Best way to accumulate points and pay for airline tickets

[prozac]

This might have been touched on already but here goes. I just enrolled for American Express Platinum Edge Card. Cost = $149 p.a. You get 3 points per $1 spend at major supermarkets, and 2 points pre $1 spend at major petrol outlets, then 1 point per $1 spend everywhere else.

These points (Amex ASCENT) convert on a 1 for 1 basis with Alliance airlines (eg: Singapore Airlines). I gather most of your day to day expense is at supermarkets? Then this card will earn you the most points for that type of spend. Right now they are offering 20,000 bonus points on acceptance. BUT make sure they understand you want the 20k points if you have not been invited to enrol before you apply. They record conversations and keep records so you can claim if they don't credit your points.

Do not get confused and apply for a branded card such as Westpac Amex as these will give you 3 points per $1 but the conversion to Singapore FF points is 2 for 1. Therefor you are really only getting 1½ points per $1 spend.

Lastly, if you book far enough ahead a Europe return in economy will be around 80,000 points and in business about 128,000 points. Taxes etc I think will be the same at about $620.

 

[MelbMan]

Good point. Must admit I prefer points that get credited each month, it's automatic, coughulative, gets around some of the rules like min points to transfer at a time... but good point.

 

[Ennoh]

Keep the advice coming! I do want to do international travel and would not use it on domestic flights. Between school fees, groceries and utilities we would spend $50k a year. My overall aim is to have some international fares paid for by award points. Maybe a couple of return tickets to Rome would take too long to save for - but even if we could get several tickets paid for on a closer destination, that would be a good start.

 

[JohnK]

Between school fees, groceries and utilities we would spend $50k a year. My overall aim is to have some international fares paid for by award points. Maybe a couple of return tickets to Rome would take too long to save for - but even if we could get several tickets paid for on a closer destination, that would be a good start.

The cheapest award I know of is ~80,000 Kris Flyer miles to Europe.

If you are enrolled in Amex Ascent then those points transfer to Kris Flyer at 1:1 (I have included 15% online discount) so assuming you accumulate at 1 MR point:$1 earn then you will need to spend ~$160,000 (or ~3 years) to get 2 awards tickets. But then not all places accept Amex.

So you may need a Visa/Mastercard. The best you can do with a Visa/Mastercard is 1 point:$1 earn and that is very rare. The majority are 1 point:$2 earn, 2 points:$3 earn and many come with a yearly cap as well which you are not likely to reach immediately.

Now you need to decide which credit card. Continue reading the various credit card threads to find the best fit for you. Only you can decide though....

 

[realestate]

We have a Westpac Amex platinum credit card but only pay $275 per annum (not $900 as mentioned by another reader) which earns 1.5 FF point/$1 spent. Comes with a Visa card as well earning 0.75 FF points/$1.
However we have to pick and choose where we use the Amex as many merchants charge up to a 3% fee which is too much to pay for the value of the points earned. So then we just use the Visa which has a much lower fee if any.
Certainly Woolies, Caltex ,David Jones, Myers, Dan Murphy accept Amex without a fee and there are many, many more but you have to check carefully. We certainly earn most of out points this way, rather than through actual paid flights.
We chose to automatically transfer all our points to Qantas, may not necessarily be the best option as we are locked into Qantas and their partners.
Hope these ideas might help to get you started.

 

[prozac]

We have a Westpac Amex platinum credit card but only pay $275 per annum (not $900 as mentioned by another reader) which earns 1.5 FF point/$1 spent. Comes with a Visa card as well earning 0.75 FF points/$1.

If you spend over a certain amount each year ($5,000?) on Westpac Platinum Amex / Visa combo the following years' fee is waived.

My plan is to use Amex Platinum Edge at major supermarkets for 3 points, at major fuel outlets for 2 points, and the Westpac Platinum Amex which I also have, wherever else I can get it accepted for the 1.5 points. Work the system. You just have to remember which card to use where.

