Which credit card to start with?

[Reidy88]

Hi Guys,

I am very new to not only this forum but the concept of point accumulation. I don't have any credit cards yet and am hoping someone can help me in the right direction.

Should I start small with a $0 annual fee like the Amex Qantas discovery card or go for the new Amex Explorer to get the bonus points? Also if I did go the explorer are you able to switch to the Amex Qantas discovery after 6-12 months to avoid further annual fees?

I have read some posts and you all seem to have lots of knowledge in this field some of which I have yet to understand. I have had a credit card in the past but nothing like this.

Feel free to flood me with your tips, hints, tricks and advice! Happy travels!

 

[cjd600]

Hi Guys,

I am very new to not only this forum but the concept of point accumulation. I don't have any credit cards yet and am hoping someone can help me in the right direction.

Should I start small with a $0 annual fee like the Amex Qantas discovery card or go for the new Amex Explorer to get the bonus points? Also if I did go the explorer are you able to switch to the Amex Qantas discovery after 6-12 months to avoid further annual fees?

I have read some posts and you all seem to have lots of knowledge in this field some of which I have yet to understand. I have had a credit card in the past but nothing like this.

Feel free to flood me with your tips, hints, tricks and advice! Happy travels!

I'd go with something with a decent sign-on bonus to get started.

I just cancelled Amex Qantas Ultimate due to fee being due, they offered a transfer to fee-free Qantas Discovery

 

[Steady]

Welcome aboard Reidy88,

What sort of things will you use your CC for? Do they take Amex? Maybe you need 2 cards - an AMEX and a MC or Visa? Is your income sufficient for platinum or black level cards?

 

[Reidy88]

Hmmmm I guess I would just use it for general spending, groceries, fuel. I do need a new computer and a couple other things for a trip I could purchase through online stores to help boost points. As I said i'm very new to this - I don't even know what an MC is :shock:. I gross about 70K so I have no idea if my income is sufficient for those cards what does it need to be? Apologies! I have a lot to learn!

My goal was to get myself and the partner to South/Central America for free/heavily discounted...

 

[Steady]

MC = MasterCard

I believe many on AFF would recommend the Amex Edge as a good/the best points earner for groceries - but there isn't a big signup bonus on it. The Explorer seems like a good card, it has a generous signup bonus, good earn rate, and the annual fee is pretty well offset by the travel voucher.

If you plan on one of the other Amex cards (not available on the Explorer) make sure you use a referral as both you an the referrer will get extra points - there is a referral thread on AFF. Once one of you have the card you can refer your spouse.

There are lots of signup bonuses discussed in the "current credit card offers' thread

 

[Reidy88]

Ah sorry, so obvious.

So from what I've read, sign up bonuses are the best way to get points fast which is why I was leaning toward the Explorer with the 100,000. No other card seems to have that. Plus as you say all other features are acceptable.

I was reading terms and conditions though and Qantas is not one of the redeemable airlines. If I get other cards with Qantas points is there an airline i can use both types of points on? Such as Singapore Krisflyer or Emirates?

 

[Steady]

Ah sorry, so obvious.

So from what I've read, sign up bonuses are the best way to get points fast which is why I was leaning toward the Explorer with the 100,000. No other card seems to have that. Plus as you say all other features are acceptable.

I was reading terms and conditions though and Qantas is not one of the redeemable airlines. If I get other cards with Qantas points is there an airline i can use both types of points on? Such as Singapore Krisflyer or Emirates?

Have a look here for current offers - plenty of them have bonus QF points.

The 100,000 bonus MR points that come with the explorer can convert to 75,000 velocity points (or Krisflyer and others). If you wanted them all to go towards one program maybe get a NAB Velocity platinum (amex/Visa combo) with 75,000 bonus VA points

Spend time reading AFF and you will discover how to get very good value from the bonus points, but it would also be a good idea to start reading up about award flights - they can be difficult to get and QF charge some hefty taxes. It is a good idea to understand this at the beginning because in 6, 12, 18 months time when you go to book the flights, you will find the reward flights are far from free. Reward tickets in the premium cabins - business (J) and First* (F) can be had at "heavily discounted" rates, but with economy (Y) it is often more economical to just pay for the tickets.


