Help me with Credit Card & Frequent Flyer options

[Beta4Me]

Hi all,

Over the last few months AFF has helped me go from a 0/10 to about a 2/10 with airline and credit card rewards but I'm still needing help...

I'm only recently 19 so haven't exactly had my CCs (Westpac Altitude Classic) for that long nor have I had my QFF account for a long time either.

From the knowledge I've gleaned from these forums I have registered both Velocity and KrisFlyer accounts (still waiting for the membership cards to arrive) and upgraded my CCs to Platinum Plus (still waiting for the new cards to arrive). I have also previously upped by credit limit from my initial $5K to $30K after pushing through a bundle of dollars on my CCs (75% Amex/25% Visa) in just over 9 months to rack up 105K Altitude Rewards points.

I own and run a technology company and, for a variety of mostly tax-related reasons, my declared income will be around $80K this year, so I'm looking to use that to sign up for some cards now that I won't eligible for in the future if my income drops (which I am expecting it to).

In the context of that background, I'm hoping to get some advice on the following thoughts (www.evernote.com/shard/s254/sh/0efca548-5a15-4974-aab1-84f9f3a16017/8e6b2b8113b5cc4e59dfa5b41d83cdc1 for full research details):

• Amex Platinum Charge Card with Platinum Edge Credit Card (fall back to just the Edge if declined) -- use this for restaurants & travel (charge) & supermarkets and petrol stations (credit)
• Amex Business Accelerator Credit Card -- use this for everything else I can put on Amex without a massive surchage up to $50K (which I don't think I'll hit)
• Westpac Altitude Platinum Plus (just approved and should be arriving soon) -- my existing cards which I want to keep as they have a good $30K credit limit which is useful for expensive business purchases + are an alternate Amex if I crack $50K on the Biz Acc or need an alterate Visa to the below
• Citibank Signature Credit Card -- Visa fall-back option

Will be using Amex referral links from dad to sign up for those cards. That should give 140K points sign-up bonus between the two of us + 24K points on the Citibank card.

Also:

• I am wondering about the ANZ CCs though as they appear to pay rewards/FF points on gambling transactions which could be handy if I need to wash some $ for a points top up ($1.01 favourites against GCS or GWS ).
• And, as per my evernote link-that's-not-a-link, thinking about the 28 Degrees card for no-fee cash advances (and forex if I feel like not using the Citi for surchage+extra points) as well as maxing it to stick on a 12 mth 0% ANZ Low Rate to pocket the interest for a year.

Now, in addition to the above, I'm really not sure what I should be doing with frequent flyers programs. I've never flown internationally (don't even have a passport...yet), but fly domestic a reasonable amount--1 return Syd and 6 return QLD (4 Bris/1 GC/1 SC) in the last year and a half with 1 or 2 out of those being business class.
So, I'm not sure whether I should be going Qantas or Velocity (or something else?) for a domestic program and what I should be aiming for for SCs and flight types and all that jazz (although I'm keen to get started on working towards LTS (and later LTG) at a young age as I can see that bringing permanent benefits) and how I should tie that into my CC rewards. I'm a real babe in the woods in this department and some of the stuff I've read goes whoosh over my head despite my best efforts (and that abbreviations thread really helps!).

Really hoping you can help clear things up for me. Thanks in advance!!!

 

[Beta4Me]

I've noticed the Platinum Charge Card says personal income $100K+ in some places but household income $100K+ in others. Which is it? :S

 

[straitman]

I've noticed the Platinum Charge Card says personal income $100K+ in some places but household income $100K+ in others. Which is it? :S

The way Amex currently treats people I would be surprised if they would ever clarify that one. They seem to want to flex the rules when and how they like at the moment. I believe it is more a case of apply, see what happens and don't be surprised whatever the outcome.

Re post #1. Many people have differing thoughts on the CCs and what is right (or wrong) but it really is a very personal answer. I'm sure someone can elaborate on this some more.

 

[Beta4Me]

The way Amex currently treats people I would be surprised if they would ever clarify that one. They seem to want to flex the rules when and how they like at the moment. I believe it is more a case of apply, see what happens and don't be surprised whatever the outcome.

Re post #1. Many people have differing thoughts on the CCs and what is right (or wrong) but it really is a very personal answer. I'm sure someone can elaborate on this some more.

I've taken the punt and applied. Fall back is Platinum Edge and I can work my way up to the Platinum Charge over time

 

[kevrosmith]

Westpac Altitude are great, but only if you really want to use points for gifts vouchers etc. You can convert to Velocity and others, or buy flights direct through Altitude, but I suspect they aren't the best use of points. Eg, the conversion ratio to Velocity et al isn't that great, though sometimes they have a 25% bonus offer.

For QFF, Nab Platinum or Westpac Earth Platinum Plus Amex is a great earn ratio for QFF points and purchasing QF products, and Woolworths EDR MC is best earn for non-Amex. I converted my Altitude to Earth and have never looked back, though I want the QF points to help maintain status and international award flighs, so YMMV.

The velocity Amex cards are good for earn ratios direct to Velocity and for the bonus on Virgin Australia products.

Don't forget that you can pay your BAS and tax on CC (though with a fee) - a good way to earn more points sometimes.

 

[Beta4Me]

Westpac Altitude are great, but only if you really want to use points for gifts vouchers etc. You can convert to Velocity and others, or buy flights direct through Altitude, but I suspect they aren't the best use of points. Eg, the conversion ratio to Velocity et al isn't that great, though sometimes they have a 25% bonus offer.

For QFF, Nab Platinum or Westpac Earth Platinum Plus Amex is a great earn ratio for QFF points and purchasing QF products, and Woolworths EDR MC is best earn for non-Amex. I converted my Altitude to Earth and have never looked back, though I want the QF points to help maintain status and international award flighs, so YMMV.