 

[MAX_1]

CardStandard miles earn rate2

For spend on purchases with a merchant located within or outside Australia:

$ 1 = 1.5 KrisFlyer miles

For spend on purchases with a merchant located in Australia:
$ 1 = 1 KrisFlyer mile
(from 15 March 2011 earn rate will be $1 = 0.5 KrisFlyer miles)

For spend on purchases with a merchant located outside Australia:
$ 1 = 1.5 KrisFlyer miles
I am not sure where some of the quotes come from in this thread so above I have copied from the Westpac site the facts.
Also at the Westpac site, it is clearly stated that from 15 march 2011, the Visa card will be $1 = 0.5 Krysflyer mile.

An alternative card to Westpac is the NAB Platinum Qantas card, earning on Amex 1.5 QFF points per dollar spend and 0.75 QFF points on the Mastercard/Visa.

Going back to the original post - it was stated that the points were for getting to Italy.
I believe that the best value for this, if there is no more than $100,000 per annum to be spent is the Citi Emirates card earning 1.5 points poer dollar. Card costs $249 pa.
Emirates fly Aust- Italy ( instead of Qantas Aust - London - Italy ) and is a great airline. The Emirates card also allows access to their Airport lounges and limo service.

 

[prozac]

CardStandard miles earn rate2

For spend on purchases with a merchant located within or outside Australia:

$ 1 = 1.5 KrisFlyer miles

For spend on purchases with a merchant located in Australia:
$ 1 = 1 KrisFlyer mile
(from 15 March 2011 earn rate will be $1 = 0.5 KrisFlyer miles)

For spend on purchases with a merchant located outside Australia:
$ 1 = 1.5 KrisFlyer miles
I am not sure where some of the quotes come from in this thread so above I have copied from the Westpac site the facts.
Also at the Westpac site, it is clearly stated that from 15 march 2011, the Visa card will be $1 = 0.5 Krysflyer mile.

An alternative card to Westpac is the NAB Platinum Qantas card, earning on Amex 1.5 QFF points per dollar spend and 0.75 QFF points on the Mastercard/Visa.

Going back to the original post - it was stated that the points were for getting to Italy.
I believe that the best value for this, if there is no more than $100,000 per annum to be spent is the Citi Emirates card earning 1.5 points poer dollar. Card costs $249 pa.
Emirates fly Aust- Italy ( instead of Qantas Aust - London - Italy ) and is a great airline. The Emirates card also allows access to their Airport lounges and limo service.

You are mistaken Max when you say "I am not sure where some of the quotes come from in this thread" .
"For spend on purchases with a merchant located within or outside Australia: $ 1 = 1.5 KrisFlyer miles"
This is exactly what all posters on this thread have stated in respect of Westpac Amex. The earn is 3 Altitiude points per $1. This converts to Krisflyer at 2:1, so $1 spend = 1½ points with Krisflyer. If you reread my post and that of realestate you will see that is eggzachary what we have said.

 

[kamchatsky]

I would say to start off with, get the following card:

- American Express Edge Card ($149 annual fee with free domestic ticket) and collect points in Ascent: Wait for some promo bonus though say 20000 points bonus when signup
- Woolworths Qantas Platinum Mastercard (get it now for 16000 point bonus) for any spend that cannot be paid by Amex

What you need to do then, is to try to pay everything possible with Amex, if merchant don't accept it, or charge surcharge, then pay it on M/C.

After 3 months you should know your rate of earning which you can project to say 12 months, 24 months etc then you can work out when you can redeem free tickets.

 

[wxxnxs]

Keep the advice coming! I do want to do international travel and would not use it on domestic flights. Between school fees, groceries and utilities we would spend $50k a year. My overall aim is to have some international fares paid for by award points. Maybe a couple of return tickets to Rome would take too long to save for - but even if we could get several tickets paid for on a closer destination, that would be a good start.

You need to make sure all of your suppliers mention above do take AMEX (better without any surcharge) then you can max your points, otherwise you have to choose a V/M as an alternative, but the earning ratio could drop up to 50%. It seems most of your utilities companies are the least chance to take AMEX, not sure about schools, many uni in SYD don't even borther to take AMEX. I'm pretty sure your mortage payment will not earn any points from your credit card, and you could also get hit by cash advance.

