Hi everyone.
Just wondering if there is any real benefit in having any of these premium/platinum cards (eg any of the credit cards with fees $100-$400) if you exclude or ignore the bonus reward points on joining?
For example, if we compare 28 degrees card (no annual fee) vs an Amex/ANZ/Citibank/Qantas card ($400+) - what is the real benefit of having one of these?
Thanks in advance.
A while ago, people would consider pulling out a platinum card to be the same as flopping out a bigger d*ck! They had certain criteria that only people of a certain financial status could get one.
Nowadays, every institution seems to have a platinum card and the criteria has been lowered to a point where the average Joe can have one. It's nothing special anymore.
I'm rocking a Platinum Debit Card.
I'm an average Joe too. ;-)
I thought you were always rocking the Greens card? :p
The higher end cards will have rewards points for spending, travel lounge passes and even travel credit.
But the value of these are eroded by high fees. If you travel often then it may be worth it.
People seem to be under the impression that they're coming out ahead by using spending incentive programs but this is irrational because they cannot rewind their lives and live it again while not using them.
What group studies show is that people lose more money when using spending incentive programs than when not using them. Their behavior is altered unconciously.
Should ditch your platinum card.
Sign up for the bonus frequent flyer points, everything else is generally pretty worthless except for travel insurance and Amex credit.
This is what I concluded also. Once upon a time these platinum cards were good because they offered free travel insurance and other protection insurances, but now they all do this
I have the AMEX explorer card. The fees are $395 a year but I get $400 in travel credits which I use every year. So it kinda balances it all out for me.
I have too, but the credits are for high priced flights or accommodation, not the dirt cheap discounts I seek out for travel.
Useful only if you travel on RRP prices, not very useful if you scout out cheap travel deals.
Travel insurance and points
All depends on your spending. I put everything on my cc, and if I have to spend $xxx no matter what, I might as well get points for it- either for gift cards or flight upgrades. Can easily get my annual fee back, though my current one is included in my mortgage.
There's no point in paying annual fee if you're not going to use the card.
also -
the banks have their own awards programs (eg cba) - why not opt for these cards, instead of the platinum/qff style cards?
When signing up for a bank issued credit card, you usually get the option of either points program (QFF or their own one). If for example, you travel mostly with Virgin, you'll have more points in the Velocity program. Then it'd make more sense to go with the banks rewards point system as you can convert your points to Velocity, KrisFlyer or whatever other program (except QFF). If I'm not mistaken, you won't be able to accumulate both QFF and Velocity points, you need to choose one or the other.
Depends on your own opinion - I have American Express and ANZ cards because they offer a good bonus point for signing up (plus minimum spend) which is otherwise impossible to reach via regular spending. They also offer free domestic flight and lounge passes, which helps to offset the annual fees which can be between $200-$400. American Express also offer some of the best earn rates per dollar spend, so that's a factor too.
As a solid example;
ANZ Travel rewards card - $225 Annual Fee
What do you get?
- no international transaction fees (saving of 2-3% of value spent overseas)
- 1.5 points per dollar up to $2k per month that can be used to redeem rewards or points
- return Virgin Australia flight within Australia (easily worth over $200 alone if travelling longer distances like Melbourne to Darwin or Cairns)
- 2x Virgin Australia lounge passes (can be sold for $50-60 each)
Compare the terms and conditions. If you have shares in a Bank you might want to find out if there are any discounts on credit card fees.