*I don't think F is available on QF to South America but it applies to reward flights in general.

 

[Reidy88]

MR? Sorry i don't know all the abbrieviations yet. Thanks for all the info. With awards flights aren't there ways around QF taxes such as using an affiliate like American Airlines? I'm still trying to understand there's a lot to understand for someone who doesn't even have a CC!
I wasn't too concerned about one program. I just read in the Gazette "It doesn't pay to be loyal" but I think I mean flexible points. Ones that could be used for a variety of airlines or affiliates? Anyway I'll get reading!

 

[Steady]

The 100,000 bonus points you get with the Amex Explorer card are Membership Reward (MR) points - have a read up about them as there are 2 MR programs that different Amex cards accrue into

You can avoid QF taxes by using American Airlines (AA) but not using the bonus points* you are getting on the CC signup deals

*you could transfer the 100,000 MR points to 50,000 SPG points then transfer them to AA I think.

 

[cove]

Our staff and their partners are signing up for the NAB cc that costs $150 and gets you 75,000 Velocity points. You would qualify for this based on your stated income.
There are several others of course with pretty sweet sign ons right now.

 

[lovetravellingoz]

My goal was to get myself and the partner to South/Central America for free/heavily discounted...

Firstly: Frequent Flyer Points do not provide generally free flying. It is best to think of them as a way of accessing cheap, and hopefully extremely cheap, flights.

There will often be some form of acquisition cost in cash and time. Annual Card Fee, surcharges on some spend. Though on some cards like Edge the free flight that comes with it may be worth more to you than the annual fee. Cash back deals on spend may also offset the card fee.

And on redeeming flights there will normally, but not always, be taxes and charges to be paid. This can vary enormously. ie Only $57 for one flight in business to Nairobi from Melbourne (On Eithad booked via Velioity) to say about 400/500 typically for Melbourne to Europe on Singapore Airlines booked through Krisflyer.

Secondly: There is not a one size fits all answer as our circumstances are all different. However the answer will probably not be which card, but rather which credit cards as several will for many people achieve a superior result.


Availability: And in particular if you want to fly in Business or First. QFF is not as good as other programs IMO.
Routes: Look where you want to fly
Your circumstances: What is your and your partners yearly spend?, Do you have business spend.
Currently: Churning through cards to maximise sign-on bonuses is probably going to be the most lucrative way for say about 90% of the Australian public to grow their FF balances


FF Programs:
- Consider being in 2 or more so that you can maximise various earn and redemption offers that come and go
- Different FF programs can be better on different routes
- Don't just think airline, but look at what you can do with that FF programs alliance, and also look at Partners awards which sometimes are good value. ie in QFF you may be best redeeming Oneworld and partner redemptions rather than just on Qantas Planes.

 

[Reidy88]

Thanks lovetravellingoz. Wow it's overwhelming all the info. It's a new world and lingo to me.

So I have signed up to velocity, QFF, and Krisflyer. I was leaning toward QFF points as I already have some points from a woolworths rewards card and well you tend to stick to what you know.

I understand there is no free travel but cheap is what i'm after. I am wanting to get to central or south america and was thinking of sticking to Qantas points to go on American Airlines or another cheaper affiliate.

From what I have read, as you say "churning' cards will be the best way for me to gain points as our average spend is not high. Hence why we have no credit cards - we normally save for everything we want. Initially I thought credit cards were the devil but after reading some interesting articles on travel hacking (i know that's not a well loved term) I can see the benefit is they're used properly.

