Thinking about getting a credit card with a points scheme

lewcianci on 08/01/2014 - 11:14

Hi all,

Currently have a credit card with the commonwealth bank, and I get charged no fees if I use a certain amount of money.

I'm thinking though, because of how much I use it, about going to a points based card. I know that theres a zillion different products out there and each work well for different people, but can anyone suggest a good card off bat? Is Commonwealth bank's reward program any good? I'd like to keep all my eggs in one basket so to speak.

Also, I read about other offers online where if you sign up for a credit card they'll give you 10,000 points or some sort of bonus offer. With those cards, is there an amount of time you have to keep the card for? Or can you sign up, get the points, and then close your account?

Thanks for the help.

Financial Credit Card

Comments

    • Eivad on 08/01/2014 - 14:00

      This. the no annual fee promotion really seals the deal. You're not going to get a VISA/Mastercard with the same rewards (and insurance) without some sort of annual fee.

      Of course, if you're annual spend is huge (eg 100k+) such that annual fees are basically neglectable compared to the amount of rewards you'll reap, it might be better value to look into an Amex. They usually have better conversion rates.

      CBA's Platinum or Diamond Amex gives about $100 per ~$6000-7000 that you spend (correct me if I'm wrong), which is quite a good return value. But keep in mind not all places accept Amex.

  • [Deactivated] on 08/01/2014 - 17:45

    I have the Amex Platinum Edge card and highly recommend it. $195 annual fee but you get a free domestic flight on Virgin every year which more than covers the fee.

    3 points per dollar spent at supermarkets, 2 at petrol stations and 1 elsewhere which can be transferred into something like 10 different airlines or used on gift cards etc.

    https://www.americanexpress.com/au/content/platinum-edge-cre…

    PM me if you're keen, a referral will give you 15,000 points on sign-up as opposed to the usual 10,000.

    • lewcianci on 09/01/2014 - 10:18

      This might sound outdated, but last time I checked, places have a hard time accepting amex… I see signs everywhere saying "No American Express". Is that still correct?

      • Ughhh on 11/01/2014 - 11:29

        Big stores like Kmart, myers, Coles, McDonald's, hj and retail chains accept it. Usually only the small small stores don't.

    • lewcianci on 09/01/2014 - 10:31

      Also, who is the card provider? I know that cba does an american express card…

      • tonester on 09/01/2014 - 11:42

        amex issues cards themselves outright such as platinum edge, but banks such as cba also issue amex cards generally on the same account as a visa or mastercard

  • backpaqer on 09/01/2014 - 08:39

    You really need to look at how much you spend each year and what you hope to get out of the rewards program (ie flights, gift vouchers, cash back, household items etc). The flight rewards are not like they used to be and the household items are a bit of a waste of time after you calculate points per $ you get back via the gift cards coupled with a place like OzBargain - who pays retail here anyway? So if 16000 points gets you a $100 gift card but it also gets you an item with a RRP of $100…you're better off getting the gift card and taking it to JB HiFi or similar and beating them down on price to get your points per $ ratio back up :)

    it's important to fit the card to you…rather than to fit yourself to what the card wants you to do. That way you can evaluate each card based on what do you get for free without changing your spending habits?

  • IrishPete on 09/01/2014 - 10:39

    A few months ago I cashed in ANZ points for $800 in Caltex vouchers, on the basis that I always buy fuel. previously I used to get Coles vouchers, but I found I was buying things I wouldn't normally, so it was a bit of a false economy.

    Only annoying thing about ANZ is that you have to phone them to order the vouchers - why they can't do an internet thing I don't know.

    The other catch is that Caltex is of course more expensive than independent service stations. I never usually use them because of that and their credit card surcharge.

  • OldBugger on 09/01/2014 - 15:23

    With commbank rewards ($59 annual +$15 additional cardholder). I rang them and said I wanted to cancel and they could only offer me a free lump sum of 5000 points to stay and couldn't do anything about the annual fee. Or move to the fee free card.

    Although $59 doesn't amount to a lot of money over the year, I'm looking around. Not much into rewards but rather a fee free card.

    For a non-Amex card, Coles looks like the best for domestic purchases coupled with 28 degrees for overseas.

    • Paul Atreides on 09/01/2014 - 17:12

      i had this exact card when i was a student. go into a branch every year to get the annual fee waived.

      recently upgraded to a gold cos i wanted the price protection things, better points etc without going overboard to a platinum.

      • OldBugger on 11/01/2014 - 15:07

        As far as I understand, the price protection is only up to 90 days and no increase in points unless you pay with American Express which is an extra 0.5 points.

        The Coles annual fee card gets you over double the points, over half the annual fee (first 12 months free at the moment) and 2 year price protection.

