Best credit card rewards scheme

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Forums › Finance and wealth management › Best credit card rewards scheme

nate

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#274598 30-Aug-2020 22:03

Have typically had an AirNZ status points/Airpoints Dollars earning credit card, but with flying pooped for the foreseeable future, what other credit cards are others using, and what rewards?

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#2552732 30-Aug-2020 22:46

Slightly off topic, but I wonder how worth while it would be for AirNZ to raise some money by selling Airpoints to customers where you get bonus credit. ie buy $1000 airpoints and get a bonus $100 credit. I’d definitely be keen for that.

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tardtasticx

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#2552740 30-Aug-2020 23:36

I have a few credit cards around that I've picked up over the years, most rewards earning. Below why I keep them around and use a mix for best value.
I do wish there was one I could keep that would do all the spending on as it becomes a bit tedious sometimes remembering what card to use, but not a major. Wont be everyones cup of tea.

BNZ Platinum Visa - $1 cash back for every $90 spent. Not the best earn rate but pretty good.
I put most of my spending on this card where I can as most places take Visa now.
For annual fee its $90/year, so I would have to spend $8,100 on this card each year just to break even. I have a fee waiver with BNZ however so I don't pay a fee, which means I'm immediately on-top for this card.
Cash rewards can go to any account you have with BNZ or even into Kiwisaver/to the card itself. So they don't expire and can be used anywhere as it's cash at that point.

AmEx Platinum Edge Credit Card - 3MRP for Groceries, 2MRP for Gas, and 1MRP for all else. From what I can find these convert around 133MRP for $1 with AmEx travel, or 150MRP to $1 Airpoints Dollar.
I mainly put groceries and gas spending on this card, as a $150 spend for example would give me $3.38 with AmEx travel, versus $1.66 cash back with the BNZ card above.
For annual fee its $149/year, so I would have to spend $6,605 @ 3MRP per $1 on groceries, to break even. Easily done. But it also gives a free return AirNZ flight each year which would pay for most of if not all of that annual fee just on its own.
I understand Membership Reward Points don't expire so long as you keep an amex MRP earning card. You can also spend the points in their store if you can't travel.

AmEx AirPoints Card - 1 AirPoint Dollar per $100 spent. Lowest earning.
I used to use this before I got the above cards, but now it barely gets used. However, this one does frequently get bonus spend offers which make me use it.
Recently in July and August there was an offer where if you spent $10 or more in 10 separate transactions for the month you got 50 bonus AirPoints dollars (on top of the rewards that purchases normally got). Very easily done and scored me 100 AirPoints dollars with no effort.
This has no annual fee so no stress keeping this in my wallet.
These AirPoints do expire as this card is unlike the Kiwibank one that has non-expiring AirPoints. Though you can spend these AirPoints Dollars in the AirPoints store for products rather than flights, so if any are expiring its a good way to save them going to waste (gift cards/store cards would be a good use as often dollar for dollar)

Good luck with whatever you go for, we're lucky to have a few options in NZ to pick from though absolutely not as lucky as our friends overseas.

nate

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#2552743 31-Aug-2020 00:34

tardtasticx: I have a few credit cards around that I've picked up over the years, most rewards earning. Below why I keep them around and use a mix for best value.

Cheers for the detailed response.

My only concern with looking at an AMEX is the acceptance here in NZ. Do you find most businesses will take it?

sidefx

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#2552806 31-Aug-2020 07:30

GSManiac:

Slightly off topic, but I wonder how worth while it would be for AirNZ to raise some money by selling Airpoints to customers where you get bonus credit. ie buy $1000 airpoints and get a bonus $100 credit. I’d definitely be keen for that.

I would probably be keen on this too... BUT I wonder how easy it would be to account for it on the company balance sheet? (given nobody knows exactly what's going to happen with covid19, when, etc) Not really comparable but would not want something like this to turn into something like AirNZs version of AAirpass ;) I guess though the company could just look at it like an interest free loan, but then from a customer perspective that's not very good for me.

PS: Yeah totally off topic, sorry - not sure if this is worth a separate thread.

PPS: Hmmm, I always forget you can use Airpoints dollars for things other than flights so I guess not a bad idea after all even as a customer.

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clevedon

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#2552808 31-Aug-2020 07:34

I soley use my AMEX platinum airpoints card with a platinum Visa as back up at the few places that don't take AMEX.

The airpoints earn is one airpoint for every $59 spent (though July and August was one point for every $50 spent) which is the best Airpoints earning card last time I looked.

I like to fly a lot so it pays for that, Koru and hire cars so it suits me.

sbiddle

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#2552810 31-Aug-2020 07:41

GSManiac:

Slightly off topic, but I wonder how worth while it would be for AirNZ to raise some money by selling Airpoints to customers where you get bonus credit. ie buy $1000 airpoints and get a bonus $100 credit. I’d definitely be keen for that.

Why exactly? It's something 99% of customers would see zero value in, so I doubt it would raise any significant amounts of money.

timmmay

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#2552815 31-Aug-2020 07:54

There have been articles released about this. Start here, more found via Google. It depends on your spending level as well.

GSManiac

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#2552822 31-Aug-2020 08:05

sbiddle:

GSManiac:

Slightly off topic, but I wonder how worth while it would be for AirNZ to raise some money by selling Airpoints to customers where you get bonus credit. ie buy $1000 airpoints and get a bonus $100 credit. I’d definitely be keen for that.

