Do You Use AmEx for Rewards? Why? (Unsure)

teacherer on 30/04/2017 - 15:42
Last edited 30/04/2017 - 15:50

Hey guys
My first AmEx card is on the way, the platinum edge.
I'm planning to use it as my main card to accumulate points. My wife and I spend 50K minumum per year so that would equate to 50 000 points ish, which I can redeem for a $500 gift card.
Is it worth it to you guys to go through the effort of using a credit card to get $500 back per year? I feel like for the wife and I it might not be, but we're going to try it out for a year.

The benefits like insurance and extended warranties are good but we've been living okay without them

I'd love to hear the benefits of using an AmEx card that you guys experience

Effort-
Having to pay off statements each month and track it all
Not having it linked directly with my spending and saving accounts in my netbank app
Associated fees with AmEx

Financial

Comments

  • Baysew on 30/04/2017 - 15:46
    +4

    the effort of using a credit card

    What is the effort of using a credit card?

    • teacherer on 30/04/2017 - 15:49

      For me?
      Having to pay off statements each month and track it all
      Not having it linked directly with my spending and saving accounts in my netbank app
      Associated fees with AmEx

      Stuff like that

      • liquid metal on 30/04/2017 - 18:56
        +2
        • Having to pay off statements each month and track it all

        That's like 10 minutes time every month. 120 minutes/year, $500. That's an hourly rate of $250, tax free. Also, if you spend it on flights, you probably get worth $800 out of it (spent on business class even more). And if you don't already track your spending, to track the credit card spending is something you don't have to do, then (it is recommend, though). Just pay off your balance, done. If you already track your spending, to track that account is not additional effort.

        • Not having it linked directly with my spending and saving accounts in my netbank app

        You know how a credit card works, do you? The money you spend with a credit card isn't actually your money. At the closing date you can then decide if you pay it off straight away or if you want to pay interest (latter is quite stupid). To link your credit card to other accounts wouldn't make any sense.

        • Associated fees with AmEx

        You get a travel voucher for your fees. You actually get $5 more than the fee costs you. If you don't like the voucher, get one where you get a free return flight every year.

        You get so many benefits (points, insurance, special offers, fraud protection, cashback offers, access to lounges,….) for very little effort. Besides, credit cards are actually made for high spenders like you. Don't know what you're on about with the too much effort thingy.

        • Pharos5 on 30/04/2017 - 19:02

          With the second one I think OP means the AMEX plat edge isn't displayed as an account in netbank like his other accounts or even a CBA CC so it's slightly more inconvenient to view and may have an inter-bank transfer delay.

        • teacherer on 30/04/2017 - 19:30

          Hey liquid metal
          Thanks you raise some good points
          1-I guess you're right about it being worth $250 an hour
          2- I meant linked with my bank where I could do instant transfers and have it Al displayed in the one place, not needing to wait for payments etc
          3-i meant fees like how a lot of places apparently have 2-4% fees on Amex transactions

          Cheers :)

        • liquid metal on 01/05/2017 - 16:45
          +1
          1. Bpay is for such situations. Use Lastpass for logins. Go to amex website, click login, done
          2. Fair enough. Some have fees, others don't. Obviously, only use the Amex when there are no fees.
  • dcep on 30/04/2017 - 15:51

    does plat. edge has annual fee?
    if so, you get less than $500 back…

    • teacherer on 30/04/2017 - 15:52

      It does, $195, $200 travel voucher though which helps

  • wei13 on 30/04/2017 - 15:56

    If you currently spend 50k per year its unlikely you can convert all of that to amex points, as many merchants either don't accept amex, or charge amex fees that don't make its use economical.

    I don't use a credit card for the sake of rewards or points. Rather since I need to use one to make my life more convenient I might as well choose one that also gives me the best rewards.

    You mention 'the effort of using a credit card.' What do you use now? Cash? Or a debit card, which still requires taking out a card?

    • djkelly69 on 30/04/2017 - 18:40

      If you currently spend 50k per year its unlikely you can convert all of that to amex points, as many merchants either don't accept amex, or charge amex fees that don't make its use economical.

      But a reasonable amount might be on groceries (3x points) or petrol (2x points) in order to make up for spend which can't or won't be on Amex.

      • teacherer on 30/04/2017 - 19:33

        According to the tcs it's only utilities and government payments that are 0.5 points which hopefully I can find a way around when I go to look
        PayPal might help some
        However the fees with certain merchants might not be worth it

        • nikey2k27 on 01/05/2017 - 08:29
          -2

          Never pay fee for points it not worth it.

  • MrHyde on 30/04/2017 - 16:29
    +6

    I actually find using a credit card less effort than cash.

    All my expenses are in one place and I can easily manage my budget. The points are an extra bonus. Just need to make sure you pay off the card in full every month. The delayed expenditure of cash also helps in reducing the interest of my mortgage by a little bit as well.

    • mskeggs on 30/04/2017 - 16:45
      +3

      I agree. I also have the card set to automatically pay off the full balance, so I don't find it any hassle, and I go over the statement each month to make sure I keep track of everything.
      If you have $50k of eligible spending, I am amazed you aren't already putting much of it via a card for the convenience compared to dealing with cash/cheque/BPAY etc.

      • teacherer on 30/04/2017 - 19:32
        +2

        Cheers I figure at 20 it's better late than never

  • snivy on 30/04/2017 - 18:00
    +1

    Some benefits:

    • They have some good cashback offers with partner stores, you just have to sign up for them.
    • Access to Amex lounge at some stadiums/arenas.
    • I find it has better exchange rate for shopping overseas.
    • If you use iPhone - Apple Pay.

    I have the one tied to an airlines so I get extra benefits of ff points, flight and lounges.

