How many credit cards do you have?

Discussion in 'Money Management & Banking' started by MTR, 1st Mar, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    When you say carry balance, does that mean the type that incurs interest?
    I pay the Closing Balance, not the entire balance.

    If my statement arrives on the 5th and says you need to pay $1000 then at the end of the month it will direct debit $1000, whereas my actual balance at the time will probably be $2000 (then my next statement will tell me $1000 again)

    This page explains it pretty well
     
    Last edited: 5th Mar, 2018
  2. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    1,630
    Location:
    Brisbane
    advantages of several cards
    1: use the card that has just rolled over .max days credit
    2: use the local currency eg Australian., NZ, USA etc
    3: use the card that has the benefits that are appropriate eg free insurance, frequent flyer points, extra points if used to buy of certain suppliers
    4:spare when overseas if one card is compromised
    5:extra airline lounge access card (eg one or two per Westpac World card)
    6: Amex card is frequency rejected or has a high surcharge so Mastercard and Visa are also required
     
    MTR and Athikalaka like this.
  3. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    Agreed. If you're able to determine how to maximise the card's features, use it for your benefit. My card has points but if you think how much a point is it ends up being a fraction of a cent per dollar (if you simply convert the points to a $100 gift card). There are those who sign up for heaps of credit cards for points but considering this is a property forum, you should be aware of cooking your credit file and your borrowing capacity. That's why I play the long term game and use my cards for the interest free periods over the points. I have a CBA loan with the mortgage package so I'm considering the Diamond card for lounge access, points and AMEX. As mentioned above, I have to consider how this will affect my future loan applications and borrowing capacity. I especially like the AMEX Small Shop deal and using it to recharge my Opal cards at ~50% off (less surcharges) but is it worth the risk long term?

    Ozbargainers love gloating how they have 9 Amex cards (inclusive of supplementary) to stack their deals. It may or may not affect their file if their credit limits are small, I guess. Most cards have a credit limit of $6k, the Diamond is a $15k limit.

    I believe @Redom has documented how the limits can affect BC.
     
    Last edited: 5th Mar, 2018
    MTR and Babesoft like this.
  4. Lacrim

    Lacrim Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    2,079
    Location:
    Australia
    I have 2 credit cards...one has a limit of $30K, the other $15K. Comes in handy cum land tax time. And I get to accrue points.

    No so worried (now) about how it impacts serviceability bc I'm maxed out a couple of times over. Obviously will be an issue if serviceability calcs become more relaxed.
     
  5. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,781
    Location:
    Melbourne
    Am not a ozbargainer, but I have 11 amex cards inc supplementarys, they dont incur credit checks or fees, so thats why Ikeep them
     
  6. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    How do you have credit cards which incur no credit checks?
    Does that mean you have multiple credit cards with limits and lenders can't see due to the credit file?
    What happens when lenders finally have access to the applicant's account/balances? (I don't know what the proper term and extensive reach is but I heard it was something in the pipeline so people couldn't make anymore liar loans)
     
    Babesoft likes this.
  7. Babesoft

    Babesoft Active Member

    Joined:
    5th Jul, 2017
    Posts:
    36
    Location:
    Sydney
    I have 4 cards, all are either zero annual fee or free with home loan package, all paid off at end of period, each card is kept for low transaction fee (eg 28 degrees for overseas purchases) or points earning abilty.

    I actually prefer putting every dollar i spend (where the transaction fees aren't too high) on my credit cards cause it makes tracking of spend easier. Also get free lounge passes, travel insurance (which we've claimed a good amount on) and have racked up a good amount of reward points to avoid flying cattle class.
     
    Observer likes this.
  8. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    Built within my cashflow spreadsheet I have a simple calculator to determine if it's worth using a points credit card or using my offset account, depending on the surcharge.
    Majority of the time a surcharge is charged on the credit card, it works out better to use my EFT. (Taking in to account: interest free period - surcharge if paid by ccard vs lost interest saved through offset)
    All my transactions for every account is done through YNAB. Great to track my net worth and inflow/outflow for each account and category.
     
  9. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    429
    Location:
    Sydney
    That's what I do. I've got 3: ANZ Travel Rewards ($6k min limit, no international transaction fees; applied when the was 40000 Velocity points sign up bonus), Virgin Money Visa ($15k min limit, good point earn rate; this one had a great sign up bonus of 120000 Velocity points which was too good to miss), Amex Explorer ($3k min limit, even better point earn rate but not as widely accepted as visa; applied when the was 100000 amex points sign up bonus). Booked return flights to California with Virgin using sign up bonus points for the whole family (3 of us).

