Best credit card for QFF while living overseas

[cessy]

Hi all!
What a fantastic site! I'm new to all this, as last year a new job took me from being an infrequent domestic traveller to a constant international traveller. I now spend a total of about a month in Australia per year and spend the rest of the year living in hotels and flying international and international domestic. Now I'm trying to make sure I'm getting as much benefit from this as I can through cards and points programs.
I'm a member of QFF, Velocity, AClub, STGPG, Delta and Porter's programs. QANTAS (well, One World), AClub and STG are the most used however.

I'm back in Oz for a spell and want to get a credit card which will maximise my points earning. Another consideration though is that most of my purchases are made overseas so I don't want to cop penalties for making transactions in international currency. I lose enough when my wage gets converted every fortnight!!

Any and all suggestions welcome.

 

[Flashback]

It depends on what kind of expenses you are making overseas. Often, using something like the 28 Degrees Mastercard although it may not earn points, has no currency conversion fees etc. so you may end up better off. A huge case of YMMV and depends on what you value the points at and how many you'd be potentially earning.

 

[cessy]

Thanks Flashware. Purchases overseas are normal daily expenses so about AUD$3000/month plus approx AUD$1000 every 6 weeks on flights.

 

[Flashback]

Thanks Flashware. Purchases overseas are normal daily expenses so about AUD$3000/month plus approx AUD$1000 every 6 weeks on flights.

Ok, so let's work it out based on:
$36000 for expenses
$8500 for flights

Add on your 2.5% currency conversion (on the expenses, I'm guessing flights are booked ex-AU so no currency charges there) and the $3600 then becomes $36900.

The question is do you value 45400 (could be more depending on the CC you select) points at $900 plus the CC annual fee?

 

[cessy]

OK, bear with me, as I said I'm new to all this... So 45000 points is redeemable for eg one way Sydney to Bangkok, plus approx $240 in charges, which means it's cost approx $1150 in currency conversions plus charges to get those points (plus annual fee). A one way ticket to Bangkok paid in cash with QANTAS can be about $800, so less than the cost of getting the points in the first place.
So.... are there actually any benefits to having a point earning CC if most purchases are made O/S (most of my flights aren't in AUD either)? The points vs cash for flights doesn't make it seem worth it.

 

[Flashback]

OK, bear with me, as I said I'm new to all this... So 45000 points is redeemable for eg one way Sydney to Bangkok, plus approx $240 in charges, which means it's cost approx $1150 in currency conversions plus charges to get those points (plus annual fee). A one way ticket to Bangkok paid in cash with QANTAS can be about $800, so less than the cost of getting the points in the first place.
So.... are there actually any benefits to having a point earning CC if most purchases are made O/S (most of my flights aren't in AUD either)? The points vs cash for flights doesn't make it seem worth it.

I wouldn't think so. Take a look at Travel Card with No International Fees - 28 Degrees MasterCard for your international expenses, if wanting a CC.

 

[cessy]

Thanks so much for your help!

 

[Flashback]

When you have a bit of spare time it's also worth reading through 28° [Wizard] Mastercard Cash Advances while overseas - Page 97

 

[Deewhy]

Ok, so let's work it out based on:
$36000 for expenses
$8500 for flights

Add on your 2.5% currency conversion (on the expenses, I'm guessing flights are booked ex-AU so no currency charges there) and the $3600 then becomes $36900.

The question is do you value 45400 (could be more depending on the CC you select) points at $900 plus the CC annual fee?

But, you could also go with the HSbc Qantas platinum which gives 2pts per dollar for o/s transactions which turns your 36k points into 72k plus 8500 for local spend is then over 80k points. Add the 20k sign on bonus and you have 100k points for the year. It's $199.

 

[cessy]

Thanks Deewhy. Do HSBC charge a currency conversion for os transactions? I can't find this information on their site.

 

[Origin]

Thanks Deewhy. Do HSBC charge a currency conversion for os transactions? I can't find this information on their site.

Yes they do and it is 3%.
that is the reason they give 2 points per $1 spend on overseas transactions

 

[Origin]

Also depends on the value you place on points. The use of points for J travel is better than using them for Y class

 

[vetrade]

+1 for the 28 Degree card. This is what I use for most of my OS spending. Lots more info on tripadvisor.
You can avoid interest charges for cash advances by keeping the card in credit.

Given the exchange rate charges on all the FF points-earning cards it's hard to justify chasing points.
I know there are practical limitations but the more things you can pay for in $AUD the better.

 

[Alanslegal]

Flip the coin, and let's say 45,000 or so points earnt through $900 worth of forex commissions. Save the points up and use them for long haul J flights eg. say SYD-LAX in J (A380 of course) and that's 96,000 points plus around $300 in taxes. So a one way in business class to USA would cost, $900 + $900 + 6/45 * $900 + $300 = $2,220 one way. Ok doesn't seem like a great deal, but still worthwhile. Accelerate your points earn through various promotions, card churn, BIS flights etc and you could earn points much quickly.

Now, let's say you didnt want to rely on QF, and used a Citibank card (I think the rewards Platinum equivalent) where it earns 3 points per $1 for international spend. That $900 in forex commission will earn 108,000 in CB points, which you can then transfer to say, SQ. I think the rate is 3:2 so 108,000 CB transferred 72k SQ points, which is now close to a one one-way flight to Europe in J class.

 

[Origin]

Another way to avoid the exchange rate fee and get FF points is to purchase a Travel Card. For example you can buy the ANZ travel card before you leave (putting as much money on it at purchase as you like) using a points earning credit card. Just need to estimate how much you will spend as transferring any remaing balance at the end of the trip back to Aussie dollars will not be at a favourable exchange rate. Also it is the initial purchase that you will get the points for, any recharge of the travel card will need to be done by Bpay and there are no FF points for that.

 

[serfty]

I dispute that about the ANZ travel card.

Most such Oz products cost heaps more with an initial slug as well as a very poor exchange rate at the time of purchase/top up.

 

[markis10]

Another way to avoid the exchange rate fee and get FF points is to purchase a Travel Card. For example you can buy the ANZ travel card before you leave (putting as much money on it at purchase as you like) using a points earning credit card. Just need to estimate how much you will spend as transferring any remaing balance at the end of the trip back to Aussie dollars will not be at a favourable exchange rate. Also it is the initial purchase that you will get the points for, any recharge of the travel card will need to be done by Bpay and there are no FF points for that.

Dont go there, travel cards are expensive and offer poor FX rates as well as high fees, a non credit card option for overseas is a Citibank transaction account or NAB gold transaction which has a small monthly fee if you don't feed it enough money each month.

 

[Origin]

The exchange rate is known before you buy ( not after).
You can also purchase months before departure and select a time when the Aussie dollar is favourable.
It allows you to hedge your rate.
Agree that spot rate is not that great.

You definitely get the FF points in the circumstances outlined.

 

[DTM1]

we get absolutely screwed by the cc companies in australia. I have a SIN issued cc that offers a great conversion rate and does not charge any o/s transaction fee. That's what real competition in the banking sector does. While it only allows conversion into my SQ a/c, it transfers at more than 1 for 1. australian consumers get the raw end of the deal (as usual)

 

[serfty]

...
You can also purchase months before departure and select a time when the Aussie dollar is favourable.
It allows you to hedge your rate.
...

That is really the only benefit - and a risk at that.

E.g. a USD250 ANZ 'travelmoney' card today would cost AUD253.

There is an AUD11 fee and the current exchange rate being offered by ANZ for the card is 1.0339.

That's an effective rate of 0.98892 per USD.

Xe.com tells me the current cross rate is 1.07158.