After D-Day, Whats your new strategy?

[SOPOOR]

I think it's worth holding your cards for the credits then make a decision when your next Annual fee is due. While the reduced earn is poor compared to what we've been used to, it's significantly better than what Visa and MC can offer which I'm sure is a key reason Amex was comfortable in making these changes. I'm sure they also didn't want to become irrelevant like Diners is now by not meeting the market on merchant fees.

For edge + exp holders, the new changes are only marginally better on some spends. Ie shopping and petrol
For me the exp is now virtually worthless and the only reason that I could see to hold is for those that prioritise kris

 

[coriander]

I'm keeping my explorer +edge (I was one of the fortunate ones to get a doubling of points on grovelling).

However, going forward my strategy is to use Amex for anything that doesn't have a surcharge and the dragon for everything else because there is now only a 0.175 point difference between Amex and dragon. The days of paying 1.5-2.8% surcharges are over.

 

[albyd]

I agree will need to be more discerning about paying a surcharge especially at some restaurants who also charge the same for EFTPOS which is a significantly cheaper payment service than Credit cards. The gap between Amplify and the Charge isn't that much larger either. With airlines shifting to 'dynamic' rewards pricing, may signal the end of the value we've been seeing over a number of years of points chasing with Cards.

 

[Bell21]

I'm keeping my explorer +edge (I was one of the fortunate ones to get a doubling of points on grovelling).

However, going forward my strategy is to use Amex for anything that doesn't have a surcharge and the dragon for everything else because there is now only a 0.175 point difference between Amex and dragon. The days of paying 1.5-2.8% surcharges are over.

That's exactly my strategy, although it will be Plat for places without a surcharge diff between AMEX and Visa, and the dragon for everywhere else, supplemented by easybillpay to help generate points

You do very (very) well to get points doubling with those cards!

 

[Bell21]

I agree will need to be more discerning about paying a surcharge especially at some restaurants who also charge the same for EFTPOS which is a significantly cheaper payment service than Credit cards. The gap between Amplify and the Charge isn't that much larger either. With airlines shifting to 'dynamic' rewards pricing, may signal the end of the value we've been seeing over a number of years of points chasing with Cards.

The AMEX deval I can deal with, even if it means the days of 2+ points / $ are generally gone, but 'dynamic' rewards... my understanding of it is that it would change the way many of collect and use points

 

[Colin 2905]

I've already closed my Amex Qantas Discovery and Amex Westpac Platinum. Mrs 2905's DJ's Amex has been closed too. We'll keep Mrs 2905's Amex Explorer for an effective one KF ppd, since she's now semi-retired and there's no way she'd ever be able to reapply for that card should she close it. I'll most likely close my Amex Platinum Edge once I've used the travel credit, since the extra half ppd on groceries and petrol pales into insignificance compared to signup bonuses...... assuming that the exclusion period doesn't change, signup bonuses are still offered, and Amex is still in the Australian market then.

 

[cove]

I am still using Amex when I buy 5% off Woolies gift cards or where no fee is charged.
Amplify has become our workhorse CC.
Bankwest World until May 21st for some things.
Citi Select for some business expenses.

 

[amaroo]

The AMEX deval I can deal with, even if it means the days of 2+ points / $ are generally gone, but 'dynamic' rewards... my understanding of it is that it would change the way many of collect and use points

Not sure what dynamic pricing means for rewards, but it it's anything like SQ advantage, I can live with that.

Convenience and certainty are worth extra IMO

 

[albyd]

I think dynamic pricing is more like Air NZ’s system. Would likely significantly compress the returns from points collecting.

 

[amaroo]

I think dynamic pricing is more like Air NZ’s system. Would likely significantly compress the returns from points collecting.

So more about CC redemption ratio rather than award cost. Yes, that would change the game.

On the bright side - it would really open up awards seats.

 

[PDog]

My AMEX currency is KrisFlyer. Explorer is only dropping 33%, not 50%- to 1 KF mile per $ spend. That’s good enough value for a card that’s essentially free because of the travel credit, to say nothing of the offers.
We’ll keep one explorer with a supp and push spend through that while I sit out my 18 months & churn whatever else looks good at the time.
We don’t have a huge spend, so most of our points are sign on offers.

 

[maccaisking]

The first thing I’ll do is spend a year or so using all my gift cards, prepaid expenses, etc.

We will keep all of our cards through Shop Small, except my Amex PC (my only Amex) which will have its fee before then. I’m hoping the Reserve will stay active until I’ve held it for a year but don’t expect it will. We will keep Mrs Macs PC and Reserve, and switch her Explorer for a Plat Edge just before the annual fee. I plan* to use the Edge to buy prepaid visa, EFTPOS, etc without a surcharge to effectively earn at 1.5ppd on all spend.

