$100 off a single Coles Supermarket shop if you apply and are approved by 28 February 2017, and make a purchase in the first 30 days
Receive free delivery each time you spend $100 or more, after savings and discounts, with a Coles Credit Card at shop.coles.com.au. Offer can be withdrawn at any time. Offer excludes tobacco and tobacco related product purchases and remote delivery orders
Somehow I don't think the banks are cool with a cardboard box as a home address.
These sort of things is what got some people homeless to begin with. The banks obviously hope you will pay them back the $100 several times over in interest. Ozbargainers are not their target audience.
Not really. Banks would love Ozbargainers having credit cards. The bank has a customer that is highly unlikely to default and will pay their balance every month. Very low risk customer for the bank and they make money from every transaction you make. Sure, they love people that carry a balance as well but these people are also more likely to default. They want to offset that risk with lots of Ozbargainers meaning we are one of their targeted audience.
actually the best customers are the ones that don't pay off their balance each month.
paying off your balance each month means you stand in good credit however the bank makes nothing off you on a no annual fee card.
Customers that don't pay off the card are obviously bad but the customers that are constantly making minimum repayments are ideal customers. Interest is being made every month at an interest rate of 20% and they are going to take forever to pay it off. Life is good(for the banks lol)
@hockysa: The bank does make money from someone that pays their balance each month through merchant fees.
Someone that carries a balance does make the bank more money but as a group, they're also more likely to default on their credit balance which is why banks need people that pay their balance each month who are much less likely to default. It diversifies their risk.
http://www.investopedia.com/terms/d/deadbeat.asp
@Tatts: "Deadbeats" also cost the bank money because the amount of time between when they incur the debt and when they pay it off (up to, say, 45 days), the bank has effectively made an interest-free loan to the deadbeat. The bank could have been earning roughly 3% on the money, instead they've given it away. This might be offset by merchant fees but I have heard economists say that deadbeats are a net loss.
@hockysa: No I would think the bank earn more from transaction fee(Merchant fee) it charges the vendor(Seller) when using their EFTPOS device, instead of the interest from individual card holder.
to the people mentioning merchant fees. You're forgetting that people that merchant fees are a cost that stems from the vendor (whether they forward that cost or wear it is another story)
So while credit card users are an integral part of this when balancing the books, the banks are not earning money from the credit card individual.
they definitely earn more from merchant fees.
1.5-2% on every transaction, which will definitely be paid by the vendor or garnished from their account.
They're not lending money, just taking their cut. It's easy risk free money.
@hockysa: incorrect. Banks earn more from card holders who pay in full than those who hold a balance.
Banks earn roughly 0.5% of the transaction value after operating costs (fees, incentives, etc) considered per transaction. They have an average financing cost of 45/365 * wacc for yhe interest free period that is offered. (55 - 30 + (30 / 2)) which is far lower than 0.5% and they carry no default risk.
like I said to tatts
while credit card holders are required for these merchant fees
for the purpose of balancing books and this discussion the bank is not earning money from the credit card holder from merchant fees.
also keep in mind that the POS machine supplied may be from other banks not the credit card issuer
Coles are a credit card issuer but are not a bank and have no POS machines to earn merchant fees
@jkim:
Coles is not a bank, and only issue a credit card.
Operating costs and merchant fees are incurred by vendors and pay associated fees to the banks supplying their POS machines.
Coles do not supply these.
@hockysa: nope. The acquirer pays the scheme part of the msf around 0.7% + other fees, who in turn pay the issuer commissions less subscriber fees. Like i said before, issuer will make roughly 0.5%. I never said issuers make the full 1.5% msf.
Both acquirer and issuers pay the schemes schme fees which are an operating expense.
Coles are both an acquirer (cfs run an acquirer operation for their affiliated stores less bunnings) and issuer (coles mastercard, private label cards).
Cfs have an afsl, so the only difference between coles and nab or cba is the deposit taking license (commercial banking license). For all intent and purposes (excluding the ability to take deposits and pay interest to depositers) coles are a bank.
Not sure if the associated tag should be on or off… I don't work for them but do occasionally consult at cfs.
in any case, like I said earlier
When it comes to balancing the books, the card issuer will not have made money off an individual that pays off his balance.
