First Credit Card (Purely for Points)

Hi OzBargainers, I'm looking to apply for my first credit card but haven't found any really enticing options so far.

I'm currently in Uni with a comfortable amount in savings and earning ~$15k/year off my job with some crypto earnings on the side too. I understand this is significantly lower than the necessary income to apply for most of the credit card deals on here and I hadn't found any other posts which were of younger people with lower incomes looking for ways to start accumulating points.

I don't spend more than $500-$750 a month and would fully intend to pay off my credit card basically instantly. I'm looking not because I need the credit, but because it feels like a waste making all these purchases without getting anything for them (I like points) and was hoping some of you out there might have some pointers, suggestions or advice.

I was tempted by the Bankwest Debit Transaction Account but it didn't make sense when I can earn more real money in a standard savings account rather than half the dollar value worth of points. I believe Qudos had a similar account which had a better interest rate (with the added bonus of QFF points) but it still wasn't worth it.

Thanks in advance for any help!

Comments

  • +1

    Do you have parents nearby? Best strategy at your age & income level is to get an additional card on another person's account.

    • why would this be a good strategy? the parents would just get the points.

      • Parents would transfer OP's share of the points, that's what I do for my offspring

  • +1

    Virgin…………….credit card

  • +1

    You want to start with one of the low rates credit cards - they have low credit limit and should be suitable with your yearly earning.

    ANZ Platinum Credit Card: $300 Cashback with $1,500 Spend in 3 Months, No First Year Annual Fee ($87 p.a. Thereafter)

    CommBank Low Rate Credit Card ($6 Monthly Fee): $100 Monthly Cashback for 4 Months with $500 Monthly Spend @ CommBank Yello

    NAB Low Rate Credit Card: $300 Cashback with $1,500 Spend in 90 Days ($59 Annual Fee or $30 for Existing NAB Customers) @ NAB

    Read through the description and comments to make sure you understand what is/isnt eligible (pretty much all bpays are not eligible from my experience), and things to be aware of. For example the commbank deal, if you're getting cashback with yello, make sure your spend is over $500 even with the cashback.

    • -2

      You want to start with one of the low rates credit cards

      Doubt they'd be approved…

  • +1

    Have you looked into HSBC Everyday Global Debit Card? You get 2% back on Tap and Pay transactions under $100. So for every dollar spent, you get 2c back whereas standard points earning credit cards would give you only 1 VFF/QFF point per dollar spent which is worth around 1.3 ~ 1.4c.

    • This actually looks like a really good option, looking into it more now. Thanks heaps!

      • You will be eligible for Everyday Extras if you deposit at least AUD2,000 into your HSBC Everyday Global Account before the last working business day of each calendar month.

        • From my understanding I can put in $2k and then take it straight back out into a savings account right?

          • @UltraDec: Maybe, but why not just spend down from your debit card account?

            • @sumyungguy: That’s single digit dollar interest each month mate

              • @askbargain: I think you've mistaken me for someone who's advocating for this debit card… which I'm totally not. I was noting that someone who earns $15K per year is not gonna reach the $2K minimum deposit that often

                • +1

                  @sumyungguy: someone who earns $15k can easily have $2k in savings. Chuck $2k in, take it out, you activate 2% cashback.

                  Keeping $2k in there and constantly depositing $2k to a transactional account with no interest is just a waste of money.

                  • @askbargain: OP's top return would be 2% on spending of up to $750. CBA's GoalSaver pays 4.5%. All this without knowing how much crypto income OP is earning.

                    • +1

                      @sumyungguy: 2% instantly vs 4.5% held over a year.

                      • -6

                        @askbargain: You stick with that rubbish HSBC card. GoalSaver bonus interest rate applies to your entire balance, calculated daily and paid monthly.

                        • @sumyungguy: You don't need to leave $2K there for entire month. Just enough for daily spending and topup as needed.

                          I'm using HSBC mostly for lunches/coffee at work, and some random under $100 purchases. Transfer into it 1st of every month, withdraw out $800 on 2nd of the month - all fully automated schedule. Then just topup when i needed. Anything larger than $100 or pay online, I'll put it on my other credit card that earning points.

                          Average get cashback around $25-35/month. Tell me any debit cards that can give me that kind of return.

                          • -2

                            @timhn: Works for you because you're spending $1,250 a month to get back $25. In a good month OP would spend $500 to gain $10. Not gonna get rich with that level of financial literacy, but at least gamed the $2K minimum deposit. Winning!

                            • @sumyungguy: I’ll dumb it down for you.

                              Keep money in savings. Earn interest normally.

                              Transfer 2k into HSBC, transfer 2k back into savings. You lose 30cents on interest here.

                              From your spend that month, you get 2% cashback.

