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Consumers Credit card reward scheme writeups

Consumers Credit card reward scheme writeups

Old Feb 18, 11, 2:28 pm
  #1  
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Consumers Credit card reward scheme writeups

Consumer NZ, in their latest magazine issue, have done a report and comparison on the reward schemes of the different credit cards available in New Zealand.

Of interest is a flight rewards table rating the percentage of a return AKL-SYD flight your reward points will pay for after 2 years of use and standard fee deduction ... without incurring extra fees (like interest and penalties).

BNZ/Amex cards sit on top of the list, with their classic card paying 1.8 times the airfare.

Worst performing are the cards are dominated by the ones that have the most annual yearly charges (Platinum/Titanium). The Air NZ Amex Platinum card is not in the list but would be likely be in negative territory and only of interest for people wanting the free airpoints and return flight.

About a third of the cards had negative net value, so all the points benefits are swallowed up by extra charges.

The other comment was most these cards have the highest interest rates and are not worth it unless you pay the full balance monthly.

I'm just defecting from a GlobalPlus Gold/MC to ANZ Platinum/Visa so I'm going up on the scale a bit (glad I didn't go down the easy road and upgrade to the GlobalPlus Platinum ... as its rating is well in the negative territory). But my main motivation is the annual subsidy to Koru that makes it much more worth it
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Old Feb 18, 11, 3:49 pm
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Thanks for the information. Was a Global plus gold amex on the list? I'd be interested to know how that ranked.

Thanks
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Old Feb 18, 11, 4:29 pm
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GlobalPlus Gold Amex

second top (standard classic was top)

Last edited by pseudo; Feb 18, 11 at 4:38 pm Reason: add
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Old Feb 18, 11, 4:48 pm
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Originally Posted by pseudo View Post
second top (standard classic was top)
Thanks very much Pseudo^
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Old Feb 18, 11, 6:18 pm
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cannex also do a survey of FF cards (amongst many other things), most recently Aug 2010
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Old Feb 18, 11, 9:49 pm
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This Consumer report is of low quality.

Premium credit cards (with benefits such as insurance) should not be compared with non-premium cards.

The idea that the annual fee should even come into the equation is laughable. In general, the annual fee is charged irrespective of whether charges are made on the account and it is therefore independent from the value derived by the user from holding the card.
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Old Feb 19, 11, 3:57 pm
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Originally Posted by ntddevsys View Post
This Consumer report is of low quality.

Premium credit cards (with benefits such as insurance) should not be compared with non-premium cards.

The idea that the annual fee should even come into the equation is laughable. In general, the annual fee is charged irrespective of whether charges are made on the account and it is therefore independent from the value derived by the user from holding the card.
Neither the Cannex or Consumer reports appear to factor in the insurance given with a premium level card from what I can see. For instance a years world wide cover from Southern Cross which includes a 15% member discount is NZ$470.

I think I'll stay with my BNZ Global plus gold amex, which appears to rate well in both surveys.
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Old Feb 19, 11, 5:34 pm
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This Consumer report , like many they do has very narrow criteria as some have mentioned. At the end of the day I need a Credit card. I only need one, I only have one and because I have both my Business and Personal Banking with ANZ the matter of fees is very negotiable. I choose ANZ Platinum Airpoints Visa card having previously had the Qantas Visa. I get Airpoints, I get discounted Koru membership which is useful as I don't fly enough to gain status and I get a month to pay. I could of course follow Consumers advice and have a card that gives me none of that for the same price.(Yeah Right!!)

What they also did not take into account is how much cheaper flights are when bought online which you cannot do so easily without a card.

ZK-BEU
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Old Feb 19, 11, 8:03 pm
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Originally Posted by ZK-BEU View Post
This Consumer report , like many they do has very narrow criteria as some have mentioned. At the end of the day I need a Credit card. I only need one, I only have one and because I have both my Business and Personal Banking with ANZ the matter of fees is very negotiable. I choose ANZ Platinum Airpoints Visa card having previously had the Qantas Visa. I get Airpoints, I get discounted Koru membership which is useful as I don't fly enough to gain status and I get a month to pay. I could of course follow Consumers advice and have a card that gives me none of that for the same price.(Yeah Right!!)

What they also did not take into account is how much cheaper flights are when bought online which you cannot do so easily without a card.

ZK-BEU
Totally agree with you here! Personally I found ANZ platinum airpoint cards give more benefits compared with others also a low annual fee. No FX fee when you buy foreign cash at a ANZ branch plus free travel insurance, what more can you ask really? The earning rate is not that bad; at end of the day I need a credit card with a high credit limit anyway
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Old Feb 20, 11, 6:07 am
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Originally Posted by wasapilot View Post
Neither the Cannex or Consumer reports appear to factor in the insurance given with a premium level card from what I can see. For instance a years world wide cover from Southern Cross which includes a 15% member discount is NZ$470.

I think I'll stay with my BNZ Global plus gold amex, which appears to rate well in both surveys.
The problem with the insurance with the premium (gold) rated cards are they are very basic.
I did a comparison on the fine print, on specific sections, against a standard Southern cross travel policy and found the gold card wording was very vague, omitted some specifics, had more exclusions and did not provide nowhere near the level of cover. Travelling solo, I'm mostly happy to go with what the card provides but when I taking the family further afield I sometimes take out a policy.

The extra benefits don't keep money in your pocket unless you are interested in them (Koru is still going to cost you money ... it's just subsided)
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Old Feb 20, 11, 10:36 pm
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Originally Posted by pseudo View Post
Travelling solo, I'm mostly happy to go with what the card provides but when I taking the family further afield I sometimes take out a policy.
Likewise, travelling solo I use the card insurance, but buy from Southern cross when taking family.

The insurance offered by airlines seems expensive compared to Southern Cross even without the membership discount.
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Old Feb 21, 11, 2:12 am
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Originally Posted by pseudo View Post
The problem with the insurance with the premium (gold) rated cards are they are very basic.
I did a comparison on the fine print, on specific sections, against a standard Southern cross travel policy and found the gold card wording was very vague, omitted some specifics, had more exclusions and did not provide nowhere near the level of cover. Travelling solo, I'm mostly happy to go with what the card provides but when I taking the family further afield I sometimes take out a policy.
Am I correct to assume that this comment is limited to gold cards, and therefore does not include Platinum? While I have never compared the policy wording from any of the cards I hold with a Southern Cross policy, they do seem to cover everything.
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