Amex Sense Check

[Chalkie]

I'm looking for a bit of a sense check regarding my Amex strategy going forward.

I hold a US Amex Platinum charge card, a Canadian Amex Aeroplan Reserve credit card and an Australian Amex what-used-to-be-professional-affinity reserve credit card (but no idea what it is called now).

I picked up the US card several years ago when I had a US income and ITIN. I've kept the US card as I've found the MR (1:1) transfers useful for several different airline partners, I've done well out of the FHR deals, access to some competitively priced US air fares and the Priority Pass membership. I've also used the coupons from time to time, and the US card offers so many better coupon deals than either the Australian or Canadian cards. I can't say I've ever noticed any benefits from the Hilton and Marriott gold statuses (bottles of water at check in?), but I suppose they're nice to have.

The Canadian card has been terrific while living in Canada in terms of Aeroplan points earning and MLL access (until I hit *A Gold). But Aeroplan has become a bit problematic with partner availability, so I am not necessarily looking to use my Aeroplan points for anything other than future travel on AC. I think once I leave Canada (where I currently live), I won't use the Aeroplan card much (but I will keep it as it gives MLL access and while I am AC SE this year, I doubt I ever will be again, so having the Aeroplan card will remain handy as travel to Canada is very much in my future).

The AU card is longstanding, but has a good credit limit and QF is the affiliated transfer partner so there's good bonuses when it is used to book QF travel. During my full time working life, my company used QF exclusively for travel so I did well in terms of points earning when I was putting my travel and expenses through this card. I still use this card for some stuff in Australia (eg, I recently bought two AONEx fares issued by QF, and got 100% bonus points, which was nice).

(I also have an ANZ black Visa card - again, QF aligned, but the only spend I put through this card is non-Amex spend. It is de minimis in comparison to what goes through Amex cards).

I am not a card churner as my income now is complicated (trust and investment income, and superannuation) and which I've no desire to try and explain to a credit card company). I don't intend to apply for any other credit cards at this stage of my life.

I'm moving back to Australia later this year. My thinking is the US Platinum charge card might be the best card to use on a day to day basis, notwithstanding the exchange rate risk (to me a lesser risk given the balance is paid monthly or could even be paid more frequently if I really thought I was XR exposed within a month), given the 1:1 MR transfer rate (and the other benefits which I've found valuable). I am no longer exclusively QF/oneworld aligned, and my future travel plans are likely to include more SQ travel. The ability to transfer directly to KrisFlyer from the US Amex at 1:1 is attractive to me. And the annual fee is less than an Australian-based Platinum charge card (even assuming I could do a global transfer and be bothered explaining my income).

I suppose the AU card has the benefit of travel insurance, but as my travel often includes skiing and scuba diving in remote places, and I've got some stable pre-existing health issues, I usually buy an annual policy which covers stable pre-existing health stuff and covers all the skiing and scuba diving. So I don't necessarily rate the travel insurance.

What do folks here think - is treating the US card as my primary card the way to go, or am I missing something?

 

[levelnine]

Do you have substantial US income? If not and you'll be transferring money from Australia to the US to pay off the US card, you'll probably lose half of that point value on exchange fees.

I'd pay on my Australian card, earn Australian MR at a higher rate then transfer Australian MR to US MR once per year (as you're allowed to do, they transfer roughly at the prevailing exchange rate).

 

[Chalkie]

Do you have substantial US income? If not and you'll be transferring money from Australia to the US to pay off the US card, you'll probably lose half of that point value on exchange fees.

I'd pay on my Australian card, earn Australian MR at a higher rate then transfer Australian MR to US MR once per year (as you're allowed to do, they transfer roughly at the prevailing exchange rate).

I've some US income, but would need to make transfers every now and again (I use OFX). Would it really be as high as half the point value? I suppose I'd better do some excel modelling!

My problem with MR transfer is the AU card is a legacy Qantas-linked card. I'll have to look into whether I could switch that over to something else.

 

[levelnine]

Wise charge half a percent and you're not even getting one percent in points if you value them at 1cent each because on a 1x card you're getting: $AUD100 = $USD65 = 65points

 

[dein_gesicht]

@levelnine speaks the truth! I only use my US cards to hit SUB (including employee SUBs) or when there are bonus points for category spend (like 4x restaurants). Otherwise, it makes sense to use the Aussie card and then transfer the points to the US every 12 months

Plat charge is 2.25 pts per $1, so then transfer at 0.65 rate is so every A$1 spend it 1.4625 US MR points which is awesome

 

[Chalkie]

Well, I spreadsheeted it all and arrived at this destination: cancel the AU Amex (formerly professional affinity) credit card and apply for an AU Platinum charge card, and do the once every 12 months MR international transfer to the US Platinum charge card.

Thanks for the help!