 

[MAX_1]

My apologies if I have misread a post.

I thought that at this point in time the Westpac Plat Visa earns 1 point per dollar.

 

[lovetravellingoz]

My apologies if I have misread a post.

I thought that at this point in time the Westpac Plat Visa earns 1 point per dollar.

I think many banks are deliberately deceptive on this "point" (sorry about the pun) and have point per $ rates which look great, but are illusionary, as they do not transfer to FF programs at a 1 for 1 ratio.

What you always need to consider is the number of points that land in your preferred FF program, and indeed further than that what flights you can gain as there are differences between FF programs which are often quite marked.

For example for my preferences Virgin Blues Award program is very expensive...QFF expensive...and Krisflyer OK to Fabulous (if you can get Saver J/Fs).

For example:
* at present Visa KF earns 1 point per $ for Aust spend. After mid-March it will drop to 0.5 (The same as Altitude Cards)

* My Citibank Visa (free for life) erans at 1 Citibank point per $, but transfers at 0.66 to Krisflyer. So for now I use my Krisflyer Visa, but after March I will revert to my Citibank.

 

[trippin_the_rift]

If you spend over a certain amount each year ($5,000?) on Westpac Platinum Amex / Visa combo the following years' fee is waived.

The average person spends 1.7k/mo on their card. So if it's only 5k min spend then everyone should be getting a free yearly fee

 

[prozac]

The average person spends 1.7k/mo on their card. So if it's only 5k min spend then everyone should be getting a free yearly fee

I was wrong! Waiving the card fee for a minimum spend applies to a different Westpac product (55 day Platinum Visa with minimum $20k spend). Sorry for confusion....I was.

 

[trippin_the_rift]

I was wrong! Waiving the card fee for a minimum spend applies to a different Westpac product (55 day Platinum Visa with minimum $20k spend). Sorry for confusion....I was.

So probably closer to 50-60k in this case?

 

[nonpop]

Peronally, I hate paying fees. I'd rather pocket the card fee and use it for some of the taxes and charges with a reward ticket.

But ... we've gone down the following path:
* Woolworths Qantas Mastercard $89 fee and 16k points bonus. Converts at $1:1Qantas & no earning cap. And it is nice not having to carry a Woolworths rewards card as your membership number is a barcode on the back of the credit card.
Woolworths Qantas Card

* Amex Discovery card. No fee, up to 10k bonus points (easy to get 7.5k bonus). Coverts at $1:1Qantas and no cap. We now use this for buying Qantas flights only as it achieves $1:2Qantas points when purchasing Qantas flights.
https://www212.americanexpress.com/...toid=2b5455e937e64110VgnVCM100000cef4ad94RCRD

Both do a direct sweep to Qantas.

So if your spend is 'low' then this may be an option with a low annual cost.

 

[Alanslegal]

Good point. Must admit I prefer points that get credited each month, it's automatic, coughulative, gets around some of the rules like min points to transfer at a time... but good point.

Automatic transfer per month is great but just remember that some programs have an expiration period for points. I believe Singapore Airlines Kris Flyer has a rule that points expire 3 years from the date they are earnt (in credit cards, the date they get deposited), regardless of activity. Qantas FFP on the other hand will keep your points active as long as you have an activity once per 18 months.

 

[prozac]

Automatic transfer per month is great but just remember that some programs have an expiration period for points. I believe Singapore Airlines Kris Flyer has a rule that points expire 3 years from the date they are earnt (in credit cards, the date they get deposited), regardless of activity. Qantas FFP on the other hand will keep your points active as long as you have an activity once per 18 months.

I leave my points in the Amex Ascent or Westpac Altitude program where they do not expire. Transfer only enough points into a FF program such as Krisflyer only when you want to spend them.

BTW regarding the annual fee discussed earlier. It was suggested when I spoke to Westpac that I discuss the annual fee with them when it falls due.