Cash in Credit Card Award points??

Lsweepy on 25/02/2013 - 17:28

Hi guys,

Originally posted this on Whirlpool but i think i might get a better audience for this topic here on Ozbargain.

Wondering if anyone is in the same position as me. I have around 120,000 Commbank reward points. If I choose to redeem these for cash, this equates to around $600.

I'm wondering if i should save up anymore points, spend them on something like a coffee machine or TV or just cash them out.

An example: A Nespresso Essenza Coffee Machine would cost me 69,000 points (commbank price this at around $243.) Where as you could get this machine for about $129 on Amazon.

So far I am leaning to cashing out and then switching to Bankwest zero annual fee credit card. I could spend the money on fuel vouchers too.

What to do! Does anyone else have any experience or recommendations?

General Discussion

Comments

  • ilostnemo on 25/02/2013 - 18:04

    I always cash mine in, its awesome, I pay the credit card on time so it's money for nothing.

    • inasero on 25/02/2013 - 19:05
      +1

      It's funny I was in the exact same situation the other week. I figured it's cheaper to redeem them for gift cards, and the best value for money varies depending on the card you choose - do your maths before you take the plunge.

      For example, if I remember correctly I got 15-20% more when going with the Coles gift card option as opposed to direct credit back into my account.

  • twodollah on 25/02/2013 - 18:21

    Generally the best value for money is always with gift cards. I bundle all my CC to my QFF and use these points for flights or upgrades which represents the best value for me. However, YMMV.

    • PotPlant on 25/02/2013 - 20:29

      I agree here with twodollah.
      I have a Citibank citibusiness gold visa which gives 1.25 points per $1 spend, my hubby and I just quietly use the cc for EVERYTHING, and every four or five years we have enough QFF points to fly business class RTW.
      Alternatively, we could have frittered the points away on gift cards, but we prefer to be patient and get the BIG reward at the end. International business class RTW are easily $20000.00-$250000 per couple. Again, that's just our viewpoint. Points collecting can be VERY ADDICTIVE once you start!

  • tonka on 25/02/2013 - 21:13
    +1

    I did the sums on this once and found QFF by far the better value.

    • sweepy on 25/02/2013 - 23:00

      Awesome this sounds good however it doesnt look like I can spend them on QFF with Commbank awards :( This 120k worth of points represents the first time ill ever redeem and rewards with my credit card so i want to make sure I spend them wisely. Fuel cards only represents a mediocre value for money when comparing with cashing in for money. hmm i think ill just get the cash.

      • sweepy on 25/02/2013 - 23:06

        correction looks like i can redeem for 60k Virgin Velocity points. Will investigate further and see what sort of an airfare i can manage!

        • tonka on 26/02/2013 - 04:01
          +1

          make sure you check whether you have extra charges when comparing, with qantas you still have to pay the taxes yourself.

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