    All expenses go to cc and paid off monthly.
     
    Last edited: 6th Mar, 2018
    MTR likes this.
  10. supersam80

    supersam80 Active Member

    Joined:
    19th Jun, 2016
    Posts:
    41
    Location:
    Melbourne
    Now that westpac have done away with companion cards, I have 2
    1x Mastercard $15k limit (min limit for the card) no fee as its with a mortgage
    1x Amex $10k limit

    My wife has three, not sure of the individual limits but combined comes to $19k
    1x fee free CPA Amex
    1x Mastercard that comes with a mortgage (different to the one I have)
    1x 28 degrees for when we travel

    Its a bit too much credit tbh, but we never carry a balance and dont spend what we dont have in cash elsewhere
     
  11. Ideacrash

    Ideacrash Well-Known Member

    Joined:
    18th Jun, 2016
    Posts:
    116
    Location:
    Sydney
    I have 1 CC . I use it for all the monthly expenses and pay off everymonth. Came along with home loan. Get good points .Once in a while I exchange the points for coles / woolworths gift card ..
     
    MTR likes this.
  12. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    Is there a home loan lender which has a decent rate + access to funds when you want to draw equity from property + good credit card awards (all within a package)?
    Considering there are threads for individual products, I was curious if there's a recommended lender for all of the above?
     
  13. KinG3o0o

    KinG3o0o Well-Known Member

    Joined:
    17th Jul, 2017
    Posts:
    786
    Location:
    Sydney

    cba do it for me, whether its the best product or not i am not sure because when i took that plan they told me i need to cancel all my other credit card and use theirs, but they will match the limit i currently have.. basically combine 3 cards in to one ..

    i told them to **** ***

    so they end up give me a 15k limit platinum card and thats it
     
    Athikalaka likes this.
  14. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    I tried to go for the Diamond but it got rejected. I called them up and fixed up my "portion" of income, expenses, assets and IP in/outgoings and it still came up short. My own spreadsheet shows my cashflow to be very healthy with savings always increasing per month so I requested they look through it without a computer. Hopefully they'll come back with something because I have a mortgage package and can't even get the card I want. I'll probably end up being offered their lowest card with no awards.
     
  15. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    4,121
    Location:
    Melbourne
    I recently discovered my card is some strange concoction that doesn't even exit on the provider's website!!! :confused:

    The Y-man
     
  16. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,781
    Location:
    Melbourne
    diamond is a very poor product if you're paying a fee just fyi

    the earn rates for MC are very low, the Amex is now the lowest in the market,
    the only saving grace that recently happend was no international fees on purchases, effective late last year or early this year

    ive refused to pay my annual fee this year and they didnt bat an eyelid when I cancelled, Ive had this card (well the original reincarnations of it) for 24 years!

    edit: actually I lied they offered me 4000 velocity points, which I scoffed at
     
  17. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,781
    Location:
    Melbourne
    completely OT but I remember having a huge win with my CC a few years ago

    bought about 2k worht of floating floorboards through some local seller, it arrived fine, and I didnt get an invoice,
    I asked via email, and they said it was attached to the shipment, I said it didnt arrive, please email me one,

    I asked for it multiple times, and I ended up calling the number, and it was an asian lady, who said she was at the doctors too busy, and when I spoke to her finally, she said she couldnt give me an invoice because it would go through as a second sale and shed have to pay tax on it

    as I laughed, I called up the bank to do a chargeback, and said that if Idont have an invoice I may have to pay up to 50% in tax on it,

    a few months later, after sending proof, BAM $1000 credited back to my account,

    I hope the lady lost out, it was a good day for me
     
  18. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    Yeah I have a Mortgage package so I wouldn't apply for it unless it was free annual fee. I checked the PointHacks website on this card and they didn't give high praise, either but it's the "best" card I could get with my mortgage package (which I can't even get, at the moment!) Oh...and I wanted the AMEX Lounge access, too.

    Other than my Amex Platinum Edge which accumulates points, I use the 28 degrees which is idea for overseas but does not accrue any points. Having something (MC/Visa) gaining points for nothing is preferable.
     
  19. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,781
    Location:
    Melbourne
    if your 28 degrees isnt earning any points, you should definitely be using the CBA amex, its not high points, but its something
     
  20. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    169
    Location:
    AU
    But I already have an Amex (Plat Edge). It's when they have a surcharge on Amex I want to fallback to a MC/Visa Award scheme.