How to maximise Velocity/Qantas points?

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  Colin2905 on 23/08/2014 - 16:57

  +2

  I'm relatively new to this game, but here's my strategy…..

  Use sites like this one, Whirlpool (finance section), Australian Frequent Flyer and Point Hacks to keep up to date with the various signup bonuses on offer. The ones that I recently applied for, and got:

  American Express Velocity Escape - 7500 Velocity points, plus another 2000 points for the inconvenience (their words), due to the first card having the wrong 4-digit security code. With no annual fee, this one's a keeper for me. (There's also a QFF version, if you prefer.)

  ANZ Frequent Flyer - 50,000 QFF points. No annual fee, but only for the first year, so I'll be cancelling it before the second year. But until then, I'll use the Amex card for booking Qantas flights, since there's bonus points to be had, and possibly for other Bank-issued Amex card offers.

  NAB Velocity Rewards Premium - 40,000 Velocity points, but there's an annual fee of $150, so the points come at a cost. Some on AFF have managed to pocket the points, then cancel before the annual fee is charged, or received a pro-rata refund of the annual fee, but I'm going to keep this one for the first year at least, and make the most of the 1.5 points per dollar on the Amex. (There's also a QFF version, if you prefer, but the annual fee is $250.)

  The one that I applied for, but was rejected:

  Virgin Australia Velocity Flyer - (up to) 20,000 Velocity points. I was rejected due to having obtained a Citibank Signature Visa card not long prior (CitiBank run the Virgin cards), and told to wait at least nine months.

  So for my day to day spending, it's the NAB Amex where possible (or one of the other Amex cards, if there's bonuses to be had), and the Citibank Signature card for when Amex isn't accepted (or is, but there's a surcharge). The Citibank card is effectively one Velocity point per whole dollar of each eligible transaction, but hopefully there's some more conversion bonus offers around at the time, which might yield an extra 10% or so.

  I've activated and used my Qantas Cash card, but only when there were bonuses on offer. Without the bonuses, it's pretty ordinary.

  I activate almost all of the Woolworths EDR card offers, but only take advantage of them when it makes sense to do so. According to my QFF statement, I've received a bit over 8000 points in the last year via my EDR card. (Most of my grocery shopping is actually done at Coles, since it's more convenient.)

  I recently installed the QFF / Bing search toolbar, but that was more to generate points in a new category, thus entering some draw which I won't win, but whatever. (I installed it in IE, since I usually use Firefox.)

  Like you, I've also generated Velocity points via eBay, but I don't use eBay much. (It looks like Qantas has jumped on this bandwagon too.)

  And whilst I have a Bankwest Zero Platinum MasterCard for international purchases, I'm probably marginally better off by using the CitiBank card instead, since the value of the points is slightly more than the 3.3% fee. I just need to "rethink banking". :p

  • 

    mmd on 24/08/2014 - 12:09

    Thnaks for your strategy Colin. :) What I'm afraid of is applying for a credit card for the points, and then forgetting to cancel it before the free year is finished. Haha.
    It seems better value to use cashrewards for EBay, rather than collecting veloctiy points.
    https://www.ozbargain.com.au/node/149775

    • 

      Colin2905 on 24/08/2014 - 15:10

      It depends on what value you place on the points. On flight redemptions (which is the only thing that I use them for), I aim to extract at least 1.5¢ worth of value from each point. If a flight works out to less than that, I keep my points, and pay for the flight in the normal way (and earn some extra points by doing so).

      So with each dollar spent on eBay offering two points (and sometimes more, when they offer bonuses), that's worth at least 3% to me.

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  Coops1 on 24/08/2014 - 23:44

  For normal punters - less than $50k spend/year - the only way to accrue significant amounts of points is to flip cards every time a bonus offer occurs, eg the free 50k on ANZ as an example. We can maximise further with eBay 2x pts etc as you mention. And your right cashbacks are better a lot of the time.

  • 

    SirFlibbled on 26/08/2014 - 16:24

    As long as you don't care about your credit rating then sure.

    • 

      mmd on 27/08/2014 - 23:04

      Can you elaborate more further on this?
      I'm on the assumption that if you always pay on time, your credit rating is good.
      Ru saying that by applying to/cancelling multiple credit cards will affect your credit rating? (which will affect mortgage applications in the future)

      • 

        SirFlibbled on 28/08/2014 - 08:19

        When you apply for credit, one of the things they look at is how what other credit applications you've made, even if you haven't taken up the credit, the fact you applied for it still shows on your report. This then lowers your rating.

        A friend of mine was applying for a different CC with 0% interest for 6 months type deals trying to pay off her CC. Every 6 months she'd apply for a new CC, transfer the balance and cancel the old card. After a couple of years they started rejecting her.

        Something worth considering applying for CCs just for points.

• 

  SirFlibbled on 26/08/2014 - 16:24

  +1

  I get about 40,000 QFF and about 20,000 velocity points using the following method:

  1 - Focus on one FF program. Put all your eggs in one basket as best you can. I chose QFF because I shop at Woolies and have a QFF CC. The only time I use Velocity is when I'm buying online and QFF didn't have a click-thru store. Since last week the number of points I'll get from Velocity will now plummet. You might also consider your preferred airline and focus on that.

  2 - Don't chase the points. Don't keep applying for new CC's which offer a heap of points. That's just going to do your credit report damage. If you spend money just to get points, then you're wasting your money. FF points are only worthwhile as a bonus. Nothing more.

  3 - Make sure you get the points. If I go to Woolies, I ONLY flash my EDR card when I spend over $30. EVen if it's $31 I'll do it. If I buy something from Ebay I ALWAYS log in through the the relevant portal before buying it. I make a lot of low value purchases but it really adds up over a year.

  • 

    SirFlibbled on 28/08/2014 - 08:29

    I should mention too I buy everything I can through my CC so I get the points but I make sure I pay it off every month.

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  mmd on 27/08/2014 - 23:13

  Hey Sirfibbled
  In your situation, would you go through Qantas for ebay purchases (2 Qantas points per 1 dollar spent) or cashrewards?

  • 

    SirFlibbled on 28/08/2014 - 08:27

    This depends on where you live and your situation. I live in the ACT. I work full time and when I do fly somewhere, it's usually on a Friday night and return sundays. The following is something I posted a while back using spending $750 on Ebay as an example.

    A flight from Canberra or Sydney to Adelaide costs 12000 points + $80 (taxes etc) for both. This doesn't matter if I take the cheapest or more expensive flight for me. The number of points is always the same.

    A random date for both flights respectively is (ex Syd) $195 and (ex CBR) $325 on a Friday night.

    For the Sydney flight 12,000 / (195-80) = 104 points per $ value. At 1500 points the value is $14.

    For the Canberra flight 12,000 / (325-80) = 49 points per $ value. At 1500 points the value is $30.

    Through Cashback Rewards that would work out to be a $15 value for me.

    So for me, it's worthwhile going for the points. It may not be for you.

• 

  MUMMY85 on 25/09/2014 - 21:53

  Anyone wanting to sell velocity points pm
  Me…