Bank and credit card strategies

Discussion in 'Wealth Creation & Management' started by mmm....shiney!, Feb 27, 2017.

  1. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Thought I'd try and roll a few strategies into the one thread.

    Taking advantage of the 0% honeymoon periods and the free rollover opportunities is an effective wealth management tool for those who already have the cash to pay for bills/consumer goods but choose to maximise their return on interest for the interest free period by depositing their funds into a high interest bank account such as a mortgage offset account rather than use it to pay for the goods. It's already been discussed here: http://forums.silverstackers.com/topic-63095-balance-transfer-to-offset-account.html

    Two other strategies I've used included Macquarie Bank's generous offer of cash - $50 for opening an account with them and providing feedback during their beta testing and another $50 for depositing $1000 or more into my account. That's $100 or a 10% return on my $1000 in less than a month. Keep an eye out for other banks offering similar strategies, Macquarie's was the first I'd ever noticed (probably because I was an existing customer), but other institutions may adopt similar strategies.

    Currently ING Direct is offering $75 as a cash bonus for opening an account.
    https://www.campaigns.ingdirect.com...010e64-9f37-4972-ba59-d0f377fc8211:Affiliates

    I've just been given an ANZ Low Rate Platinum credit card, their current offer is a $250 cash back and 0% interest on purchases for 6 months, I've got a bill to pay so instead of using my savings, I'll use the new CC and pay it off in about 5 months times and get an effective $250 discount then I'll chuck the money I have for the bill into the new ING account. More info here:

    https://www.anz.com.au/personal/cre...latinum/?pid=crc-hb-t-hp-02-17-acq-lowratefee

    Take your ANZ card into a bullion dealer (or if you're really quick take advantage of eBay's 10% off everything), buy some gold and get $250 knocked off the balance owing, open an ING account, deposit the cash you were going to use to pay for bullion and get $75 for your efforts. All up that's $325 of free money! Just don't forget to pay ANZ back before the 6 month expiry period. :p
     
  2. REDBACK

    REDBACK Well-Known Member Silver Stacker

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    Excellent info Shiney,keep up the great input! ;)
    REDBACK
     
  3. GRETZKY427

    GRETZKY427 Active Member Silver Stacker

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    For just $325, is it really worth opening and closing all these accounts, i can understand if you saved $500 plus, something like that but $325 is not a big amount...well I don't think so...but interesting though :)

    Cheers, HAPPY STACKING :)
     
  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Summarised well, thanks. :)
     
  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Entirely subjective. :)

    For the effort required, let's say an hour at most, you'd have to be earning big $$$ in order to make that money in your regular job.

    Strategies such as the one outlined above are the habits of the wealthy. Obviously there are other strategies that they also employ eg frugality etc but a penny saved is a punk,* pound earned.

    Or something like that. :p

    * stupid phone.
     
  6. silverbait

    silverbait Active Member Silver Stacker

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    Bullion Baron I have suspicion with the latest credit rating an individuals rating will be decreased if they do hold continued balances (even paying the required minimum does not help) as balance is there and not being paid off at the end of the term. Also having larger limits (how do they help our ratings? )

    My rating is just dropped due to having NAB card with balance transfer rate offer being used. No joke at around 100 points...

    Your strategy does work I guess but at the cost of losing rating??? Am I correct?
     
  7. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    Over in the UK I had a large credit card debt that I didn't pay off for several years. I think I went through about 6 of the transfer balances and 0% interest periods.

    The amount they offered went down each time I switched.

    It wasn't just me, the financial industry called us 'credit card whores'. I have had a look and it must have been in the newspapers because there is nothing on the internet about it, shows how long ago it was.

    I eventually had to give up because they changed the way the system worked just to stop us.

    You got your interest free period on the transferred balance. When you ran up new debt on the card and paid it off, instead of the money paying off the new debt, as it had previously done, the money you paid in now paid off the credit from the balance transfer.

    You ended up paying full interest on the new debt and that would keep building up until you had paid off all of the initial balance transfer.

    Gave up after that, I still have a Marbles credit card account in the UK with +0.75 on it, they won't send me a cheque for that small amount and they can't reimburse it apparently. I asked them what they were going to do about it and they said I should just spend on the credit card to go back into debt. I told them I was leaving the country but they continued to send me statements saying I was 0.75 in credit right up until my mum sold the house. I would imagine that they are still sending them.

    My worst fear is that they charge me 1 for something, and I end up unknowingly owing them over the next 50 years until they hunt me down and take my house.
     
  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Be aware that applying for credit comes at a cost to your credit score.
     
  9. Killface

    Killface Well-Known Member Silver Stacker

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    All this is way too convoluted for me. I just do the standard mortgage offset juggle, paying my salary directly into my loan a/c and doing all my spending on my interest-free CC. The bank was kind enough to explain that a BPay transfer scheduled for the due date would be processed as paid on time (in fact they said there is a few days' grace). So I've had a free line of credit (equalling about a month's salary) for the last two years. It's a low-fee CBA gold card, maybe $20/yr and includes some benefits, the only one I have used or can bring to mind is free travel insurance. Minimum spend $10k/yr.

    I'm yet to be convinced that the hassle of collecting points would be worth it to me. I know it suits some people but I honestly couldn't be arsed researching it, carrying multiple cards, or changing my habits for tiny cumulative rewards. It seems sometimes like a bit of an obsession and can alter spending habits adversely, e.g. always flying Airline X for the points - why not just take the best deal?

    Edit to add: none of these ideas is worth anything if you pay interest on the CC. There's the single most valuable CC tip you'll ever get: Never Pay Interest!!
     
  10. Killface

    Killface Well-Known Member Silver Stacker

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    That's more like it!
     
  11. Radio8tiv

    Radio8tiv Active Member

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    I also did this but took it one step further,(probably a bit late for you now), but at marriott rewards they have a travel package option for most of the major FF programs. So basically you get a 7 night certificate to use at Marriott properties and a handfull of points depending on the program, United will reap the most points Avios wasn't bad with the recent bonus promotion, etc

    I opted for KrisFlyer miles for an upcoming suites booking, and seven nights in NY just after thanksgiving which is usually ~$2500 USD

    you can take this even further by linking to an Edge, if your planning on keeping the Explorer just message me for more details
     
  12. Mintaka

    Mintaka Active Member

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    I can't remember to use a coffee card correctly. These schemes are far too complex for a simpleton like me.

    I am older, and don't know what I would do if I had my time over. I am not sure I would be rushing headlong into the real estate market because of stamp duty barrier, and I would definately not rush into the stock market.

    I think that a business is the winning strategy.
    Just my opinion.
     

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