The velocity Amex cards are good for earn ratios direct to Velocity and for the bonus on Virgin Australia products.

Don't forget that you can pay your BAS and tax on CC (though with a fee) - a good way to earn more points sometimes.

Thanks for the info. The Altitude points convert 2-to-1 to FF programs, so, other than QF (which you can't do) it's good value for an Amex (1.5/$ on Plat Plus).
I'm definitely looking at the Woolworths Qantas CC as my Visa (until I can get a Citi Select) and the Amex Plat Charge (or Edge) to complement the Westpac CCs (which, in time, I'll probably swap to Earth).

I've just learned about paying the ATO via CC and enjoying it

 

[11sjw]

I've just learned about paying the ATO via CC and enjoying it

The direct earn QFF Plat AMEX cards (eg NAB and ANZ) aren't bad as you still get the 1.5pts/$ for ATO payments whereas AMEX Plat Charge have just dropped it to 0.5/$. The signup 32k (or 35k) points is quite helpful as well.

However they still are only a credit card and not a charge card if that is important.

 

[Beta4Me]

The direct earn QFF Plat AMEX cards (eg NAB and ANZ) aren't bad as you still get the 1.5pts/$ for ATO payments whereas AMEX Plat Charge have just dropped it to 0.5/$. The signup 32k (or 35k) points is quite helpful as well.

However they still are only a credit card and not a charge card if that is important.

Yeah. It's definitely important to have a Amex-not-from-Amex to pay the ATO, insurance, utilities etc. Westpac Earth has a cheaper annual few, NAB has a better Visa earn rate and ANZ pays points for gambling transaction (except chips) so you can wash cash for points--pros and cons for all: hard to decide! I'll stick with Westpac and my $30K limit for now...but food for thought for the future

 

[cove]

You would be better off looking at:
BankWest Platinum
Qantas Staff Credit Union Platinum
HSBC Platinum
Woolworths Everyday Rewards Platinum
Jetstar
as all of these pay a point a dollar (subject in some cases to capping limits of points)
Depending on which month you apply you may get bonus sign on points so read carefully.
Finally Citibank has a selection of cards that can provide wonderful results for those who need to switch from Amex Platinum now that they have made their " improvements".

 

[Beta4Me]

You would be better off looking at:
BankWest Platinum
Qantas Staff Credit Union Platinum
HSBC Platinum
Woolworths Everyday Rewards Platinum
Jetstar
as all of these pay a point a dollar (subject in some cases to capping limits of points)
Depending on which month you apply you may get bonus sign on points so read carefully.
Finally Citibank has a selection of cards that can provide wonderful results for those who need to switch from Amex Platinum now that they have made their " improvements".

In time, I intend to have Amex Plat Charge/Edge (3/2ppd Amex), Westpac Earth Plat Plus (1.5ppd Amex) and Woolworth Qantas CC (1ppd MC).
I'm not sure what you're suggesting that I shouldn't get/have to instead look at what you listed above?
By the by, what's the Woolies ER Plat?

 

[cove]

Yes I only covered Visa and MasterCards.
An Amex linked to a Big 4 bank still pays 1.5 points per dollar but their Visa cards are only 0.5 points per dollar usually. NAB can be a little better. I tossed out all the half a point Visa cards from my wallets.
The Woolworths credit card has worked well for me. There is just the one as far as I know that runs a point per dollar.

 

[Beta4Me]

Yes I only covered Visa and MasterCards.
An Amex linked to a Big 4 bank still pays 1.5 points per dollar but their Visa cards are only 0.5 points per dollar usually. NAB can be a little better. I tossed out all the half a point Visa cards from my wallets.
The Woolworths credit card has worked well for me. There is just the one as far as I know that runs a point per dollar.

Thought that's what you were getting at. That gap-fill of the extra 0.5ppd + 1ppd for Qantas spend is worth it for me to get a Amex/Visa combo (and then just ignore that Visa in-lieu of a Woolies et al one).

 

[Deleted member 29185]

Can I briefly play Dad here? All the points accrual is nice, but be careful not to get carried away with CC debt. It's very easy to believe you can pay off the balances, but it's even easier to run up those same balances if you have too many cards (especially as you expect your income to drop in future years....BTW congrats on a fairly healthy income from a new business venture whilst a teen ). Also remember that the full limit of all those cards (regardless of the balances) reduce your lending capacity, which with your level of income, you may want to avail yourself of to buy a house or borrow to expand the business.

If you're comfortable that you can control the card use, great......go for it but if you're suspicious of that ability, those points will become very expensive and ruin your plans. Be cautious.

Good luck with it all.

 

[Beta4Me]

Can I briefly play Dad here? All the points accrual is nice, but be careful not to get carried away with CC debt. It's very easy to believe you can pay off the balances, but it's even easier to run up those same balances if you have too many cards (especially as you expect your income to drop in future years....BTW congrats on a fairly healthy income from a new business venture whilst a teen ). Also remember that the full limit of all those cards (regardless of the balances) reduce your lending capacity, which with your level of income, you may want to avail yourself of to buy a house or borrow to expand the business.

If you're comfortable that you can control the card use, great......go for it but if you're suspicious of that ability, those points will become very expensive and ruin your plans. Be cautious.

Good luck with it all.

Thanks for those thoughts--dad already played dad too I currently use my credit cards as charge cards and intend to continue to do so. At the time that I need to borrow I will reduce my limits as appropriate; that said, this is where the benefit of the Amex Plat Charge will come in--the floating credit that it provides to push the odd big business purchase through will be handy without increasing my 'available credit' to my detriment