Credit Card 'Points Transfers' Result in Half The Value. NAB > Velocity

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  ComfortablyNumb on 10/06/2024 - 23:14

  +10

  20,486 if used correctly could buy 2 plane trips + taxes. They are much more valuable in point form for business seats. The going rate of a velocity point is about 1.25 to 1.75c per point (check the forums…).

  Do the math 20k points = $200 (even if the low ball figure is 1c per point).

  Using your points for gift cards and toasters etc is not the best use of your points (and if it is, you'd be much better earning direct cashback with a HSBC card or equivalent rather than a credit card).

  • 

    try2bhelpful on 11/06/2024 - 00:11

    Absolutely. We save up our points for plane travel.

  • 

    redfox1200 on 11/06/2024 - 06:18

    you're not getting 20,486 points though, you're getting half that

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  DingoBilly on 11/06/2024 - 07:36

  +1

  Plane trips are worth a lot more than gift cards for economy flights. About 1 cent per point.

  I wouldn't be suckered into the business class value proposition as you're just throwing away your points in that situation for the most part though. I. E., if you were already going to fly you're just paying extra for a few hours of slightly more comfort.

  • 

    try2bhelpful on 11/06/2024 - 09:04

    +2

    A lot more comfort if you are long haul to Europe. However you do need a lot more points than 20,000 to do that. We have used points to fly business class before, and will be doing it again later in the year. I wouldn’t pay business class fares but getting them on points makes for a much better flying experience.

    • 

      MELso on 11/06/2024 - 13:07

      +2

      Agree with this.

      I flew back from Copenhagen to Melbourne on Qatar Airways business class in April.

      It was 139,000 points plus $770 in fees and taxes for the one way fare.

      Half a return cash fare on the day I was travelling was about $1400 in economy or $4500 in business class on the day.

      I had converted those points from 278,000 Flybuys and Citi points (actually slightly fewer than this due to transfer bonuses on the Citi points). I could have used those points to get $1390 in groceries through Flybuys dollars. This meant that the marginal cost of flying business class on points vs economy paying cash was about $780.

      Would I have paid an extra $3.1k in cash to fly business class? Not on your nelly! Would I pay $780 for 28 hours of lounge access, decent food and drink, priority check-in, space, comfort, being able to lie out flat and get sleep, amenity kits and pyjamas? Oooh yes…

      • 

        ffhound on 01/01/2025 - 17:55

        Block-quote

        Would I have paid an extra $3.1k in cash to fly business class? Not on your nelly! Would I pay $780 for 28 hours of lounge access, decent food and drink, priority check-in, space, comfort, being able to lie out flat and get sleep, amenity kits and pyjamas? Oooh yes…

        /Block-quote

        Perhaps what is more the question is - would you still have paid the $780 extra if the 28 hours of flights were solely during daytime?

• 

  Jimothy Wongingtons on 11/06/2024 - 09:23

  just cash out your NAB points in the NAB store if you think its better value?

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  MELso on 11/06/2024 - 13:15

  +1

  Only convert to Velocity points if you intend to use them for rewards flights.

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  Some Guy on 11/06/2024 - 13:57

  I don't think there are any 1:1 CC point for airline point programs anymore? Perhaps some Amex cards go close but it's been ages since 1:1 transfers were common.

  20,000 NAB ——> 10,000 Velocity. 10K velocity (+taxes etc) gets you a BNE-SYD, CBR-OOL etc which if redeemed judiciously would be more valuable to most than a $100 gift card.

  • 

    HiDave on 11/06/2024 - 23:24

    That's an interesting point.
    Thanks.