Best Credit Cards Out Right Now

ChatCPT on 05/07/2016 - 10:41
Last edited 05/07/2016 - 13:10

With all these credit card offers around - wondering what is the current optimal mix of credit cards + bank account for the average Ozbargainer.

My picks:
1. Amex = Platinum edge - daily + for the free flight ($150pa)
2. VISA = Citi signature - travel insurance, use where amex not accepted (no fee)
3. Amex = Gold - to double up on amex offers (no fee)
4. MC = 28 degs/latitude for international purchases (no fee)
5. Bank = ING - no fees/free withdrawals/great mobile app

And of course - jump on the no fee for first year bonus points as they come around (eg ANZ black/NAB platinum etc)

Poll Options

  • 5
    Looks good
  • 3
    Close but change one/two
  • 2
    Nope there are better offers
Financial

Comments

  • inherentchoice on 05/07/2016 - 11:18
    +2

    IMO the AMEX Platinum Charge isn't worth it for a $1200 annual fee.

    AMEX Platinum Edge is good with a ~$200 fee and a free Virgin return flight.

    Remember you can just cycle through cards with a no annual fee promotion, just cancel after the first year.

    Personally I use my ING Orange Everday for every sub-$100 contactless transaction.

    • glengood on 05/07/2016 - 13:40

      If you convert to gift cards, I think the conversion rate is 13500 Amex points to $100 - yielding 2.2% back on grocery shops - possibly more if you convert amex points to virgin and redeem as flights - although for the convenience you could argue 2% real cash back is better.

      • inherentchoice on 05/07/2016 - 14:05
        +1

        I figure that waiting to accumulate enough points (13500) to redeem on grocery shops means it's economically better to have the instant cashback. Plus the cashback is compounding, because you then spend it on another contactless transaction. Whereas if you redeem your AMEX points for a gift card, you don't earn more points when you spend the gift card.

        As far as using points for flights, instead of using ~$100 worth of points for a flight, I would rather fly a budget airline for $50 (or less) and keep the points for something else.

        • glengood on 05/07/2016 - 14:45

          That's a good point re: getting the immediate benefit instead of spending $4.5K on groceries

    • ukulele on 06/07/2016 - 07:38

      Does applying for a new credit card every 12 odd months hurts your credit score?

      • [Deactivated] on 04/08/2016 - 12:26

        All other things being equal, yes, it does lower your credit score. That said, if you have a high credit score (i.e. 900+ out of 1200) the downward pressure of multiple credit applications isn't typically going to be fatal to your chances of being approved for other credit (such as a home or small business loan). The general rule of thumb being: Multiple applications for credit on an ongoing basis is a sign of risk to a lender. So one needs to be sensible about managing priorities if their score is not in the high range.

        Hope this helps.

  • The Champagne Mile on 05/07/2016 - 12:21
    +1

    OP - I think you must be confusing the Plat Charge card (your number 1 ranking) for another card - it doesn't cost $150 per annum (it is $1200 as inherentchoice mentions above) nor does it have a free flight (though it comes with many other benefits).

    My pick would definitely be the Velocity Platinum card, which currently has 100,000 points available when signing up via referral link, plus return domestic airfares and lounge access (for an annual fee of $349).

    • glengood on 05/07/2016 - 13:36

      Depending on your grocery spending habits, the Platinum edge might be a better deal with free first year, free flight and 3x points on grocery spends (including gift cards bought from a supermarket)

  • ChatCPT on 05/07/2016 - 13:12

    oops as pointed out above - i meant platinum edge, edited

  • ragrum on 05/07/2016 - 13:14

    What's the Amex Gold product you're referring to?

    • ragrum on 05/07/2016 - 16:31

      Maybe this one: http://www.partnersamericanexpress.com.au/cpa/cpagoldcreditc…
      Doesn't seem to be available to the general public

    • ChatCPT on 05/07/2016 - 18:44

      It's an old card straight from Amex BMW Gold card. Basic no perks so no fee for life. Guess they pulled it.

    • Elwes on 17/07/2016 - 10:41

      I'm considering an AmEx gold like that one ragrum linked to (which I'm eligible for through their Affinity Partnerships). What sort of perks is it missing? Does "gold" mean anything? Is it better than other no annual fee cards like Discovery?

      • Elwes on 17/07/2016 - 10:55
        +1

        I think I've worked it out:
        The Professionals' Gold card gives you 'Up to 1 point per $1 spent on eligible purchases in Membership Rewards3, or up to 2 Qantas Points4 per $1 spent on eligible purchases in Qantas Direct4.' i.e. no points on ordinary purchases.
        The Discovery card is a full blown rewards card, 'Earn 1 Qantas Point3 per $1 spent on Card purchases. Earn 1 additional Qantas Point3 per $1 spent on your Card on selected Qantas products and services in Australia4'
        If that's right, the Gold card is crap by comparison.

