credit card advice

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Forums › Finance and wealth management › credit card advice

shermanp

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#114958 8-Mar-2013 12:49

Hi all,

I have decided it's about time to look at getting a credit card, but I'm not sure what bank and card I should go with.

Currently I have a Westpac visa debit card,which I will probably continue to use for smaller purchases such as ebooks. However I am going overseas in a few months and I feel a proper credit card would be of use. Would also be useful for those larger online purchases.

Does anybody have any recommendations for a good credit card? Apart from overseas travel, I won't be spending large amounts on it probably.

Thanks

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#776834 8-Mar-2013 12:52

Personally I have an ANZ Airpoints Visa Platinum - its total over kill with 10k min, but I don't pay fees so might as well get an air point per $80, rather than $145 or whatever it is on the standard card.

I guess it really comes down to what you need in a card. If you're only after a fairly low credit limit then why not just the standard Westpac Visa with hotpoints or whatever, or the low interest one if you don't plan on paying it off every month.

khull

1245 posts

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#776836 8-Mar-2013 12:56

Don't forget the conversion charges if you are using your card overseas. A 'good credit card' is highly subjective without understanding what your needs are.

rayonline

1734 posts

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#776838 8-Mar-2013 12:59

Kiwibank Mastercard Zero - no annual fee provided you use it once every 3 months. No minimum purchase.

If you travel and want the insurance, maybe ANZ cashback gold at least the cashback get a bit of money back ... not much but it is something for those non-big spenders.

If you want airpoints, BNZ GlobalPlus AMEX gets the higher points. Not that supported in all places though.
If you want koru club discounts the cheapest is ANZ Platinum. Won't get extended warranties unless it's a BNZ GP Plat.
But IMO could just get the some other overseas airline club card to get silver/gold easier ... so you don't need to pay the higher fee CC also koru club fee (while discounted) is only AirNZ lounges, and a few close buddies, not the entire partner alliance. The only lot that needs to put up with the AirNZ program are those who just fly domestically mostly and how the points are earn, once you go abroad you have access to all other airlines and can use them with AirNZ as well if it's the right alliance group.

dickytim

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#776846 8-Mar-2013 13:07

stick with your bank, from what I have seen they seem very close to each other.

2.5% currency conversion fee etc.

However the convenience of having the credit card with your current bank and being able to transfer between.

Be careful with Westpac if you use cash advance as they have higher interest and a huge cash advance fee as well.

I would look at low interest if you are likely to pay off purchases over time, as this would be a bigger advantage than reward points.

It is a good idea to have a credit card when travelling overseas as most hotels won't accept debit cards when you check in.

ajobbins

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#776847 8-Mar-2013 13:08

I would recommend a decent credit limit for travel, but it really depends how you plan to use the card.

Do you plan to pay the balance off in full each month?

Do you plan to use it for everyday purchases (eg instead of cash/EFTPOS)?

Where are you travelling and for how long?

If you qualify for a gold or platinum card and you use it for prepaid travel expenses you will most likely get complimentary travel insurance. While these cards usually have higher annual fees, it may work out cheaper than a travel insurance policy.

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mckenndk

911 posts

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#776932 8-Mar-2013 14:11

I have the Kiwibank Platinum card $130 a year.
Has all the usual airpoints stuff $90 = 1 airpoint, $300 for a status point, airpoints don't expire.
Has the Koru fee waivered but no discount of Koru like the BNZ ANZ cards.

If you go onto your perfered banks website they will run you through the differences (stadard, gold silver, limits etc) and benefits of the cards, it can come down to the fee you pay are you going to get your moneys worth out of it.

When I travel I don't tend to use the credit card much unless its a resonable purchase and pay by cash (westpac have deals with some overseas banks to avoid the $8 transaction fee) to avoid paying fees as much as possible.
It is usually more of a safe guard if something goes wrong for me anyway.
Saying that I use it for every purchase I make here in NZ that has the option to pay by credit card and does not charge a large fee for using credit cards.
Also make sure you have the card paid off every month I have many young friends that have large credit card bills and strugle to pay them off after paying the interest.

One gotcha that got me and a few people I know was the up to 44 days to pay something off, I initally thought it was 44 days since purchasing the item but its 44 days from the 1st of the month, so if you bought it on the 25th you only have 19 days left to pay it off with no interest.

You have to be careful with the travel insurance policies on credit cards as well, a friend had his camera go missing on a bus trip and they did not cover it.
Always read the policy before going on holiday to make sure it covers what you are doing as per any travel insurance policy, good amount don't cover skiing, scooters etc.

Dion

tanivula

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#776960 8-Mar-2013 15:13

Not sure if you are an Air NZ airpoints member or not, but I quite like the OneSmart cards and their ability to have multiple currencies on them (essentially a prepay credit card). All the conversion fees are up front and (dont quote me on this) there is not Air NZ fee for withdrawing cash from ATMs which is a bonus - think the small print is that the bank that runs the ATMs overseas might sting you but not AirNZ.

