Are credit Card Programs Still worth it?

[SOPOOR]

with recent devaluation of airline program $ per point spend, and increased annual fees,

is it still worth the annual fees and benefits on each of your spends?

I for the first time since turning 18 are considering going straight to debit/cash,
or a fee free credit card with an interest free period with no program attached,

If youre a business owner, im pretty sure its still worth the lower conversion rates, since the spend is high

I havent seen what other products are out there, but it doesnt look too promisining

Anyone else, tipped over to the "its simply not worth it " for credit cards?

 

[daft009]

IMO for individuals it's the churning game now, if you wish to partake.

For small business owners like myself.. let's see how I go and update all my maths. My spend is not going away but are the points worth it and at what cpd price

 

[aikman]

As a non business owner, I came to the same conclusion last year and closed down my Amex card which I had been paying an annual fee on for years. I do still have a fee free for life Citibank card though and will probably churn a card once a year for the sign up bonus.

Also most of my expenses are now paid with discounted Coles Mastercards so very little now goes through the bank credit card other than the purchase of the Coles Mastercard.

 

[Brucetiki]

The Qantas Amex Ultimate card (where the $450 annual fee is offset by a $450 Qantas credit through Amex travel) is still worth it for me. 1.25 points per $1 is still one of the best offers out there, plus the other benefits such as the two Qantas Club lounge passes each year, Qantas Wine Premium membership and what not.


Like everything, it's each to their own, and you need to make sure you are using the benefits with the card to ensure that the annual fee is more than offset by the perks. I've managed to get it to work for me, but it's not for everyone

 

[jakeseven7]

I will keep at it when the right offers pop up - but it is increasingly 'less worth' my time.

 

[OATEK]

I received an upgrade from Bankwest that restores the 1pt per $, so will keep the Mastercard.

 

[CMA222]

I traded down from top annual fee cards with St George Bank (NSW) about 12 months ago when they started enforcing zero award points for anything "St George" considered a business expense. I queried several (which were clearly personal) but it was not worth the hassles as the call centre said the St George transaction coding triggers the zero points result. The annual fees could no longer be justified on my level of transactions, so I gave up on supporting the Bank's poor point return. For many Mum's and Dad's collecting points through a credit card, the few thousand points they get per year does not justify the annual fee, but they do not do the figures that show how many points are now required to be earnt to break even with the annual fee. The party has been over for a while.

 

[Seat0B]

I've got the QF Amex with the $450 fee and $450 credit. I meant to cancel it this year, but missed the date and the next year's fee was charged, so when I use up the credit, I will likely cancel it. it's not best value for me as the travel credit is hard to use/remember to use and I don't seem to get the same choice of flights as booking direct with QF. Also, it seems like I get more cancellations when I'm booked with Amex Travel than QF direct although that could just be bad luck. Overall, not really a fan any more.

 

[SOPOOR]

For me the travel credit = annual fee for most cards is ok.
If i choose the right hotels its the same as agoda/booking.com etc.

So in this respect it works out essentailly free for the card for me

So the miles associated with purchases is a freebie

 

[Captain Halliday]

I received an upgrade from Bankwest that restores the 1pt per $, so will keep the Mastercard.

Which card is this and how do you score the upgrade?

 

[Rich]

Qantas Amex Ultimate card (where the $450 annual fee is offset by a $450 Qantas credit through Amex travel) is still worth it for me. 1.25 points per $1

I agree with this, though I rarely fly without using points so it can be hard to use the credit.
The other thing to remember with Amex is the offers. We do get a bit of cash back on this cards well.

 

[SYD]

My QF Small Business AMEX card is 1pt / $ (annual fee $160), so that’s still reasonable. My personal AMEX (fee free) went to 0.7 years ago and I only use it when there’s a cash back or similar.

My NAB VISA Signature is also 1pt / $ for first $5k pm then 0.5 (fee free with Private Banking).

Pretty much all my local spend goes on one of those cards. OS spend on 28° MC (fee free). I regret not getting one of the Coles MCs before retiring - at least the FBs points are better than nothing from Latitude.

