Air New Zealand Airpoints Low Fee Visa

Roland Bleyer

Credit Card Expert with over 15 years card experience and the founder of Creditcard.co.nz. Ask Roland a Question about this card.

The Air New Zealand Airpoints Low Fee Visa

Issued by Kiwibank, the Air New Zealand Airpoints Low Fee Visa offers an easy way to earn Airpoints Dollars while paying a low account-keeping fee. Cardholders pay a low account fee every six months, providing them the opportunity to earn Airpoints Dollars on everyday purchases and Air New Zealand spending, while also benefiting from extras such as monthly prize draws and a balance transfer rate of 1.99% p.a. for six months.

What we love...

As a low fee card, obviously one of the best things about the Air New Zealand Airpoints Low Fee Visa is its low fee. As a cardholder, you will pay a low account fee every six months, plus a nominal amount every six months if you add a joint cardholder or additional cardholder to the account. Considering this is a rewards card, this low fee is pretty sweet indeed.

Why? When it comes to rewards cards, you always want to get more back in rewards value than you pay out in account-keeping fees. Otherwise there’s not much point earning rewards. So, if you pay less in account-keeping fees, it can be easier to earn more in rewards – but that will really depend on how much you use the card and how much you spend on it.

In terms of interest, the Air New Zealand Airpoints Low Fee Visa runs in the middle of the road. Its purchase rate is neither low nor particularly high. However, it’s worth pointing out that if you plan on carrying a balance on this card, it will likely negate any rewards value you gain. To make the most of any rewards card, it’s best to clear the balance before it starts accruing interest.

Back to those Airpoints Dollars. As a cardholder, your Airpoints Dollars will never expire as long as you’re the primary cardholder and your card remains current. As for points earning, you’ll earn 1 Airpoints Dollar for every:

• $160 spent on eligible purchases, or
• $140 spent on Air New Zealand products bought directly from Air New Zealand

In case you were wondering, eligible purchases exclude fees or interest, balance transfers, credit card repayment insurance, gambling chips, money orders, travellers cheques or foreign currencies in cash, cash advances or cash withdrawals made from an ATM, or any transaction that is reversed, refunded or charged back.

When redeeming your earned points, 1 Airpoints Dollar is equal to $1 when purchasing any Air New Zealand flight. Alternatively, you may also use your Airpoints Dollars for rental cars or to purchase items in the Airpoints Store. And as another nice bonus, if you aren’t yet an Airpoints member, you will receive membership when your card is approved.

What’s not so great...

As we’ve already discussed the Air New Zealand Airpoints Low Fee Visa’s purchase rate, we’ll just mention its cash advance rate. Like many rewards cards, this card has a relatively high cash advance rate, making it a good idea to avoid cash advances whenever possible.

Why should you choose this card?

If you’re looking for a low cost rewards card that allows you to earn Airpoints Dollars on your everyday spending, the Air New Zealand Airpoints Low Fee Visa could be the card for you. For a low account-keeping fee, you can earn Airpoints Dollars on your day-to-day purchases and Air New Zealand spending, plus you get some nice added extras.

Paying off your balance in full each month by the due date will give you up to 44 days interest free on purchases. As a cardholder, you will also be placed in a monthly draw for bonus Airpoints Dollars each month you use your card. In addition, you may choose to buy additional Airpoints Dollars online for a fee with Airpoints Dollars Top-Up.

And that balance transfer offer? If you have existing credit card debt that you want to pay off, you can benefit from a balance transfer rate of 1.99% p.a. for the first six months on any transferred balance from a non-Kiwibank credit card. Any transferred amount that remains at the end of the intro period will revert to the card’s purchase rate.

Overall Rating

A worthy choice for anyone looking to keep costs low while earning Airpoints Dollars, the Air New Zealand Airpoints Low Fee Visa offers some nice extras with a nice low fee.