Yes they earn money from the process that's involved but technically not the individual as the only money they pay is what they purchased with no extra fees or charges incurred.
@hockysa: I'm lost for words… I suggest you learn about this industry and how it works before posting further…
I see what you mean and how money can be earned
but look at it this way
I own a card I buy a $50 item I pay $50 to my credit card
money is not being earned from me directly
@hockysa: direct or indirect is irrelevant. They earn more money off you than off people who do pay interest as peole who pay interest default and those loans are sold off at huge write downs to collection agencies. Any claim about how people who pay balance in full on time are subsidized by interest paying card holders is utter rubbish.
@jkim:
I'm not denying that they earn more money this way and have not once mentioned subsidies from interest paying card holders.
That earning potential you're referring to applies to all credit card users.
Just pointing out the fact that me paying x amount for my item and the same amount again on my statement they have not earned any money from me x-x=0
I fully understand that money is made within that process but at the end of the day money is not coming out of my pocket money is not being earned from me.
@hockysa: If you give Jason $10 and Jason gives Jill $9 and Jill gives Joffrey $8 and Joffrey gives you an item priced at $10, did you pay Jason and Jill? I say you did. You are saying you didn't…
Jason is your card issuer. Jill is the acquirer and Joffrey is the merchant in this metaphor.
@John Kimble: a single default usually negates all profits made from hundreds or thousands of card holders. This is because when defaulting, the sum is usually quite large and the period is around 3 - 6 months. If we consider a high interest rate of 30%, we are looking at a default write off of appx 90 - 95 % of the original amount assuming only interest has been paid during the period before defaulting. If we group all interest paying card holders together you can find and compare the returns made from the 2 categories of cardholders.
@jkim: Yep, makes sense. Also the cost of either employing a collections team or outsourcing collections would be significant in itself.
Nice one. I see it applies to the Rewards Mastercard as well.
This card has 24 month price protection: http://financialservices.coles.com.au/credit-cards/about-our…
1% premium of closing balance.
Would this work
Pay off balance every month so you don't pay the 1%
Buy a new car. In two years a new car would be 20% less
Or would you have to hope that the are selling a brand new two year old car?
tht would require a credit limit of $20k +
What bonky said (although you can artificially increase credit limit by overpaying your card)
But more importantly, price protection is limited to:
But yes paying of the balance so you don't get charged the 1% before statement generation is indeed possible
There is a limit per claim ($600 if I remember correctly) and a $2000 claim limit total per year.. and yes, having a $0 closing balance results in $0 for the account cover plus. It's only applicable to the platinum card so you need to have over $7k limit to get that (again, if I remember correctly).
Did I get this right? Say I buy a TV with the platinum card in Feb, and pay off the balance before statement closing date just for that billing cycle. Then in 1 year time, the TV dropped in price, I could claim the price drop difference without any premium paid?
No, not only for that particular billing cycle (the one you buy the TV in), but you should practice maintaining a $0 closing balance by paying off before the statement date.
By checking Terms & Conditions of 28Degrees and Coles and website footer information, it seems both credit cards are provided by Latitude Financial Services Australia Holdings Pty Ltd (ABN 46 603 161 100). To what I understand, they both provide almost the same type of protections or benefits whereas Coles provides up to 24 months of Price Protection (versus 6 months for 28D), but 28D provides no-conversion fee/transaction fee for overseas purchases.
My questions are that firstly, how easy to claim those Protections (especially Price Protection) in term of submission and approval? For submission, 28D has online claim form, but I couldn't find this for Coles?
Second, do their Price protection and Merchandise protection apply to overseas purchase (eg. Amazon), online marketplace (eg. eBay), Grey import (eg. Kogan) and smartphone on a 24-month Contract Plan (Merchandise protection)?
Third, what income requirement for Coles Platinum card option (comes with Merchandise protection as mentioned on their website)? Does the NON-platinum comes with Price Protection?
Lastly, for 28D, there is mention of Southern Cross Travel Insurance as their partner on their website, but with a "Get a quote" button which redirects to https://www.scti.com.au/affiliates/28-degrees-card/? What does it mean?
Thanks so much in advance for your response.
