credit cards (3 Viewers)

[Korn]

There's really not much of a benefit of having a charge card in my opinion, I have yet to find someone prove me wrong, apart from the fact that it discourages people to keep large balances through billing periods.

Well, u just contradicted urself

 

[Korn]

Well, u just contradicted urself

What about GL charge card of something like that

 

[JoyDivision]

Personally I dont think that the Bankcard is a good Card either. The trade off for the Fee Free one is no interest free days, so its essentially a debit card anyway, and the normal bankcard has limited worldwide acceptance. I dont encourage customers to get them unless they come in and specifically ask for it.

Nothing is more exasperating when someone comes back in with an Ant card complaining about the limited acceptance. Some people just cant see past the no annual card fee.....

LeftRightOut, what do you think of the National Visa Mini?

 

[LeftrightOut]

Well, u just contradicted urself

If people consider that a BENEFIT then they have a warped sense of just what a benefit is that is just the most commonly used argument I have heard for a benefit so I have posted it. I should have probably reworded it a little better. There is no benefit in that, in fact if you look at the average person who carries a balance every month they would be worse off with a charge card because they would be paying even more fees on balance carrying if not having their card entirely cancelled after a few months of carrying.

One benefit charge cards USED to have were rewards programs but these are now offered by most credit cards, just mostly administered by the banks.

I am not familiar with the GL charge card? care to give me the full name so I can google it? or is it a store specific charge card you can't use outside of that chain?

 

[LeftrightOut]

LeftRightOut, what do you think of the National Visa Mini?

It's a nice fashion accessory but that's about it. I don't think the 1% would be worth it for me but I can see some people who think "free money" liking it especially those who never use rewards or use them ineffectively. You would always have to carry 2 cards though, just in case you need to use an ATM or non-swipe machine which kind of defeats the purpose. Plus non standard size cards are pain, I hate business cards from people that are not standard, they don't usually last long in my wallet because they just don't fit well.

I like the US offerings better, 0% interest for first 12months on purchases or 3% cashback deals are not uncommon.

 

[Korn]

If people consider that a BENEFIT then they have a warped sense of just what a benefit is that is just the most commonly used argument I have heard for a benefit so I have posted it. I should have probably reworded it a little better. There is no benefit in that, in fact if you look at the average person who carries a balance every month they would be worse off with a charge card because they would be paying even more fees on balance carrying if not having their card entirely cancelled after a few months of carrying.

One benefit charge cards USED to have were rewards programs but these are now offered by most credit cards, just mostly administered by the banks.

I am not familiar with the GL charge card? care to give me the full name so I can google it? or is it a store specific charge card you can't use outside of that chain?

My mate got on when he got a sound system through the Lifestyle Store

 

[iambored]

iambored..you don't need a credit rating if you're a student. i just applied for a credit card and got it ($2500 limit). I earn about $200 maximum a week and have $5.60 in my bank account.

Also if choosing between Visa, Mastercard or American Express, i wouldn't choose the latter as it isn't accepted in nearly as many places.

nice


does having a credit card and paying everything back on time give you a credit rating, or just paying back loans?


why and when do they offer you a higher limit?

At first I was using it instead of my debit/eftpos card. Money went into my account, I spent it on my credit, paid it off at the end of the month. I keep track of EVERYTHING I spend (which sounds anal but is awesome if you need to budget yourself), so making sure I didn't spend more than I had was easy...

i will be doing something like this, spending only what i have earned.

.......

thanks, imformative post

First off, getting a loan to build credit rating is STUPID. The interest and fees you pay are NOT WORTH the credit rating you achieve.
...........

thanks again

Which cards dont have fees ( i mean if u pay the money u used back immediately, u dont get charged anything)

looks like it's national, teachers credit union and virgin

what does 'balance transfer' mean?
and "interest paid on credit balance"?

 

[Arvin Sloane]

I carry two:
Amex because, it's well, Amex. And a Visa because some places, stupid places, don't accept it.

 

[JoyDivision]

iambored-

When you sign up for a credit card, you'll do it through one of the banks. We like to get you as a customer because we get a proportion of the interest you pay back on your credit card for being a merchant. So to attract other banks credit card customers, we can offer them special interest deals to switch merchants. So then, the balance that is owing on your credit card is transferred over to an account with another bank, and the old account is closed. Thats a balance transfer, its still the same amount and credit card and everything, but the merchant is different. The one we are pushing at the moment is 5.95% balance transfer if you transfer from another bank's credit card to the National Mini Visa.

Your Interest Paid on your Credit Balance is simply the interest that youre paying on your card once the bills become due (Usually 44 days). Once the period of interest free days expires, Interest starts getting compounded on the balance that you have left to pay off on your credit card. Say youve got $100.00 outstanding on your card, and then your balance becomes due, youve got to pay $16.25 back on top of your original balance. If you then go out and spend another $50.00, youve still only got to pay back $116.25, until the $50.00's interest free period has expired.

 

[LeftrightOut]

I carry two:
Amex because, it's well, Amex. And a Visa because some places, stupid places, don't accept it.

Well they're not stupid places, quite smart actually. See they still get your money and instead of paying the higher Amex merchant fees they get to hold onto more money by using the lower Visa and MC network. The same goes with places not accepting Diners Club.

A friend of mine has an Amex Plat, got it so he could charge everything to it, he uses it maybe 4 times a month because there simply aren't many places taking it where we live. He will probably drop it come renewal time as the fee simply isn't worth it.

