Credit Card - how to take advantage of 0% Balance transfer and sign-up bonus points with qualify spend?

golfer dad on 27/12/2016 - 09:54

Hi all,

Hopefully everyone over indulged too much so far this holiday season.

How do you take advantage of both Balance Transfer and sign-up bonus points such as the Amex Explorer card that is offering 0% BT and 100,000 MR bonus points after $1,500 spend within first 2 months given if you take up the BT on sign-up, any purchases on the new card (to qualify for the sign-up bonus points) attract no interest-free days? Do you need to want payment on the same day as the purchases to avoid the 20.74% p.a? Or better yet, make payment the day before purchases to ensure funds have cleared?

All feedback appreciated.

Financial

Comments

  • Agent Q on 27/12/2016 - 14:40
    +1

    I would…ensure that balance transfer posts to account…

    Spend the $1,500…as an online type payment…water…bills..etc..

    On the same day or after…pay back the same amount…so the amount clears the next day to be on the safe side..

    The interest you pay on the $1500 if any for a day or even two would be negligible..so better to be on the safe side..

    I.e. 1,500 x 20% /365 * 2 days is $1.65.

    So roughly 80cents a day in interest..

    Main thing is you obviously don't want the $1500 repayment to pay off your balance transfer…

    If the timing is wrong..then you risk interest on say $1500 for maybe 30 days till your next statement..

  • Priceless Class on 27/12/2016 - 16:40

    Also worth looking at whether there is any balance transfer fee on the offer as this can negate some benefit. The Amex explorer (via main website seems to have a 1% fee. Ie if you transfer $10000, you will be hit with a $100 charge upon transfer.

    In such a situation you may be better looking at 2 separate cards.
    1% isn't too bad, however there are no fee offers on the market.

  • golfer dad on 27/12/2016 - 17:32

    Thanks all.

    Agent Q - As the A/E and I assume other cards, payments are applied to the billed amounts with the highest interest rate first which should be any purchases post BT (20.74%), I can pre-pay my a/c or pay on the same day b4 making purchases to save any interest being charged?. Otherwise, do as you have suggested and pay just $1.65 interest.

    Apric101 - Yes, if my priority I wouldn't consider this card due to the 1% BT fee. However, with the 100,000 sign-up bonus and the 1% fee, the whole deal is still worthwhile as the 1% fee is still cheaper than my home loan interest rate of 3.89%.

  • Priceless Class on 27/12/2016 - 18:31

    Just check what the 100,000 points is worth. Ie, these are MR points. Not qantas or velocity. Figure out what you want to do with the points to ascertain their actual value.

  • golfer dad on 27/12/2016 - 21:46

    Cheers. Just re-financed home loan so now chasing sign-up bonuses. Will be applying for this, the CBA with $250 cashback and NAB 75,000 points cards. The BT isn't critical, just icing on the cake if nil or 1% BT setup fee.

Login or Join to leave a comment
Login Join