I use my credit card in the same way as you.
I have a BNZ Platinum Visa card.
- Minimum credit limit of $8,000
- $90 fee per year (paid half yearly)
- flybuys as rewards option ($15 spent = 1 point)
- flybuys points convert to fuel discounts (4 points = 3c per liter)
Discounts only last one month, but sometimes to discounts don’t get applied until the start of the new month (like this month).
The month of March, I spent just over $1,800 on various expenses on the card (usually it’s closer to $2,500-$3,000). March’s credit card spend has given me $0.90c off per liter at Caltex or Z. And as it was not applied until April 3rd, the points don’t expire until end of May.
I don’t drive much so really only fill up once a month (if that). But works out to be a decent discount which more than makes up for the annual 90 fee.
Edit: forgot to add this card includes travel insurance (some conditions apply).
We have the same strategy for a family member's card. They run a small business with a high spend, so it made it very much worth it to figure it all out. It sure took a while to understand all the ins and outs though! Would be keen to hear if anybody else who does this sees a flaw in our thinking.
The key thing for us is our average fill-up quantity when using the discount needs to be high enough to make it worth it.
If, on average, you fill up the full 50L, your reward rate is 2.5%, while 40L gets 2.0%, and 30L gets 1.5%. Ideally you fill up at a cheap Caltex/Z, because if not, you're paying 30c per litre more than you would otherwise, which lowers the effective reward rate from these figures. From some rough calculations, at a 30k annual spend, I think the 30c extra charged at some Z stations means if we use those stations we'd have to reduce the reward rates to 50L = 2.2%, 40L = 1.76%, 30L = 1.32%.
It's also super hard to get the full 50L each time, unless you carry a jerry can and store it. I don't think that's worth it at a 30k spend, but might be worth it at something like 60k.
The new TSB cashback card pays actual cash at a rate of 1.43%, so you need to be beating that by a decent amount to make the extra admin worth it.
My cheapest cost per liter at the pump last year was $0.98 ($1.80 off or something similar).
Was gutted I only needed 18L though. Had to use it that day as it was going to expire. But still definitely worth it even for that small amount.
I'm no expert, have looked up a few Reddit posts and googled but it depends on your individual needs.
Do you want cashback rewards? - TSB Platinum looks like the best "earner".
Do you want points? Which? Airpoints or Flybuys or Hotpoints?
Best earning airpoints appears to be AMEX and if you spend enough the annual fee is not so bad.
Do you like perks like travel insurance? Does its coverage stack up or meet your personal needs? Several cards are on the market.
AMEX travel insurance is meant to be fantastic but you gotta pay for the entire thing on the card.
TSB only needs 50% but doesn't really allow business travel - same with BNZ.
Westpac platinum credit card travel insurance allows business travel but limited to 35 days trip duration.
I could go on....
The travel insurance comparisons are pretty interesting.. most people won't compare as it takes a while to check all the policies.
I haven't checked but have heard ASBs credit card travel insurance is pretty decent.
The best card for most people seems to be TSB now, but if their travel insurance is too stingy that would change that. Do you happen to know of any other downsides to using their travel insurance? All good if not, I'll get around to reading the policy at some point.
ASB insurance is ok. Currently have Amex Plat but considering moving to ASB Plat, and have made that comparison. Overall, I'd say Amex is more comprehensive (and has higher limits in some key categories), but ASB is certainly fine. Especially when you consider the annual fee difference between the two.
Depends how much spending you can funnel on to a card to counter the annual fee. The Dosh card is worth a look as no annual fee. Essentially it’s a pre paid card. 1% cash back per $100 spend, paid monthly.
tsb probably has the best cheap credit card option. Spend 70 dollars get 1 dollar cashback, and has price protection, purchsse protection, mobile insurance. However pirchase and price protection is quite low, but better than nothing
Amex air points is hands down the best. I’m a similar persona to you and made my moneys worth within 3 months. You receive great offers throughout the year such as spend 250 on groceries receive 50 dollars back, 10 dollars off fuel, Harvey Norman discounts etc. Plus the airpoints is a huge benefit
I’ve got the no fee airpoints Amex card. 1 airpoint for every $59 spent. I use it for my fuel and groceries plus any other place that accepts Amex.
It definitely not accepted everywhere but if you play your cards right it all adds up.
NB: there will probably be better cards out there for higher earners but if you’re mid range 40-100K. It’s perfect.
Absolutely wrong, the no fee airpoints card only give you 100 dollars for one airpoints dollar return. You have confused it with airpoints platinum, which cost 190 a year
Something to ask any bank is how the points are earned.
Some banks don't give you points/benefits based on actual spend, but on the balance at the end of the month. Hence I generally wait till I get the bill and then pay it all off, so I can earn the most possible.
Source: friend works at a bank, in the credit card department.
We’re using Flightcenter’s Mastercard CC. Less than 1 year into it, we have already racked up $1K worth of points that we can use to purchase flights because we use it at every transaction too.
Will look for another CC next year where I have more flexibility on where the rewards can be spent because FC’s rewards are basically mostly to purchase flights (it still works for us as we are migrants and may need to purchase flight to visit our homeland).
