Low Use Rewards Credit Card

LRingophar on 25/02/2015 - 23:16

hi,

I'm looking around for a good low use rewards card. Seeing as it'll be low use I'm not sure if any of the cards would be worth getting. I've never had the need for one and I only use about 1500 a month but I have a few big purchases coming up (ie. engagement ring) so thought I may as well start collecting points.

I have been thinking of getting the Amex Platinum Edge but I think I recall people saying that amex isn't widely accepted or charge a surcharge so may be better to get a visa/mastercard?

Any good suggestions would be much appreciated.

Thanks

Financial

Comments

  • jaybmate on 25/02/2015 - 23:47
    +1

    Basically you need one that is fee free. Citibank Signature or Platinum if you can get it Annual fee free for life.
    https://www.ozbargain.com.au/node/175099

    • Ringophar on 26/02/2015 - 00:20

      Ah, that look's like a good one..unfortunately I dont make enough to meet criteria. Thanks though!

      • jaybmate on 26/02/2015 - 08:47

        People have reported getting the Sig card with only about 55k income, also Platinum card has minimum 45k income.
        Also in general, if a big purchase has a credit card surcharge eg 2% or something, it is better to just use debit card as the points earned on such a purchase doesn't outweigh the surcharge.

        • Ringophar on 26/02/2015 - 15:57

          Really? I make over the recommend 75k taxable and don't have any debt apart from student loan but was told my income wasn't enough when I applied a while ago.

          Good point on the big purchases surcharge. I'll have to think on it a bit more

  • DealzEddy123 on 26/02/2015 - 11:04

    no it's not worth getting a rewards card for low usage + low income.

    Rate of return is less than 1% but it encourages increased spending. For you to get a rewards card would be pointless and possibly drive you (subconciously) to spend more than you normally would.

    the fact that you even want a rewards card means that you think there would be value… exactly what the bank wants people to think.

    and yeh, usually high value purchases will attract a credit card surcharge. You usually can negotiate a cash price for those kind of purchases.

    • Diji1 on 15/03/2015 - 16:12
      -1

      Don't know why this was negged because the poster is spot on.

      The number one error people make with regards to loyalty programs is believing their future purchasing decisions are not effected by having the card.

      It's completely unintuitive to how we experience reality as "rational" but the evidence is very clear: when groups of people are tested using a randomised control that both:

      -large numbers of people's purchasing decisions are effected

      -Of those affected none of them reported having awareness of being effected

      Most people will be affected and none of them will be aware of it.

  • anna10 on 26/02/2015 - 11:22

    The Velocity AMEX Red card is free. Points are 1 for 1. It is accepted at all supermarkets etc etc. I'd negotiate and once you agree with the engagement ring price, THEN say it's an Amex and it's a deal beaker. It will depend on your limit though. If you don't earn much and AMEX gives you a limit of say $6K per month, try to buy it across 2 months one day apart. Or, say to the ring vendor that $6K will be on the cc.

  • rewardscompared on 26/02/2015 - 12:11
    +1

    I posted this yesterday in another thread but is relevant here too.

    The most rewarding card for you depends on two factors: (1) Your monthly spend and (2) what percentage of purchases you can put on American Express.

    Some accounts offer you two cards - eg Visa and American Express (Amex). Amex generally offers more reward points so the more purchase you can make using Amex, the higher your return. Not all retailers accept Amex or may slug you a surcharge, so in those instances you have to use Visa.

    Plug your figures into our calculator here http://rewardscompared.com/cards and see what card comes out on top (the site will factor in the annual fee but not any once off sign-up bonuses). Take note of any conditions on the rewards.

    Also make sure you follow the general principles outlined here http://rewardscompared.com/tips and you'll be well on your way to maximising your credit card rewards!

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