Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Kiwi Credit Card Holders Could Be Facing A $247 Million 'Loyalty Tax'

Kiwi credit card holders could be overpaying millions of dollars in interest over the next two years unless they switch to a lower rate, according to Finder, a financial research and credit card comparison website in New Zealand.

A new nationally representative Finder survey of 1,478 New Zealand credit card owners has revealed that the majority of cardholders (72%) – equivalent to almost 2 million people – have been with their credit provider for at least 5 years.

A Finder analysis of the latest RBNZ card data found that credit card owners are paying $247 million more in interest than they could be, with the average monthly credit card spend at $1,172.

According to the RBNZ, there are currently more than 2.7 million credit card holders in New Zealand, with the average credit card interest rate currently at 19.4%.

In comparison, the lowest rate available on Finder NZ is currently 9.95% (not including promotional rates).

If all of these loyal customers are on the average interest rate of 19.4%, and they switched to a low rate card, they could save over $247 million in interest over the next 2 years.

Kevin McHugh, Finder’s publisher in New Zealand, said that loyalty doesn’t always pay off when it comes to credit cards.

“If you’ve been with your credit card provider for a number of years and haven’t reviewed your rate, there’s a good chance you’re paying more interest than you could be elsewhere.

“By switching to a more competitive offer, you can lock in immediate savings.

“As we wrap up 2020, now is a good time to reassess your banking products and get on the financial front foot for the new year,” McHugh said.

McHugh said that for credit card holders who accrue festive debt during Christmas, a balance transfer can help them to pay it off quicker.

“They say Christmas is the most wonderful time of the year, but it’s also the most expensive, with many people relying on their credit card to get by.

“A balance transfer allows you to move existing debt from one card over to a new credit card with a 0% introductory interest rate for up to 6 months, or a low rate for the life of the balance.

“By paying low or no interest on your balance for a set period of time, you may be able to pay your festive debt off a lot faster than you otherwise would.

“As with any type of credit card product, fees and limits may apply, so it’s important to check the terms and conditions before signing up,” McHugh said.


  • This study was designed by Finder and conducted by Qualtrics, a SAP company.
  • The online Finder survey was conducted using a nationally representative survey sample of 1,478 New Zealand credit card holders.
  • Credit card interest was calculated using RBNZ data, and was based on the difference between the interest earned on the average purchase with the average rate over two years (19.40%), and the interest earned on the average purchase with the lowest rate on Finder NZ over two years (9.95%).

© Scoop Media

Business Headlines | Sci-Tech Headlines


TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>


OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>