So how would they calculate the premium? From the time I bought TV to the time I claim (if I don't pay balance before statement date)
@willx: I have a mate who has it and says the claims process is super easy and you gotta log in to do it. He takes screen caps of everything and just uploads that.
Sorry I don't know the answers to the rest of your questions. I think there's a whirlpool thread for this card
@willx: There is a comprehensive PDF relating to Account Cover Plus on this page on the Coles Mastercard website: http://financialservices.coles.com.au/credit-cards/about-our… . To answer a few of your questions:
It's a very easy process to put in a claim - I've had a No Annual Fee Coles MC for about 18 months and put in a claim recently for the iPhone 5S I bought in July, as the price had dropped $30. As ippy said in their post below, you need to be logged in to access the claim form - you just fill out all the details and lodge the form. I was only claiming a relatively small amount, so they didn't ask me for any additional information, copies of receipts etc but they may well do this with larger claims.
Price Protection doesn't apply to overseas purchases, only those within Australia - from the PDF: If you buy an item in Australia with your Coles MasterCard and within 24 months the item is reduced in price in the same retailer at any location within Australia, we’ll pay the difference between the purchase price and the reduced price to your account.
This also applies to items you buy:
• for someone else as a gift,
• through a mail/telephone order catalogue or online order.
The item with the reduced price must be exactly the same as the item you bought, including size, colour, make and model number, attachments and accessories.
Yes, the non-Platinum card is eligible for Price Protection as well:
You can take out Account Cover Plus if you:
• have a Coles MasterCard,
• are aged between 18 and 84 inclusive, and
• are a resident of Australia
Full details are in the PDF, so worth having a read of it.
@Droid11: No, the premium is calculated on the closing balance of your statement for the period in which you purchased the item, 1% of the closing balance up to a maximum monthly premium of $50 . So if, for example, the closing balance of the statement is $1,000, then you'd pay a premium of $10 and that's it, as long as you pay the balance in full by the due date. As sky blu mentioned, if you pay the amount owing on the account before the statement closing date (i.e. the date the statement is generated), then you won't pay a premium at all. However if you kept carrying a balance forward, for example only paying the minimum payment every month, then the 1% premium would be calculated on whatever the closing balance is each month, so then (in a way) you'd be paying an ongoing premium.
@SimbaGirl: As I said above, say If I buy a TV now with the card, and then pay off the the total card balance just before monthsary date. Will that mean in 6 months or whatever time, I could claim any price difference without paying premium? (even though I didn't pay the closing balance before statement in the months followed).
I always pay off my cc closing balance, just never before statement date.
@Droid11: Yes, that's how it works - you won't pay any premium that month if you pay the amount owing before the statement comes out, nor will they charge you any sort of additional or "backdated" premium for that purchase at a later date just because you're going to put in a claim. If you don't pay the closing balance before the statement is generated on the following months, then of course you would be charged the 1% premium on those amounts only, NOT on something that you've bought (and paid off) in a previous statement period.
I did exactly this with my iPhone - bought it with Coles MC in July and paid the closing balance a few days before the statement was due to be generated, so no premium was charged. In December, I noticed the price had dropped by $30, so I put in an online claim which was approved and the $30 was credited back to my card, no extra charges or premium involved.
@SimbaGirl: Awesome! thanks for confirming mate! Another addition into my card collection endorsed by ozb
Does anyone know if you can claim more than once on the same item?
I.e. Purchase phone for $800, claim $200 when it reduces in 6 months, then make a second claim for another $200 when it reduces in 12-18 months etc.
Apparently you can - I haven't tried it myself but I've previously seen comments on threads here on OzB and also on Whirlpool where people have said they've claimed on the same item more than once. One of the questions they ask when you're filling in the online claim form is whether you've made a previous claim against that item, so I assume it is allowed and I'd also assume the claims against a single item would be capped at $600.
Nice
I just recently closed mine in December - can i reapply and will I get the $100 off shop?
Just wait until they offer u $100 credit or 20,000 flybuys point(which is also $100). then u will not be limited to use it all in the 1st transaction.
Wot?
I remember they got promotion like that at EOFY, as u can see, this time, u can only get $100 off at the 1st shop. If u got 20,000 points, u can redeem something u like or get $10 off every time u shop with coles for 10 times.
