Is it necessary to have a credit card??

Discussion in 'Loans & Mortgage Brokers' started by househuntn, 6th May, 2016.

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  1. dabbler

    dabbler Well-Known Member

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    If you have access to 8k that is what they will calculate your liability as at a high rate, will it matter ? depends on how tight servicing is now, you can lower the limit to whatever the minimum is if you are close to the wire.

    In reality it wont matter to most, if you had 3 cards with 30k limit but all zero balance, that would be a bit of a hit for most, one of the brokers can give you an idea of servicing difference.
     
  2. albanga

    albanga Well-Known Member

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    Just thought I would share a recent experience. I am a credit for everything, keep cash in offset, payoff and redeem points user.

    This is a great strategy with double benefits. Save interest by offsetting longer and redeem points. However;

    My last statement period I dropped the ball (via stupidity not because I couldn't pay my card) and got stung with $150 interest. The way this card works and maybe others are that even if you pay the required amount in the next period they slug you interest again meaning $300! That would have meant any money saved in the offset would have been well and truly wiped.

    So instead of just accepting it I called the provider (woolworths) and explained and asked them to check my immaculate history.
    Honestly 2 minutes later the charge was removed, the simplicity amazed me.

    Now obviously this isn't going to work for bad users but for others who use this strategy it's just a note should you find yourself in this situation. Many would just accept it but you really don't have to and all you can do is ask.
     
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  3. Observer

    Observer Well-Known Member

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    That's not quite right. At least some of them agree to use debit cards. They just lock some funds on that card for the duration of your rent.
     
  4. wylie

    wylie Moderator Staff Member

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    @albanga I had the same thing recently and was gobsmacked to learn that with a cashflow issue one month, I decided to just pay interest for the month, only to learn I would pay it for the following month too. I called the bank and they wouldn't do anything. I did have the interest wiped when we'd had the card only a little while, but this time it was "too bad so sad". Perhaps it may depend on who you get on the end of the phone that particular day.

    It is certainly worth asking though.
     
  5. MTR

    MTR Well-Known Member

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    the point is you still need a credit card.
     
  6. albanga

    albanga Well-Known Member

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    Oh I'm sure it's not a guaranteed and they probably assess a number of things to see if it's worth the risk of you closing the card.
    For myself they probably checked and saw 8k limit with a heap of monthly spending and never any interest paid so they could have done nothing risked me being upset and leaving or did what they did.

    That does however beg another question I have never bothered to ask. How do they make money on people like me? I am guessing it's charging a fee to the company who I used my card with?
     
  7. sanj

    sanj Well-Known Member Premium Member

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    A debit card is not a credit card though so if hire car companies acceot debit cards it means you dont need a credit card.
     
  8. sanj

    sanj Well-Known Member Premium Member

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    They would make a clip on the transaction fee as well as potentially the gap between getting your money and paying the merchant.

    Also, they dont need to make big dollars off everyone, as long as enough of their customers are paying 15-20% interest it doesnt matter if others are paying none
     
  9. Kesse

    Kesse Well-Known Member

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    Mainly Interchange.

    Generally people who actually pay interest on credit cards are less profitable to the banks than the high transactors.
     
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  10. MTR

    MTR Well-Known Member

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    I understand, I just did not realise they do accept from our scenario
     
  11. Observer

    Observer Well-Known Member

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    My point is that in some cases the regular debit card will do. Not necessary to have a credit card.
     
  12. MTR

    MTR Well-Known Member

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    yes, I did not actually realise this. thanks
     
  13. Truly Exotic

    Truly Exotic Well-Known Member

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    this is what I say to people,
    if you think a credit card is free money, then dont get one

    if you can get one with no annual fee and interest free period and points, then get one and keep it!
    they can be great
     
  14. mikey7

    mikey7 Well-Known Member

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    How much do you actually spend per month on the CC though? I've been looking at Westpac CC's lately, as its interested me in getting points etc.. but you have to spend like $185,000 to get a bloody iPad.
     
  15. Joynz

    Joynz Well-Known Member

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    Sounds worryingly like her husband may be a control freak! Unless they have some agreement about not buying x or y and she hasn't been able to resist.
     
  16. Joynz

    Joynz Well-Known Member

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    I just got rid of my ff card. Over $100 per year for the card just didn't make sense. Most years I never took the flights.
     
  17. Joynz

    Joynz Well-Known Member

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    I suggest setting up an auto pay facility.
     
  18. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Depending on the month anywhere between 2 - 6K. I get one frequent flyer point per $ so it quickly adds up. Have not used it for other purchases though.
     
  19. albanga

    albanga Well-Known Member

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    My CC is with a different provider than the one I bank with so this is unfortunately not possible.
     
  20. Joynz

    Joynz Well-Known Member

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    So is mine. My cc is with Westpac but paid from my ING offset. Was previously paid from my ANZ savings account. Easy.