Credit Card Rewards and Cashback

Updated 7 January ​2020
Summary of Reward Credit Cards
  • Reward credit cards and their points are near impossible to compare - would you rather have 100 hotpoints, 100 truepoints, 100 onepoints or 100 Airpoints?
  • The most suitable reward card for your needs comes down to what you spend in a year and your priorities. If you spend under $5,000 a year on a credit card, you won't earn enough rewards and make it worth it and it's best to get a low-fee credit card.
  • Our advice: get either a cashback credit card or a free credit card and ignore the "reward stores" that offer a lot of items you might otherwise never buy - a freebie isn't valuable if you didn't really want it.
  • If you struggle to repay a credit card, look for a low-interest rate credit card instead - any rewards you may earn are nothing compared to the higher interest charged on your purchases.

Our Guide Covers:
Air New Zealand cards - ​Looking for a credit card that earns Air New Zealand Airpoints? This is not the page for you - visit our Air New Zealand credit cards page.
Reward Credit Cards - Right for you?
​Spend on a Rewards card and you’ll get cash or vouchers you can use on shopping, activities and travel. The amount of rewards you get is driven by which card you pick and what you spend on the card. Basic cards (with lower fees) earn less rewards than high roller cards that have hefty annual fees.

But, a rewards card is still a credit card and needs to be paid off. Our guide takes you through the best cards for different spending levels, making it easy to find one that rewards you hundreds of dollars a year. 

Rewards and Cashback Credit cards are best for:

  1. People debt free who have an income of at least $35,000 per year and pay off a credit card every month (a lower income is likely to see any rewards eaten up in fees, so a low-interest credit card is the best option).
  2. Couples who spend significantly on their credit card but don’t want to have an Air New Zealand credit card.
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The 12 Sacred Rules of a Credit Card

Credit Cards are Very Expensive if Not Paid Off

Making the minimum payment will mean the remainder of the balance will be charged a HUGE amount of interest - anything from 15-25%. For example, taking 12 months to pay off a $4,000 balance will cost around $800 if the interest rate is 20%. That’s HUGE and easily avoided with careful budgeting. 
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If you don’t pay a minimum payment, there are more fees coming

Late payment fees and high interest charges are just the start. Your card will also go to the collections department of your credit card issuer, meaning a lot of hassle and contact to get the balance.
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Credit cards cannot be paid off with other credit cards

This question is asked a lot, but there is no possibility of paying off one credit card with another. Your balance must be paid off with money in your bank account.  
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Charge only what you can afford to pay off

Be happy and live within your means. If you can’t afford it in 4 weeks, don’t buy it. The stress created and fees you'll pay outweigh the happiness from any non-essential purchase. 
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You can move your credit card debt if you need to

There is no obligation to stay with a credit card if you are being charged more than you need to be. Look for a balance transfer deal which will at least reduce the interest costs. 
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But, don't get too excited by balance transfers

The debt you incurred and transferred still needs to be paid. Low or zero interest doesn’t last forever, so paying off a card is a big priority. 
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Choose cards like a winner

Low-interest rates are perfect if you sometimes can’t pay them off. If you're a credit card hero and always pay your card off in full every month, look for generous rewards and flight benefits. 
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But, avoid being a slave to rewards

Don’t spend more thinking it will make you better off – the benefits from a credit card are rarely ever above 2% of what you spend, so don’t get caught out overspending.
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Don't get too many credit cards

The more cards you have, the more temptation you might have to use them. Also, having several cards is harder to manage and budget for. So keep it light and simple with one or two cards max. 
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Audit your statement every month

A credit card often has things in it you don’t need to pay for, like automatic renewals you don’t want or memberships you don’t need. Don’t be afraid to relive the past: go line by line through your bill and highlight anything that’s wrong or you can live without. 
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Don’t withdraw cash on your credit card

The interest rate is very high, and you get charged it from the minute you take it out of the machine. Also, you don’t earn any rewards or cashback on cash withdrawals. Cash withdrawals are best only in an emergency situation. 
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Don't use credit cards if you will abuse them

Credit cards offer big limits, but if you can't pay the balance you'll soon face an even bigger debt. Fees added on for late payments can quickly lead to a debt spiral - if you're having debt problems a credit card is rarely the answer. 

