Cents per point

[gmartin010]

Guys

Was wondering what a good bonus point rate per cents would be to look out for when comparing credit card bonus point offers to thje annual fee. i.e how many cents per point is a good guide? For example if an offer was 20,000 bonus points for a $125 fee that would be roughly 0.62 cents per point. Is this good?

 

[Jack_OC]

If you consider the fact that people (including myself) are willng to pay approx 0.97c per point by using Amex to pay ATO bills, then yes, I would say 0.62c per point is pretty good.

 

[Mattyana2003]

Anything under 1c is OK, considering what you cash them in for on flights especially in business class. Just be careful applying for too many cards too quickly as I did which stuffs up your Veda credit check file and you start getting rejections for a few months. Not sure how long it takes to clear again.

 

[Beta4Me]

Just be careful applying for too many cards too quickly as I did which stuffs up your Veda credit check file and you start getting rejections for a few months. Not sure how long it takes to clear again.

I believe 6 in 12 months and 18 in 3 years are general auto-reject thresholds.

 

[Mattyana2003]

I just applied for my Veda file,
should be interesting reading.

 

[burmans]

I believe 6 in 12 months and 18 in 3 years are general auto-reject thresholds.

Credit criteria varies from organisation to organisation (believe it or no some lenders mind less about having customers who can't afford to pay them back). But in general a lot of applications in a short time is regarded as either
a) a sign the customer has a lot of debts (not a good sign)
b) the customer is being refused elsewhere (also not a good sign)
They have somewhat complex analytical models to analyse this, as a general principle its the last 6 months which has the biggest impact on how they "score" you for credit worthiness. Beyond 1 year usually not an issue though, yes I suspect the 18 in 3 years might ring alarm bells.