Overwhelmed with Credit Card Choices, Need Some Hand Holding

ausmechkeyboards on 18/04/2018 - 20:28
Last edited 18/04/2018 - 20:33 by 1 other user

I earn a low(er) six figure salary and have no debt whatsoever. I'm looking to get a credit card(s) mostly so that I can get points, lounge passes or whatever.

Can anyone recommend one or two? Is there an issue if I apply for two? (I imagine different cards would have benefits for different things which is why I'm mentioning two).

Additionally, could anyone suggest amazing historical deals that might not be active anymore but are a good example of what to look for when looking at CC deals.

Thanks!

Financial Credit Card

Comments

  • Detective Pikachu on 18/04/2018 - 20:31
    +2

    OzBargain has a decent wiki page here.
    For current offers check here.

    Also, read up on reviews for each card, service varies vastly among providers.

    Less is more, I guess for security and expenditure tracking reasons.

    • ausmechkeyboards on 18/04/2018 - 20:44

      It's the Wiki page that overwhelmed me, for what it's worth.

      On every offer page I see one-liners that put me back to square one - people suggesting other cards for example.

      I'm currently looking at this one, which is VISA. Could you recommend an AMEX one I should check out?

      • bluedufflecoat on 18/04/2018 - 21:57
        +1

        Fee free or pay a fee?

        Amex qantas discovery is free, I believe you get sign up bonuses if you use a referral. There is also a Virgin Velocity version and another Essentials version that does not tie up with any airline, usually it’s 1 point per $1.

        Otherwise, the Explorer card costs $395 a year, and you get $400 AMEX travel credit back per year and the earn rate for rewards points is higher, I think 3points per $1.

        • ausmechkeyboards on 19/04/2018 - 07:34

          I don't really mind either way if it's fee free or not. As you mention, the fee included ones usually offer something that negates it. Should I look out for any specific AMEX Explorer deals? Could you link to some you recommend?

        • bluedufflecoat on 19/04/2018 - 08:01
          +1

          @ausmechkeyboards:

          This one links to explorer. But most people have said they have promos (though ended recently) where you get 100,000 MR points. So if you have patience, wait for an equivalent offer to come back. Also, looks like the earn rate is less than I remembered, so perhaps that's been changed. https://www.ozbargain.com.au/node/372457

        • ausmechkeyboards on 19/04/2018 - 08:02

          @bluedufflecoat:

          Great, thanks. Do you recommend I go for the ANZ card I linked?

        • bluedufflecoat on 19/04/2018 - 08:06

          @ausmechkeyboards: the sign up bonus is pretty good, but after that the annual fee doesn't look like it's worth it, so you might want to cancel after that. Depends on how often you want to do all the related admin to get the the biggest bang for your buck and the query on your credit file.

        • ausmechkeyboards on 12/06/2018 - 10:42

          @bluedufflecoat:

          Hey, follow up! What do you think of this: https://www.ozbargain.com.au/node/381029

      • Gandalf the Thrifty on 18/04/2018 - 22:31
        +1

        The Anz Frequent Flyer Black you linked is free for first year so would get that to initially boost points. Cancel before 12months and find better long-term card.

        • ausmechkeyboards on 19/04/2018 - 08:06

          Do you have any examples for what you'd consider to be a better long-term card?

        • Gandalf the Thrifty on 19/04/2018 - 08:20
          +1

          @ausmechkeyboards: that's up to your spending habits, likely flights per year etc. Some cards have high fee but get free domestic flights & lounge passes etc so maybe worth it for some people and points per spend are usually higher than the free Qantas/Virgin amex cards.

  • dogboy on 18/04/2018 - 21:35
    -1

    You should read the barefoot investor. Might make you change your mind about getting a debt card and understand how useless the rewards systems are.

    • mskeggs on 18/04/2018 - 21:55
      +4

      If what you are saying is what is in the book, I don’t think I’ll be reading it.
      A free Amex gets you various bonuses like shopsmall, cashback offers etc.
      Using it to pay your bills and paying it off in full each month allows you to accumulate points.
      Historically, this has been so generous that the ACCC stepped in and forced them to reduce merchant fees, as all the people without cards were subsidising the card users.
      It is less so now, but there is no reason not to use one if you live within your means.

      • dogboy on 19/04/2018 - 09:57

        I believe what is said about them is that most people do not have the discipline to pay them off each month and it is easy to get into a lot of debt with them.

  • ctd on 18/04/2018 - 22:25
    +2

    There is a LOT of depth once you go into the various rewards/perks of premium cards.. it's no wonder you're overwhelmed, and depending on how hard you want to game it won't get easier.

    Here's some basic pointers to get you started:

    • American Express cards generally have the most generous rewards programs, but are not consistently accepted. If you get an AMEX, be prepared to have a backup Visa/Mastercard.
    • Credit Cards have the most generous perks when you sign-up — large point bonuses, reduced fees, etc. It's common for people to regularly "churn" through card providers to make the most of these.
    • To work out the actual value of reward points and compare them between cards takes a lot more work. A point in one system is different to a point in another, and depending on what you redeem the points for they have a different dollar value.
    • What card is best for you also depends on how much you'll spend. You should at least work out how much you need to spend to break-even on fees to work out if the card is worthwhile.
    • ausmechkeyboards on 19/04/2018 - 08:06

      Thanks for the great feedback. Does churning through credit cards have a large impact on your credit score?

      • Detective Pikachu on 19/04/2018 - 08:11
        +1

        Not sure about credit score, but it'd place an indication of your loyalty to a particular provider.

      • Gandalf the Thrifty on 19/04/2018 - 08:30

        Govt changed reporting recently so more credit applications now show on credit file not sure if affects credit score that much yet.
        Be aware that having Multiple active credit cards can reduce the max amount you can get when apply for a home loan.

      • ctd on 19/04/2018 - 19:40

        To be honest, I don't know… but it seems as though enough people do it that it can't be too hard.

        I'd probably avoid it if you're preparing for a large loan like a mortgage home loan.

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