Credit Card Advice

Discussion in 'Money Management & Banking' started by Bean27, 24th Oct, 2019.

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  1. Bean27

    Bean27 Well-Known Member

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    8th Jan, 2019
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    Devonport
    Hi all

    I use the AMEX Velocity escape card the keep money in my offset longer and earn points, the only issue I have is a lot of places don't take AMEX. So I was thinking of getting a 2nd $0 annual fee visa or mastercard credit card for those retailers that dont take AMEX. Will doing this stuff up my credit rating too much or is it worth it?

    Cheers
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    Won't stuff up you credit rating as such - it affects your serviceability - lenders will assume you have the entire credit limit drawn at a million % pa (even if you have nothing owing). If you are getting a Visa/MC, get one with a small limit.

    A card that has no fees on international purchases like Latitude 28 degree might be good as it served 2 functions - local shops where AMX is not accepted and for overseas purchases online or when you travel (although conversion rates are not crash hot)

    https://www.28degreescard.com.au/?g...AvlqYDU1BDdJiRQuhFxoC2cUQAvD_BwE&gclsrc=aw.ds


    If serviceability is an issue, you might have to resort to a debit card, but get one with benefits like the Citibank Plus which has no international transaction fees, awesome exchange rates, and no fees when withdrawing form Citi and associated ATMs anywhere in the world.
    Citi Australia



    The Y-man
     
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  3. Bean27

    Bean27 Well-Known Member

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    Devonport
    How far into the past do banks look at serviceability? For example if I got a Visa credit card now and then in 4 years I want to buy an investment property so I close the card account then I start the process to try buy one
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    I'll defer to a broker for a definitive answer, but I heard you can just cancel when applying and get a new one once you get the loan :eek: (or the lender offer you a free one as part of their loan in many cases) :eek::eek::eek:

    The Y-man
     
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