Reward and Cashback Credit Card Best Buys

ASB Visa Rewards - Best Card for Earning Rewards

Low fee credit card that offers low-value rewards
​The reality is that unless you’re earning double or triple points, it’s a hard slog to get a reward of any value. You’ll need to spend over $300,000 to get either a Samsung Galaxy S8+ Smartphone or an Apple iPhone 8Plus, which is rather unrealistic in most situations.  However, there are a number of low-level rewards which make it user-friendly to anyone spending a standard amount on a credit card every month. 

The Basics

  • Earning rate: 1 True Rewards Dollar per $150 spent, or per $75 spent at AA Smart Fuel
  • Cashback: $1 per $150 spent, or 67 cents per $100 spent (but, cashback can only be redeemed at partner stores and not taken off a credit card bill directly).
  • Spend needed to cover annual $40 fee: $6,000
  • ​Rewards: Merchandise and voucher rewards start from 20 True Reward Dollars, with retailer partners including Mobil, Farmers, House of Travel, Vodafone topup - all options are found at the True Reward partner store.

Point conversion options:
  • ​​​A range of point conversion options at the best value, spend $3,000 for a $20 gift card etc and far more rewarding than hotpoints or any other bank program
  • Flexibility to use True reward dollars in partners - you can spend them instantly like 'real' dollars at any of the partner stores (Mobil, Farmers, Mitre 10 and 15+ more)
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The Details:
  • The interest rate is 20.95% p.a.
  • There is an annual fee of $40 ($20 charged every six months), an additional card is $15 per year ($6 charged every six months).
  • True Rewards points never expire
  • Pay the balance every month to maximise the reward benefits – any late payments and interest charges will destroy your gains.
  • The card is a VISA which is widely accepted along with Mastercard throughout New Zealand.

Big Spender?
The Visa Platinum Rewards card offers 1 True Reward Dollar per $100 spent and throws in overseas travel insurance for an annual fee of $80. This effectively gives the cardholder a 1% cashback.  

The BNZ Advantage Classic - Best Cashback Rate for Normal and Big Spenders

The Basics

  • Earn: $1 Cash Reward from Every $150 spent
  • Cashback: $1 per $150 spent, or 67 cents per $100 spent.
  • BNZ $40 = 1 Flybuy.
  • Spend needed to cover annual $40 fee: $6,000
  • Rewards: There are Many cash reward redemption options – you can choose to reduce your credit card balance each month, put your Cash Rewards dollars into a BNZ savings account or KiwiSaver scheme.

Benefits include:
  • A range of point conversion options using FlyBuys, but the best value is on cash discounts or saving deposits on BNZ products. 

The details:
  • The interest rate is 20.95% p.a.
  • There is an annual fee of $40 ($20 charged every six months), an additional card is $12 per year ($6 charged every six months).
  • Cash Reward dollars can be used on BNZ financial products, such as bank accounts, credit card bills and KiwiSaver funds.
  • Non-cash rewards must be purchased via Flybuys
  • Pay the balance every month to maximise the reward benefits – any late payments and interest charges will destroy your gains.
  • The card is a VISA which is widely accepted along with Mastercard throughout New Zealand.

Big Spender?
The BNZ Visa Advantage Platinum offers $1 cash reward for every $90 spent, as well as 90 days of annual travel insurance for an annual fee of $90. The cashback rate is 1.11% and an annual spend of $9,000 covers the annual fee. The rate for Flybuy earning is $15 = 1 Flybuy, considerably more attractive than the $40 = 1 Flybuy rate for the standard BNZ Advantage Classic Visa card.

