Which credit cards offer the best bulk frequent flyer points
We’re going crazy about surcharges, but so far credit card companies haven’t restricted bulk frequent flyer points. From October 1, it will be illegal to charge customers explicit fees for the pleasure of paying by card.
This means banks and issuers will see their margins tighten. Therefore, you can expect card advantages to decrease as the date approaches. But instead, bundled points offers abound, albeit with a few new caveats and conditions. I asked comparison company Canstar to compile the cards with the most generous save points.
Today you can get the most cash Qantas points (150,000) from Westpac Altitude Black, BankSA/Bank of Melbourne/St.George Amplify Qantas Signature and Qantas Money Titanium.
Almost the same amount – 130,000 points – is available from ANZ’s Frequent Flyer Black and NAB Qantas Rewards Signature, while MyCard Prestige Qantas offers 125,000 and Qantas Money Platinum offers 120,000 points.
For big, bulk Velocity points, MyCard Prestige has the biggest offer: 200,000 points. You can also win 150,000 by signing up for Westpac Altitude Velocity Black.
First, keep in mind that interest rates on all of these cards are above 20 percent, but I add an important qualification to all this credit talk here: If you’re in danger of rolling over a balance rather than paying off your entire debt in any given month, these credit cards aren’t for you. Actually, it’s neither.
There are always providers willing to make money from the changing market environment.
The interesting thing about current bundled point deals is that none of them have a set expiration date. Instead they say things like “offer valid until withdrawn.” Some of the existing agreements also began after the push for surcharges was announced earlier this year.
But besides this, there were significant changes in the aggregate scores last year.
One reason for this is usage behavior: Card issuers have become increasingly wary of customers who sign up multiple times a year, “losing and burning” cards just for points (remember, too many applications can hurt your credit score).
So points are now used as leverage for your loyalty, with full delivery typically not occurring until the second year of card ownership.
For example, you have to wait a full 15 months until the second year to get the full sign-up bonus from BankSA/Bank of Melbourne/St.George and Westpac offers.
However, you may now have to overcome the upfront spending hurdle first; This is an offer that will allow you to transfer more of your daily expenses through a card.
Remember, this is an additional great way to accumulate points, provided you’re disciplined about clearing your entire balance each month. Even more powerful, it allows you to keep your paycheck in an account offset against your mortgage for the entire month, potentially saving you a ton of loan interest and significantly moving your mortgage-free date forward.
Canstar identified recent example moves as part of the “spend more to win” trend:
- Won ANZ Platinum Award: The total reward was increased from 100,000 points to 125,000 points, but the required initial spend increased from $2000 to $3,500.
- NAB Reward Platinum Card: It kept the 100,000 bonus points intact but tripled the minimum spending requirement from $1,000 to $3,000.
- American Express Speed Escape Plus: It kept its offer of 30,000 Speed Points but tripled the required spend from $1,000 to $3,000 in the first three months.
The thing is, for dedicated (and disciplined) scorers, none of these are high-spending hurdles.
But the analysis also reveals that there are card issuers who anticipated the elimination of so-called interchange fees and reduced deals. For example, making sharp cuts in enrollment and sometimes requiring higher spending at the same time:
- American Express Velocity Platinum Card: It halved the sign-up bonus from 100,000 to 50,000 points while increasing the minimum spend from $3000 to $5000.
- Westpac Altitude Rewards Platinum Card: Maximum sign-up bonus reduced from 120,000 to 100,000 reward points.
But there are always providers willing to make money from the changing market environment. It is Westpac Group’s responsibility to improve registration points and conditions.
“Signature” and “Altitude Black” Qantas/Velocity cards increased overall. For example, Westpac Altitude Velocity Black increased from 120,000 to 150,000 Velocity points.
However, for any frequent flyer credit card perk, you will pay for it. Canstar says the average annual frequent flyer card fee is $272; a low-rate card costs just $56.
And keep in mind that with the top cards mentioned at the beginning, higher points generally come with a higher annual fee. MyCard Prestige Velocity and Qantas deals cost $700 and $749 per year, respectively; The Qantas Money Titanium card is an eye-watering $1200 per year.
But there’s the thing about frequent flyer passes: other sweeteners are often so significant that you can well and truly get compensated even before you add whatever point value you like, sometimes including flight credit.
For example, the Qantas American Express Ultimate Card has an annual fee of $450 but comes with a $450 Qantas travel credit (although bonus sign-up points are currently a marginal 50,000).
We’ll see if the disguises and benefits will remain the same after October 1st.
Nicole Pedersen-McKinnon is the author of: How to Get Mortgage-Free Like Me?Available at: nicolessmartmoney.com. follow him Facebook, X And Instagram.
- The advice given in this article is general in nature and is not intended to influence readers’ decisions about investments or financial products. They should always seek their own professional advice, taking into account their personal circumstances, before making any financial decisions.
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