Coles Mastercard Rewards - Forex Fees Now Waived, $100 off Your First Shop, $89 Annual Fee

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illumination on 02/09/2015 - 14:12 financialservices.coles.com.au (1429 clicks)
Last edited 02/09/2015 - 14:58 by 1 other user

2 Deals in 1. The first,

No International Transaction/Currency Conversion fees on Coles Rewards Mastercard

This has been active for a few weeks and I wanted to post it up but never got around to it.

Anyway, anyone who has the Coles Mastercard Rewards (used to be $49 annual fee) has now automatically been upgraded to their "new" card. The difference? 2 things:

• $89 annual fee
• No international transaction fees/currency conversion fees

That's about it. They introduced a new card to slot in between the No annual fee one and the upgraded Rewards one, called "Low Rate Mastercard" (with a low-ish interest rate for a credit card). Personally no value in it to me and I would assume it would not suit most Ozbargainers, as I would assume most of us know to avoid paying interest on credit cards.

Otherwise, these are the highlights of the card:

• 2 years Price Protection on Australian purchases
• 6 months Merchandise Protection (for when/if your item gets damaged, lost, stolen)
• 2 FlyBuys points per dollar spent everywhere (A very consistent 1% rate of return)

This makes this the cheapest Credit Card in the market for earning points on international transactions without having to pay a surcharge on the transaction (followed by the Bankwest More Platinum Mastercard).

Personally, I will be reverting to the no annual fee version before my anniversary year hits, as I don't think the $89/year is worth it for me. I really only hold this card for the Price Protection benefits. In addition, the multitude of credit card offers we get every few weeks with first year annual fee waiver offer more than enough alternatives for a decent point earning Mastercard/Visa.

$100 off your first shop at Coles if approved by October 6

As per this, thanks to chaliban.

• Must be used in one transaction (i.e. not like a gift card)

Related Stores

Coles Financial Services

• 

  biggweilo on 02/09/2015 - 14:26

  In addition, the multitude of credit card offers we get every few weeks with first year annual fee waiver offer more than enough alternatives for a decent point earning Mastercard/Visa.

  2 points on this
  1. Try to get a annual fee waiver before you cancel it.
  2. I would advise against going on a card merry go round as this will adversely affect your credit rating. Nothing wrong with a new card every couple of years but I wouldn't do any more than that.

  I am fortunate that I have 3 cards and none have an annual fee (MC, Visa and Amex). All are with different financial institutions and 2 of them attract decent rewards points.

  • 

    illumination on 02/09/2015 - 14:49

    Try to get a annual fee waiver before you cancel it.

    I always try to. I'll only cancel if they say no. However, seeing as I intend to just downgrade (as opposed to cancelling the card altogether) I suspect they will say no.

    I would advise against going on a card merry go round as this will adversely affect your credit rating. Nothing wrong with a new card every couple of years but I wouldn't do any more than that.

    Been doing this for a year and have had no issues or concerns. I try to leave about 2-3 months between each application. Besides, I find that it is definitely worth the effort:

    • The bonus points can amount to at least a few hundred dollars each time
    • The earn rates on the cards (if you pick the good ones) are very decent

    I don't believe the "damage" done to the credit file is anywhere near as some people make it out to be. I even feel it may in fact be (arguably) beneficial as you build up a strong credit rating with a consistent history of having a whole variety of cards without having ever missed a payment.

    When it comes time to getting a large loan (home loan?) I will consider my position more carefully, but even then I am aware that all the credit file stores is the number of enquiries (applications) you have made and your total credit limit. I understand recently they have implemented a more detailed report in relation to the credit file, but even then I expect to be able to cancel a couple of cards, or lower my credit limit to be able to increase serviceability.

  • 

    MrTweek on 02/09/2015 - 15:51

    I applied for 3 different credit cards this year and according to creditsavvy.com.au, only 1 of 3 banks (out of the big 4) actually reported that I applied for a card.