I did almost the same thing - turned my rewards MC to a no annual fee version (but kept open so I can keep claiming price reductions for the next two years). I'll open another rewards MC now seeing that the $100 off is effectively paying for the first annual fee :P
edit: damn, new customers only.
The answer I got from the call centre is yes, once your account is 100% closed and settled you are effectively a new customer if you apply again. People have done this to game the system and gotten hundreds out of it.
Me on the other hand just want my $100 and I can't have it because of a technicality. Applied 5 days too early, they requested ID checks which took forever and made me too late for the May offer but missed out on the June 20,000 offer because I applied in May instead of June. All these offers were direct to my email too.
They basically said sucked in, everyone is treated the same. They don't discriminate, feel free to get hundreds from them or feel free to get nothing. They don't care. (Although apparently you'll have to get new flybuys cards for free, it's like a $400 max per flybuys card thing now).
SO YES, DO NOT SIGN UP FOR THIS OFFER ANY LATER THAN THE 6TH OF FEBRUARY. OTHERWISE YOU'RE PROBABLY GOING TO GET NOTHING.
Existing customers need not apply.
Oh ffs just received the card after waiting so long for an offer >_>
thanks OP, signed up and approved
So I could just apply for a card and then, once I receive it, get $100.70 of groceries for 70c? Seems too good to be true; what's the catch?
You'll keep it and use it at other places. Also you'll start spending more than 100 bucks every time you shop for groceries online.
I think I'll just cancel it afterwards.
Did I read somewhere if you apply & cancel too quick or too many times, it will affect your credit rating negatively?
@Droid11: Yep. That practice is known as churning, and there are communities dedicated to it. It messes up your credit rating, but churners insist it's alright as long as you stop it well in advance on any huge financial decisions like loans.
@Droid11: Australia doesn't really use a credit score like the way the USA does. We use a credit file/history system.
https://www.veda.com.au/yourcreditandidentity/tips-mythbuste…
@Droid11: Disclaimer: First let me just start off by saying I'm not a credit analyst. I've worked for a bank in a role that (at times) worked closely with the credit team that looked after credit cards, but that is the limit to my experience in the area. What I say next is based on the experience from that bank, my personal experience (e.g. my credit cards and home loan) and what I've read up on. I don't know if anything has changed since I left the bank (just over a year ago).
It means "In America, first you get the sugar, then you get the power, then you get the women." It means in America, greater emphasis is placed on the actual credit score. Banks will approve or decline if you are above or below a threshold that they set and won't really take anything else into consideration, which is why people get so angry when they have a bad credit score.
In Australia, it doesn't quite work the same way. Although Veda has recently introduced a "VedaScore" and other places are also selling products/subscriptions to the general public that provide them a credit score (which mean you could have multiple different scores depending on the algorithm used by that scoring institution), in the bank I worked for, they review your whole credit file/history and make their decision based on that. Most of it is automated (which is why you will most of the time get an approval or decline within a minute or two).
Think of your credit file like a university transcript or CV. The bank looks at it and decides whether you are fit to become a customer based on their own set of criteria. If your file says or looks like you have a history of defaulting or have been a victim of Identity Theft for example, then you will obviously have trouble until you clear all that up.
I guess the main message I'm trying to communicate is that your credit score/rating is not the be all and end all.
So (at least at the bank I worked for), they wouldn't have an issue with people who opened and closed credit cards to chase deals or rewards points (they even have nicknames for all the main types of people but I forget what they are), they had more of an issue of people who had heaps of open credit cards and household income that they deemed would not be able to sustain adding their product to, as this would have a higher chance of the account going bad.
It says in the second sentence of the link I previously posted:
A credit rating or credit scale is not common knowledge in Australia. Often banks will use a credit score to help determine whether to lend you money. This score is based on the information in your credit file or credit report. A copy of your credit score and file is available online from independent credit reporting bureaus (or agencies) such as Veda.
At the bank I worked for, I don't think they used it at all to be honest…a credit score is something that was created to try and make it easier/quicker for the banks to make a decision, but as many people find out, it can sometimes be wrong (not that not using it is 100% correct either).
Hi John,
Can the bank tell how many "OPEN" credit cards you have and the limits on those credit cards. The credit report I've got in September 2016 only states the "Enquiries" made by the different financial institutions. Thanks.
