CardWatch credit card ratings update

While credit card debt continues on the rise as per the latest release of the CardWatch Card ratings, thankfully the interest rates have fallen slightly.

With 2.4 million credit cards issued currently in New Zealand, choosing the right credit card is an issue for over half the population!

Continuing to follow in the footsteps of the USA and UK, New Zealanders have managed to add an additional $350 Million to the nation's credit card bill over the last 12 months. The outstanding balance of New Zealand Credit Cards now sits at over $4.5 billion.

Those owing money on their credit cards have seen some relief over recent months. A number of cards have been released offering substantially lower interest rates than standard cards. Some standard cards are also offering 6 or 12 month ''balance transfer'' periods wherein if you transfer your credit card debt over to the new card, they will charge you as little as 5.95 per cent per annum for 6 months.

For the smart Transactor (cardholders who pay in full every month) there are still a number of card issuers offering up to 55 interest free days. If you add this earning potential (or saving if your card is attached to your mortgage) to the rewards that many cards offer these days you can actually MAKE (yes make) money by using your credit card. The total difference for the average Transactor between using our lowest rated card and the highest, is $1200 a year.

The latest CardWatch ratings reflect the changes in the cards available in the market, and also how our spending and debt patterns have changed over the last year.

CardWatch's Rating Process

CardWatch rates all major credit cards issued in New Zealand by measuring their relative benefits and costs. Even the worth or otherwise of rewards programmes attached to cards are incorporated into the rankings, as are fees, interest rates, interest free periods and the card?s currency conversion rate for overseas transactions.

CardWatch calculates ratings for two different usage patterns, one for the person who pays off their card in full each month (Transactors) and another for those who carry forward an outstanding balance (Debtors).