Doing A One-off 10k Purchase, What Card Should I Put It on? (No AmEx)

Hi guys,

I currently have an Amex Platinum Edge as my sole CC atm. I have a 10k purchase coming up but the place does not accept Amex. I wouldn't want the potential points to go to waste so i'd like to sign up for a new CC and put this on there. Due to this, it'd have to be a Visa/Mastercard one, where i can maximise the points i get and take advantage of any sign on bonuses. I'd be okay with keeping it as i do need a substitute for the non-Amex retailers, however i wouldn't want to incur such a big annual fee unless it'd be okay to cancel it after.

A couple of questions:

1) Obvious one, what recommendations do you guys have?
2) For the ones that have 'spend X amount in X time' get X bonus points. Will it be worth it to incur the annual fee and then cancel it after?
3) If i do cancel the CC during or after the first year with this being my only purchase, is that a tarnish on my credit rating?

Edit. Also, i may not be able to pay off the 10k balance in one month, so ill have to incur interest for 2-3 months max. Is there a way i can avoid this via balance transfer magic? Otherwise it may be preferable to go on a CC with lower interest rates.

Thanks Ozb!

Comments

  • +3

    Not much you're getting back there, something like $50-$100 in points at most.

    At the same time a lot of credit cards now have limits on the points you get back… screwed a lot of small businesses I bet.

    On the financial deals section, these 2 look good for you

    https://www.ozbargain.com.au/node/251002

    https://www.ozbargain.com.au/node/251794

    I'd go with the citibank one, the 70k is basically $400 less the $148 fee if you went the cash route, plus $37 or so you get from the 10k spend. You'll obviously get better value if you spend the points on a flight

    • Thank you Baghern! When you mean $50-$100 in points, do you mean that's the equivalent of $10,000 worth of points? I was hoping that the points bonus for spend will make it worth my while.

      • yeah reward points are usually 0.5% of purchase…

        That's why i use my ING 2% rebate instead of my credit card

        Edit: oh wait you're AMEX, you're getting maybe 1% back or so in points… I don't know if AMEX has a points limit. But not many places take AMEX, they charge the vendor 2%-3% I think

  • +2

    Ask if they will give you a discount for paying cash. If you get say $200 off you are well ahead of any rewards points.

    • It's at a hospital. I doubt they'd give cash discount for treatments unfortunately, but i will ask.

  • +1

    On the side note, how do you survive solely on Amex over the years? There are many retailers that dont accept Amex due to the higher fees imposed on them. Sometimes online transactions also dont take Amex.

    • Only got it in April. For retailers that dont take it i use ING paywave for 2% cashback, which is only applicable for purchases under $100. But luckily i havent had many purchases over that as i buy alot of my stuff online. If they take PayPal which most do, i pay via my linked Amex. But yeah, i will definitely look into a Visa/Mastercard now.

      • +3

        OK. I see the above comment that it is a hospital transaction. You take care, all the best mate.

  • +1

    You may be better off getting a credit card that has a zero interest rate on purchases for a certain period eg GE card. NAB has an offer from time to time. This way you get time to pay off your purchase without incurring interest costs.

  • +1

    This one gives you 15 months to pay off your $10k purchase and only $59 annual fee

    http://www.nab.com.au/personal/banking/credit-cards/nab-low-…

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