*plan still needs to be formulated, but I figure there has to be some way to do this, and I now feel properly motivated.

 

[tlam]

Citi Select for some business expenses.

Just curious, any reason why you choose Citi Select for business expenses?

 

[straitman]

I guess I am one of the luck one where it all comes out somewhere near neutral. Some bits are better and some worse but overall neutral.

 

[SOPOOR]

The first thing I’ll do is spend a year or so using all my gift cards, prepaid expenses, etc.

We will keep all of our cards through Shop Small, except my Amex PC (my only Amex) which will have its fee before then. I’m hoping the Reserve will stay active until I’ve held it for a year but don’t expect it will. We will keep Mrs Macs PC and Reserve, and switch her Explorer for a Plat Edge just before the annual fee. I plan* to use the Edge to buy prepaid visa, EFTPOS, etc without a surcharge to effectively earn at 1.5ppd on all spend.

*plan still needs to be formulated, but I figure there has to be some way to do this, and I now feel properly motivated.

My strategy may change however having the edge plus exp combination plus Having prepaid heaps of utlities, rates, visa cards, wish, coles, eftpos etc.
I probably won't use any of the credit cards too much except for when prepaid cards aren't accepted etc

Ill keep my amex since I've paid the annual fee recently. I'll probably renew it for the travel credit plus statement credits plus i have 5 supp cards on each, this should offset the annual fee

Ive got enough kris to last me 4 yrs so don't really need to earn more, i have a 1ppd hsbc visa card so will put spend on there for qff points, which dont expire but will devalue in the future.

Still undecided on whether to accumulate further kris at 1ppd on explorer or 1ppd on visa for qff

/just thinking out aloud

 

[leyy]

Could someone please clarify what the exact rule is with Amex to get the bonus points?

Is it 18 months? Does it vary based on whether you have a charge card or credit card?

I currently have an Edge + Explorer which i will probably cancel this month.

Would like to apply for the Plat Charge but not sure if i will be entitled to get the bonus points?

The plat charge has an earn rate of 1.125 KF/QF/AM/VFF so is the best Amex earner except Centurion.

I suspect that AMEX will need to at least double their sign on bonuses after the devaluation. As the 80,000 MR for Plat charge is really 40,000 KF points. Not really that all attractive.

 

[Haplo]

Actually with the change the Marriott point option doesnt look too bad. 3 MR = 2 Marriott point. To me marriott points are worth about 1 USD (1.3 AUD) so 3 MR = 2.6 AUD or 0.8AUD per MR. With earning rate at 2.25 that is about 2 cents for every dollar put on the card.

 

[Bell21]

I agree - I'm intending to transfer a whole lot of points to marriott for a xmas holiday post the change which I wouldn't have done pre deval

 

[SuperSaeen]

You are getting some sick value out of your Marriott point!

To me marriott points are worth about 1 USD (1.3 AUD) so 3 MR = 2.6 AUD or 0.8AUD per MR.

 

[Ken1]

I have Platinum Charge, Platinum Reserve and Explorer, with points from all cards going into Ascent Premium and I have been putting most spend on the Explorer at 2 ppd. I will now put all spend on the Charge card with effective return of 1.125 ppd. There is no reason to keep the Explorer once I finish transferring all direct debits to the Charge since the Reserve seems to have the same benefits as the Explorer and the Charge gives slightly more points anyhow.

I have NAB QFF Signature and ANZ QFF Black cards that give 1 QFF ppd and I want to keep Amex points with Amex since I did get the double points letter so I have flexibility to transfer to CX or SQ as well as QF. I've never flown with SQ but from all I read they seem to have better J award availability. I transferred to CX for the first time last year when I booked 2 BA J ZRH-LHR-SYD seats for an upcoming trip for 90K points each compared with 139K each with QFF so I can see the value of still using Amex for the flexibility. Previously we have only redeemed QFF points for J seats on QF, CX, BA and LA over the past 9 years. We currently have 402K Amex points and 450K QFF points.

I have considered asking Amex if I can change my Explorer card to an Edge to get effective 1.5ppd for groceries and petrol but we don't spend as much on groceries or petrol these days since the kids have moved away and we only drive locally. We probably spend approx $150 per week on groceries and around $50 every couple of weeks on petrol. I will probably retire in around 4 or 5 years and am self employed so applying for new cards to churn for bonus points is not so easy now.

I could also ask to change the Explorer to the QFF card that gives 1.25 ppd but I am better off getting 1.125 and if I need to transfer any points to QFF wait until there is a 15% transfer bonus and I would then get slightly more than 1.25 so I may as well put all spend on the Charge.