Friday, March 02, 2007
About Credit Cards (PART 2) - Point Exchange Stragegy
..................................................................................................................
Good : You get discount/ earn points / rewards for using your Credit Card (part 1)
Better : You exchange a good strategic amount of vouchers with your points (part 2)
Best : You use the vouchers when the shops are having a SALE! (part 3)
..................................................................................................................
So you've used your favourite credit card with best discounts and best rewards programme (while using the other cards only for the store discounts) and have accumulated millions of points.
Now what?
Card Member Fee
First of all, DONT use the points to offset your annual card subscription fee.
The credit card company will automatically deduct your points for the subscription fee if you have more than enough to do so.
Most people will raise hue and cry and threaten to cancel the card if they are billed for the subscription fee (if you dont, you should) , but will strangely allow the points to be deducted.
Dont. Call them and ask them nicely to reinstate the points.
They will agree most of the time, to pacify you, the biggish spender who has accumulated millions of points.
And the best bit? The reinstated points has a new expiry date, starting from the date of reinstatement!
Points Exchange Stategy
1. Vouchers or Gifts
a. Choose voucher instead of gift if possible. This is because gifts are usually valued at their listed recommended price, so you are likely to be able to get the same item at cheaper rates outside, by paying for it and still earn points.
b. You get more freedom of buying exactly what you want with vouchers, while there are limited gifts options.
2. Voucher
a. Do check the number of points required for each voucher dollar, eg. 2500 points for $20 in Shop A gives $1 for every 125 points, and 4800 for $40 in Shop B gives $1 for every 120 points.
If you can buy the same item at about the same price, why use the more expensive vouchers?
b. Make sure you are allowed to combine vouchers, and there is no lower spending limits.
c. Do try to maximize your points by mixing up the rewards, instead of using all the points on vouchers from 1 shop, you should try combinations of vouchers from different shops to use up all the expiry points. For example, instead of $270 from Shop C with balance of useless 1890 points, try $240 fron Shop C, $20 from Shop D, $20 from Shop E, with balance of useless 40 points. Yup, i've tried it. You just need to sit down, study the catalog and do some calculations.
d. You can do even better by using the vouchers when there is a SALE!!!
e. Exchange for vouchers from Shops where you already shop in. DUH!
3. Gift
a. Check the market selling price of each gift against number of points required. Go for the one which is most value-for-points.
b. Do exchange for gifts that you will actually use or be able to give away. DUH!
4. Flyer miles.
a. If you are a frequent flyer and like free travel. Do enrol for the flyer program with the appropriate credit card to maximise your miles.
b. Priority of Exchange
- i) Upgrade
By paying for a economy ticket, and upgrading to business (of first!) with your points, you actually earn miles from your miles, and better yet, MORE miles as higher flight classes give better miles compared to economy.
- ii) Companion Ticket
It is cheaper to exchange for companion ticket compared to a single ticket in the same class, especially if you are paying for a more expensive ticket in business (or first!) while exchanging miles for free companion ticket in economy.
Do note that both must travel together on same flight. Thats why it is called "companion" right?
- iii) Free ticket
Free ticket. 'nuff said. no more no less. But do try to exchange for the furthest or most expensive location within the same sector, provided if you actually do want to go there. DUH!
Good : You get discount/ earn points / rewards for using your Credit Card (part 1)
Better : You exchange a good strategic amount of vouchers with your points (part 2)
Best : You use the vouchers when the shops are having a SALE! (part 3)
..................................................................................................................
So you've used your favourite credit card with best discounts and best rewards programme (while using the other cards only for the store discounts) and have accumulated millions of points.
Now what?
Card Member Fee
First of all, DONT use the points to offset your annual card subscription fee.
The credit card company will automatically deduct your points for the subscription fee if you have more than enough to do so.
Most people will raise hue and cry and threaten to cancel the card if they are billed for the subscription fee (if you dont, you should) , but will strangely allow the points to be deducted.
Dont. Call them and ask them nicely to reinstate the points.
They will agree most of the time, to pacify you, the biggish spender who has accumulated millions of points.
And the best bit? The reinstated points has a new expiry date, starting from the date of reinstatement!
Timing
Do use your rewards only near their expiry, because most reward programs have a lowest tier for exchange. By accumulating your points, you gain more flexibility and better vouchers/ gifts, not the mention less wastage of balance points.
Points Exchange Stategy
1. Vouchers or Gifts
a. Choose voucher instead of gift if possible. This is because gifts are usually valued at their listed recommended price, so you are likely to be able to get the same item at cheaper rates outside, by paying for it and still earn points.
b. You get more freedom of buying exactly what you want with vouchers, while there are limited gifts options.
2. Voucher
a. Do check the number of points required for each voucher dollar, eg. 2500 points for $20 in Shop A gives $1 for every 125 points, and 4800 for $40 in Shop B gives $1 for every 120 points.
If you can buy the same item at about the same price, why use the more expensive vouchers?
b. Make sure you are allowed to combine vouchers, and there is no lower spending limits.
c. Do try to maximize your points by mixing up the rewards, instead of using all the points on vouchers from 1 shop, you should try combinations of vouchers from different shops to use up all the expiry points. For example, instead of $270 from Shop C with balance of useless 1890 points, try $240 fron Shop C, $20 from Shop D, $20 from Shop E, with balance of useless 40 points. Yup, i've tried it. You just need to sit down, study the catalog and do some calculations.
d. You can do even better by using the vouchers when there is a SALE!!!
e. Exchange for vouchers from Shops where you already shop in. DUH!
3. Gift
a. Check the market selling price of each gift against number of points required. Go for the one which is most value-for-points.
b. Do exchange for gifts that you will actually use or be able to give away. DUH!
4. Flyer miles.
a. If you are a frequent flyer and like free travel. Do enrol for the flyer program with the appropriate credit card to maximise your miles.
b. Priority of Exchange
- i) Upgrade
By paying for a economy ticket, and upgrading to business (of first!) with your points, you actually earn miles from your miles, and better yet, MORE miles as higher flight classes give better miles compared to economy.
- ii) Companion Ticket
It is cheaper to exchange for companion ticket compared to a single ticket in the same class, especially if you are paying for a more expensive ticket in business (or first!) while exchanging miles for free companion ticket in economy.
Do note that both must travel together on same flight. Thats why it is called "companion" right?
- iii) Free ticket
Free ticket. 'nuff said. no more no less. But do try to exchange for the furthest or most expensive location within the same sector, provided if you actually do want to go there. DUH!
Labels: to Read Think, to Shop Buy
# posted by yojanjan : 3/02/2007 02:02:00 PM
