Maximising Credit Card Rewards: How to Earn Hundreds in NZD

If you're using a credit card in New Zealand, you're likely earning rewards, such as points or cashback, on your purchases. However, without a strategy, these rewards can be worth very little. By understanding how to use your credit card correctly and taking advantage of the right rewards programme, you can earn hundreds of dollars in NZD each year - all without carrying a balance and incurring interest charges.

Choosing the Right Credit Card Rewards Programme

The first step to maximising your credit card rewards is to select a programme that aligns with your spending habits and financial goals. In New Zealand, some popular credit card rewards programmes include those offered by ANZ, ASB, BNZ, and Westpac. When choosing a programme, consider the following factors:

Rewards Type

Most credit card rewards programmes offer one or both of two types of rewards: points and cashback.

• Points can be redeemed for a variety of rewards, such as flights, accommodation, or merchandise. These rewards are often tied to specific airlines, hotels, or retailers, so it's essential to choose a programme that aligns with your interests.
• Cashback rewards provide a percentage of your spending back to you in the form of a credit on your statement or a direct deposit into your bank account.

Rewards Rate

The rewards rate is the percentage of your spending that earns rewards. This rate varies depending on the programme and the type of rewards being earned. For example, a credit card with a 1% cashback rewards rate will earn you 1 NZD in rewards for every 100 NZD spent.

Redemption Value

The redemption value is the amount of rewards you can redeem for a specific item or service. For example, if you earn 10,000 points and can redeem them for a $100 flight, the redemption value is 1 point = 0.01 NZD.

Annual Fee

Annual fees are charged to cardholders who use the credit card and can range from $50 to $1,000 or more, depending on the programme.

Comparison of Popular Credit Card Rewards Programmes in NZ

Programme	Rewards Type	Rewards Rate	Redemption Value	Annual Fee
ANZ Rewards	Points and Cashback	Up to 3% cashback	1 point = 0.01 NZD	$195
ASB Live Rewards	Points	Up to 2% cashback	1 point = 0.01 NZD	$120
BNZ FlexiCash	Cashback	Up to 2% cashback	1 NZD = 1 NZD	$120
Westpac Altitude	Points and Cashback	Up to 2.5% cashback	1 point = 0.01 NZD	$250

Maximising Your Credit Card Rewards

Once you've chosen a credit card rewards programme, it's essential to use your card correctly to maximise your rewards. Here are some strategies to consider:

Use Your Card for Everyday Purchases

One of the easiest ways to earn rewards is to use your credit card for everyday purchases, such as groceries, fuel, and dining. By doing so, you'll earn rewards on a regular basis, which can add up quickly.

Take Advantage of Sign-Up Bonuses

Many credit card rewards programmes offer sign-up bonuses for new cardholders. These bonuses can be worth hundreds of dollars in rewards and are often tied to specific spending requirements or redemption deadlines.

Use Your Card for Online Purchases

Online purchases, such as those made on Amazon or other e-commerce platforms, can earn rewards in some credit card programmes. By using your card for online purchases, you'll earn rewards on top of any cashback or rewards earned through the programme.

Pay Your Balance in Full Each Month

To avoid interest charges and ensure you earn the most rewards, pay your balance in full each month. This will also help you avoid falling into debt and accumulating interest charges.

Consider a 0% Balance Transfer Offer

If you have existing credit card debt, consider transferring your balance to a credit card with a 0% balance transfer offer. This can save you money on interest charges and help you pay off your debt more quickly.

Frequently Asked Questions

How much should I save each month in NZD to earn rewards on my credit card?

To earn rewards on your credit card, you'll need to spend a minimum amount each month. This amount varies depending on the programme and rewards rate. For example, if you earn 1% cashback on a $1,000 monthly spend, you'll earn $10 in rewards.

What is the best credit card rewards programme for me?

The best credit card rewards programme for you will depend on your spending habits and financial goals. Consider the rewards type, rewards rate, redemption value, and annual fee when choosing a programme.

Can I use my credit card rewards to pay for everyday expenses?

While you can redeem your credit card rewards for cash or other rewards, you cannot use them to pay for everyday expenses, such as groceries or fuel.

Summary

Maximising your credit card rewards in New Zealand requires understanding the rewards programme you're using and taking advantage of the right strategies to earn rewards. By choosing the right programme, using your card correctly, and paying your balance in full each month, you can earn hundreds of dollars in NZD each year. Always pay your balance in full each month to avoid interest charges and ensure you earn the most rewards.