[Sam]

My homeloan is with ANZ, and I have the option to get a free ANZ Frequent Flyer Gold card, which is normally $95 a year plus $65 for a supplementary card. The terms are as follows:

• - One point for every dollar up to $2,500 spent each month.
  - One point for every 2 dollars over $2,500 spent up to and including a maximum monthly spend of $10,000.
  - No points (excluding bonus points) on amounts spent over $10,000.
  - Interest free days on purchase: up to 55 days

With the homeloan, there is no fee for two cards (primary and supplementary), so I will probably sign up for it. Do you see any reason why I should not sign up for the free ANZ FF card? My gut feeling says "just do it!".

But, I've heard that ANZ FF cards aren't that great, especially only getting half a point per dollar spent over $2500. My monthly spending is usually less than $10,000, so I'm not worried about the maximum spending limit.

Now, would it be better if I also signed up for a card such as the American Express Gold Rewards Maximiser, which gives 1.5 points per dollar spent? I'd have to pay the annual fee, so I'm not sure if it's worth it.

Thanks heaps for your help!

[NM]

The only reasons I would consider is if you want to have the card application and resulting credit limit shown on your credit reference. Every time you apply for credit (and of course a new credit card is applying for credit), it will result in an entry on your credit refernce. A subsequent application for credit may be refused based on the fact that the credit provider thinks you may already be over-committed with your existing debt. And remember that they consider a credit card's credit limit as the amount of debt, not the actual amiunt outstanding.

This is the reason that credit card companies want us all to have very high credit limits. If we are fully committed in terms of credit to one company, we are less likely to be approved for a credit facility by a competitor. In fact with many credit card applications now you don't actually apply for a specific credit limit. You apply for the card and CC company tells you what limit they have approved for you. This limit may be way more than you want or need. But it means that when you next apply to another company and they check your credit reference they see that XYZ company has provided you with, say $25,000 credit on a Visa Card, and when they calculate your risk they will assume the full $25K is owing to XYZ even if you own nothing on that card.

So think carefully if you want the card, and if possible specify the credit limit you want rather than let the bank set the limit at what they want it to be.

Some people get into credit reference trouble by constandlt switching credit card providers, looking for the best short term deals, balance transfers etc. Even though they may be closing old card accounts, that is not shown on the credit reference - only the applications and how much was approved. So applying for a new card every 3 months and being given a $20,000 credit limit will appear as though you have an outstanding debt of $80,000 in 12 months even if you only have one current card.

[wleong]

As part of the terms and conditions of the Break Free package (formerly known as Premier Select), you must have a gold visa with min card limit of $7500- otherwise you will not qualify for the interest rate discounts. You don't have to pay the annual fees on the car as these fees are all part of the $295- per annum charge whether you use it or not.

I took out this package years ago and back then no credit report was conducted at the time of my report.


:wink:

[ANDREWCX]

Re: Credit report,

Credit applications stay on your account for 5 years but in most cases will say "application for continuing line of credit for an unspecified amount" - nothing in your report states whether you still have the account open (or even if you ever accepted or were accepted for it). Generally it isn't uncommon for people to have a reasonable amount of activity in this area of your report so don't be too worried - especially since you already have a mortgage.

Given that there really aren't that many CC's in Oz I wouldn't be too worried about it - obviously try to limit CC aps to 1 or 2 per year max though.

If the card is being bundled with your home loan, check with the bank to see if they will do a separate credit check on you, or if the card is simply part of your loan package. If it's the later, then sure why not... just do it.... afterall.. it's "free"

You can also try your luck with changing your card from the normal Gold FF card to the standard ANZ GOLD card which has free intl travel insurance, roadside assistance etc..

anz have been very good to me with being able to combine credit, change cards etc etc... ................... if you want to get really tricky and they let you do the card change.. you could get a cash advance for the same amount as your cc limit, BALANCE transfer that amount to a NON-ANZ credit card, then BLANACE transfer that back to your new anz card @ their lowest interest rate (from a non-anz card) which I believe is 3.99% for 6 months ... depending on your credit line this could save you a few bucks!

Re: the ANZ FF card: I cancelled mine in may due to the poor points ratio and have not looked back since!

[danielh]

Regarding the ANZ Qantas FF Visa Gold Card, I would also check that the $55 QFF rewards annual fee is also included as part of your home loan package.

The total annual cost of the card is really $150 ($95+$55).

Regards
Daniel

[Damien]

Originally Posted by danielh

Regarding the ANZ Qantas FF Visa Gold Card, I would also check that the $55 QFF rewards annual fee is also included as part of your home loan package.

I recently applied for this package myself, and the rewards annual fee is included.