Otherwise for NZ stuff, I use a ANZ plat visa. Did a quick spreadsheet and figured I get more benefit with that rather than an equivalent kiwibank one (was using Kiwi bank go fly gold before).

Guess it really depends how much you use and what loyalty/benefits you want from it. There are plenty of options. We travel fairly regularly so air points is a winner at the mo.

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ajobbins

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#776970 8-Mar-2013 15:50

The biggest problem with using debit cards overseas is holds. When a hotel, car rental company etc take a hold off your debit card, they are locking you out of your own money for up to 7 days after they release the hold.

Last time I was in LA (2008) the hotel took a $4500 USD hold on my credit card. The exchange rate at the time was 0.51 so that was a NZD$9000 hit on my card.

Had that been my debit card it could have been a huge problem. especially if bills were set to go out etc. Even that immediately put my empty card over it's limit. Thankfully the hotel reduced it to US$1000 upon request.

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Bee

732 posts

Ultimate Geek

#776976 8-Mar-2013 16:07

Most of the Banks offer a low interest card - good if you don't use it much but don't pay everything off each month - the annual fee is usually slightly higher than the normal card.

Another good one is the fly buys Visa - earn fly buys points on that as well as swiping your normal card to get double points...

Or you could consider the GEM Visa? High interest rate but automatically gives 6 months interest free for all purchases over $250...

I've applied for cards at a few of the banks and Westpac was easier than some to get a card and a good credit limit on it... they even offer me increases all the time... not sure if that is a good or bad thing thou...

:)

Doing your best is much more important than being the best.

nakedmolerat

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#776992 8-Mar-2013 16:35

Nothing beat Westpac Titanium credit card. You will get:

Amex
MasterCard
MasterCard side kick (for smaller purchases) - small limit

rayonline

1734 posts

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#776994 8-Mar-2013 16:39

nakedmolerat: Nothing beat Westpac Titanium credit card. You will get:

Amex
MasterCard
MasterCard side kick (for smaller purchases) - small limit

For $290 of fees per year? OP said isn't gonna spend much .... but I know if you spend $30,000 every 6 months you are waived of the fee ....

IMO Kiwibank Zero MC $0 fees year or a ANZ Gold Cashback if he/she wants insurance. Unless one is doing a lot of travel just with AirNZ there are better airlines clubs to be with overseas. If I fly 1x to USA per year I can get Gold with Aegean/Asiana, AirNZ probably needs 4.5x. And let's not even think about getting enough points for a reward flight. Once you get Gold from another Star Alliance carrier you can even get into Koru Club. Don't even need the koru discount credit card cos it's handed to you.

shermanp

355 posts

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#777027 8-Mar-2013 17:50

Hi all, thanks for the replies so far.

My main bank is TSB. They only offer a basic $15/half year card with no extra benefits/rewards.

Therefore my the account on my Westpac debit card never has a lot on it and is not really suitable for large purchases or overseas travel.

I have every intention of paying off the bill every month on time, so I don't need a low interest card.

I currently don't have intentions of using the card for day-to-day purchases, although if the rewards were to make it worth it, this may be considered as an option.

I am an AirNZ airpoints member (although I don't do a huge amount of flying so not sure how worth it it is), and don't have FlyBuys. Currently I scan my airpoints card at Fly Buys retailers to earn airpoint dollars.

Am not terribly interested in American Express, would prefer to stick with Visa or Mastercard.

Does the above information make it a bit easier to give some recommendations?

Thanks

mattwnz

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#777031 8-Mar-2013 17:58

shermanp: Hi all, thanks for the replies so far.

My main bank is TSB. They only offer a basic $15/half year card with no extra benefits/rewards.

Thanks

I am with TSB, and I get a visa card with no fees as part of their premier account, but doesn't have any rewards. However I think they stopped offering this with newer cusomters, as I have been with them for decades. I would recommend a visa card over mastercard, becuase I also have a mastercard, and sometime it doesn't get accepted by international websites, but the visa always does.

rayonline

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#777032 8-Mar-2013 17:59

I say Kiwibank Mastercard Zero - no fees at all. You could just to to the supermarket once every 3 months and buy a bottle of milk.

Or else ANZ Gold cashback, free insurance and as a bonus you get a bit of cash back. $104/yr. Or the Kiwibank gold $80/year.

Generally speaking, the reward ratio is about 1 or 1.5% at best. Which is if you spend $100 you get $1. That's 1%. The 1.5% is generally the BNZ Amex card ... If you not spending a lot, the $100 or $105 annual fee would need a lot to get back. $10,000.

networkn

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#777040 8-Mar-2013 18:41

Let me give you the best advice you will get regarding credit cards.

Don't get one, unless you can pay it off in full every month.

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