Signing up New Credit Card for Bonus Points

Hi all

I wanted to ask, im thinking about going into the personal credit card points system benefits etc..

From what i understand (correct me if i am wrong), people sign up for the first year points bonus and then cancel it.

Change banks to gain another 80-100k points cancel the next year and repeat.

(I understand there is usually a must spend a few thousand dollar for first few months)

I plan to use the points for business class upgrades.

I know there was a post before that went into great depth but i can't seem to find it.

Thanks

Comments

  • +3
  • +5

    It sounds like you already understand how to do this - what aspects are you not sure about?

    • So just some extra reading, i noticed that they allocate points over each month?

      Also, it's not possible to re-sign up with the same bank the next year is it?

      Do banks catch onto this when you keep cancelling etc.

      What are the cons of doing this in general?

      • "Do banks catch onto this when you keep cancelling etc."
        probably. just keep trying

        'What are the cons of doing this in general?"
        credit record affected of course

      • There is usually a period before u can reapply to get the bonus points. For eg. Amex is 18 months (as I'm aware) but best u check with the promotion before you apply.

        Yes each application is a check on your credit report. Other factors that banks may look at if you were applying for a loan would be number of credit cards and credit limit. How much all of these factors impact (and the magnitude of that impact) I couldn't tell u.

      • +2

        Lot's of terms and conditions, every bank will do it differently. Our experience with ANZ was that the bonus QFF points were paid out at the end of the statement period where the bonus point criteria was met. But they do have clauses around it being up to x days/months.

        Every credit card application (or approved credit, not sure on this technicality) is recorded on your credit history. Other banks see that you've applied for x number of credit cards, personal loans/home loans within a certain period. They can query you as to why you've applied for so many, or used so many different cards. They see some details about the application, but not much at this point. So they can make assumptions and assume risk based on these records that may not reflect your actual position. There's a lot of movement in this space regarding Open Banking, which will allow banks to share this sort of data around, so they can see exactly what your balances are and each of your transactions, to get a better picture of your affordability.

        The Royal Commission has forced this upon them to query transactions and expenses much more thoroughly, so while the commission was meant to benefit customers, some will see the banks delving in to their expenses a lot more and see it as an invasion of privacy (why do you have this subscription to Spotify, or why did you choose that gym membership when it costs x more than the average). It's also produced an extremely horrible side effect for some people with home loans. Where they were "affordable" before, upon refinancing they may no longer be affordable for the same size loan with a lower interest rate. Effectively locking them in to a loan where they are severely disadvantaged compared to other FI's or products.

        If you have used cards, or have active cards, banks can assume a base/minimum amount of outstanding balances on each of these cards and take than it to consideration during your credit assessment.

      • Correct, generally points earned during a statement period are transferred to your Qantas account in the few days after your statement is issued.

        Each bank has a period you must wait before you can sign up for their card again and earn the bonus points - normally 12 months - read the T&Cs for each bank to see this.

        I have never had a bank refuse to pay me bonus points because they have “caught on”. I waited the time they stipulated in their terms so they can’t really deny you the points.

        No cons as far as I can see, just keep an eye on your credit rating.

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