5 credit card hacks to get you to Bali faster

If you’re dreaming about a Bali break, then these finance tips and tricks, if used responsibly, could help get you there a little bit faster.

The trip to Bali is practically a rite of passage for Aussies. Whether you enjoy donning a Bintang singlet and drinking beverages on the beach, rising early to take in a spectacular sunrise on top of a mountain, taking in the wonder of an ancient temple or sampling fresh and fragrant culinary delights, there’s surely something in Bali to capture your imagination and enliven your senses.

You may be planning your first trip to this wonderful island, or contemplating a return, but either way, with the cost of living biting you’re probably wondering how to make your dollar stretch as far as possible. If used responsibly, there are some finance tips and tricks that could help you get to your Bali beachside happy place, and there are some hidden hacks you may not even be aware of to help you save for your holiday, or spare some extra cash while you’re there.

Can you maximise your rewards to get you on your way sooner?

Credit cards can offer a variety of perks, from reward points that can be converted to frequent flyer miles through to cashback offers and deals with various partner retailers, that can help you save or rack up some bonus points on your card. So what are some tips, tricks and suggestions to help get you on your travels and make the most of what your credit card can offer you?

1. Check to see what rewards you already have

It may have been a while since you signed up for your credit card, and you may have lost track of your rewards, so you could already potentially be earning without even knowing. If you don’t know what rewards you might be eligible for on your credit card, find out if you already have some rewards ready to go. Depending on your credit card, you could do this online through your mobile banking app, or by contacting your provider directly to ask.

2. Keep an eye out for sign-up bonuses

Some credit cards will award you bonus points for signing up, as long as you meet certain conditions, and if used carefully, an offer like this could get you enough frequent flyer points to get you in the air. For example, at the time of writing, both of the top-rated frequent flyer credit cards on Canstar’s database – the American Express Velocity Platinum Card and the American Express Qantas Ultimate Card – offer bonus frequent flyer points on signup.

Each offers 75,000 points for their respective partner airlines, on the proviso that you spend $3,000 within the first three months of card approval. This is a big spend, however, if it fits within your budget and you can pay it off in full each month, and you are confident you can manage a credit card (or if you’re thinking of switching anyway), then a signup offer like this could be a good way to help get you closer to your trip.

3. Consider shopping at partner retailers

Both Qantas and Virgin have a variety of partner retailers, and if you’re shopping using a frequent flyer credit card, a purchase at one of these retailers could potentially earn you bonus reward points to put towards frequent flyer miles – check your provider’s website to find out what deals are on offer right now. You can also potentially earn reward points for your grocery shop or when you fill up at the bowser – Woolworths Everyday Rewards points can be transferred to Qantas Points, while Coles Flybuys can be transferred to Velocity Points, and when you get petrol.

A savvy approach to shopping could see you earn rewards points to get you in the air faster, although it is very important manage your credit card responsibly. All the money you spend will need to be repaid, and if you don’t pay your balance in full each statement period, you’ll be charged interest. When using a credit card, it is wise to make only purchases that you need and are within your budget, and do not spend beyond your means purely so you can earn points.

4. Look out for cashback offers

Some credit cards will give you cash back for spending up to a certain amount in each statement period. Generally speaking, this cash back will be awarded in the form of reward points per dollar spent on eligible purchases during each statement period, which can be redeemed, either for cash in a nominated bank account, or by lowering the balance of your credit card. Some cards will also offer deals promising cash back if you spend up to a certain threshold in the first few months after signing up for the card. It is important to consider the rate at which cash back is awarded, however, and whether you might ultimately get better overall value by putting your points towards something like frequent flyer miles rather than using them to get cash back. When choosing a credit card, though, it is worthwhile to remember that your first priority ought to be a card that suits your particular needs, budget and spending habits, over one that might offer cash back.

5. Consider other points-earning products

You can earn credit card reward points on retail purchases over the counter, and sometimes, airlines will offer rewards points for products like insurance. For instance, at the time of writing, Qantas offers health, home, car and travel insurance, and each one of these comes with a signup bonus of points – the airline is currently offering up to 30,000 points when you sign up for car or home insurance, and up to 140,000 when you sign up for health insurance, with terms and conditions applying. Virgin is also offering 10,000 bonus Velocity Points when you sign up for either car or home and contents insurance.

Before signing up for an insurance product, however, it is important to keep in mind whether you will actually be getting a good deal with this product, and whether the benefits and cost are suitable for you and your particular circumstances. Before signing up, research any insurance product carefully, as switching to an insurance product to get bonus credit card reward points may not actually benefit you in the long term.

How many points does it cost to fly to Bali?

At the time of writing, to give one example of a trip you could take, Qantas says that a return trip from Brisbane to Denpasar, flying economy on its budget carrier Jetstar, would cost you a total of 36,000 Qantas points. Virgin, on the other hand, says that a return economy trip from Brisbane to Bali would cost you approximately 44,600 of its Velocity Points.

Say, for example, that you were to take advantage of one of the signup offers mentioned above, and nab yourself 75,000 frequent flyer points with either Qantas or Virgin. These points could get you at least one Brisbane to Bali economy round trip with either of these airlines, based on the most up to date information from each airline at the time of writing.

What should you look out for with credit cards?

When it comes to using a credit card, it’s important to make sure you manage it responsibly. Don’t be tempted to spend just to earn reward points – only spend on things you need and can afford, and when you do spend on a credit card, it’s important to try and make sure you can pay off your balance in full each month. If you do not, you could be charged interest, which could be expensive – this is especially the case with rewards credit cards, where the interest charged tends to be higher than other kinds of cards.

It’s also worth considering the fact that if you take out a rewards card, you’ll need to pay the annual fee. At the time of writing, for example, the American Express Velocity Platinum Card has an annual fee of $375, while the American Express Qantas Ultimate Card has an annual fee of $450. You’ll need to think about whether a fee like this is within your budget, and whether it will cancel out the potential benefits you could get from the card.

If you are confident you can manage a credit card responsibly and pay off the balance of your purchases without incurring too much interest, and if you are happy to pay the annual fee, then taking advantage of the perks of a rewards card can be one way to get you on your Bali break a little more efficiently.

Cover image source: Kaspars Grinvalds/Shutterstock.com