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Some credit card rewards schemes also offer benefits like free travel insurance, purchase protection, travel lounge access and more.
The best credit card reward points scheme for you depends on how you plan to use your credit card. Our frequently asked questions below might provide you with the information you need to choose the best reward credit card for you.
What to consider before getting a Rewards credit card?
The best way to take advantage of credit cards is with a rewards credit card, but a reward credit card might not be suitable for you if you already have a significant credit card debt or if you expect to carry a sizeable debt on your new credit card. t be a better option, but if you have a sizeable credit card debt then a balance transfer credit card might be more suitable.
On the other hand, if you are not interested in reward points or the benefits that come with a reward credit card, then you could opt for a zero fee credit card to save on the annual fee. Below are some of the frequently asked questions about rewards credit cards.
Frequently asked questions about rewards credit cards (click to scroll to answer)
If you expect to pay off your credit card debt on time and in full without a problems then a reward credit card might be suitable for you as it allows you to take advantage of all the benefits associated with rewards credit cards.
2. When is a rewards credit card NOT suitable for me?
A reward credit card without a decent balance transfer offer might not be suitable for you if you currently have a significant credit card debt. Instead, you might want to consider a balance transfer credit card with an ongoing low purchase rate.
A reward credit card might also not be suitable for you if you plan to take on a significant credit card debt without paying it off on time. In this case a low interest credit card might be more suitable.
3. Are there any hidden fees or surprises I should be aware of?
Most credit cards require a minimum repayment to be made each month and if you fail to make this payment then a penalty fee or penalty rate might be applied each month. You need to make sure you understand what penalty rate or fee would apply before purchasing a credit card. Rewards credit cards also tend to have a higher annual fees.
Direct cash withdrawals are also generally charged at a higher rate as indicated by the cash rate on the card details.
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4. Are there any reward cards with low interest rate?
In general, rewards credit cards tend to have a higher interest rates than other credit cards. It is rare to find a reward card with a low interest rate, but you have come to the right place; You can use our credit card finder to filter through all the credit cards on here to find exactly what you are looking for. If it exists you are likely to find it on here.
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5. How much are the credit card reward points worth?
The value of reward points on credit cards can vary significantly from one credit card to another so it does not make sense to compare reward points by volume of points alone. For example, 1,000 points might be worth $1,000 with one credit card and yet just $1 with a different credit card.
You need to understand how much each point is worth and NOT simply go for the credit card with the highest amount of points. Some credit cards also offer bonus points depending on how you use your credit card and how much you spend. This is worth looking into to see if you can get some bonus points.
6. What can I use the reward points on my Credit Card for?
This depends on the specific credit card. Some credit card reward points can only be redeemed for flights or used in store, whereas others are more flexible and can be redeemed in multiple locations, with some even allowing points to be redeemed as cash.
It is important to think about how you are going to use your reward points before you apply for a reward credit card. For example if you do not fly often then airpoints might not be worth much to you.
Sign up bonus credit cards are not hugely common in New Zealand, but there are some credit card providers such as Amex who do offer sign up bonuses. Use our credit card finder tool to find the right credit card for you.
There are a range of rewards programs available in New Zealand including airpoints, hotpoints, flybuys, purple points and much more.
Some of these programs only allow you to redeem your points for flights or to use in-store whereas others are more flexible and allow you to redeem your points at multiple locations or redeem it for cash.
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9. How can I tell if a reward card is good?
Not all points are equal – It is important to know that not all points are the same. A point from one reward scheme might be worth twice as much as a point from another reward scheme.
Reward points capping – Many reward schemes have reward point caps – meaning you cannot earn more than a certain number of point per year. This is a very important factor when considering reward programs to choose from.
Reward points expiry – Some reward programs have reward point expiry which can be frustrating since this information is usually buried in the small print.
East of point redemption – Make sure you know how to redeem your points before you apply for a reward credit card. This is important to avoid any frustration down the line after you have gone through the hassle of collecting your points. Some programs make it very difficult to redeem points whereas others go as far as automating the process.
Flexibility – Some reward points can only be redeemed for flights or used as store credit. Make sure you know what you can redeem your points for.
Bonus points – Some cards offer sign up bonus or spending bonus. Store or business specific credit cards offer extra points for shopping within the store or business. This in important information if you tend to spend a lot of money with at the store or business.
If you have any questions regarding reward credit cards please feel free to contact us. But please keep in mind that we do not offer advice on which credit card to get or which reward program to join – we simply offer the information you need to make a decision. We hope you enjoy our website and we are able to help you find the right credit card for you.