Young Couple Looking for First Credit Card to Maximise Offset Account and Reward Points

jazattack on 08/01/2018 - 16:20

I'm not sure what kind of points I should be looking at, QFF vs Velocity vs Virgin vs (Whatever else there is)? Credit card will be used for everyday purchases and then paid off in full monthly (In order to maximise our offset account). We like to travel however only really get a chance to fly domestically once a year and internationally once a year as well. Have never flown business class and don't really value it as would rather spend the money on something else. What kind of credit card should we be looking for? Any recommendations?

Is something like this ANZ Frequent Flyer card a good deal for us? The AMEX deals that are constantly posted here look appealing but is not a necessity.

Financial

Comments

  • AusGP on 08/01/2018 - 16:53
    +1

    What sort of destinations internationally? What sort of spending amount are you aiming for? What credit card perks are you interested in?

    Also most frequent flyer programs are only really worthwhile for redeeming business class flights except for economy tickets during high season (e.g. Xmas or summer holidays). If cash is king for you then you can either sell your points or better off getting a Coles MasterCard and redeem for cash spend at Coles.

    • jazattack on 08/01/2018 - 21:04

      Really anywhere internationally except America. We love south East Asia but probably due for a new destination.

      We wouldn't spend more than probably about 4K a month and that's including mortgage and bills, but I understand some places charge you to pay with a CC,so would probably be less. The kind of rewards I'm after are free/discounted flights and possibly travel insurance.

      We do the majority of shopping at Aldi and only pickup 'other' things from Coles. Maybe selling off the points is the best idea and then using that cash to travel. Cheers for the response.

      • AusGP on 08/01/2018 - 21:44
        +1

        Given you are spending low amounts make sure you opt for a (relatively) low fee card (don't cheap out too much or the benefits aren't worth the card), or a card that has perks that offset the annual fee.

        Be aware of travel insurance terms. Some cards require you to book EVERYTHING with the card otherwise it might not be covered. On the other hand cards like ANZ rewards card only require $500 of travel expenses (flights/accom) to be paid. Commbank dont even require any spend at all for some of their cards. My current card will allow me to be covered even if I book with Velocity points.

        So it's a minefield but easily the travel insurance perks of a gold/platinum card will offset the annual cost alone if you travel once a year internationally.

  • ShortyX on 08/01/2018 - 17:22
    +1

    http://rewardscompared.com/cards

    We use Coles Mastercard as we don't fly much and shop mainly at Coles (and Coles Express for fuel).

    For every 2000 points, we get a $10 discount at Coles (automatically asks us once we have enough points during checkout or self serve).

    • teacherer on 08/01/2018 - 18:34

      +1 coles mastercard
      Earn $500 cokes gift cards in 8 months

    • jazattack on 08/01/2018 - 21:06

      Mainly shop at Aldi and definitely don't buy petrol from Coles often, it's always overpriced here :(

      • ShortyX on 08/01/2018 - 21:46
        +1

        You don’t have to shop at Coles or Coles Express as you still get points from other places (buying from Coles just earns them quicker). If you don’t care about frequent flyer points, then the Coles card is one of the best in terms of the return.

  • TheBilly on 08/01/2018 - 18:34
    +1

    I was looking into this recently as I was keen on the same idea however alot of the ANZ cards had like $150-$430 pa fees and $1 per point. I just wasn't sure if I would spend enough to warrant the fees, keen to see what others say.

  • pndl on 08/01/2018 - 19:29
    +1

    The Macquarie Bank Hilton card might suit you, no annual fees (subject to change), free night stay when you spend 10,000, for the first year you also get an additional night stay when you spend 2000. It earns 1 point per $, you could probably get a redemption at a reasonable hotel for 10000 points, so all up you're looking at 3 nights free accommodation at Hilton for spending 10000.

    • jazattack on 08/01/2018 - 21:05

      Interesting perspective, thanks for the response! I'll have a look at it.

  • The Champagne Mile on 12/01/2018 - 06:10

    The current 100k offer on the AMEX Velocity Platinum card (https://www.ozbargain.com.au/node/350794) might be worth considering? While my personal preference would be to use the points for business class travel, you could use the points for international economy travel with Virgin Australia, or partners including Singapore Airlines and Air New Zealand. And if you're only travelling once a year domestically, the free flight from selected cities and two entries to the Virgin Australia lounge might work for you.

    • jazattack on 12/01/2018 - 09:08

      I did see your post previously. The 375 annual fee is a bit steep though and not something I want to pay year after year for, however for the sign up bonus it seems decent. Can we transfer our points within the first year to another card with a lower annual fee and continue to use that if I can't find time to utilize the points (to purchase an international flight)?

      Edit:Also, at what point is the annual fee charged? Beginning/middle/end of year?

      • The Champagne Mile on 12/01/2018 - 12:20

        Hi Jazattack. The points sweep directly into your Velocity account each month, so you'll have access to them once you cancel your card, so long as you meet the criteria for keeping your Velocity account active (make one transaction every 18 months). The annual fee is charged at the end of the first month you hold the card.

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