Runner Up: ANZ Cashback Visa - 0.5% to 1.00% Cashback

The true cashback visa, with up to 1% of your annual spend credited to your account every year.

The Basics

  • Cashback: 1% cashback on annual spend between $10,000 and $30,000 (0.5% per annual spend $5,000 to $9,999)
  • Spend needed to cover annual $60 fee: $6,000
  • ​Automatic credit to your credit card every year

Benefits include:

  • A cash-based reward of 1% for every dollar you spend (based on your annual spend being above $10,000)

The Need-to-knows

  • The interest rate is 20.95% p.a.
  • There is an annual fee of $60 (charged annually), an additional card is $10 per year.
  • Pay the balance every month to maximise the reward benefits – any late payments and interest charges will destroy your gains.
  • The card is a VISA which is widely accepted along with Mastercard throughout New Zealand.

Big Spender?

The ANZ Visa Cashback Platinum offers 1% cashback with no limit on all annual spend above $10,000 as well as free overseas travel insurance for an annual fee of $125. This card really is only suitable if you spend over $30,000 annually as the standard Visa offers the same cashback rate. 

Worth Considering - Warehouse Purple Visa Card

$55 annual fee, while offering decent rewards for purchases at The Warehouse. 

The Basics

Earn: 1 Purple Dollar per $150 spent, or per $75 spent at The Warehouse
​Cashback: $1 per $150 spent, or 67 cents per $100 spent (but, cashback can only be redeemed at The Warehouse and not taken off a credit card bill directly). 

Benefits include:

  • Flexibility to use Purple Dollars for any purchase at the Warehouse.

The Need-to-knows

  • The interest rate is 22.90% p.a.
  • $55 annual fee
  • Pay the balance every month to maximise the reward benefits – any late payments and interest charges will destroy your gains.
  • The card is a VISA which is widely accepted along with Mastercard throughout New Zealand.
  • Check out the Warehouse Purple Visa rates and fees.

Alternative Rewards Credit Cards Worth Considering

Westpac hotpoints® Mastercard®

A low fee card for small rewards
  • Westpac offers luxury rewards in the hotpoints store. Sadly the reality is that unless you’re earning double or triple points, it’s a hard slog to get a reward of any value. For example, you’ll need to spend over $300,000 to get either a Samsung Galaxy S8+ Smartphone or an Apple iPhone 8Plus, which is rather unrealistic in most situations. 
  • Not all is lost. There are a number of low-level rewards which make it user-friendly to anyone spending a standard amount on a credit card every month. 

The Basics

  • Earning rate: 1 hotpoint per $1 spent
  • Cashback: Westpac’s Spendback program converts 2,220 points for $10 credit on your credit card bill, meaning every $100 you spend gives you 45 cents of cashback.
  • Spend needed to cover annual $44 fee: $9680
  • Rewards: ​Merchandise and voucher rewards start from 2400 hotpoints, with retailer partners including HOYTS, Briscoes, Flightcentre and more – see more at the hotpoints store.

Benefits include:

Point conversion options:
  • Cardholders can convert points into a Westpac KiwiSaver fund (1800 points for a $10 deposit) which brings the cashback to 56 cents per $100 spent. 
  • 20,000 bonus points are worth approximately $91 off your credit card bill or a $111 deposit in a Westpac KiwiSaver fund. 

The Need-to-knows

  • The interest rate is 20.95% p.a.
  • There is an annual fee of $44, and an additional card is $15 per year.
  • Hotpoints expire 3 years after they are earned, and if you cancel your credit card, you’ll have 10 days to use them before losing them.
  • Pay the balance every month to maximise the reward benefits – any late payments and interest charges will destroy your gains.
  • The card is a Mastercard which is widely accepted along with VISA throughout New Zealand.
  • Check out the Westpac hotpoints Mastercard rates and fees.

Big Spender?

