Cheapest Method to Pay for Points

[William Chau]

Hi All,

After reading these two posts, I was inspired to think about whether or not there were cheap ways like this to pay for frequent flyer points:

http://www.australianfrequentflyer....ssion/which-credit-card-39674.html#post648225
http://www.australianfrequentflyer....ssion/which-credit-card-39674.html#post648240


Has anyone come across any useful schemes like this?\

N.B. had to unlink the links because of my post count.

 

[smit0847]

If buying foreign currency is considered a cash advance (and thus not eligible for points earn) on most credit cards, I would expect buying Australian currency would be exactly the same.

 

[smit0847]

If you could find something you could purchase that earns points and then easily 're-sell' for exactly the same amount you paid for it (like with cash), then you could effectively buy points.

 

[William Chau]

If buying foreign currency is considered a cash advance (and thus not eligible for points earn) on most credit cards, I would expect buying Australian currency would be exactly the same.

If you could find something you could purchase that earns points and then easily 're-sell' for exactly the same amount you paid for it (like with cash), then you could effectively buy points.

Understood. But in the above circumstances, the RBA puts it through as a purchase from what I understand.

I think I've found something which effectively allows me to do a similar thing year round. I'll guinea pig it and report back.

 

[smit0847]

Understood. But in the above circumstances, the RBA puts it through as a purchase from what I understand.

I think I've found something which effectively allows me to do a similar thing year round. I'll guinea pig it and report back.

Please do - its certainly an interesting concept.

Everyone values their points differently but if surcharges were making the points cost 1.6 cents each I would only be purchasing them to make up the shortfall for a planned trip, I dont think its incredible value.

 

[RWJ777]

Please do - its certainly an interesting concept.Everyone values their points differently but if surcharges were making the points cost 1.6 cents each I would only be purchasing them to make up the shortfall for a planned trip, I dont think its incredible value.

Especially as 'time value of money' concept means that a static asset, purchased in today's money, devalues if its price holds even static until its eventual use. Of course, the reality is that it's often much worse -- so, applied to FF points, that the value of the points actually devalues over time as FF programs often increase the number of points required to redeem for flights. Much better to purchase just before needing the points and to be very sure that the price paid is less than the cost of item if purchased directly.