Gotta love concierge though, the only reason I would even consider an Amex is for Centurion Concierge. My current Platinum concierge services are nice enough. I can call up and get things sorted out by a human anytime if I feel like it but Centurion go the extra mile if you have super weird requests.


iambored - a credit card will build your credit rating, as long as you pay it back on time it wil influence it in a positive manner. Anytime you use someone else's money officially it goes on your credit record. Increases depend how long you have been a customer and how close you come to your limit every month. I used to have offers every few months because I used to buy on the card, then repay, then buy more, then repay etc several times in one cycle. Wasn't doing it to increase my limit I just had a lot of stuff to buy.

 

[Korn]

Well they're not stupid places, quite smart actually. See they still get your money and instead of paying the higher Amex merchant fees they get to hold onto more money by using the lower Visa and MC network. The same goes with places not accepting Diners Club.

A friend of mine has an Amex Plat, got it so he could charge everything to it, he uses it maybe 4 times a month because there simply aren't many places taking it where we live. He will probably drop it come renewal time as the fee simply isn't worth it.

Gotta love concierge though, the only reason I would even consider an Amex is for Centurion Concierge. My current Platinum concierge services are nice enough. I can call up and get things sorted out by a human anytime if I feel like it but Centurion go the extra mile if you have super weird requests.


iambored - a credit card will build your credit rating, as long as you pay it back on time it wil influence it in a positive manner. Anytime you use someone else's money officially it goes on your credit record. Increases depend how long you have been a customer and how close you come to your limit every month. I used to have offers every few months because I used to buy on the card, then repay, then buy more, then repay etc several times in one cycle. Wasn't doing it to increase my limit I just had a lot of stuff to buy.

If u intended to pay the full bill every month, but didnt want to incur a monthly of yearly account keeping fee what would be the best card to have

 

[JoyDivision]

Korn - I suggest the National Visa Mini. If you sign up before May, you get first year no annual fee. The only No Annual Fee Cards we deal in are the Bankcard Fee Free and the Ant Card. There are problems with both of these, limited acceptance being the major one with the Ant Card and the Bankcard can only be used in Australia and NZ- so if you wanted to buy something say on Ebay from Overseas, you probably wouldnt be able to. Bankcard Fee Free also has NO interest free days.

However, with the Mini Visa, you pay 19.90 every year after your first year. Hate to sound like a Hallmark Card, but its a small price to pay for worldwide acceptance and 55 Interest free days.

 

[Steven12]

what about the virgin credit cards, they sound like a good deal, no annual fees and low interest rate.

what i want to know is how the interest is calculated, like when you use ur credit card on a $500 item, does it mean from that very day the bank charge you for interest? or is there a interest-free period? and is interest charged very month?

 

[Xayma]

No what will happen is you will have a month or so to pay it without interest from (when the bill is posted I think). If you dont pay within that month you are charged interest for that entire month (even if you are only a $1 short you get charged the whole lot) and then it goes on a daily basis.

If you were to take cash out it is immediately interest starts.

 

[llamalope]

I have a visa card...linked to my mum's account. We only got it so I could buy my uni books and any unforseen expenses. But I haven't used it... and I don't intend to. Just in case anybody is wondering whether which cards are more accepted internationally, I'd have to say a Visa card. I recently returned from an overseas holiday, and very few places accept amEX or Diners club cards.

If you can help it... don't get a credit card. It's not worth it. It is too easy to start spending and thinking that you have all this money at your disposal. If you intend to pay everything off in one month, that's fine... but I'm sure there will come a time when you can't, and you end up getting charged a whopping 16-18% interest rate.

similarly, if you don't pay your bills at the end of each month in full, then don't just pay the minimum repayment amount. It has been proven that if you continue to do this, you will never actually reduce your debt. It will just grow and grow.......

 

[JoyDivision]

Steven_12 .. I think the Virgin Credit Card youre talking about (Between 10-12% Interest?) has very few Interest Free Days, somewhere between 15-20. Im not entirely sure because I dont deal with them, but it means that you have to pay back the money in full sooner....


I think its more important to have interest free days rather than lower interest rates, especially if you use your card properly and only buy what you can pay back in full. That way, you dont pay interest at all, but you give yourself more room to breathe with when your balance becomes due.


Just for interest's sake - National Mastercard and Visa have 44 Interest Free Days, and Visa Mini has FIFTY FIVE with a LOW ANNUAL CARD FEE

 

[Soma]

I have a CBA Mastercard with 2.5k limit.
Pretty sweet.
I think this month is the first I won't be able to pay it back in full though.

 

[Minai]

Yeah I'm like Jezzmo, I have a Student Options Mastercard from Commonwealth.

$0 annual fee as long as I'm a student
55 days interest free
and (well stupid) rewards points

I've never paid interest ever in the 2 years I've had the card, so basically I'm freeriding (due to $0 annual fee), and I'm getting rewards points.

If you budget well, and spend within your limit, a credit card is very useful, ie, I use my credit card to pay EVERYTHING, and I pay it back the next day from my savings account (netbank), so I hardly use cash for any major purchases anymore.

 

[waterfowl]

I have a Commonwealth Worldvision card
$30.00 per annum
55 days interest free

I only use it to pay for things over the net (eg phone bill), or to pay for things that I may not have the money for at the moment, but know I will get it in my next paycheque.

Works out well for me, and it will give me a good credit rating so when/if I go for a home or other loan they won't be taking such a risk with me and I am more likely to get it....hopefully.

 

[iambored]

online banking has an option where you can choose a date to pay someone. so i assume you can choose a day to pay back your credit card. is it useful to buy something on credit, come home and 'pay' it off straight away by putting in a deferred payment date, meaning you'll make for example 40days interest on money you've already spent, or is it pointless?