Only if those points are worth more to you than the 0.67% credit card surcharge you will pay on top of your tax.

Elroy Jetson said...

Only if those points are worth more to you than the 0.67% credit card surcharge you will pay on top of your tax.

It appears points are worth 1% in $ values, ie 10,000 points converts to something worth around $10 ...RRP.

But there are many, many exceptions.




Amex surcharge is actually 1%, but returns 3x 2x points. The 1% surcharge is deductible too.

My old flatmate/work colleague just flew Malaysia to Egypt, return, with 90,000 points. This simple act has made me a little more conscious of their potential.

I know, it's as about exciting as tax.

If you want to avoid paying interest on credit cards.... pay them off in full at the end of the month. Unfortunately, this means that you have to live within your means (ie don't spend more than you earn).

Depending on the bank, it is possible to set up an 'auto' payment from a house loan to a credit card. That way you can use the card to buy your stuff (using the interest free period on the card), then, just before you have to pay interest at card rates (20%?), the money is transfered from the home loan to the card.
You still pay interest, but at home loan rates, and no interest until the end of the month (and get your points if that is of any value).

Hope this helps?

Before I got divorced, a thief once stole my wife's credit card. She went to call the bank straight away to cancel the card and get a new one. I told her to hold off for a few months, cos the thief was spending less than she did