The devaluing of Credit Card Points and the rise of "Pretend Platinum Cards"

[whatmeworry]

Good Article about the recent devaluing of points from Credit Card Programs and the new phenomenon of the "Pretend Platinum Card".

Value of rewards cards questioned

 

[lovestotravel]

Something like this should have been written up in Choice Magazine...

"$18,400 to earn a $100 shopping voucher. In 2008, the average spend required to gain the same reward was $16,700 and in 2003 it was just $12,400."


Okay so in 2008 $16700 at 3% inflation is about $18400 today.... No big deal

Those that redeem credit cards points for voucher earn less than 1% good luck to them, international J is about a 4.5% return on $1 spent and if you get 1.5 points per $1 it's 6.75% return

I am happy with that and given that SQ has reduced the number of points needed for a J redemption I am even happier


However, a Platinum card is not what is used to be, Amex taking away travel insurance (well it's more restrictive) and then all the banks pumping out platinum cards.....

 

[Cruiser Elite]

I am happy with that and given that SQ has reduced the number of points needed for a J redemption I am even happier.

Are you sure on that point?

 

[oz_mark]

Something like this should have been written up in Choice Magazine...

"$18,400 to earn a $100 shopping voucher. In 2008, the average spend required to gain the same reward was $16,700 and in 2003 it was just $12,400."

Well, actually, the $100 is 2008 was worth more than $100 is today, so it is actually worse now.

I am surprised that there hasn't been a bigger push to the next level of cards above platinum. I guess that is ahead of us!

 

[Stephen65]

I got a mailout from one of the bigger banks offering me a Platinum card if I could demonstrate my income was at least $35,000. That's when I knew for sure that Platinum was meaningless.

 

[Foreigner]

Thankfully, there's still reasonable competition out there amongst the banks, unlike the Virgin-Qantas Group duopoly.

 

[here2go]

Platinum cards used to rewards loyalty and high spend. However, now they have become an excuse for banks to charge more to customers, and they also charge more to merchants (kind of like a faux Amex or Diners Card).

 

[LovemyCC]

I admit there are a lot of dud credit cards out there. But some offer great value for money (similarly to some dud home loans/phone plans). Take Amex play edge $149 ($99) annual fee, flying during school holidays the free flight has value over the annual fee plus points. and citi signature has $13000 spend for $100 gift card.

 

[here2go]

flying during school holidays the free flight has value over the annual fee plus points.

I've always wondered what constituted a free flight with this. Living in DRW, I don't want to fly to Borroloola or Nhulunbuy. BNE, DPS, SIN are more my kind of destinations. Experiences?

 

[oz_mark]

I've always wondered what constituted a free flight with this. Living in DRW, I don't want to fly to Borroloola or Nhulunbuy. BNE, DPS, SIN are more my kind of destinations. Experiences?

On the Platinum Edge card your choices ex-DRW are BNE and PER.
On the Platinum Reservce card, you can add MEL to the list.

 

[Paddy55]

I am surprised that there hasn't been a bigger push to the next level of cards above platinum. I guess that is ahead of us!

I am supremely proud, DYKWIA, possessor of Comm Bank Diamond Card!

Next stop the Hydrogen Card? :shock:

 

[JohnK]

And here I was very happy with my no frills, "fee free for life", gold card until Amex decided to take it away end of June and replace it with a Platinum card which is exactly the same but instead of paying $80 for Ascent you now get Ascent "free" with the $80 annual fee for the Platinum card. Someone in marketing is getting paid way too much for thinking up this rubbish.

But Amex is not alone in the merging of metals. Qantas has been in the process of merging Gold/Platinum status for a long time....

 

[LovemyCC]

I've always wondered what constituted a free flight with this. Living in DRW, I don't want to fly to Borroloola or Nhulunbuy. BNE, DPS, SIN are more my kind of destinations. Experiences?

Free return Flights are domestic direct ex-home town via virgin Australia . So Darwinians choices are gonna be limited. Also free flights include checked luggage (no meals). I would love SYD-DRW but only on drawing board at this stage (jetstar monopoly at this stage). Also free flights are calculated every anniversary year, cannot be accumulated.

 

[markis10]

Free return Flights are domestic direct ex-home town via virgin Australia . So Darwinians choices are gonna be limited. Also free flights include checked luggage (no meals). I would love SYD-DRW but only on drawing board at this stage (jetstar monopoly at this stage). Also free flights are calculated every anniversary year, cannot be accumulated.

Virgin started DRW SYD flights a few weeks ago, in daylight! Leaves SYD at 0940, DRW at 1350.

 

[travelislife]

Virgin do fly DRW-SYD now don't they?

 

[LovemyCC]

Virgin started DRW SYD flights a few weeks ago, in daylight! Leaves SYD at 0940, DRW at 1350.

Silly me. Just realised virgin introduced this new route. There is plenty of advertising on bill boards and website. And I didn't even notice. Great for Darwin's economy. Possible stopover before heading over to Asia. so for $149, u can get value for money on one those flights.

 

[SOPOOR]

Something like this should have been written up in Choice Magazine...

"$18,400 to earn a $100 shopping voucher. In 2008, the average spend required to gain the same reward was $16,700 and in 2003 it was just $12,400."


Okay so in 2008 $16700 at 3% inflation is about $18400 today.... No big deal

Those that redeem credit cards points for voucher earn less than 1% good luck to them, international J is about a 4.5% return on $1 spent and if you get 1.5 points per $1 it's 6.75% return

I am happy with that and given that SQ has reduced the number of points needed for a J redemption I am even happier


However, a Platinum card is not what is used to be, Amex taking away travel insurance (well it's more restrictive) and then all the banks pumping out platinum cards.....

I know a dumb question ,but what is a J redemption ?

 

[TiredOldFlyer]

J Redemption = Business class ticket with points.

 

[SOPOOR]

J Redemption = Business class ticket with points.

i see, thats obviously referring to international flight, but does it matter whetehr its shorter or longer, eg aus to asia or aus to uk or aus to USA

 

[TiredOldFlyer]

International or Domestic. Points vary according to Airlines, destination, time of the year and avaliability. Its a minefield !