  • 

    [Deactivated] on 02/09/2015 - 17:23

    Tried that. They wanted to switch me to the no annual fee card.

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  chaliban on 02/09/2015 - 14:38

  Think you also get $100 off a single shop if you apply and are approved by 6 October. Would offset the first year annual fee: http://financialservices.coles.com.au/credit-cards/100off

  So would this just use Mastercard FX rates like the 28 degrees card? On Coles site, could only see no international transaction fee. Didn't say anything about currency conversion fee.

  • 

    illumination on 02/09/2015 - 14:59

    Yea looks like it. And it doesn't seem like it's been posted yet either. Added it to OP, thanks.

    Yes same as 28 Degrees. I have used it about 5 times since I've found out.

  • 

    hongd on 02/09/2015 - 15:21

    I got "no annual fee" credit card approved on Friday. Am I entitled to get $100 off?

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  chaliban on 02/09/2015 - 15:21

  Sweet. Was about to apply for the 28 degrees card. Coles card for a year is better since we shop at Coles. +$11 and 1%. Thanks OP. Both cards issued by GE Money.

  • 

    chumlee on 02/09/2015 - 15:31

    +1

    Coles cards are issued by Wesfarmers. They bought out GE.

    • 

      chaliban on 02/09/2015 - 15:54

      +1

      Right. Sorry. When I called the Coles line, the operator also tried to sell me the 28 degrees card. So I asked her who her employer was. She replied GE Money.

• 

  frogduck on 02/09/2015 - 15:22

  Did you guys receive notice of the rate change? I haven't received anything for my $49 annual fee card yet.

  • 

    illumination on 02/09/2015 - 15:29

    +1

    I did not. I only found out because I saw it on the website when I was logging into my account to check transactions.

    • 

      frogduck on 02/09/2015 - 15:34

      Ah, I was wondering whether there was anything official because I couldn't find anything on my account pages themselves. There was a lot of 'refer to financial table' which I can't locate anywhere unfortunately.

      Also to note is that under my rates/fees page it still has the 2.5% international fee so I assumed the $49 card was just grandfathered.

      Guess it might be something I need to call and ask them!

      • 

        illumination on 02/09/2015 - 15:50

        +1

        I called them and asked, and they told me I was automatically "upgraded" and they will only charge the $89 annual fee on my next anniversary date. I assumed it would be the case for anyone else holding the card too.

      • 

        frogduck on 02/09/2015 - 15:52

        @illumination:

        Oh fair enough. Thanks for the info. I had my first $49 fee waived (was on the fee free one previously) so will have to see next year when they charge it. May still call them to confirm though as I'm keen on using it for international transactions :)

      • 

        hamza23 on 11/09/2015 - 16:10

        @illumination:

        The operative I spoke with today told me that it would remain as $49 for existing platinum credit card holders, I was going to cancel otherwise so was just ringing to ask when the annual fee was due. I asked if it was $49 next time but $89 thereafter or $49 permanently, they said permanent. I guess I'll find out for sure in a few months (mines due in December).

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  coprocessor8087 on 02/09/2015 - 16:01

  |No International Transaction/Currency Conversion fees|
  People are not buying much from overseas these days now that AUD drop below 70 US cents.

  These tricky guys know what they are offering obviously …………

  • 

    frogduck on 02/09/2015 - 16:11

    +1

    It's also useful if you're overseas and using the credit card :)

  • 

    illumination on 02/09/2015 - 16:28

    I don't think that really affects anything because they're affected by the drop in AUD too (and this will then just get passed onto us). They would probably just make money off the (slight) spread and from the transaction costs itself incurred by the merchant.

  • 

    lgacb08 on 02/09/2015 - 17:21

    and Abbott start slugging us with GST on import from just $0.01 purchase

• 

  badarz on 02/09/2015 - 16:19

  What are some of your big price protection wins?

