Credit Card - Making it work for you

[qube 3568]

Just wondering, without things getting too personal and in depth(debt), what bank/credit card type people use?

I myself currently have just a standard ASB credit card with 20.95% interest rate on purchases 55 days interest free and a $12 every 6 months card fee. I am about to sign up for true rewards (not sure why I didnt have it in the first place) and saw that I get 1 TR point ($1) per $150 spent.

I had a quick look through a few other banks and they all vary slightly and was wondering what others are using to get the most out of their money.

I also wonder if its worth the higher annual fees for better rewards such as Visa Platinum at ASB is a $65 per half year at the same interest rate but you get 1 TR per $100 not $150 spent. But theres also another $10 per 6 months TR fee. so thats $65x2 + $10x2 = $150 annual fee compared to the normal Visa which is only $24. A difference of $126 per year. Which i think means, you need to spend $126,000 on your visa platinum to make that difference via TR points. But what normal person is going to spend 100k+ on their credit card? Am I missing something here?

[CamB 48]

First suggestion would be to avoid paying interest, ever, at those rates.

If you don't mind the hassle of churning from account to account, there were recently deals waiving fees for a year on the new platinum airpoints cards. That's best of both worlds.

[my_e36 43]

If you are in a position to not pay any interest, then work out the highest tier card you can get which tends to have higher reward returns as long as it is more than enough to cover their higher annual fees.

Spending 100k on a card per year? Sure. Paid on behalf of company to entertain clients then claim it back, big overseas trip, buy a car, yacht, jetski, bikes, etc... But platinum has other perks like complimentary travel insurance and concierge program if you ever can make use of it. Some high tier Amex cards have airport lounge access, etc. But their points program is a bit disappointing.

Edited November 18, 2015 by SpikeyLemon

[qube 3568]

of course it all sounds good on paper all those flashy things but the reality is not all of us are in that position to be spending 100k+ a year on a company card to entertain guests and clients.

Im more talking about spending like 10k-20k a year and my goal is to be paying everything off each month in which case the standard visa card not low interest is quite fine.

just want to hear more personal experiences about which bank was good which was not which card had too rewards systems etc etc.

i remember my old man having a mortgage with bnz and collected heaps of flybuys points which was pretty cool

[Kepes 231]

i remember my old man having a mortgage with bnz and collected heaps of flybuys points which was pretty cool

I don't have a credit card myself, but I know my mum uses BNZ and like you said, she earns heaps of flybuys points with it which she uses to pay for flights. Also the Air New Zealand Airpoints card acts as a flybuys card and earns you status points which get you access to the Koru club, priority boarding, etc.

[huff3r 347]

I've been looking at changing my Westpac MasterCard debit to the new Westpac air points MasterCard debit, but it is a slight increase in card fee. I could probably justify it if I use it as my main card instead of using a standard debit card.

Best of both worlds with never having borrowed money, yet still earning air points through purchases!

[my_e36 43]

At 10-20k spend on a card per year, an average reward rate of 1% (some card more, some less), many of us mere mortals can barely earn enough to cover its annual fees. Might as well get a standard cash back reward cards.

I still paying off my older credit card debt, so I changed to a low rate card until I pay them off. No reward programs on that but I save on interest.

[kulgan 1042]

BNZ have my credit card linked to my home loan so I'm only paying 4.5% interest. I have a good banking adviser who gives me a call or email every couple of months letting me know what good deals are going.

[_ethrty-Andy_ 2122]

i have true rewards, i spend about as much as any normal person i think. not very many partners that suit my interests, but it pays for all my clothing at Farmers so is nice i buy car parts and get clothed for free lol

[Mark 178]

The proper way to use a credit card (if you are disciplined) is to buy everything with it and then pay it off each month before you incur interest.

I mean put absolutely everything on it, pay your bills, buy your groceries, petrol... my parents built their entire house using their credit card.... they got some serious rewards dollars from that. Even if you're on a modest salary you can rack up some good rewards dollars that way. I use my dollars to buy tools from Mitre 10 every couple of months.

Even better, if you have a mortgage then get a revolving credit facility so you can pay down your mortgage each month and then take that money out again at the end of the month to pay off your credit card... will mean you pay less interest on your mortgage.

[e30ftw 393]

The proper way to use a credit card (if you are disciplined) is to buy everything with it and then pay it off each month before you incur interest.

