Best local credit card for backpackers?

[JerseyVics]

First post loaded with questions....

I'm planning a 325 day visit to Australia from NY on a Work & Holiday Visa.

I'd like to open an Aussie bank account with the best credit card option to suit my frequent flyer program of choice. The choice I haven't made yet. I was thinking Virgin Blue but on a recent search from SYD to MEL, JetStar was siginicantly cheaper... so I'm not commited yet.

In the US I use my JetBlue AMEX and Virgin America VISA for everything, because I don't fly for work, the only reward flying I do is thanks to my credit cards.

I intend to do something similar in Australia. So I wonder what would be the best Frequent Flyer program to join. Which one gets the most points/award dollars/miles from which credit card, and what bank would be best to deal with when it comes to getting that credit card?


This question would be best posed to other backpackers, but I haven't found any posts about backpackers here... plus I think most of them rent camper vans or hitch to get between places, and I'm spoiled.


Actually, I'm addicted to flying so I'll try to do as much as possible of it as long as I could get a local job to support that hobby. I checked Qantas award flights for International travel and it seems it would take me a lot more than a year flying longhaul to earn anything meaningful so thats why I'm leaning towards Velocity... but I'm open to suggestions.


Thanks!

--Russ

 

[Dave Noble]

I think that most CC companies will only give cards to permanent residents , not temporary visitors and that for a visa type card your best chance is getting a bank account that offers a visa/mastercard debit card

Dave

 

[NM]

I think that most CC companies will only give cards to permanent residents , not temporary visitors and that for a visa type card your best chance is getting a bank account that offers a visa/mastercard debit card\

And of course such a card is not going to of use to earn FF points/miles/rewards.

 

[JerseyVics]

And of course such a card is not going to of use to earn FF points/miles/rewards.

Touche!

I would continue using my Virgin America Visa but they charge 3% foreign currency exchange fee. Than again I noticed that paying for an Australian flight with a credit card requies a $3 processing fee... how do Aussies pay for their flights anyway when they book online?

 

[serfty]

G'day JerseyVics, welcome to AFF & welcome to Oz.

I guess you can only try - note that if you do manage to get a point earning card, most come with surprisingly high annual fees.

Also note, that most cheap Jetstar airfares do not earn any miles.

 

[serfty]

... how do Aussies pay for their flights anyway when they book online?

There are options to "Direct Debit" or Bpay (Qantas).

 

[NM]

Touche!

I would continue using my Virgin America Visa but they charge 3% foreign currency exchange fee. Than again I noticed that paying for an Australian flight with a credit card requies a $3 processing fee... how do Aussies pay for their flights anyway when they book online?

We either pay the fee or use BPay which is more like a cash transfer and hence no fee.

 

[JerseyVics]

thank you serfty!!!

thats great to know, thanks.

based on other backpacker boards it seems ANZ access select or HSBC Online Savings are top picks.

any experience with those?

by the way, Virgin Blue looks like a logical choice for me, cheaper than Qantas and has potential to give something back for frequent flying even limited at that.

 

[Evan]

You can probably get a visa debit card from one of the banks like ANZ that i know have them, i dont know much about them except you use your own money and not credit.
Probably no FF points.

If you get an Amex account in the USA you may be able to simply transfer it to Australia... i have been investigating doing just that from Australia to Singapore and it seems rather easy.

E

 

[JerseyVics]

If you get an Amex account in the USA you may be able to simply transfer it to Australia... i have been investigating doing just that from Australia to Singapore and it seems rather easy.

E

I will be buying some AMEX Traveler Cheques for my trip soon, so I'll find out at the AMEX Travel Center, I'm actually thinking of buying AMEX travel insurance as well for my trip, so it could be a one stop shopping experience.

 

[Evan]

I will be buying some AMEX Traveler Cheques for my trip soon, so I'll find out at the AMEX Travel Center, I'm actually thinking of buying AMEX travel insurance as well for my trip, so it could be a one stop shopping experience.

I would usualy not worry about travellers cheques, i think just an ATM card gives better exchange rates, then again if your betting the AUD will get stronger or the USD weaker then maybe not such a bad idea.

E

 

[NM]

I will be buying some AMEX Traveler Cheques for my trip soon, so I'll find out at the AMEX Travel Center, I'm actually thinking of buying AMEX travel insurance as well for my trip, so it could be a one stop shopping experience.

You may want to check out some of the predictions of the financial experts regarding the expected direction of the A$ over the next few months before you lock in travels cheque purchases. Many are predicting an exchange rate of US$0.50 for the A$ before the middle of the year. If those predictions eventuate, you may significantly better off keeping to US$ denominations.

Then again, it may go the other way, but few people are predicting that in the next few months.

 

[oz_mark]

You may want to check out some of the predictions of the financial experts regarding the expected direction of the A$ over the next few months before you lock in travels cheque purchases. Many are predicting an exchange rate of US$0.50 for the A$ before the middle of the year. If those predictions eventuate, you may significantly better off keeping to US$ denominations.