    • tonester on 12/01/2014 - 22:12

      For a non-Amex card, Coles looks like the best for domestic purchases coupled with 28 degrees for overseas.

      free bankwest zero mastercard platinum is better than 28 degrees :)
      https://www.ozbargain.com.au/node/120628#comment-1654117

      • OldBugger on 13/01/2014 - 02:17

        Good card if you want free travel insurance although I usually find I need $4000 car rental excess which I get from TID. Price protection is far better on 28 degrees though. Here is the direct link to Bankwest's card for those who don't want a journey into the past.

  • ethereal88 on 09/01/2014 - 15:53
    -7

    Cash. You can't afford to buy it with a stack of bills, don't buy it. Those points are worthless baubles that are worth nothing.

    • [Deactivated] on 09/01/2014 - 17:31
      +1

      In theory, you are right, but cash is to valuable to just give away and it is always better to make your cash work for you. A lot of people including myself pay their credit cards off in full before the end of the interest free periods. I have a Woolworths credit card which may not be the best but it works for me and I do come out way in front with rewards (Woolworths gift cards) just through normal everyday shopping (especially if you have a large family). Because you have a credit card doesn't mean you have to spend anymore than if you didn't. I find that good budgeting software along with a credit card allows me to smooth out my financial highs and lows. By that, I mean sometimes I have lots of cash such as on payday and sometimes I don't have much cash such as when all the bills come at once. The credit card fixes this problem. The budgeting software helps me stay in control and the credit card is just another financial tool. My cash stays in my account as long as possible. Even though interest rates are low, something is better than nothing.

      • ethereal88 on 10/01/2014 - 07:01
        -3

        Pointless. Anything you make off interest I can make in a day or 2 of extra work a year. Unless you have 50-100K in the bank, interest rates are worthless. And even then, you are taxed, so still, pfffft. And if you have credit you likely will spend more then you need to. Cash is fixed, you either have it or you don't. Simplifies everything.

        • [Deactivated] on 10/01/2014 - 08:34
          +1

          When a human baby is born, it only knows how to breath, sleep, cry, poop and eat. Nothing else. Everything everybody knows has to be learnt. I don't know anything about shares and I do not force my opinion of them on others. Credit cards can be a great financial tool. Everybody's financial situations (as well as their complete lives)are different. That's what makes this world so interesting. I respect your views completely. My 70 year old father has the same opinion as you.

        • SBOB on 10/01/2014 - 15:43
          +1

          Pointless. Anything you make off interest I can make in a day or 2 of extra work a year.

          Ill take my free interest while you work an extra couple of days a year… sounds like a plan

          And even then, you are taxed, so still, pfffft.

          compared to those days you work which are tax free? What if the money is sitting in an offset or mortgage account? no tax on those 'earnings'/'savings'

          And if you have credit you likely will spend more then you need to

          only for those with no financial control… thats like saying those with a mortgage re-draw will spend those extra payments because the temptation is just too great

        • ethereal88 on 10/01/2014 - 16:00
          -2

          compared to those days you work which are tax free? What if the money is sitting in an offset or mortgage account? no tax on those 'earnings'/'savings'

          I work one public holiday, that's $50 per hour. Even after tax I still make more than a piffiling 4% interest rate. And a mortgage, forget it.

          Ill take my free interest while you work an extra couple of days a year… sounds like a plan

          Yes, an extra $100 or 200. Great. In one year.

        • SBOB on 10/01/2014 - 16:05
          +1

          I work one public holiday, that's $50 per hour. Even after tax I still make more than a piffiling 4% interest rate. And a mortgage, forget it.

          i see Im not reasoning/debating this with an adult.. never mind…

          Yes, an extra $100 or 200. Great. In one year.

          i think you need at add a zero to your calculations

        • [Deactivated] on 10/01/2014 - 16:12
          +1

          Yes, it is an extra $100 or $200 a year + the rewards that you receive from using the credit card. Mine comes to around $300 in Woolworths gift cards a year after the card fee is paid. That means I am $400 to $500 a year better off. That's half my car rego paid for the year, for basically doing nothing.

  • anna10 on 12/01/2014 - 07:47

    Re: signing up, getting the points and then closing it some time later, just research that as a separate issue. Eg, how often can you get away e' it / what's your credit history like / what does it do to your credit history / etc.

    Also, which airline do you prefer to have points on - QF / VA (One World / Star Alliance).

    • dbun1 on 13/01/2014 - 11:54

      Several declined applications look bad as any lender will see it as an attempt to get money on credit. This would be bad if you were wanting to apply for a mortgage/home loan etc.

      The general rule is every 6 months as most lenders don't look back past 6 months, but some may look at the last 12 months.

      I prefer to warehouse points with a credit card that has good burn rates into many airline partners. This means I'm not locked into any one particular airline.

  • rewardscompared on 13/01/2014 - 09:18

    Definitely do the sums before you choose a card. Work out what your estimated monthly spend on the card will be then plug it into here http://rewardscompared.com/cards and it'll estimate how much you're likely to get back in rewards.

    Note this doesn't consider once off sign-up bonuses etc so factor that in too.

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