Credit card rewards now virtually worthless as value plummets 96 per cent

[andye]

...
That feature saves my wife and I stacks of money, especially when we travel overseas for more than a month and can suspend our local health insurance. That value swamps the cost of the credt card fee for us.

Thanks for that Renato1. I have a feeling I've heard of suspending private insurance before but you've put it properly into my brain for the next opportunity

 

[p--and--t]

Tip: If you are going to rely on any travel insurance (including the complimentary from the cc companies) double and triple check the length of time you are allowed to be away from home in a single trip. Some are 60 days, some are 90 days etc. Also, all cc insurance policies are not the same; some are relatively stingy and don't cover some major items, others are almost identical to the better paid policies.

 

[Renato1]

Thanks for that Renato1. I have a feeling I've heard of suspending private insurance before but you've put it properly into my brain for the next opportunity

My fund requires being overseas for 28 or 30 days (can't remember which) before I can suspend.
Makes it worthwhile having a long holiday, or stretching a holiday if it's a tad short.
Regards,
Renato

 

[Dr Ralph]

Fake news.

 

[deebens]

There was another one in Fairfax this week, forgot to get the url, travel writer dropped the line return business tickets to Europe on points were almost impossible to get this time of year. Went to Qantas and found 3 options to 3 different cities in no time at all. Out on CX and back on EK. Anyway if they want to discourage people from looking, fine by me.

 

[daft009]

@deebens do you have any QFF status?

 

[carls888]

We just spent 9 weeks overseas and I had suspended my health insurance to save a few $, but my accountant told me to reverse that as the medicare rebate can be charged at a higher rate and would cost just as much, if not more, of the savings. (I am not sure of the details, but I did just leave it.)

 

[kelvedon]

We just spent 9 weeks overseas and I had suspended my health insurance to save a few $, but my accountant told me to reverse that as the medicare rebate can be charged at a higher rate and would cost just as much, if not more, of the savings. (I am not sure of the details, but I did just leave it.)

The Medicare surcharge applies if you don’t have private health insurance and have an income greater than 90k singles and 180 couples ( not sure exact figure) and so probably wouldn’t apply to many retirees

 

[pauly7]

Well I for one think it’s a great article thanks no news

 

[deebens]

@deebens do you have any QFF status?

Not with QFF. Never had a problem redeeming a flight though.

Edit: I should add I'm pretty flexible, but apart from Xmas which is an obvious dead zone, there's usually something floating around.

 

[p--and--t]

Not with QFF. Never had a problem redeeming a flight though.

Edit: I should add I'm pretty flexible, but apart from Xmas which is an obvious dead zone, there's usually something floating around.

Exactly - That's the key - flexibility and creative searches. If you can't find simple A to B return, search for A to C to B then B to D to A. Booked a RTW via a number of stops in J only a few months out by looking around. There are seats out there if you are flexible.

 

[mviy]

I'm earning lots of points (well lots imo at least) mainly from credit card sign up bonuses but also some from flying, Uber trips to the airport and a little from Red Planet. My points balance reached its highest ever level this year and I expect it to reach a new all time personal high next year unless I decide to splurge a lot of them on a big trip.

 

[lovetravellingoz]

Nothing has really changed. Just the opportunities are different, but they are still there.

In terms of the bulk of the population, they earn not that many points and they struggle to redeem fora flight they want if they do eventually end up with a stash of points after years of accumulation.

Whereas the outliers, such as many on this forum acquire points with ease and redeem in the pointy end for when and where they want.

'Live long and prosper'

 

[p--and--t]

Nothing has really changed. Just the opportunities are different, but they are still there.

In terms of the bulk of the population, they earn not that many points and they struggle to redeem fora flight they want if they do eventually end up with a stash of points after years of accumulation.

Whereas the outliers, such as many on this forum acquire points with ease and redeem in the pointy end for when and where they want.

