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Credit cards: loan/title in wife's name - pay with my CC or hers?

Discussion in 'Property Finance' started by Fortune Favors the Bold, 17th Jun, 2016.

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  1. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Hi folks,

    This is a bit of a basic question, but I've learned to rely on you all for good advice, so I hope you don't mind.

    My wife and I just bought our first property - an IP with her on the loan and on the title, based on advice we received from accounts/lawyers (I'm a Yank with an Aus PR). The loan is with ANZ and they're offering her a Qantas Platinum Mastercard / Amex with fees waived as part of their loan package, though they won't give her the 50,000 bonus points she'd normally receive if she just signed up outside of the ANZ Breakfree package. I already have a Westpac Qantas Black card, with her as a secondary cardholder.

    So, a few questions:
    1. Is there any compelling reason that I'm missing for her to get the ANZ Platinum card?
    2. Are there any compelling reasons for her not to get the ANZ Platinum card?
    3. Is it okay if we make payments related to the IP using my Westpac card, or her secondary-cardholder card, and will she run into any trouble when it comes to IP-related expenses, tax-deductions, etc?
    4. Are there any other good CC-related options/approaches that would be better than either of the above?
    Maybe I'm overthinking this (probably), and maybe I'm being blind to some obvious considerations (probably), and that's exactly why I'd appreciate your inputs.

    Thanks in advance.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Will you be paying off the credit card each month in full with cash or refinancing this debt?

    If paying off there will be no interest incurred and no tax issues.
     
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  3. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Good question, and from exactly the guy I hoped would respond.

    To be honest, I'm not really sure what the best strategy is, and I'm hoping you and others might be able to help guide us.

    To date we've put everything on my CC each month and paid it off in full on time, never missing a payment. If we were to choose to refinance the debt instead what would the advantages be and how would we go about it?

    At this point my wife's borrowing capacity is at its absolute maximum. I'm consulting irregularly while trying to get full-time work, so my borrowing capacity probably isn't great either, though probably better than hers. Once I've got a full-time job that could improve, though I'm living overseas and likely to be earning in GBP or USD so that'll count against me.

    That said, my wife's got a great job, we have basically zero expenses, our property is about to be rented out (significantly negatively geared against my wife's income), I should have a decent job soon, and we've got shares investment income as well, so there's no problem for us in actually servicing the loan for our IP, though the banks may consider otherwise.

    Considering the above, do you think the debt refinancing option is feasible and makes and recommendable, or are we better off just paying off the CC in full each month?

    Thanks in advance.
     
  4. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    And please forgive me for being slow about all this. I'm a true rookie, as you've seen.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sounds like just paying it off in full each month would be the easiest.

    You could possibly lend her money for investments, but the international aspects complicates things as there would be withholding tax etc.
     
  6. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Right. I did speak to several accountants about loaning her money and was advised that in our current circumstances there wouldn't be much advantage if any, though I'm quite happy to be corrected.

    Are there any issues with us paying using my CC account, rather than hers as the loan-holder/property-owner?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    I'd add, if she's got a Mastercard then get a Visa and vice versa.
     
  8. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Thanks, why's that?

    Currently I have the following CCs:
    • US
      • Visa
      • Mastercard
      • Amex
    • AUS
      • Mastercard
      • Amex
    She has no CCs, but is a secondary cardholder for my Australian Mastercard and Amex.

    She also has Mastercard debit cards with several banks.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Can't recall if we dealt with a shop or found a terminal where visa wasn't accepted.

    Also differences in the insurance coverage
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There would be advantages in diverting income to your name - but relatively small amounts.

    No issues using your card.
     
  11. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Great. Thanks very much Terry.