Another option could be to consolidate debt with a personal loan or a credit facility offering a
lower rate of interest.”
Another useful strategy is having a credit card that matches the spending pattern. Consumer comparison sites such as
Canstar can offer information around what features to consider in a credit card and which types of credit cards best
suit various spending patterns.
Outstanding Value Credit Cards
Canstar conducts annual research into the credit cards available in New Zealand. The cards and their features– low fee,
low rate, rewards and flight rewards – are evaluated against a number of criteria and spending patterns. For 2018 we are
pleased to announce the following products have been awarded five stars for outstanding value:
Low FeeProviderCard ASBVisa Light KiwibankMasterCard ZeroLow RateProviderCard ASBVisa Light The Co-operative BankFair Rate Credit Card
$12,000 Annual SpendProviderCardRewardsGemOnecard Visa Warehouse MoneyPurple Visa CardFlight RewardsAmerican ExpressAir New Zealand Card American ExpressPlatinum Edge Credit Card
$24,000 Annual SpendProviderCardRewardsBNZAdvantage Visa Platinum – Fly Buys BNZAdvantage Visa Platinum – Cash Rewards GemOnecard VisaFlight RewardsAmerican ExpressPlatinum Edge Credit Card ANZ BankAirpoints Visa Platinum KiwibankAirpoints Platinum MasterCard WestpacAirpoints Platinum MasterCard
$60,000 Annual SpendProviderCardRewardsASB BankVisa Platinum BNZAdvantage Visa Platinum – Cash Rewards BNZAdvantage Visa Platinum – Fly BuysFlight RewardsAmerican ExpressAirpoints Platinum Card ANZ BankAirpoints Visa Platinum KiwibankAirpoints Platinum MasterCard WestpacAirpoints Platinum MasterCard
$120,000 Annual SpendProviderCardRewardsBNZAdvantage Visa Platinum – Cash Rewards BNZAdvantage Visa Platinum – Fly Buys WestpacHotpoints World MasterCardFlight RewardsAmerican ExpressAirpoints Platinum Card ANZ BankAirpoints Visa Platinum KiwibankAirpoints Platinum MasterCard WestpacAirpoints Platinum MasterCard WestpacAirpoints World MasterCard
For further information and a full list of Canstar Five Star Ratings, Credit Cards 2018, please visit the Canstar website.