I am a total newbie trying to get into the points game and looking to get my first credit card. I am a Quantas Frequent Flyer and my primary goal is to save money on my yearly return flight to Europe.
I was looking at the different earn rates and annual fees of several credit cards and was trying to make sense of it, especially how much you need to spend to make up for the annual fee with your earnings. I would like your opinion on the following.
Let’s take the ANZ Frequent Flyer Black Amex as an example. It earns 1.5 Qantas point per $ spent an has an annual fee of $425. When comparing the price of flights in dollars versus points on the Qantas website, 1 point came out being worth almost 1 cent, which means the annual fee is worth 42,500 points. At the given earn rate, that’s $28,333 that must be spent to break even.
Am I correct here? If so, I probably need a less expensive card, because it seems like a lot just to break even. I know it comes with other advantages, like lounge access, but I am mainly after getting points.
Please point out anything that I might be missing here. I’m keen to understand more about all this.