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Credit card points

Discussion in 'Property Finance' started by Otie, 14th May, 2016.

  1. Otie

    Otie Well-Known Member

    Joined:
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    Location:
    Vic
    I currently only have a no frills credit card which does not earn any points on spends.
    I went on a comparison website last night,and had a go of the calculator thing that calculates how many points/what they can be used for based on your monthly spend.

    My husband and I would spend over 2k a month on work related expenses for our business (materials, petrol eye). Currently we pay for all of these types of expenses with our business debit cards.
    We also spend $1200 a month on kids school fees.

    I dont know I I did something wrong with the online calculator, but based on $1000 a month spend it said we would earn 80000 points per year.
    I looked at the points, and this was enough points for two return trips from Melb to Bali each year- is that right? Seems way too good to be true.
    The card did have a high annual fee of $450 however that would pay for itself in no time as we usually go overseas 2-3 times a year anyway.

    I'd like to hear from others that use credit card rewards points and see what they have to say about these.
     
  2. Azazel

    Azazel Well-Known Member

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    Brisbane
    I just got rid of a normal Visa, and signed up for a NAB Velocity Visa. 60k points if you spend $1500 in the 1st 90 days.
    Better than nothing.
     
  3. D.K

    D.K Active Member

    Joined:
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    Location:
    WA
    Claimed close to 200,000 points in the last 3 months spent about $6000
    Mad if you don't move your cards from bank to bank at least once a year to claim the points/promotions


    Current Credit Card Promotions
     
  4. D.K

    D.K Active Member

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  5. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
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    Location:
    Melbourne
    Just transferred 450,000 ANZ points to velocity. Received 225,000 velocity points plus 33,750 bonus points plus another 33750 bonus points due to a current offer so total of 292,500 velocity points.

    That's just over 1 business clas return ticket to UK ;)
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    CC points are now worth less and less since April. And for fares you pay taxes etc and the fare quoted for Bali may be a small discount. Do homework.
     
  7. House

    House Well-Known Member Premium Member

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    Sydney
    Been looking into this as have a normal credit card too but kind of impact does applying for cards have on your credit file?
     
  8. Cactus

    Cactus Well-Known Member

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    It reduces your score same as any credit enquiry. Best not to exceed 1 per year.
     
  9. Azazel

    Azazel Well-Known Member

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    Does it um, cancel out, if you cancel the old one at the same time?
     
  10. Kinnon Bell

    Kinnon Bell Finance Broker

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    Cairns
    Nope. On a credit reports it just shows a "continuing credit commitment" has been applied for. It does not show if you have cancelled the card.
     
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  11. Elives

    Elives Well-Known Member

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    can you break it down for me, spending 12k p.a = how many points via nab? and what type of points are they velocity etc?
     
  12. Cactus

    Cactus Well-Known Member

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    No.

    Not really worth it to be honest. Though if you don't mind the credit hits, you could get a overseas flight every year by churning a couple of sign on bonuses.

    I spend $20k+ per month on my credit card. Which is why it works for me.
     
  13. Elives

    Elives Well-Known Member

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    Queensland
    i ment for otie haha, cos i'd spend around the similar amount to them.
     
  14. Redom

    Redom Mortgage Broker Business Member

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    Location:
    Sydney (West) and Canberra
    The points are lucrative definitely - especially when opening new cards with all the massive bonus offers - just be careful doing swaps every few months if your looking to actively invest in the near future. It definitely doesn't assist a credit file if you have 4-5 credit card application. If its 1 then it shouldn't do too much damage.

    From a timing perspective, usually makes most sense to do after purchasing and not needing to go to the bank for a while. Time is a good healer of credit scores - so having multiple credit application 6-12 months ago is likely to impact less on bank credit scoring models than having a few just before the application is submitted.