credit card churning with pro rata annual fees

Discussion in 'General Credit Card Discussion' started by SOPOOR, Jan 3, 2017.

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  1. SOPOOR

    SOPOOR Established Member

    Jan 12, 2009
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    was wondering for those that churn paying pro rata annual fees

    is here anything you should know or advise about cancelling your cards as soon as you get the bonuses?

    for me I cant justify the annual fees, eg I dont use any of hte bonus flights, lounge passes etc. etc. etc so paying for annual fees doesnt work for me,

    however if its pro rata it might be acceptable

    thank you everyone
     

  2. trippin_the_rift

    trippin_the_rift Established Member

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    You can't justify the annual fees against the points bonuses? Get a new hobby.
     
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  3. SOPOOR

    SOPOOR Established Member

    Jan 12, 2009
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    yes, you heard me
    I dont travel for work, I dont do domestic flights, i have moderate spend, I am trying to earn points while spending as little as poissible, even though it might be slower
     
  4. Dr Ralph

    Dr Ralph Senior Member

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    Yes. Do it immediately. Once the points post cancel immediately. Don't wait even one day extra.


    Pro rata refunds are possible some of the time. But it's becoming harder I think. Make sure you have a good reason ready - like they failed to award bonus points within the stated time frame.
     
  5. Cruiser Elite

    Cruiser Elite Enthusiast

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    IMHO too harsh t_t_r - nobody can justify paying an annual fee and kiss it goodbye if there is possibility of full or pro-rata refund - always ask the question.

    But to OP - these questions you are asking in multiple threads have all been answered ad nauseam in multiple threads - you will do yourself a great service if you read widely and soak up info already posted rather than starting new threads whenever a question pops into your head.
     
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  6. SOPOOR

    SOPOOR Established Member

    Jan 12, 2009
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    Oh i see, so to cancel is not the customers right, but more of a request and something they are doing a favour for you????
     
  7. SOPOOR

    SOPOOR Established Member

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    will do thank you
     
  8. Dr Ralph

    Dr Ralph Senior Member

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    #8 Dr Ralph, Jan 3, 2017
    Last edited: Jan 3, 2017

    You can cancel when ever you like.

    But when you signed up you did agree to pay the annual fee in full.

    That annual fee usually represents good value for 'buying' points.

    If you aren't comfortable 'buying' points then credit card churning is probably not for you. But I have made that statement to you previously.
     
  9. SOPOOR

    SOPOOR Established Member

    Jan 12, 2009
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    ok now Iunderstand, the annual fee isnt pro rata refundable as a given, its a case by case situation?

    if thats the case I might need to reconsider these cards with no free annual fees after first year in case they turn around and say it cant be done

    thanks for the heads up
     
  10. snabbu

    snabbu Established Member

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    For example when you sign up for the NAB Amex card with a $249 annual fee and 75k QF points for the qualifying spend you are essentially buying the 75k points for $249.

    If that doesn't sit well with you then it's probably not a good idea to sign up in the first place.
     
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  11. SOPOOR

    SOPOOR Established Member

    Jan 12, 2009
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    Yes I agree with you

    $249 for 75k points x4 is 300k for $1k
    And that's a return business class trip to virtually anywhere in the world. Plus taxes of 1k for example

    So you get a 6k flight for $2k. And it's even better if you do those calculations with first class.

    I understand completely.

    However I would prefer to use my moderate monthly spend which might get my goal slower but at least I don't pay anything extra. Plus any first year annual free credit card bonuses would also help me achieve my goal.

    I hope I'm making sense

    I recently spent 280k qff points and did return trip to Europe and that was brilliant. And they were all earned through no bonus sign ups and just heavy spending over the years
     
  12. Dr Ralph

    Dr Ralph Senior Member

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    #12 Dr Ralph, Jan 3, 2017
    Last edited: Jan 3, 2017
    I'm not sure you fully understand how things work. Or the best strategy for extracting points. I really think that you are missing the big picture.

    As Cruiser Elite has suggested to you, I strongly urge you to read through the information provided in the various threads available to you. This is not a 5 minute exercise. Expect it to take several hours.

    Trying to gain a full understanding by continually asking just a few (at times very similar) questions is not a strategy I can recommend. I strongly recommend that you read the information available an then ask relevant directed questions.
     
  13. SOPOOR

    SOPOOR Established Member

    Jan 12, 2009
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    OK. What do you think I'm missing.? I'm not an expert but think I've got the basic of the basic. I have a feeling you are saying that paying for the points say $250 for 75k qff is well worth it since I can get business class or first class for 1/3 of what I pay and is a no brainer. And that since I don't want to pay for it.......
     
  14. Dr Ralph

    Dr Ralph Senior Member

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    #14 Dr Ralph, Jan 3, 2017
    Last edited: Jan 4, 2017

    You're paying for the points one way or the other. Even if there is no fee for the sign up you're still paying for the points.

    I repeat my advice of urging you to do some thorough reading. As someone who just 3 years ago earned nothing to someone who now earns over 500,000 points a year I know there are no short cuts. I know the 'homework' has been recommended to you several times by multiple members over different threads. There's no way you can get around this. You must take the time to do your own research.

    I think you'll find that most AFF members are very generous with their time and the information that they will be provide. But there is a limit to how much you can expect.
     
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  15. snabbu

    snabbu Established Member

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    Even better is the ANZ Black with a zero dollar first year annual fee and 75k points. If you are looking at 4 cards then with this one you are effectively picking up 300k points for nothing, not including 4 x the minimum spent to qualify ($1500 in the first 3 months or smth).

    It's all about playing the game.
     
  16. SOPOOR

    SOPOOR Established Member

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    Yes thank you. That's definitely on my host list to apply for shortly s it doesnt have annual fee. And the salary requirement is below 65k. I hope there are similar offers as well is other banks
     
  17. SOPOOR

    SOPOOR Established Member

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    the applications says "$65k household income"

    does that mean if you have a spouse/family member you can combine your income with theirs if your income isnt enough?

    and will they get a hit on their credit file as well?
     
  18. Dr Ralph

    Dr Ralph Senior Member

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    I assume that you are referring to the way that AMEX calculates income for your credit card applications. If so you will find that this has been discussed previously under the relevant AMEX threads. The answer is it is HOUSEHOLD income. That is, every person in the house.

    The VEDA hit (if any) will only go to the person who made the application.

    Reading the threads that exist will help to improve your understanding of how things work.
     
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