Credit Simple NZ
Are you a deadbeat? When it comes to credit cards, that’s actually a good thing. Yep, a ‘deadbeat’ is a term for someone who pays off their credit card in full and on time every month. Why a deadbeat? Well, if you pay off your card each month, the credit card company doesn’t charge you interest – so they won’t make any money off you. (Credit card companies also use the much more polite terms ‘non-revolver’ and ‘transactor’.) As a…
read more
You’d think closing off credit cards or other accounts would boost your bankability in the eye of credit providers. The reality is that sometimes it can do exactly the opposite. Closing off some accounts after paying down your debt may actually harm your credit score. Take mortgages for example. It would be natural to think that clearing your home loan would improve your credit score. But hold that thought. One of the lesser known things that could hurt your credit…
read more
Liar, liar, pants on fire. We Kiwis are masters at coming up with excuses for our spending and debt. I’ve heard it called “excusitis”. We convince ourselves that “we’re different” or that “we need it”, or “everyone else does it”. It’s that six inches of grey stuff between your ears that’s at fault. And it’s getting worse. According to Payments New Zealand the average Kiwi made 58 credit card transactions in 2014, 86 in 2015 and 103 in 2016. Ouch.…
read more
Credit is great. It means you can buy what you want right now! But before you get too excited, too many Kiwis get themselves in the doo-doo with their credit. You don’t want to be one of them. Often it’s the people banks call ‘revolvers’ who get themselves into a complete debt disaster. These are the people who only make the minimum payment each month and see their debt spin out of control. Sure you can go bankrupt or use the…
read more
The first credit card was cardboard The first independent credit card was Diners Club, founded in 1949 after hungry co-founder Frank McNamara took clients out to dinner and realised he’d left his wallet in another suit. His wife paid the bill and Frank thought up a charge card that would help him avoid embarrassment next time. He pitched the idea to the restaurant owner, and next day consulted his lawyer to get the ball rolling. Frank’s first Diners Club card…
read more
A personal loan is about as straightforward as it gets when it comes to borrowing money. It can help you pay for something special like a car, holiday or home renovations, or to consolidate debt. With a personal loan, you borrow a specific amount and you make regular payments until it’s paid, usually one to five years. And for a long time personal loans have been in the shadow of credit cards. That’s because credit cards are very good business…
read more
Hey Gen X! Here’s what you need to know about your money and finances before you turn the big 5-0. The next decade and a half is going to tick away fast and some of us need to grow up and get serious about our finances. You don’t want to be stuck at home eating baked beans whilst your friends post their fabulous post retirement travels on social media do you? Home truths about your finances as you get older…
read more
Are you good at asking yourself tough questions? Try this one: are you prepared to pay your credit card bill in full and on time every single month? If you can’t (or won’t) do that, then a rewards card really isn’t worth it. And you know what? Most people don’t keep to the straight and narrow. What proportion of people don’t pay their card in full each month, would you say? Care to take a guess? How about 30%? Or…
read more
What’s the best credit card for you? Chances are it’s not the one (or ones) in your wallet. We Kiwis are terrible at trying to justify our credit card choices. We come up with all sorts of ‘facts’ to confirm our poor decision. If you have an open mind, however, and navigate the complex matrix that is credit card choice, you are the one who will reap the rewards. When it comes to the matrix of credit card choice, the…
read more
Christmas is coming and by now you’ll be inundated with tinsel music, shops full of tat you don’t really want to buy, neighbours telling you to put up more decorations or take down more decorations and of course, The List. We all have a The List. Who we have to buy presents for. If you’re organised, The List will be a spreadsheet with last year’s gifts both to and from said recipients and estimated value of same. There might even…
read more