No annual fee Mastercard/Visa with rewards program

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  ilostnemo on 11/11/2013 - 00:58

  To answer the last part of your question,

  Every Credit Card application will show up on your Credit Rating Report. (I'm unaware of recent changes) but if you apply for say 4 credit cards, you will have 4 enquiries.

  Financial institution wouldn't look favourably on so many enquiries.

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  [Deactivated] on 11/11/2013 - 02:03

  If you apply multiple credit application within 3 months time or so, lenders will consider them as 'desperate move' means reject all the things but won't be 12m.

  I do apply for credit every 6 months or so without any problem.

  P.S: credit including loans and etc, not only credit card.

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  JediJan on 11/11/2013 - 10:24

  I have a Commonwealth Bank Visa card that I have held for many, many years. I used this card when I updated from a Bankcard (that's how long ago it was). Currently a $40,000 limit but they stopped increasing my limit without my permission these days … and seriously I would never ever have use of that much. I have never paid any fees on it although I know some do. I guess you would have to ask the bank staff why some are paying fees and some not. I think it depends on the deal you do with the bank whether or not they give options on the Visa cards (like Commonwealth does); lower interest rates probably mean there is a fee involved. I have never used the cash advance option either; probably anyone who does is either desperate or really shouldn't have one at all. I do have a zero balance but even when I did have a carry over amount I still paid no fees, year in year out.

  I also have a pre-paid MasterCard (opened this year) which was a deal Qantas Frequent Flyer scheme offered. Apparently no fees so long as you use it every 12 months and you get extra frequent flyer points for doing so. Just got to watch you don't go over what you have credited the account with as there are charges involved then. I didn't really need another credit card but thought it may come in handy to earn some more points; I buy things from the Qantas shop this way. Everything is points these days!

  Don't think applying for more than one credit card a year would be detrimental although it may raise some questions from the bank etc. as to why you want so many. I used to work for a finance company so I know a little about the credit checks that are carried out. I have never had a loan for anything so basically my credit cards are the only form of credit rating I have established.

  For your interest; one of my workmates years ago would purchase items from Myer on his Myer card, then when the final payment day came he would pay it on his credit card, then not pay that until the final payment day; essentially interest free for 2 months.

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    YadaYadaYada on 13/11/2013 - 13:16

    I saw the Qantas Frequent Flyer card they sent me - you have to apply for Qantas cash to be activated for it to work. But the catch I didn't like was the overdraw charges, and I don't know if there's any way to avoid that. It felt like a lot more organisation to get that card, than the flybuys one which is a credit card that you only have to worry about paying off once a month, not before every shop you make!

    By the way, that's pretty extreme about getting 2 months interest free! Hopefully the payment goes through on time, or else you'd be slapped with late fees :(

    I also forgot about other loans because I did get a preapproval for a home loan this year as well. But that was much earlier this year.

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  JediJan on 13/11/2013 - 13:35

  Yes the overdraw charges are the catch. But, if you treat it like it should be; a pre-paid credit card then you shouldn't have any problems that I see. If you need to spend more than that then use your regular (fee free) credit card and do a transfer from your regular savings into it when you get home. I think they should have put a stop on it once you spent your credit (your money) like they do with pre-paid mobile phones. The only other thing I found a bit disconcerting is that it can take up to 3 days to credit the pre-paid credit card (I recently put some money in) so it is not automatically deposited like a normal savings/credit card transfer would (same bank). Takes a little bit of pre-organisation and not for someone that does impulse buying; only for the money minded people who like points without paying interest on anything!

  Yes the 2 months interest free thing was a bit on the extreme. Was years ago; the guy was an accountant and I do admit he was a little eccentric. But, it worked!

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    YadaYadaYada on 13/11/2013 - 13:59

    That Qantas card involves so much organisation! You really have to keep tabs on how much you've put on it and whether it's landed. The other thing that I didn't like ts that I've been reading that the Qantas frequent flyer program has been diluted over the years, mainly by the shopping programs attached to it. It takes ages to earn a decent flight on that :( The Qantas card is lookign less and lessa ppealing at the moment.

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  Geekomatic on 13/11/2013 - 13:45

  Has anyone had experience with 28degrees card?

  http://www.28degreescard.com.au/

  Looks good- especially if you do a lot of overseas shopping?

  No fees at all if you pay off each month…

  Cheers

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    YadaYadaYada on 13/11/2013 - 13:57

    I have one of those already! Great for buying anything in other currencies, esp when overseas because the Mastercard conversion rates are generally better than the cash rates you can get (anywhere).

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      Geekomatic on 13/11/2013 - 14:14

      Great! Then maybe you can save me getting a knock-back on my record…

      I started a home business last year & am currently still getting my sea-legs- so not a huge income— but I do have savings & no other debt. I previously worked, employed full-time in retail IT sales, 2008- 2012.

      This would be the first time I've applied for a CC in AU since migrating, and since starting my business— so I'm a bit dumb on the particulars…Is there a minimum income level, do you know? Are self-employed considered a risk?

      Ta!