        • bluesky on 17/07/2016 - 15:11
          +1

          Based on your info, you are right. The Gold is worse than the straight-up fee-free cards themselves. Sounds like the gold would have provided you choice of amex or Qantas FF points. But with the fee-free cards, you have to choose since Essential gives Amex points, and Discovery gives QFF points. So, still worth a bit of consideration which might work out best for you.

          If you seek cash rewards, my recent comment here contains some comparisons, and also the reason why my main card now is Essential, instead of Discovery. Naturally, if your priority is redeeming flights, its the other way around. Anyway, hope this info helps.

        • virhlpool on 17/07/2016 - 22:53

          Discovery card vs ING debit card with 2% cashback - which one is better?

        • virhlpool on 17/07/2016 - 22:54

          @bluesky: Where to use QFF points if you don't need to buy flight tickets?

        • bluesky on 17/07/2016 - 23:25

          @virhlpool: If you are not redeeming flights, perhaps consider the Essential card which gives better cash rewards. I am the same, preferring cash rewards. Hence, although Discovery was my first Amex card, Essential is the card I use mainly now. Have a look at the comparison reward rates here. Not only that, it is so easy to redeem rewards with Essential, no need to get shopping vouchers etc. Once I get to above 1000pts ($1000 spend), I can use it to offset my account. 1000pt=$7.41, so cold hard cash!

        • bluesky on 17/07/2016 - 23:32
          +2

          @virhlpool: Based on your comment that you are not redeeming flights, then definitely use the ING with 2% paypass whenever you can. (Even if you do redeem flights, I often hear OZB members value them close to 1c per point, so ING 2% may still be better). As the comparison shows, the return is only 0.569% for Discovery card (0.667% with Qantas Autorewards), 0.741% for Amex Essential. These are way below the 2%.

          Only downside is that not all transactions are below $100, or done in-store, so ING cannot be relied on all the time.

          Note: comparison is just on fee-free cards, which I am familiar with. The cards with fees have higher reward rates.

        • virhlpool on 18/07/2016 - 09:54

          @bluesky: Spot on! I have Amex Platinum card with fee waiver for the first year and a free domestic flight ticket but I am afraid I will never end up using the flight as I am not planning to travel and if I do, I can always go for Jetstar or Tiger air. This situation makes me believe that ING 2% is always better than taking a headache of managing multiple cards by having 'with fee' or 'without fee' credit cards whose rewards aren't great.

        • bluesky on 18/07/2016 - 16:01
          +1

          @virhlpool: Oh yes, definitely use ING paypass whenever you can (I do too!). But fee-free Amex cards' main advantage are the cashback offers (free money!). Added bonus is when ING paypass can't be used, so still get 0.741% back. I am also one who prefers not to cancel/reapply cards, so apply once and ongoing benefits suit me.

        • virhlpool on 19/07/2016 - 09:56

          @bluesky: Which is the best fee-free Amex card in market at the moment in that case? Gold?

        • bluesky on 19/07/2016 - 13:35
          +1

          @virhlpool: Gold is worse off benefits-wise, as analysed by Elwes above, since it does not give points for ordinary purchases.

          Which is best is subjective based on one's circumstances/criteria. For me, Amex Essential is best, followed by Discovery, since I value cash rewards (not redeem flights), and flexibility to redeem those rewards. Essential gives the highest cash reward rate among fee-free cards, and total flexibility to redeem as cash credit. And smartphone screen insurance if phone purchase through it.

          This link provides info on all cards. Click on no annual fee for fee-free cards. And you can then check their features. Hope this helps.

          Whichever card you end up applying, consider applying through a referrer to get additional bonus. E.g., Essential, you get $75 with referral, $50 without. The referral list is here.

        • virhlpool on 19/07/2016 - 14:15

          @bluesky: Thanaks, mate! I am thinking of shifting from Platinum to Essential as I am not going to use free tickets anyway. Do you get referral bonus though if you are already an Amex customer and have some other card like in my case?

        • bluesky on 19/07/2016 - 17:34
          +1

          @virhlpool: This was asked two weeks back - see comment here. Pretty sure someone said in one of the other credit card or amex threads, that he or she still got referral bonus even though already a cardholder. I suggest you have a look at recent threads to confirm. If I come across the comment, I will let you know.

        • bluesky on 19/07/2016 - 18:00

          @virhlpool: I found this thread, AMEX issued credit card bonus points when you already hold another AMEX issued card which touched on your question. Hope this helps.
          Edit: Comments talk of application and referral bonus both, so need to read carefully.

        • virhlpool on 19/07/2016 - 21:52
          +1

          @bluesky: Appreciate it, mate! Thanks a tonne.

        • bluesky on 22/07/2016 - 21:32

          @virhlpool: Just saw this post about ING ditching the 2% cashback. A bit disappointing if true!