Then again, it may go the other way, but few people are predicting that in the next few months.

And the experts all got fail marks for their predictions for 2008.

 

[moa999]

Simple arguments on AUD v USD.

AUD falling.
Mineral exports going down the tube, China stops.

USD falling.
US Government is printing money to support the banks, the automakers, .... like its going out of fashion.

Who wins ???????

 

[wxxnxs]

First post loaded with questions....

I'm planning a 325 day visit to Australia from NY on a Work & Holiday Visa.

I'd like to open an Aussie bank account with the best credit card option to suit my frequent flyer program of choice. The choice I haven't made yet. I was thinking Virgin Blue but on a recent search from SYD to MEL, JetStar was siginicantly cheaper... so I'm not commited yet.

In the US I use my JetBlue AMEX and Virgin America VISA for everything, because I don't fly for work, the only reward flying I do is thanks to my credit cards.

I intend to do something similar in Australia. So I wonder what would be the best Frequent Flyer program to join. Which one gets the most points/award dollars/miles from which credit card, and what bank would be best to deal with when it comes to getting that credit card?


This question would be best posed to other backpackers, but I haven't found any posts about backpackers here... plus I think most of them rent camper vans or hitch to get between places, and I'm spoiled.


Actually, I'm addicted to flying so I'll try to do as much as possible of it as long as I could get a local job to support that hobby. I checked Qantas award flights for International travel and it seems it would take me a lot more than a year flying longhaul to earn anything meaningful so thats why I'm leaning towards Velocity... but I'm open to suggestions.


Thanks!

--Russ

I may answer some of your questions, first of all 99% you are unable to get a local credit card in QZ, because the first criteria is " BE A PERMANENT AUSTRALIAN RESIDENT OR CITIZEN" and even this applys to most visa or master debit card of some major banks.

The only bank I know is National Australia Bank, it doesn't need you to be a resident to apply for a VISA DEBIT card and simply deposit $2500 each month, you will not be charged for a monthly fee. Other major banks do charge you at least $3/M. I think this is the best account for bagpacker because I used to be an international student in Australia. Not as the States, Debit card in Australia does not earn any points/rewards/miles, it just like a normal savings/cheque account but you can use it as a fake credit card.

Two major airline companies in QZ do accept many ways to pay for the ticket, most people use credit card, and yes, we do get surcharge for credit card payment, QANTAS charges $7.7 for domestic and Virginblue charges $3, international fights will be higher. Another thing is the credit card currency conversion fee applys to everywhere, not only your country, so does here ( it can be up to 3.5%).

 

[JerseyVics]

You may want to check out some of the predictions of the financial experts regarding the expected direction of the A$ over the next few months before you lock in travels cheque purchases. Many are predicting an exchange rate of US$0.50 for the A$ before the middle of the year. If those predictions eventuate, you may significantly better off keeping to US$ denominations.

Then again, it may go the other way, but few people are predicting that in the next few months.

I'm not a betting man, although this whole trip is a gamble.

I wanted to purchase Aussie Bux at the AMEX Travel Center the other day but I figured it would cost approximately US$40 to buy AU$500 worth at US$0.74 when the exchange rate for that day was US$0.68.

I would like to have a few bux with me when I arrive, just in case so I don't have to run for the first available ATM.

 

[JerseyVics]

PS. this may sound ridiculous to some, but I have never used an ATM in my life!

 

[Evan]

PS. this may sound ridiculous to some, but I have never used an ATM in my life!

At first it does sound crazy... but then you realise your not that alone i am sure there is a reasonable number of people who have not, i would guess mostly older.

If you land at Sydney or Melbourne during normal hours you can wonder up to departures and get money from the banks money changers (ANZ etc) at ok rates, or just go to a bank there in the US and get some cash to start with from them.

The other problem with travellers cheques as although they are indeed currency you would be supprised how many people dont even know what they are and using them at anywhere except a hotel for accomodation or a bank to get cash can get you a blank look.

I am not sure about over there but if you really worried about an ATM, just ask the back to show you, they will have demo, or try this web page.
How to Use an ATM

Normally like you i would never land in a country without money For USA, Europe,UK, Asutaralia, NZ etc i would try to have some $$ before i leave from a local money change, just anough to get a feed and worst case a taxi. Then get money when i am there. Its not like Japan say where it used to be next to impossible to find an ATM that accepted an overseas card, this is Australia Everything will seem somewhat normal i am sure, you can even probably use your starbucks card here ! although i am not 100% sure about the currency exchange on them, i know SIN/HKG etc work so i dont see why not Australia.

E

 

[bambbbam2]

I believe the Bendigo Bank Visa Debit does earn points, though not sure if they canb be tfrred to FF points..

 

[Dave Noble]

I believe the Bendigo Bank Visa Debit does earn points, though not sure if they canb be tfrred to FF points..

iirc, they won't give the debit card until after 3 months of holding the account ( unless they have changed )

Dave