@loneranger: Can't remember if it showed what cards were open or not? I don't think it did??? Most of the time yes, you would see the credit limit.
Catch is that if you apply after the 6th of February you've almost guaranteed that you've wasted your time because you'll never get approved before the 28th of February with all their ID checks.
Can anyone with the card confirm if there are surcharges for paying your bill with bpay like 28 degrees mastercard?
Also is there a minimum price drop to claim on price protection insurance?
No
Just using 28 degree on oversea traveling and Amazon excl AU, As for this card, Bpay is not titled to get flybuys point anymore(according to the email they send me last year), so using ur debit card will be better.
Minimum price drop for claiming is $10
I think they removed that clause from the latest PDS… I claimed a few weeks ago they refunded $5.
Dont know if this is slow way of telling you that your application was "unsuccessful"
"Thank you for your application for a Coles MasterCard.
We've safely received your application, but we can't process it online at the moment.
Your application has been placed in a priority queue, and we'll process it as soon as possible.
We'll contact you within 5-10 working days to let you know if you've been approved."
I got that same message when I applied last month. Waited a week and then called to get a status update. They had no record whatsoever of my application. Told me to apply online again. I did and was approved immediately. Got the card delivered like 4 business days later (this morning)
Exactly the same thing happened to me as well…
Yeah me too…
I would have thought this means your application has fallen into their manual review bucket, which means a human credit analyst will review and make the decision instead of their automated system…however some of the responses indicate it could just be a system error too. Maybe try again or call and check?
in that case I might as reapply instead of waiting a whole week.
I cancelled my old one about 6 months ago, can I reapply and get the $100 bonus?
Also last time I checked, I was still able to log onto my account, even though I closed it 6 months ago. Has anyone else had this probem?
By the way, I closed my 28 degrees card at the same time and I can still log onto it too. It says "available credit $2000…credit limit $2000"…..in other words the balance is zero.
Says new customers only, so unlikely you still qualify.
Are you sure they are closed properly? If so, really worrying if you can still login…I would probably call them up and ask them to double check and explain why you can still login…and ask if they can disable your logins…really makes no sense why you still can…
Yes accounts are definitely closed, I rang them. The last statement is August for 28degrees and September for Coles.
However, I can still log on and see my "zero balance" account. Cards are cut up.
I'm told that it's a requirement of the credit companies (MC & Visa) that the provider must keep the account accessible (even if technically closed) for a grace period to honour historical periodical payments.
Your account is actually closed as far as your bank is concerned though…I recently went through this, and I still have a CC account in this state, so I know where you're coming from.
Damn, I only just applied and got approved for one on the 2nd :/
Same here, i applied a day or two before you. My card got delivered today :(
Sameeee, I used to get heaps of those 20000 bonus emails and when I finally wanted to do one, saw nothing for months and they were promoting some other velocity credit card or something :(
If you could be bothered, you could try and get them to add you to this promotion. No harm in asking?
Might give it a shot. Who knows.
Don't bother, it'll be far less stressful to convince a brick wall to turn into a unicorn and s*** out gold. First hand experience. Infuriating.
Unlucky man, lucky mine is taking ages to go through.
Anyone knows if there is any minimum annual salary requirement to qualify for an application?
Who can apply
Over 18 years old
Earn over $25,000
Have the right to work in Australia
Thanks!
Kind of off topic and will will probably get lost in all the comments but anyway…
I'm in the process of refinancing my home loan and would like to apply for this card. Should I just wait till the new loan is all finalised and settled before applying for this
Cheers
You should should definitely wait until the loan is settled, otherwise the additional credit may affect your borrowing capacity.
Credit cards are considered debt (whether you have anything on them doesn't matter), so it's better to close off cards you don't use and not get new ones until the refinancing has gone through.
Can someone tell me why I should apply this card to get $100 free instead of ANZ and Commonwealth Cards, both are offering $250 back.
Get all three if you can (and be bothered)
Follow the advice of the little Old El Paso taco girl.
I have this card and I've used it mostly for free grocery deliveries (over $100, weekly shop) and it's great. I haven't done a full shop in a supermarket for 2-3 years, I like mine delivered to the kitchen bench instead. Plus the delivery people are really nice too.
Free money? Tell the homeless!!!