        • virhlpool on 22/07/2016 - 22:04
          +1

          @bluesky: Aah. What's next? Ditching 'any ATM' fee-free withdrawal? and then 3% interest? Naah.. So irritating, having to change bank accounts every now and then due to lack of stability in the offering of benefits. Fed up of having to assess financial cards/banks every 4-5 months due to some sudden changes like this. At times it becomes more complicated and stressful than the act of saving money itself. :)

  • ilikeradiohead on 06/07/2016 - 12:59
    +1

    You might want to jump on the Commbank free card at the moment, being able to get travel insurance without purchase is pretty hard to beat (does have an AF after a year though).

    • bluesky on 06/07/2016 - 14:46

      The travel insurance is indeed attractive, so one can still book travel expenses using a no-foreign fee cardm if one chooses.

      Quick question:

      Do you know if this waived first year annual fee is an ongoing offer for these (or some of these) cards? I ask because according to the blurp next to the Low Fee Card, for instance, it says:

      Regardless of how and when you apply you can enjoy $0 annual fee for the first year and each year you spend $10,000 or more in the previous year.

      Suggesting it does not matter when you apply.
      Yet, there is a line at the top that says: "apply online by 15 September 2016."

      If it is on-going, maybe the best time to apply is just before a trip ? :-) Thanks.

      • ilikeradiohead on 06/07/2016 - 15:20
        +1

        Hmmm not sure on that one. I'd planned on cancelling my card after a year. I know in some instances you can ask the bank to waive the fee and they may do it.

        • bluesky on 06/07/2016 - 15:46

          Thanks.

  • kiitos on 06/07/2016 - 21:55

    Is the Citi Signature still available? I applied for it a couple of years ago when they had a fee free for life promotion, bit was rejected! And I haven't seen it offered again since.

    • affable on 04/08/2016 - 12:09
      +1

      Looks like Signature is now $199 annual fee in the first year (normally $395 per year). $400 worth of points for your first transaction.

      Platinum $250 Cashback offer: $99 in the first year and then a discounted $199 annual fee in subsequent years

      I'm shopping for a new deal, not much on offer right now…..?

      • bluesky on 04/08/2016 - 15:00
        +1

        If you are after an ongoing credit card for use and rewards, Citi CC is no longer that attractive anymore - even with a free card, I have completely switched away from it due to all the changes that came into effect in March, but in particular the foreign merchant fee, which gives no certainty when you will get unexpected fees - see this thread on the changes, but in particular the unexpected fees users encountered. With an annual fee, personally, I don't think it is a worthwhile card.

        • affable on 05/08/2016 - 07:41

          Ok, thanks for that confirmation.

  • Priceless Class on 18/07/2016 - 20:22

    NAB have a range of cards (lowest fee is $30 which offer a 15 month 0% PURCHASE rate! This trumps all reward points imo). They also offer reward cards with signup bonuses (which cover the cost of the annual fee). If you spend a fair bit, having 10k sitting interest free for 15 months works out pretty well!

    http://www.nab.com.au/personal/banking/credit-cards

    • eclaw on 19/07/2016 - 19:01
      +1

      You must had forgot to read this "…on balance transfers with a one off 2% BT fee"

      If you transfer 10,000 you are really only getting $9,800.

      At 3% interest rate you get roughly $294.

      After tax and you're closer to $190 depending on your tax bracket.

      The extra 3 months might get you to break even though :)

      • virhlpool on 19/07/2016 - 22:35

        Spot on, mate! You definitely sound like a CA or CPA now. :)

      • Priceless Class on 20/07/2016 - 05:35

        That fee is on balance transfers only. The unique benefit of this card is that it also has 0% for 15 months on PURCHASES which do not attract the 2% transfer fee, because purchases are not a transfer.

        Its a rare deal for a credit card to offer this. PS.. I didn't transfer anything with this card. Only using for purchases.

        This ain't my first time around the track… 😉

        • virhlpool on 20/07/2016 - 09:30

          Awesome! You are a great 'purchaser' though. Valued customer indeed. :-)

        • eclaw on 20/07/2016 - 13:32

          That's good to know.

          Although even then I still think this would only benefit certain people - namely those who are looking to make a large purchase and max out their limit on day 1 so that they can let it sit for 15 months.

          For the average shopper, this probably won't be that "great" since purchases are likely to be small and in increments.

          And to make it even more worse, they seem to make you pay the minimum each month (under important info) which is roughly 2% of the total balance. I think if you drill into the maths, taxes and all their little terms - it might not be as rosy as it seems or at least not worth the extra effort vs cashback.

        • Priceless Class on 20/07/2016 - 13:45

          Very true.i spend about 5k per month, so it may favour those who spend more. Even on the 30 dollar fee card though, you should be able to come out on top, plus the points if you chase them. I've done the math and for my yearly spend it worked out about 1000 dollars better off including the interest on balance that sits in offset and reward point conversion. At least good for when you cant use cash back. I intend to extend the benefit by doing several balance transfers as zero cost offers come up.

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