    Try it for a while and see if you like it, some people are horrible with credit cards and others can maximise their benefits. I personally like using them.

    Unfortunately in Australia a lot places don't accept accept Amex (even for bills payment) or have higher fees associated with using Amex.

    • teacherer on 30/04/2017 - 18:44
      +1

      Thanks snivy
      What other card should I be considering?
      Any really common places you can think of where I'll need to use a different card?
      For bills now apparently PayPal works which should help

      • MrHyde on 30/04/2017 - 19:55

        I am using the ANZ Black Visa card, which at 1:1 point with QFF is pretty good. I use that card wherever Amex is not accepted.

        • teacherer on 30/04/2017 - 20:01

          Mrhyde which is your preferred Amex out of curiosity?

        • MrHyde on 30/04/2017 - 20:08

          @lilviss:

          At the moment, I have the Westpac and NAB Amex. My preferred one is the Westpac one, even though it has a high yearly fee for the simple reason I can pay my tax bill on the associated Mastercard and get some points. The NAB one I only got for the bonus 75K points and will cancel once it gets closer to the renewal date.

      • snivy on 01/05/2017 - 17:42

        I think it'll depend on your need, I only use credit cards to accumulate frequent flyer points really.

        I noticed some restaurants/supermarkets have different surcharges for credit cards, sometimes it's 0 for citi/mastercard and 1% for amex, sometimes it's 1.1% for citi/mastercard and about 3% for amex. Most are small establishments who are happier with cash though.

  • Diji1 on 30/04/2017 - 20:23

    As a group people who use loyalty programs spend more money than those that do not. Almost all of the people using loyalty programs say that this seems likely but it isn't them that's doing this.

    • MrHyde on 30/04/2017 - 20:29

      I'd say there is some truth in that. I would definately fly Qantas over another airline even if it cost me $100 more… so, do end up spending more money. At the same time, the benefits that I get from the membership and the number of around the world trips our family has taken justifies the small extra spend in my mind.

      My loyalty currently does not extend to hotels - although I have enjoyed the numerous free stays I've had around the world - I might be moving away from booking the cheapest and only booking at places were I have loyalty membership.

  • CheapskateQueen on 30/04/2017 - 23:05
    +1

    Set your card to pay your closing balance in full every month by direct debit. Then it's all done for you.

    I never pay with AMEX (or any CC) if there's a surcharge.

    • Almighty Dollar on 01/05/2017 - 08:42
      +1

      I largely agree, but an exception is the 0.5% fee on CC at Aldi. I pay this with my Citibank CC that gives me about 1% rewards on spend. I am still ahead.

  • Bab on 01/05/2017 - 07:20

    Spending 50k for 50000 mr. Amex edge willl give you far more points for this much spend.

  • [Deactivated] on 01/05/2017 - 19:59

    I use Amex Centurion where it is accepted, (and most of my on-line payments) and Citibank Black for the rest.
    This gives me access to most lounges, a couple of First class international flights a year and a host of benefits, such as top status in other loyalty schemes.

    • [Deactivated] on 01/05/2017 - 20:04

      Whoa big spender? Isn't the minimum requirement for a Centurion $1mill a year? (Spend not wage?).

      I have an Amex Diamond from Commbank, I get about 3% back which is great. A new suit every few months, or a new kitchen appliance in the Myer sales (Myer gives you bonus spend, so its more like 4-5%).

      • [Deactivated] on 01/05/2017 - 20:07

        No it's nowhere near 1 million a year; that is just a myth.

        • [Deactivated] on 01/05/2017 - 20:18

          Oh yeah, I looked it up, only $250k spend a year. Poor sod, it must be hard living on stipends.

        • teacherer on 01/05/2017 - 20:26

          Ever get free annual fees on those or or its worth it for you to pay them?

        • [Deactivated] on 01/05/2017 - 21:31

          @Burnertoasty: I am not a clergyman, teacher, or public official.

        • [Deactivated] on 01/05/2017 - 21:34

          @lilviss: No you don't and yes I think it is if you use the free stuff, such as the concierge service.

        • [Deactivated] on 01/05/2017 - 21:35

          @4sure: With a meagre yearly budget of $250k, I'm surprised.

        • [Deactivated] on 02/05/2017 - 07:38

          @Burnertoasty: You might want to stick a couple of 0's on that.

        • [Deactivated] on 02/05/2017 - 12:55

          @4sure: How do you survive?

        • [Deactivated] on 03/05/2017 - 10:01

          @Burnertoasty: I don't survive: I thrive.

        • [Deactivated] on 03/05/2017 - 10:39

          @4sure: On a baked beans on toast diet. Have to scrimp and save somewhere.

        • [Deactivated] on 04/05/2017 - 16:16

          @Burnertoasty: Throw in a small tin of tuna and a big dollop of cottage cheese and that is my ideal post-workout meal.

        • [Deactivated] on 04/05/2017 - 17:12

          @4sure: You slipped up buddy. A real centurion holder would pay someone to work out for them.

        • [Deactivated] on 10/05/2017 - 09:22

          @Burnertoasty: Some things I do really well and wouldn't trust them to anyone else. Ask my girlfriend.

        • [Deactivated] on 10/05/2017 - 14:01

          @4sure: I did, last night. She said you were rubbish.

    • daft009 on 09/05/2017 - 21:54
      +1

      As A points earning card I think the centurion is crap as there is a yearly cap!

      I think the explorer linked to the ascent rewards program will result in a higher points gain.

      Happy to be proved wrong though :)

      • [Deactivated] on 10/05/2017 - 09:26

        A yearly cap on what? I have had a balance of nearly one million points in my account, so if it's points it must be pretty high!
        Some people have spending caps depending on their credit history, but I have had mine for several years and I have no spending limit now.

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