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        JediJan on 14/11/2013 - 09:48

        Although by all appearances its appears banks etc have dropped their standards for those applying for credit, when I worked for a finance company, the requirements to be met by self employed people were higher. Used to be based on the "Five C's of Credit" (character, capacity to pay, credit rating etc.) The theory (generally accepted) is that the majority of self employed businesses failed within 12 months, then a huge proportion within three years. So, if I recall correctly, we required 5 years of profit and loss, to satisfy the regular income criteria. Many a time people would get upset if they were refused credit little realising it was in their best interests. If a credit officer thought the customer required special consideration it was left to the manager who more than likely demanded a bill of sale (ownership of item until loan paid in full) or a co-borrower on the contract, or both.

        I don't know what the minimum income level is but you would have to prove that you can comfortably survive on your income with excess over to cover those expenses that come out of the blue. If that is too tight then perhaps this is not the right time to apply for credit. Your previous work history and credit rating would put you in good stead with character aspect but with only one year's self employment behind you with no other income coming in puts you in a bit of a high risk area. A person employed on a minimum wage not having a credit record backing them would be considered a better risk. Well, that's how it was in those days. Certain professions were always considered a higher risk too; solicitors and legal staff to top the list!

        What happened in USA is a result of greedy banks dropping standards and making loans to people that had virtually no chance of ever repaying the loans. Many of those people that lost their jobs ended up losing everything that they had ever worked for. People have to remember if they are refused then possibly it is in their best interests; get that good sized deposit down first, which opts you for lower principal loan and repayments … more chance of getting loan finalised in correct manner. If people fall into difficulties these days the best thing to do is contact the financial institution who now have a requirement to try to work a plan out to assist them; especially if they do so before they fall behind in payments (which affects their credit rating). Contact the institution and ask for either the loan to be rewritten (smaller repayments but longer term - more money in the long term but manageable), or perhaps skipping one month and adding that onto the end of the contract. Just don't do nothing and lose all.

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        YadaYadaYada on 14/11/2013 - 22:28

        This 28 degrees card is also a bit stingy on the credit as well. They seem to offer quite low credit compared to other lenders (but my banker says that's due to risk of fraud since it'll be used overseas a lot). The bankwest plat credit card is another that does international fee free transactions, but you need to be approved for a particular credit limit.

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  Geekomatic on 14/11/2013 - 15:28

  Thanks for that.

  I wasn't really interested in the card other than sometimes my kids like to order things from the states, is all. I just thought it would be nice to save on the int'l transaction/currency conversion. I'm not a "buy it on credit" type of person- full stop. I save, I buy. That's why I have savings & no debt.

  However, whilst in the states for decades, I did have a great work history, credit record & credit cards (paid off every month)- unfortunately (& for the life of me, I don't understand why)- all of that means nothing in AU. I'm incredulous in that most other things- such as income tax, child support, etc…are all reciprocal between the countries. Yet, credit rating is not shared?

  So anyway- thanks again. I guess I'll just pass for now. The reason I asked is that AU keeps tabs on how many times you apply for something & are turned away— as an indicator of … I don't know what.

  Cheers.

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    JediJan on 14/11/2013 - 15:53

    Yes everytime you apply for something and get rejected it goes on file too. Better to wait I think until at least the 3 years is up to be on the safe side (in my past finance industry experience). Perhaps ask an accountant when he/she thinks is a good time to apply for credit. CRA and Dunn & Bradstreet are the ones that still keep all the information on file I believe; used to be 5 years history, unless anything negative. I understand you can access those files too; freedom of information and all that.

    Yes the pre-paid credit cards are a great way for kids to buy things off the internet without the added risks. The Post Office and most banks offer them too, although I don't know anything about the fees etc. PayPal is actually safer though (buyer protection and all that). Just have to watch those exchange rates as the time between "invoicing" and actually "buying" can mean a few dollars difference. Don't you just hate the postage from USA though?!

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  coolsteps on 14/11/2013 - 18:12

  citibank still offer personal no annual fee platinum cards if you sign up for a package or are a citigold member but i think you need to earn at least 35k or 20k of you are a citigold member. its a same they stopped offering the business gold visa card. http://www.citibank.com.au/aus/packages/saver_package.htm does anyone know of a business rewards credit or charge card that doesn't have an annual fee? EA used to offer a Amex gold business charge card but stopped it now? Cba offer a no interest free MC but it has no rewards.

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    YadaYadaYada on 15/11/2013 - 00:31

    Ooh that's interesting. It looks like it's better value than the flybuys card on face value. I'll look into it more. Thanks for that!

    Yeah I've seen teh CBA card that has no annual fee - I think there's a minimum spend of $1000 pa to get it free too, but that's usually not too hard to achieve paying off bills. That one is pretty bad value in the scheme of credit cards.

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  anna10 on 15/11/2013 - 11:20

  I have a red Velocity Amex card that's free. It's gets points and gave me a 7000 point sign up bonus. Have a look on line for the latest offers. The point may not be the annual fee, but how much does it give you back or upon sign up.

  It's very individual. If you are putting through business costs, it will depend on how much they add up to. A lot of cc will not like b. costs, but if you are a small / micro b and not putting much on it you'll get away w' it.

  If this is your first cc, it is vital to get one that suits you so that you do not default under any circumstances so you build up a good credit history for bigger and better things to come.

  http://rewardscompared.com/cards