After a rocky flirtation with credit cards in her 20s (the kind featuring questionable choices and even more questionable purchases), Kelly Meharg swore them off for good. But now, facing the realities of homeownership and wanting to stretch each dollar further, she’s wondering if it’s time to give plastic another chance. So she turned to Kiwibank’s Chief Customer Officer, Mark Stephen, to unpack how credit cards can actually support financial wellbeing, not sabotage it – and found out about a jazzy new option in the process. She asks the question – should I get a credit card or not?
SPONSORED CONTENT: Capsule x Kiwibank
Here’s the thing: I don’t have a credit card. Not because I’m some paragon of financial purity, but because in my 20s I treated money like an unlimited vibe-based resource… and let’s just say the hangover wasn’t only emotional. So, in an attempt to protect myself from… well, myself, I ditched credit cards entirely. But now I’m a homeowner (fun!) with all the surprise expenses that come with it (less fun!), and I’m starting to realise that avoiding credit cards altogether might be costing me some genuine financial freedom. Travel insurance, better cash flow, interest-free periods – these things all sound, actually, quite helpful. So I asked Mark Stephen, Chief Customer Officer at Kiwibank, to talk me through what responsible credit card use actually looks like, and – crucially – whether someone like me can dip a toe back into the credit-card pool.
Capsule: Hey Mark! Ok confession time. I don’t actually have a credit card – I’ve always been a little apprehensive of them after going through a bit of a reckless spending spree in my 20s (I mean, didn’t everyone?!). But now I’m a more responsible adult(ish) I’m keen to explore what having a credit card looks like. What’s the first thing to consider in making the right decision?
Mark: You’re not alone – we often hear from people who avoided credit cards for years after an early experience with overspending. But like any financial tool, the key is using it with intention.
The first step is to take stock of your current habits and goals. Are you looking to manage cash flow, build your credit history, or access benefits like insurance? Once you’re clear on the ‘why’, it’s easier to choose a card that aligns with how you spend and arguably the most important thing – how you plan to repay. From there, it’s about discipline. Only spend what you can afford to pay back in full and take advantage of budgeting tools and alerts to help stay on track.
How do you know if your credit card is working for you as it should?
A credit card should help support your financial goals. If you’re managing repayments comfortably, avoiding interest and fees and making use of features that fit your lifestyle, those are strong signs your card is doing its job.
So many people use credit card perks to level up their lives and get ahead – how do you do this?
Start by choosing a card that matches your lifestyle. That’s where the real value is – not in chasing perks, but in choosing benefits that you’ll actually use. The key is to use your credit card as a tool to support your everyday life, not as a reason to spend beyond your means.
Let’s chat about Kiwibank’s newest credit card, the Platinum Visa – why could this be the card for me?
The Platinum Visa is built for people who want more from their card – and want it in a simple, straightforward way.
It includes travel insurance (for both domestic and international trips, when you use your card to book*), one of the lowest interest rates for a platinum card in the market, and up to 55 interest-free days. It’s a fantastic option if you travel regularly or are looking for a flexible, transparent way to manage your spending.
Domestic travel insurance is such an interesting aspect – we don’t often think about taking out insurance for a quick trip to Queenstown. Can you talk through the domestic and international travel insurance perks?
We couldn’t agree more – domestic travel insurance is often overlooked, but it’s incredibly useful. If you had an unexpected pre-trip cancellation or travel delays during your trip, having cover in place can save you both stress and cost.
When we were designing this card, we asked customers what they wanted. Travel insurance came up again and again, and not just for international travel. That’s why we made sure it included some domestic cover too.With the Platinum Visa you get a policy that covers most* Kiwi needs. It’s already there – built in, from day one when you use your card to book your travel.*
There’s also a reduced interest rate of 12.90% with up to 55 interest-free days – why is this is a thing, and how does it help people manage their money better ?
Credit cards should support your financial wellbeing. That’s why we focused on building in features that make money management easier, like a lower interest rate and more interest-free days. If you do need to carry a balance, the reduced rate means you’ll pay less in interest. And if you repay in full within those 55 days, you won’t pay interest at all. It’s a structure that supports responsible spending and gives people more breathing room, especially in a cost-of-living environment where every dollar counts.
What are some of the pitfalls people should look out for when acquiring a new credit card?
The main thing is to understand exactly how the card works, especially the interest rate, annual fees, and repayment terms. A common trap is assuming the interest-free period always applies to all transactions. It doesn’t, and that’s why reading the terms matters.
What is your advice for people wanting to look at a different credit cards, or dive into having one responsibly?
Start by asking yourself what you need from a card, not just what’s being advertised. Is it flexibility? Insurance? A low interest rate? From there, compare cards based on your actual habits and goals. There are some good independent comparison sites out there – just make sure you’re using a reputable one.
Most importantly, don’t be afraid to talk to your bank. We’re here to help you.
How can a credit card help – not hinder – you having peace of mind when it comes to balancing life and finances?
When used well, credit cards can help smooth cash flow and cover unexpected expenses. The key is to treat it as a financial tool. Budget for repayments and use features that support repaying your balance in full.
Anything else you’d like to add when it comes to Kiwi managing their money in the best, most helpful way possible?
Make the most of the tools and support available to you – whether that’s budgeting apps, financial literacy resources, or expert advice. Your bank can help you make informed, confident decisions about your money and your financial goals.
*Important terms, conditions, activation and eligibility criteria, limits, sub-limits, and exclusions apply to this travel insurance. These are set out in the Policy Wording.
