Is a Credit Card to Earn Points Beneficial?

• 

  kostonsave on 20/01/2017 - 00:36

  +1

  You don't really need a credit card to collect frequent flyer points. Just make sure you sign up to the relevant program when you are booking your flights. Altogether those flights will earn you roughly 35-40k frequent flyer miles, which can't really get you much, possibly a short haul economy flight or a few upgrades from premium economy to business.

  If you did want to get a credit card there are a few with no fee first year and about 75,000 points after you meet the minimum spend ($2,500 in 3 months). Do a search for the ANZ Black card.

  1. Sign up to frequent flyer program to earn points on your flights
  2. Sign up to a credit card to get bonus points
  3. Combine and redeem on flights

  Hope this helps!

• 

  bluesky on 20/01/2017 - 00:37

  A credit/debit card that has no foreign fees for travel - e.g. Citiplus card or 28 Degrees CC, may in fact be more beneficial - if you will be withdrawing cash from ATMs (CitiPlus), as well as expenses while overseas. The returns could be higher than the value of any points you might earn, from a card that award points for purchases.

  • 

    Evil-Elmo on 20/01/2017 - 09:58

    +1

    Agreed, but worth noting that 28 Degrees has really gone down hill recently. I've still got one but feel I really need to get on that Citibank plus debit card bandwagon…

    • 

      bobwokeup on 21/01/2017 - 10:44

      Yeah I use Citibank to get cash at ATMs with no fees and Qantas Cash MasterCard for purchases as there are no international fees plus you get 1 Qantas FF per $1 spent.

  • 

    moonphase on 20/01/2017 - 10:52

    +1

    Add Bankwest Platinum too

  • 

    TomSom on 21/01/2017 - 10:55

    +1

    Thanks for that, I will most definitely do that as well, but that would be seperately to the flights

• 

  kostonsave on 20/01/2017 - 00:38

  Sorry, forgot to include the second Europe trip. Should be 55-60k earned in points for those flights, so a decent economy flight to Asia.

• 

  bozbargain on 20/01/2017 - 09:35

  +2

  As long as you're in Australia, I would recommend getting 2x credit cards with 50k-75k bonus points (Qantas or Virgin) and cancel them after 12 months and repeat. Some of these cards (eg ANZ Visa Black) will also give you access to lounges regardless your freq flyer status which is great for flying long haul. This is the easy part.

  At the same time, check which airline/alliance works best for you in terms of destinations and stop-overs. Many flights to Europe out of Oz go via the Middle East these days - Singapore Air, Cathay Pacific, Thai AIr, Malaysia Air and Korean Air being the exceptions (and some Chinese carriers which I would not consider). Sometimes, airlines run promotions where you get Silver status after a single flight. Also, keep an eye on Where to Credit, some OneWorld booking classes give you no points on Qantas but full points on other member airlines. Not to put you off too much but finding the perfect flights and fit them in within a single frequent flyer program, maximising points, can be a very time-consuming exercise! Long term, you may find it easier and more worthwhile to just go with whatever airline has a good deal.

  • 

    B612 on 20/01/2017 - 11:02

    how long after you cancel the ANZ black til you can apply to get the 50-70k bonus points again?

    • 

      bozbargain on 20/01/2017 - 11:06

      +1

      12 months

  • 

    mreddie on 20/01/2017 - 11:07

    I'm pretty sure if you keep applying for credit cards and then cancel them, then repeat…you're actually doing damage to your credit rating and will impact applying for future loans etc.

    • 

      bozbargain on 20/01/2017 - 11:22

      +3

      Not necessarily, it's perfectly acceptable to have 2 credit card applications against your name each year if you always pay off the balance. Has never hurted my credit score.

• 

  mskeggs on 20/01/2017 - 09:53

  +1

  If you spend enough on the cards so the point value exceeds the annual fees, then they are beneficial.
  I use an Amex that came with my mortgage when there is no card surcharge and have amassed a few hundred thousand points without chasing any deals or doing much flying on the partner airline (we usually go AirAsia/Jetstar but points are with Qantas).
  So it is worth it for our family. But we have been accruing points for 20 years, with only occasional redemptions. It is nice to use points for a 'free' flight every now and again (even though the fees and charges are not much less than a super discount airline ticket).

  Worst case, you can sell any points or redeem giftcards when you are ready to leave AU.

  • 

    bozbargain on 20/01/2017 - 11:27

    If you spend enough on the cards so the point value exceeds the annual fees, then they are beneficial.

    The only card I find it worth paying an annual fee for is the Amex Platinum Edge since it comes with a free domestic return flight (now travel voucher I believe) and an unrivalled earn rate on supermarket spend. Besides the points bonus, the other advantage of cancelling your cards everty year is that you don't pay an annual fee (typically waived for the first year). The more you pay with PayPal online and direct debit, the less hassle it is changing cards every 12 months.

    • 

      B612 on 20/01/2017 - 11:33

      with the free domestic return flight, is it easy to book and is there extra book fee involve?

      • 

        bozbargain on 20/01/2017 - 11:53

        You need to ring Amex but it is a really easy process with no fees at all.

  • 

    bluesky on 20/01/2017 - 13:39

    If you spend enough on the cards so the point value exceeds the annual fees, then they are beneficial.

    Quite true. Well, OP, a free card is therefore worth considering - the benefits are always more than the fee, if it gives points and bonus.

    For the travel bit, still a great idea to get a debit/credit card with no foreign fees, e.g. CitiPlus – see my initial comment above. Call this Card 1.

    Then, if you don’t mind another card, there is the free Amex Discovery, which can net you at least 12,500 Qantas points via a referral (see referral wiki) and provide rewards of 1pt/$ (or 2pts/$ for Qantas products). Or the free Amex Essential (see my post).

    The optimal is then :

    • put expenses that are billed locally in AUD on the Amex card (e.g. might be flights/accommodation), to earn reward points. (Note: this card does incur foreign fees if merchant is overseas or in foreign currency), and
    • use Card 1 (which has no foreign fees), for amounts billed by foreign merchants, or in foreign currencies.
• 

  inherentchoice on 20/01/2017 - 12:13

  Most credit cards are not very generous, and nor are frequent flyer programs. Generally speaking, you barely get about 1% back of your spend.

  The best deals are when you get one of the credit card sign up promotions with a mother lode of bonus points and no fee for the first year. Then just cancel the card after redeeming the bonus and before they charge you a fee.

  For example, this credit card deal will be beneficial:

  https://www.ozbargain.com.au/node/279129

• 

  The Champagne Mile on 20/01/2017 - 12:56

  If you're looking for Krisflyer points, consider the AMEX Explorer card which comes with 110,000 AMEX membership rewards gateway bonus points when you sign up with a referral (ends very soon - Jan 30). The points would convert to 87,500 Krisflyer points, enough to get you to Europe one way in business class, which is great value. The annual fee is $395, but the card also comes with a $400 travel credit to spend on flights, accommodation or car hire, offsetting this. The card also has a great ongoing earn on purchases (2 points per dollar for everything except Government spend). Deal post: https://www.ozbargain.com.au/node/262944

  Or for Qantas, the AMEX Qantas Ultimate card is currently offering up to 112,500 points when you sign up with a referral by Jan 30. Annual fee is a bit steep at $450, but it comes with a return domestic flight each year. Depending on where you live, this bonus point sign on might be able to get you to Europe one way in business class (i.e. Adelaide to Rome is 112,000 points flying Emirates business class).

• 

  Holysmoke on 20/01/2017 - 19:15

  https://www.ozbargain.com.au/node/287899