  • 

    illumination on 02/09/2015 - 16:27

    +1

    Galaxy s4 from Kogan - purchased it for about $650, claimed when it was $440 (and it was a price error so those who ordered it directly at this price got refunded)
    Xperia Z also from Kogan - purchased at about $520, claimed for $309.

    Other random claims I've made:
    Acer Aspire laptop from Dick Smith, bought for $899, claimed when it dropped to $760ish
    GTA4 for PS3 - bought at $89, claimed at $49
    Nexus 7 - bought at ~$330, claimed at $200

    • 

      frogduck on 02/09/2015 - 16:29

      +1

      You can do multiple claims on an item with this price protection too.

      On my Xperia Z2, I claimed every $100, then $100 then $70 (as long as its a $10 drop or more).

      • 

        illumination on 02/09/2015 - 16:32

        +1

        Yep I've done multiple claims. The other main criteria are:

        • Minimum drop of $10> (as you said)
        • Price must be from a shop of the same name - so someone can post a deal for JB Hi-Fi over in Perth, and even if you bought it from JB Hi-Fi in Sydney it's still applicable even if it's only for the branch in Perth
        • Maximum per item is $600
        • Maximum per year is $2000
        • Maximum over the life of the card is $10000
      • 

        badarz on 02/09/2015 - 17:08

        @illumination: Does this work for eBay (same seller) or other online stores (Lenovo)?

• 

  systmworks on 02/09/2015 - 20:38

  +1

  Personally, I will be reverting to the no annual fee version before my anniversary year hits, as I don't think the $89/year is worth it for me.

  When I have done the sums before, if you are going to spend more than $6,500 a year (around $125 a week, easy with groceries/fuel etc) you are better off paying the annual fee and getting 4X the Flybuys points, as opposed to having no annual fee and getting 1/4 the points.

  But if you have another credit card that scores you more than 1% cashback (I know some AMEX do, but a lot of places dont accept or charge extra for AMEX) you may not end up spending $6,500+ on this card.

  That said, my figures might be out of date now, if the annual fee has gone from $49 to $89.
  Looks like you need to spend $12,000 a year to make more off the Fee card than the No Fee card.

  Ive never had an AMEX and spend around $40K a year on my Coles credit card, so the points add up.
  Last time FlyBuys posted out a statement (yearly?), it said I had redeemed points for $730 of free groceries.

  The bonus points at participating retailers add a lot. $40K spend should provide $311 cashback (opposed to $100 cashback with no fee card) but I get more like $600+ a year with bonus points.

• 

  McFly on 03/09/2015 - 12:50

  I've got a $0 Platinum Rewards card and haven't received anything from them, so I'm assuming nothing has changed for me…

  • 

    McFly on 17/09/2015 - 00:25

    Just checked it all out - I get everything except still have 2.5% international trans. fee.

    • 

      frogduck on 17/09/2015 - 12:23

      In my case I was on the $49 annual fee card and when I called them, they said I was automatically placed onto the $89 annual fee which has international transaction fees removed. Tested it a few times with online purchases in other currencies and looks like I haven't been charged any fees (yet?)!

      Will update if anything else pops up, but I'll now be using my Coles card overseas on my next holiday if that is the case :)

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  vinnyd23 on 07/09/2015 - 13:05

  Hi Fellow OzBargainers,

  Thanks for the deal. I did end up applying for it and getting approved for $2k.

  As I did not get the $6K limit, does it mean I will not get the platinum card and not all the benefits? Because on coles website it says..

  "You can enjoy the same great features and even more with our Platinum Coles Rewards MasterCard if you’re approved for a credit limit over $6,000 when you apply.

  These benefits include complimentary access to our 24/7 worldwide concierge service, as well as Merchandise Protection Insurance, which protects the items you buy with your card in case they're lost, stolen or damaged."

  I did call the service centre, the guy said it does not matter what limit you get, but as I applied for Platinum card, I would get it. But, I was not really convinved with his response.

  If anyone had the same scenario or any input will be much appreciated.

  Cheers.