Why exactly? It's something 99% of customers would see zero value in, so I doubt it would raise any significant amounts of money.

because it would give you a 10% discount on your travel.

openmedia

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#2552838 31-Aug-2020 08:42

I've been using Airpoints at Mitre10 recently as we've just moved house. Very easy to use, even for click/collect online orders.

Yet to see a scheme better than Airpoints.

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#2552872 31-Aug-2020 09:48

I've used my Air Dollars on buying wine at the Air NZ online store.

I have used the BNZ Platinum Visa cashback scheme since they moved away from Air NZ. I know it's not as high as Amex but Visa acceptance is a lot higher - and the cashback goes into my daughter's account automatically - and I use Visa for everything. I mean everything except perhaps the smallest (under $5) of a dairy purchase. Over a 12-month period it can get to a good amount (high three to lower four digits - for example when we bought all the new bathroom stuff over two months).

I use an Amex for business expenses only - if not accepted then I pay with my Visa and claim it...

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taneb1

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#2552884 31-Aug-2020 10:01

Will mention that I recently tried switching to BNZ for my Visa and they wouldn't accept my Credit Card application and I have to wait 3 months.

Apparently there is a new rule due to COVID stating you must a BNZ customer with a standard account (Not savings) even if it is unused for more than 3 months before they can offer you a credit card, they didn't tell me this until I'd gone into a branch, provided all the information they needed and gone through the application process which was rather frustrating.

Any comments made are my personal views and does not represent those of my employer

tardtasticx

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#2552890 31-Aug-2020 10:17

nate:

tardtasticx: I have a few credit cards around that I've picked up over the years, most rewards earning. Below why I keep them around and use a mix for best value.

Cheers for the detailed response.

My only concern with looking at an AMEX is the acceptance here in NZ. Do you find most businesses will take it?

AmEx acceptance is a lot higher than it used to be, they've done a lot of work to improve that over the years which is great to see.
Still a lot of smaller shops that wont take it however, and I can understand why as I hear the merchant fees for AmEx are considerably higher than Visa/MC.
For what I use my card for, I dont have a problem with finding places to take it. If you want to put all/most spending on one however I would suggest still carrying a backup Visa/MC/EFTPOS card just incase.

Non-exhaustive list here that'd give you a quick idea https://www.americanexpress.com/nz/credit-cards/about-credit-cards/acceptance/shopping/

One other perk I forgot to mention for the AmEx Platinum was that you can redeem points for purchases. Once a purchase clears and you can see it on their website/app, you have the option to Pay With Points at a rate of 200MRP to $1, so if you don't spend it with AmEx travel you can basically redeem it for cash by putting it back on the card. Quite handy.

Edit: To update Pay With Points redemption rate. Looks like I have a promo where its 50% bonus:
- Normal is 1000MRP for $5 credit, which is 200MRP per $1
- On my account it shows 1000MRP for $7.50 credit, which is 133.33MRP per $1

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#2552891 31-Aug-2020 10:18

taneb1:

Will mention that I recently tried switching to BNZ for my Visa and they wouldn't accept my Credit Card application and I have to wait 3 months.

Apparently there is a new rule due to COVID stating you must a BNZ customer with a standard account (Not savings) even if it is unused for more than 3 months before they can offer you a credit card, they didn't tell me this until I'd gone into a branch, provided all the information they needed and gone through the application process which was rather frustrating.

wow the collateral damage of the pandemic!

antonknee

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#2552893 31-Aug-2020 10:26

I've done all the rounds with credit card rewards schemes.... I churn frequently to whoever has the best signup rewards/bonuses.

Most recently it's been the Amex Platinum Edge which had 30,000 MRP bonus for sign up, and also attracts good earn rates on MRPs at groceries etc. There is also a free domestic flight included with this card which pays for its $149 annual fee. I do find the acceptance of Amex is a little limited, major chains are fine (eg supermarkets, Bunnings, Noel Leeming etc) but other stores generally not. Cafes are hit and miss. Due to changes in circumstances related to Covid-19, my spending has dropped significantly, so I will likely close this card at the end of the year.

I will likely switch to the BNZ cashback card and likely pick up the $0 fee Airpoints Amex as well (this card tends to get some very good bonus offers).

I like Airpoints and cashback, and Amex Mebership Rewards which can be converted to Airpoints or cashback. The other schemes (Hotpoints, True Rewards, Flybuys etc) aren't as good value in my opinion. Not as clear what value you're getting and not as flexible with spending the rewards.

taneb1

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#2552894 31-Aug-2020 10:29

Batman:

taneb1:

Will mention that I recently tried switching to BNZ for my Visa and they wouldn't accept my Credit Card application and I have to wait 3 months.

Apparently there is a new rule due to COVID stating you must a BNZ customer with a standard account (Not savings) even if it is unused for more than 3 months before they can offer you a credit card, they didn't tell me this until I'd gone into a branch, provided all the information they needed and gone through the application process which was rather frustrating.

wow the collateral damage of the pandemic!

For me it was the "You have to have an open account for 3 months, even if you don't use it" - I'm assuming its so they can check you still have income post COVID.

Any comments made are my personal views and does not represent those of my employer

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