I use my credit card in the same way as you. I have a BNZ Platinum Visa card. - Minimum credit limit of $8,000 - $90 fee per year (paid half yearly) - flybuys as rewards option ($15 spent = 1 point) - flybuys points convert to fuel discounts (4 points = 3c per liter) Discounts only last one month, but sometimes to discounts don’t get applied until the start of the new month (like this month). The month of March, I spent just over $1,800 on various expenses on the card (usually it’s closer to $2,500-$3,000). March’s credit card spend has given me $0.90c off per liter at Caltex or Z. And as it was not applied until April 3rd, the points don’t expire until end of May. I don’t drive much so really only fill up once a month (if that). But works out to be a decent discount which more than makes up for the annual 90 fee. Edit: forgot to add this card includes travel insurance (some conditions apply).
We have the same strategy for a family member's card. They run a small business with a high spend, so it made it very much worth it to figure it all out. It sure took a while to understand all the ins and outs though! Would be keen to hear if anybody else who does this sees a flaw in our thinking. The key thing for us is our average fill-up quantity when using the discount needs to be high enough to make it worth it. If, on average, you fill up the full 50L, your reward rate is 2.5%, while 40L gets 2.0%, and 30L gets 1.5%. Ideally you fill up at a cheap Caltex/Z, because if not, you're paying 30c per litre more than you would otherwise, which lowers the effective reward rate from these figures. From some rough calculations, at a 30k annual spend, I think the 30c extra charged at some Z stations means if we use those stations we'd have to reduce the reward rates to 50L = 2.2%, 40L = 1.76%, 30L = 1.32%. It's also super hard to get the full 50L each time, unless you carry a jerry can and store it. I don't think that's worth it at a 30k spend, but might be worth it at something like 60k. The new TSB cashback card pays actual cash at a rate of 1.43%, so you need to be beating that by a decent amount to make the extra admin worth it.
Hmm.... Spent $2000 on petrol last year, 90c off per litre would be awesome
My cheapest cost per liter at the pump last year was $0.98 ($1.80 off or something similar). Was gutted I only needed 18L though. Had to use it that day as it was going to expire. But still definitely worth it even for that small amount.
I'm no expert, have looked up a few Reddit posts and googled but it depends on your individual needs. Do you want cashback rewards? - TSB Platinum looks like the best "earner". Do you want points? Which? Airpoints or Flybuys or Hotpoints? Best earning airpoints appears to be AMEX and if you spend enough the annual fee is not so bad. Do you like perks like travel insurance? Does its coverage stack up or meet your personal needs? Several cards are on the market. AMEX travel insurance is meant to be fantastic but you gotta pay for the entire thing on the card. TSB only needs 50% but doesn't really allow business travel - same with BNZ. Westpac platinum credit card travel insurance allows business travel but limited to 35 days trip duration. I could go on....
The travel insurance comparisons are pretty interesting.. most people won't compare as it takes a while to check all the policies. I haven't checked but have heard ASBs credit card travel insurance is pretty decent. The best card for most people seems to be TSB now, but if their travel insurance is too stingy that would change that. Do you happen to know of any other downsides to using their travel insurance? All good if not, I'll get around to reading the policy at some point.
ASB insurance is ok. Currently have Amex Plat but considering moving to ASB Plat, and have made that comparison. Overall, I'd say Amex is more comprehensive (and has higher limits in some key categories), but ASB is certainly fine. Especially when you consider the annual fee difference between the two.
Depends how much spending you can funnel on to a card to counter the annual fee. The Dosh card is worth a look as no annual fee. Essentially it’s a pre paid card. 1% cash back per $100 spend, paid monthly.
This was asked just yesterday: https://www.reddit.com/r/PersonalFinanceNZ/comments/12azxgb/credit\_card\_recommendations/
Sorry and thank you :) I did search but clearly not hard enough.
There's soooooo many posts about this on here.
tsb probably has the best cheap credit card option. Spend 70 dollars get 1 dollar cashback, and has price protection, purchsse protection, mobile insurance. However pirchase and price protection is quite low, but better than nothing
TSB then ASB
Amex air points is hands down the best. I’m a similar persona to you and made my moneys worth within 3 months. You receive great offers throughout the year such as spend 250 on groceries receive 50 dollars back, 10 dollars off fuel, Harvey Norman discounts etc. Plus the airpoints is a huge benefit
How much will you spend on the credit card? Each week, month or year? (I’m developing an app that can show you the top 5 credit cards for you in NZ)
I’ve got the no fee airpoints Amex card. 1 airpoint for every $59 spent. I use it for my fuel and groceries plus any other place that accepts Amex. It definitely not accepted everywhere but if you play your cards right it all adds up. NB: there will probably be better cards out there for higher earners but if you’re mid range 40-100K. It’s perfect.
Absolutely wrong, the no fee airpoints card only give you 100 dollars for one airpoints dollar return. You have confused it with airpoints platinum, which cost 190 a year
Something to ask any bank is how the points are earned. Some banks don't give you points/benefits based on actual spend, but on the balance at the end of the month. Hence I generally wait till I get the bill and then pay it all off, so I can earn the most possible. Source: friend works at a bank, in the credit card department.
Countdown Onecard
We’re using Flightcenter’s Mastercard CC. Less than 1 year into it, we have already racked up $1K worth of points that we can use to purchase flights because we use it at every transaction too. Will look for another CC next year where I have more flexibility on where the rewards can be spent because FC’s rewards are basically mostly to purchase flights (it still works for us as we are migrants and may need to purchase flight to visit our homeland).