​The hotpoints Platinum Mastercard offers 2 hotpoints per $1 spent for an annual fee of $119. This effectively gives the cardholder a 0.9% cashback.  

onecard visa

Best for Countdown shoppers, but be prepared to spend $5,000 at Countdown alone just to cover the card fee, and points expire every six months!

onecard rewards cardholder spending at Countdown and for everyday spending by issuing $15 vouchers for every 200 onecard points earned. Every February, May, August and November, onecard points balances are checked, and for every 200 onecard points collected you will receive a $15 rewards voucher. Any points that are not converted into a rewards voucher will be carried over to the next rewards cut-off date, provided they have not expired. Points otherwise expire every six months. 

The Basics

Earn: 1 One point for every $10 spent, or every $5 spent at Countdown supermarkets.
Cashback: For every 200 Onecard points earned, you will receive a $15 Onecard rewards voucher, offering cashback at 75 cents per $100 spent. Vouchers can only be redeemed at Countdown and not taken off a credit card bill directly. The minimum spend for the lowest reward (a $15 voucher) is $2,000.
Spend needed to cover annual $65 fee: $8,667 

Benefits include:

  • Vouchers are automatically issued every six months.
  • Flexibility to use $15 vouchers on any item(s) at Countdown, including discounted items. 

The Need-to-knows

  • The interest rate is 19.99% p.a.
  • There is an annual fee of $65 (waived in the first year), and an additional card is $14.50 per year.
  • Onecard points expire 6 months after they are earned, and if you cancel your credit card you’ll have 10 days to use them before losing them.
  • Pay the balance every month to maximise the reward benefits – any late payments and interest charges will destroy your gains.
  • The card is a VISA which is widely accepted along with Mastercard throughout New Zealand.
  • Check out onecard VISA rewards and features.

Cashback and Reward Credit Cards FAQs

Will these cards and their reward levels be valid next year, or the year after?

  • We keep this guide fully up to date, yet we cannot predict future credit card offers. Our experience has shown that reward earning rates (i.e. $1 per $150 spent) seldom change on a card, but the number of points required for rewards in programs such as HotPoints and PurpleDollars is subject to change (for better or worse) as new products replace older ones.
  • Annual fees can change - for example, in 2019, The Warehouse introduced an annual fee of $55 to its Purple Visa card, which had been previously advertised and sold to consumers as fee-free.
  • Our advice is to take advantage of the benefits by applying for the credit card that suits your needs.
  • Reward offers like “spend on a credit card and earn an iPhone”, but the reality is that would require you to spend $300,000 or more. Our advice is to think small when it comes to reward cards, and nothing beats cash.  

What is the difference between "Cashback credit cards" and “Rewards credit cards"

  • "​Cashback" credit cards are simple – you earn 0.5% or 1% every time you make a purchase on the card, and you get paid out once a year with the amount taken off your credit card bill. The advantages are that you know exactly what you’re earning and you get a direct financial benefit by way of savings on your annual spend. 
  • “Rewards” credit cards are similar to cashback, but more complicated. With a rewards card, you earn points or reward dollars every time you spend, which you can convert to gift vouchers to use in a certain retailer or for a specific purpose. You have to use the vouchers to make the Rewards card work, otherwise it’s not worth the annual fee.
  • By correctly targeting the right rewards to redeem your points on, it's possible to increase to amount substantially. To find out how to do this for all schemes and specific info for Nectar, Avios and Tesco, read our Boost Your Loyalty Points and Avios Boosting Tricks guides.

I spend under $5,000 a year? Which card is best to get rewards and not overpay in fees?

  • The most suitable card is the Warehouse Purple card which is free. $5,000 spend will give you $33 in Warehouse vouchers, giving you the benefit of the convenience of a credit card without an annual fee. 
  • Alternatively, the AMEX free Air New Zealand credit card is a free-fee card offering $1 Airpoints per $100 spent. You will need to operate an Airpoints account however, and fly Air New Zealand annually to avoid an annual $30 fee.