OCBC 90 Degrees N Credit Card
Asked on 25 Aug 2019
Hi there, I am considering to get the OCBC 90°N card for miles, saw that foreign charges are 3%?
My calculation of value for the miles:
(E.g. Payment in JB for RM300, estimated SGD100)
Foreign charge = SGD100 x 3% = SGD3.
Miles earned = SGD100 x 4mpd = 400 miles.
Max cost of mile im willing to spend = SGD0.018.
Cost per mile from transaction = SGD3 / 400 = SD0.0075.
Thus is worth it if im willing to pay up to SGD0.018 per mile.
Would appreciate if anyone could confirm my understanding :)
Your understanding is correct.
You may pay fx fees, but in exchange the bank rewards you with miles. So in a sense, you are paying the fx fees (or any other fee really, for that matter).
Once you know your fx fees, you can then judge how much you paid per mile obtained. Thus if your cost is lower than your threshold to buy miles, it is ok to just pay with the card, forsaking the outright cost savings by paying in cash in exchange for miles.
Yes, your calculation and understanding of the scheme is correct. Since you are willing to spend 0.018 per mile, the transaction will net you at 0.0075 which is cheaper than what you are willing to pay. It is worth it in this case
Yes, it is worth it in my opinion. Let's put it into cents to make it simpler.
You are willing to pay 1.8 cents to buy a mile. The 90°N allows you to buy a mile at 0.75 cents. In this case, it is less than your limit so, why not?
You can refer to the articles below for reference:
2) https://mainlymiles.com/2019/08/26/credit-card-review-ocbc-90n-mastercard/ (go straight to the comments. much better explanation)
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