 

[OATEK]

Which card is this and how do you score the upgrade?

I had the Bankwest Platinum and they offered me the upgrade to World.

 

[levelnine]

Such an interesting topic. So much to be said about the sweeping devaluations in the credit card space in Australia.

With the rise of card transaction fees at lots of retailers, the increased annual fees and lower points earn, there's never been a stronger case for going all cash (combined with a fee-free debit/EFTPOS card or a simple no annual fee credit card for when cash is not taken).

I wonder if this is going to hurt the airlines in the long run. Presumably they are behind a lot of these increases — they've upped their points charges to banks and banks are passing that on to customers.

If your regular card user sees this huge increase in their credit card annual fee, I wouldn't be surprised if a lot of them dump it for a cheaper alternative that doesn't earn points.

Which also raises the question: is this a permanent devaluation (ie is Australia becoming Europe?) or simply the downswing in a cycle and once banks/airlines become desperate for new customers we'll see big bonuses return?

 

[Colin 2905]

None of the four options given quite fit my situation. I've given up actively chasing points, and whatever I get on my Citibank Premier fee-free for life card is just a small bonus. Spend that's likely to attract an international transaction fee goes on my Bankwest Platinum Zero card; no points, but no fee, either.

I recently downgraded my Amex Explorer card to the no-annual-fee Essential card, as the travel credit was becoming increasingly useless, as were the offers. I still have over 300,000 MR points but they sure as hell won't be going to KrisFlyer this time; once bitten, twice shy. Unlikely that they'll be going to Velocity either; I already have over 700,000 points there, but do you think I can find two CBR to PER (indirect obviously) J award seats on the same bloody flight?

Good luck to anyone who can still make the points game work for them, but I'm over it.

 

[Forg]

As an individual & an employee (no business of my own), paying for stuff without a credit card is a bit of a PITA so I’m keeping my mortgage-related bank-provided Mastercard. The risk vs reward was not high enough for the last few years to pay extra fees to be able to earn extra points, and that’s not changed; no points from our card.

 

[SOPOOR]

Im not a rich guy nor high income so first class with cash will never happen
Even business class with cash is unlikely

Credit cards have allowed me to try both products

I dont have a business but have managed to spend absolute heaps chasing points, inc gift cards

I feel one more devaluation eg $1 for 0.33-0.4 point per dollar for most airline programs will be the nail in the coffin,

not sure what the deal is with other countries and their programs, but if it becomes not worth it, i will be devastated

 

[levelnine]

Im not a rich guy nor high income so first class with cash will never happen
Even business class with cash is unlikely

Credit cards have allowed me to try both products

For someone in your situation, I really feel it is churn or bust.

The increased annual fees & reduced points earn on regular spend means that trying to acquire enough points via a single credit card is very likely to be a losing proposition.

Programs are likely to devalue quicker than you can acquire enough points to redeem.

 

[MelbFlyer]

first class with cash will never happen
Even business class with cash is unlikely

Credit cards have allowed me to try both products

+1 to this.

I'd never pay cash for a medium / long haul business class seat on a full service carrier.

My CCs over the years have allowed me to redeem a few business class rewards seats for the cost of what my normal spending came up to (ie. I didn't "go out of my way" to spend money just to get x amount of points - I needed to spend that money anyway (ie. car insurance, utilities, engagement ring, wedding etc) and the bonus points was merely a passive benefit).

I still have a Qantas Premier Platinum card that I've just been charged my 2nd years' annual fee for - so I'll be keeping it for another 11 months, then cancelling just before the 3rd anniversary.

 

[AustraliaPoochie]

Sopoor by the mere fact you have enough points for rewards, means the card companies have gained a lot already from you.
Card fees are not cheap.
===
Me?
I am a QTMC ie prepaid use my own own funds type.
QFF have gained from me too, as I or we dont earn interest on the funds in QTMC.
And by transaction fees via card use with merchants who charge it, visibly or covertly via markups on purchases.
1.015% on top of my utilities, etc.