'Live long and prosper'

Totally agree - while things change all the time, the opportunities remain for those who educate themselves and are diligent in collecting.

While I haven't (as yet ) indulged in card churning or signup bonuses, I religiously avoid paying for anything in cash if I can avoid it even for a $2.50 purchase at the supermarket and always scanning my Everyday rewards card or FlyBuys card has resulted in my partner and I having a RTW sojourn in J this year on OW (280K redemption for each of us)

 

[lovetravellingoz]

While I haven't (as yet ) indulged in card churning or signup bonuses,

Embrace the darkside.... it's been an addiction of 3 decades for myself

 

[Einherjar]

I religiously avoid paying for anything in cash if I can avoid it even for a $2.50 purchase at the supermarket and always scanning my Everyday rewards card or FlyBuys card has resulted in my partner and I having a RTW sojourn in J this year on OW (280K redemption for each of us)

In such cases like these is it worth getting hit for a ccard surcharge for points? I have a number of direct debits from my offset account because the surcharge incurred 'appears' to outweigh the points earned (also including the offset increase with 55 day interest free). Would like to know your thoughts as I prioritise 'no fees no matter what' attitude.

 

[lovetravellingoz]

In such cases like these is it worth getting hit for a ccard surcharge for points? I have a number of direct debits from my offset account because the surcharge incurred 'appears' to outweigh the points earned (also including the offset increase with 55 day interest free). Would like to know your thoughts as I prioritise 'no fees no matter what' attitude.

Most assuredly so. The only question is how much surcharge before you reach break even, and then lose.

This varies:

• As you may be earning from 0.5 to 3 points
• On what you redeem
• If the expense is is tax deductible (ie on business expenses it is)

 

[p--and--t]

In such cases like these is it worth getting hit for a ccard surcharge for points? I have a number of direct debits from my offset account because the surcharge incurred 'appears' to outweigh the points earned (also including the offset increase with 55 day interest free). Would like to know your thoughts as I prioritise 'no fees no matter what' attitude.

Horses for courses.

Use the right card from the right supplier in the right way for your personal circumstances.

Woolworths and Coles and their associated discount service stations and several other merchants have no credit card fee regardless of card or size of transaction.

So for example you can use your Diners card there and earn 1:1 QFF points unlimited monthly, unlimited annually. A side benefit is that out side Australia there are hundreds of airport lounges you can use for free regardless of seat class or airline. Based in the fact I most often do not fly J or F then I value the DC card highly as I get free travel.insurance and free lounge access 5-8 times a year overseas in my travels which is worth way more than the annual fee and for $55 per year I order a partner card and my companion can use the lounge for free as well. If you don't travel internationally then Diners might not be suitable for you

If you don't have a Diners Card and say have a ANZ Black Visa, once again the above mentioned places have no transaction fee and you can spend up to $7k per month and get 1:1 QFF, after $7k per month you get 1:0.5 QFF. The Black Visa from ANZ has a good free travel policy if you are >100km from home.

If you have a mortgage with ANZ the Visa card is fee free. Similarly with all the big four and others.

Similar comparisons can be made with most banks with the conditions varying bank to bank (CBA being amongst the worst).

If you are running a business then doing the sums in many cases paying the cc fee at the merchant is worth it by the time you take into account the points boost of some cards (like 1:2.5 QFF in some deals) and claim the cc expenses on your tax.

Every person's circumstance is different and needs to be researched. Some effort is required to find out what works for you as an individual or family & if you will benefit from the conditions & quirks of the various offerings.

Not my circumstance : but I know a business man that pays everything for his company on AMEX regardless of fees incurred because his company accountant did the sums and for his company, the free Y, J and F travel accumulated & utilised each year was way way more than than all the fees combined.

Addendum: it's also how you use the points that determines the value. Booking a seat from Mel-Syd is very poor value. Booking a 120k reward for a RTW holiday is great value (carefully planning it to minimise taxes and charges).