                              If you’re going to spend, you might as well get some cash back.

                              If you choose not to use HSBC, it’s like using cash, no cash back.

                              • -2

                                @askbargain: Only because I despair for the financial literacy of our nation, I'll dumb it down for you if that's even possible. The effect of having to keep $2K in play at the end of each calendar month deprives OP of some bonus interest. If OP spends at the higher end $750 and is able to make 100% qualifying spend for the 2%, OP will be ahead by $7.50 per month. If OP spends $500 the monthly yield will be $2.50. Perhaps in your own scenario you're running a tidy profit centre, but for OP this is rubbish advice. My initial tip: try to get a credit card so you're borrowing money interest-free from a card issuer.

                                • @sumyungguy:

                                  The effect of having to keep $2K in play at the end of each calendar month

                                  What do you mean by keep it in play? Transfer into HSBC and out on the same day. There’s no hold.

                                  There’s literally 2 statements you don’t understand.

                                  1. Savings account doesn’t pay you to spend, HSBC does.

                                  2. To qualify for HSBC cash back you don’t need to keep a large amount of savings in there. You only need to deposit 2k and you can immediately withdraw it. Then he can keep $100 or so in there when he wants to use it. How much does CommBank pay to spend?

                                  Feel free to talk to ChatGPT if you still can’t wrap it around your head.

                                  If you want a figure value, if OP spends just $15, he is already profiting from this account.

                                  If you are bringing credit cards into the conversation, if it doesn’t earn points (which he won’t if it’s annual fee free), then his return is <1% from earning interest instead of paying upfront. 2% > 1% if it isn’t clear.

                                  Also note how nobody is upvoting your incorrect comments.

                                  • -1

                                    @askbargain: OMG, you've gotta have $2K in reserve to deposit at the end of each month, then sure take it back out, but then you need to have it available again the next month. No one is upvoting because I’ve seen from other discussions there are lots of dumb ass financial illiterates who think this card is a winner. HSBC loves you. Savvy people use credit.

                                    • @sumyungguy: Lmao I didn’t downvote you. If you don’t have $2k in ‘reserve’ to deposit each month then what good would 4.5% interest do? (You can also do 2 deposits of $1k or 4 deposits of $500 but what do you know)

                                      https://www.ozbargain.com.au/node/779680

                                      Look at all these illiterates liking the account.

                                      https://www.ozbargain.com.au/comment/13858241/redir

                                      • @askbargain:

                                        You can also do 2 deposits of $1k or 4 deposits of $500 but what do you know

                                        That's a good point, by my calculation, you can transfer in-out $72 each day (automated of course) for 28 days and it will still activate the cashback.

                                        Based on what sumyungguy said,

                                        If OP spends at the higher end $750 and is able to make 100% qualifying spend for the 2%, OP will be ahead by $7.50 per month. If OP spends $500 the monthly yield will be $2.50.

                                        I am starting to think that sumyungguy is missing something with his/her calculation. 2% of 500 is $10, no?

                                        He/she also said,

                                        Savvy people use credit.

                                        But obviously for someone earning 15k per annum is going to be tough to get credit card let alone credit card with good points.

                                        • @juns:

                                          I despair for the financial literacy of our nation

                                          he needs to look in the mirror

      • Hi OP, just a heads up if you are also getting that account.

        If you intend to use it in Apple Wallet, I heard that they are starting to implement something called "least cost routing" meaning if the card support Visa and eftpos, it will go through eftpos and you will lose the 2%

        I haven't seen that happening yet, but just something to keep it mind of.

        • Thanks for the heads up, have an android tho :)

  • I really doubt you'll get a cc with only $15k income.

    Have you checked your credit score? (not that it's the only thing that matters)

  • I'm currently in uni with a comfortable amount in savings and earning ~$15k/year

    You can't get credit card with that income but you could try your luck with Coles Mastercard. Or as someone above said, additional card off parents.

  • -4

    if you can spend 7k in 3 months this is probably the best offer on the market https://www.ozbargain.com.au/node/845638

    Esp if you plan on travelling 2 loung passes are worth 35 USD (~$52AUD) each the points equats to about $800

    the travel insurance includes rental cars which is important for me worth a 12month venture

    • +1

      OP is on 15k/year. No way he can get a card with $10k minimum credit limit.

  • +2

    you dont have the income for a credit card. You need to find the best DEBIT card.

    Maybe has some rewards.

    Look at ing orange everyday, bankwest debit

    Cashbacks usually require $2k to be deposited every month. You dont meet that threshold. So you'll probably find that credit cards and debit cards wont provide deals.

  • Focus on your studies, at your income/spending level, a cc rewards program will be as pointless as your crypto ‘investment’.

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