Because I am just starting out I don't want to get in over my head with too many cards so trying to select a few that will maximise my points and rewards. I guess I will research a couple of alternate routes as we're flexible about where in central/south america we fly and see which flights will be best.

I just find all the different rewards programs convoluted as it's all new. I have signed up to point hacks email guide and will keep reading but wanted to select a card to start earning points straight away.

One more question, If i sign up to the Explorer, that means I don't get sign ups on any other Amex? Can you change/ transfer to a diffrent Amex? For example if I got the Explorer and used that for 6 months and then changed to the Edge card do they do that? Sorry if my questions are silly. Just so much info to scour!!!

Our staff and their partners are signing up for the NAB cc that costs $150 and gets you 75,000 Velocity points. You would qualify for this based on your stated income.
There are several others of course with pretty sweet sign ons right now.

I know there are too many!! My head is spinning! HAha

 

[lovetravellingoz]

and well you tend to stick to what you know.

Generally over time this is an extremely poor strategy (ignoring relationships!!!!).

Sage advice I was given early in life is to never stop learning. As your learn more opportunities present. Some short-term and some long-term. Circumstances change, and so what is "best" is a moveable feast whether it be FF points, investing, travel etc etc.


Now QFF may well be the best FF program for you, but just because you have some QFF points already is no reason to make it your preferred and/or only program going forward.

What is best is different for each of us and as you build your FF knowledge base you will be able to devise your own best straegy. though also note that the FF game keeps changing ie transfer rates being changed, redemption rates changing etc etc) and so over time you will no doubt have to twaek or even radically change your own strategy.



PS: Acquiring FF points is not always best either. ie Some energy plans have sign-on bonii, but the plans are very expensive.. My green grocer offers no FF points, but has better and cheaper produce. etc etc

 

[samh004]

I have moved your post to the general credit card discussion forum even though your first post was in introductions. If you'd like to create a thread there again with an introduction, that would be all right.

 

[Skyhawk]

Reidy88, You have asked some good questions...and been given valuable answers. There is a lot of potential in credit card points, I believe. I have spend hours (mostly) on this site, and others. A bit overwhelming at first, but I am going to apply for a couple of cards this week. Otherwise it is easy to suffer from 'analysis paralysis'.

 

[Steady]

Reidy88, You have asked some good questions...and been given valuable answers. There is a lot of potential in credit card points, I believe. I have spend hours (mostly) on this site, and others. A bit overwhelming at first, but I am going to apply for a couple of cards this week. Otherwise it is easy to suffer from 'analysis paralysis'.

Which ones have you decided to go with?

 

[Skyhawk]

NAB velocity & Amex Explorer. What do you think about those for someone who only has Westpac Altitude?

 

[Steady]

NAB velocity & Amex Explorer. What do you think about those for someone who only has Westpac Altitude?

I am holding both atm along with the J* MC.
The NAB Visa doesn't have a very good earn but the 75K signup bonus was what I was after.
What did the NAB Velocity signup bonus drop to after October 2nd?

 

[Skyhawk]

I don't know as I applied for it before that date.

I would like to know more about the security of the referrals links on AFF. Is there info about that? I can't find anything.

 

[get me outta here]

I checked the latest NAB link and it went to 20K I think was. Unless someone's found a better link.

The WOW card at $99 with 40K QF points is a reasonable earn and burn.

I am holding both atm along with the J* MC.
The NAB Visa doesn't have a very good earn but the 75K signup bonus was what I was after.
What did the NAB Velocity signup bonus drop to after October 2nd?

Not sure what you mean "security". Usually we post links because we see a good deal which is equally available elsewhere on the interweb, and sometimes we find good deals what we stumble upon and most people would not find. As someone else mentioned, go to AFF referrals under the 'Discussion' tab, as those are often better deals for both the applicant and the referee.

And, for newbies in general, have a good look around the 'Discussion' tab and see how this site works.

I would like to know more about the security of the referrals links on AFF. Is there info about that? I can't find anything.