Frequent flyer and rewards schemes - good value?

[folio]

Hi

I'm writing a story for the SMH Money section about the value-for-money of rewards schemes, including frequent flyer schemes. I'm looking for one or two people to be case studies alongside the story -- Anyone out there looked at what their credit card is costing them in terms of annual fees, rewards fees, higher interest rate (as opposed to a low-rate, no-rewards card) in order to gain access to rewards or flyer points? Did your spending go up after you signed up for a rewards/FF scheme, as you became points hungry? Also, does anyone have a perspective on how rewards/FF schemes have changed over the years - is there more, or less, value in them? Are you finding it easier or harder to redeem points for precisely what you want? Case studies would need to be prepared to have a photo taken, and real names are used. Welcome comments generally. Lesley

 

[QF WP]

I think there'll be some members fairly salivating to do this one....

Me, whilst I'd probably be a decent candidate, time will beat me in the next 2 weeks and I live in BNE (and would you really want my ugly mutt in the SMH).

You probably want to skim over this thread (regarding a recent Amex promotion) to give you an idea about this comment of yours:

Did your spending go up after you signed up for a rewards/FF scheme, as you became points hungry?

 

[hedge]

I'd have to say that the AMEX thread brought out the worst in some people!

I'd be seriously interested in your proposition, and I am in Sydney

Shoot me a message if i'm what you're looking for

Anyone out there looked at what their credit card is costing them in terms of annual fees, rewards fees, higher interest rate (as opposed to a low-rate, no-rewards card) in order to gain access to rewards or flyer points?

Ends up costing me $0 per year for the card fee, since I signed up on a promotion. I always pay my bill on time, so I have never accrued any interest (and at 20.47% p.a. you can understand why!).

Did your spending go up after you signed up for a rewards/FF scheme, as you became points hungry?

I use this primarily as a business card (in terms of $ spent), and yes I find I go after more opportunities with less margins as I think I can receive rewards points for spending.

Also, does anyone have a perspective on how rewards/FF schemes have changed over the years - is there more, or less, value in them?

This is a good one, especially with the impending introduction of direct sweep only cards for QFF.

Are you finding it easier or harder to redeem points for precisely what you want?

I think it is becoming harder these days as there are much fewer free points offers with initial credit card sign ups. However that AMEX one was pretty much a gift for those who received points.

 

[Diesellife]

Hi folio, sounds like this will be a great piece of article. With lots of arguments on both side.

Anyone out there looked at what their credit card is costing them in terms of annual fees, rewards fees, higher interest rate (as opposed to a low-rate, no-rewards card) in order to gain access to rewards or flyer points?

I usually look into the reward system more closely, rather than cost. This step will usually leave me with a few cards that fit into my criteria only.

As I travel all the time through out the year and this instantly becomes a part of essential expenses for me. With my spending habit, it is almost certainly that I can gain an advantage thru the FF points, knowing that my benefit will definitely exceed all credit card costs.

Did your spending go up after you signed up for a rewards/FF scheme, as you became points hungry?

Yes, I don't mind to spend extra on merchant surcharge etc IF it doesn't exceed my marginal benefit... For example, I'm willing to pay $1 for anything above 30 points, even the benefit is only very little.

Also, does anyone have a perspective on how rewards/FF schemes have changed over the years - is there more, or less, value in them?

Less value! More and more restrictions have implemented and less competition in that environment further devalue the points. Qantas diluted their points, so the credit cards scheme can earn 1.5 point per $1, at the cost of earning by mileage.

Are you finding it easier or harder to redeem points for precisely what you want?

No change for me but you will need to know the rules in the game. Redeem early and I get what I want every time. For example, I just booked a couple tickets for 2009 Dec and 2010 Jan.