I mean put absolutely everything on it, pay your bills, buy your groceries, petrol... my parents built their entire house using their credit card.... they got some serious rewards dollars from that. Even if you're on a modest salary you can rack up some good rewards dollars that way. I use my dollars to buy tools from Mitre 10 every couple of months.

Even better, if you have a mortgage then get a revolving credit facility so you can pay down your mortgage each month and then take that money out again at the end of the month to pay off your credit card... will mean you pay less interest on your mortgage.

This. Exactly what I do. Everything on Credit Card and just pay the bill the coming month to avoid interest. All my own spending plus I control all the bills for my Flat so another few hundred a month ontop of my own spending

[qube 3568]

^ ming sharing what card and what the rewards are?

[zero 1160]

BNZ for the win.

13.45% (most other banks are over 20%) and flybuys.

Our mortgage is with BNZ also so we get heaps of flybuy points each month.

The rewards are pretty cool - I've got a powerbuilt tool box, trolley jack and jack stands, tools etc.

The wife has got heaps of kitchen gadgets, which double up as rewards for me too.

This reward took exactly six months to save up points for;

https://www.flybuys.co.nz/rewards/powerbuilt-9-drawer-racing-series-tool-chest

[huff3r 347]

The proper way to use a credit card (if you are disciplined) is to buy everything with it and then pay it off each month before you incur interest.

I mean put absolutely everything on it, pay your bills, buy your groceries, petrol... my parents built their entire house using their credit card.... they got some serious rewards dollars from that. Even if you're on a modest salary you can rack up some good rewards dollars that way. I use my dollars to buy tools from Mitre 10 every couple of months.

Even better, if you have a mortgage then get a revolving credit facility so you can pay down your mortgage each month and then take that money out again at the end of the month to pay off your credit card... will mean you pay less interest on your mortgage.

That's where westpacs air points debit MasterCard comes in . Easy to pay everything with it, and you will never fail to pay the bill at the end of the month because it is a debit card. Who offers rewards on a debit card?! It's genius.

[qube 3568]

That's where westpacs air points debit MasterCard comes in . Easy to pay everything with it, and you will never fail to pay the bill at the end of the month because it is a debit card. Who offers rewards on a debit card?! It's genius.

Just had a look

Westpac Airpoints Debit MasterCard:

Annual Fee - $15

Reward - 1 Airpoint per $250 spend

Also must deposit minimum $500 a month

Westpac Airpoints (Credit) MasterCard:

Annual Fee - $55

Reward - 1 Airpoint per $120 spend

55 days interest free on purchases (like all other credit cards)

[Olaf 3235]

True Rewards on Platinum works out well enough. Channel basically all your monthly expenditure through it, clear the balance every month. Before you know it, you have a bag of sand to spend. Noel Leeming are good, you can use your TR cards there *and *collect flybuys for your expenditure. Bought my daughter an iPad Air 2 64 for school, she's happy, didn't hurt my back pocket; result.

Still, I think the reward rates are better with some of the new platinum air points cards (lower threshold for a dollar reward than ASB Platinum). Must get around to changing.

ASB service has been dropping over last few years.

[M5V8 337]

the worst customer from the banks POV is one that uses the maximum card benefits and pays no interest.

So whichever card you pick make sure you pay it off in the allotted time period. If that's hard choose a low interest card only and take any interest free deals you can.

Look at what's important to you from the card. For me, airpoints are the biggest bonus, so I have a airpoints platinum card.

Each month I pay off the balance therefore it only costs me the cost of the yearly card fee. Sticking everything we buy on it earns us enough points through the year for a free flight overseas along with the free travel insurance perks of the card.

but it depends whats important to you

[Olaf 3235]

good point, Darren. The travel insurance benefits of the platinum cards are not to be sneezed at! checking of course that you're covered, not taking CDW and LDW on rental cars saves a bundle; accident just call insurance co, pay the excess, credit card travel insurance sorts it out and refunds you (less their excess). Medical costs - brilliant.

I was rear-ended in a rental on one holiday, took the shine off. All sorted out on goldcard credit card travel insurance.

Damaged leg on holiday, all sorted by platinum credit card travel insurance. return of rental car to another city, additional flights, medical treatment, x-rays, physio - they were great, and certainly made a difference in a downer situation.

I wouldn't travel without it; these benefits are rolled into those (relatively inexpensive) annual fees.