Is Getting a Credit Card Solely for Price Protection a Bad Idea?

Shekster on 28/05/2019 - 22:31
Last edited 28/05/2019 - 22:31

Just wanted to gauge if there are any negative reasons to me applying for a credit card only to take advantage of price protection I haven't considered.

Some background info:

  • Student
  • Work part-time
  • Have 0 intention to use the card for anything other than purchases I would already be making using my debit card. I have been reading up on price protection and what it covers and see the whole concept of it as something you'd be silly to pass up on.
  • In my opinion, I'm quite strict with spending money. I have my savings in a Ubank USaver account that is untouched (have an Ultra account linked to it but solely to get the 2.87% rate, have not actually used that account for spending at all), and only keep a max of $x amount in a debit account which is my sole means of spending money (anything over that amount gets sent straight to my savings). I don't see myself falling into the trap of spending money I don't have (even though that's what everyone tells themselves).

As I'd only be using it to buy things I'd already be purchasing from my debit account, I'd obviously be paying off the credit card balance immediately, and avoid paying any interest on both the purchase and the price protection cover itself.

Also while I'm asking, any recommendations for a no-fee cc with price protection? At the moment GO and 28Degrees seem like the best options as Coles no longer provide it for new customers.

Financial Credit Card

Comments

  • psyren89 on 28/05/2019 - 22:51
    +1

    No.

    • spackbace on 28/05/2019 - 23:24
      +1

      Is Getting a Credit Card Solely for Price Protection a Bad Idea?

      Don't you mean yes? 😉

  • spiff on 28/05/2019 - 22:58
    +1

    No.

  • holdenmg on 28/05/2019 - 23:05

    No, no, no, no, no… no.

  • garetz on 28/05/2019 - 23:57

    As long as you pay it off monthly i dont see a problem.

  • zonra on 29/05/2019 - 00:08
    +2

    Not a bad idea at all as long as you’re good with money (ie paying them off every month)
    My 28 degree and 3 amexes are used solely for the perks.
    Just gotta remember to pay them off before statement is issued to avoid the fees (insignificant relative to benefits anyway).

  • pencilman on 29/05/2019 - 01:09

    I have been reading up on price protection and what it covers and see the whole concept of it as something you'd be silly to pass up on.

    Everyone is different, but of the many credit cards I own, many of which offer price protection, I've never claimed on it.

    • Shekster on 29/05/2019 - 01:12

      May I ask why? Is it because of the hassle, or some other reason I haven't thought of?

      Just genuinely asking, I don't have any credit cards and am in the process of doing my research before I go ahead with such a thing.

      • pencilman on 29/05/2019 - 01:16

        Depending on the card - the insurance companies often make it hard to claim. Lots of fine print etc.

        Others may have a better experience.

    • brad1-8tsi on 29/05/2019 - 08:04
      +1

      I've never bothered to claim. I've got better things to do than monitor the price of something I've bought.

    • Queue2Queue on 29/05/2019 - 09:23
      +1

      Been with 28 degrees for the last 4/5 years.
      I submitted my first price protection claim last week for a Samsung S9 I purchased 11 months ago.
      It took one business day from submission, approval and money on the card.
      Highly recommended.

      • Bottom Dollar on 30/05/2019 - 12:31

        I recently used the price protection with 28 degrees and made a claim of $25 for phone case between retailer and Amazon. It was approved instantly an paid within 24 hours.

      • jowu15 on 30/05/2019 - 20:09

        11 months ago?!! I just checked with my credit card provide, CBA, and its only give 21 days after the purchaser to make a claim,

        • zonra on 30/05/2019 - 21:07
          +1

          28 Degrees lets you claim 12 months after purchase. Limit to $5k of claims per annum.
          Coles (price protection not available to new customers, only for those who have it activated prior to certain dates) lets you claim 24 months after purchase, $2k claim limit per annum.

          Claiming is literally 2-4 minutes filling out online forms, and outcomes take 10 business days (more often than not 2 biz days for me) so I have NFI what people are on about when they say it’s too complicated.

          I pay for all my electronics, appliances and video games exclusively with these cards, most stuff is guaranteed to drop price after 1-2 years, even more so during Christmas and Easter sales.

          28D and Coles give me price protection benefits.
          Coles also gets me flybuy dollars.
          Amex gets me heaps of free money so far (Harvey, Myer, Chemists etc. cashbacks).

          Before anyone says ‘Oh you pay more at Harvey anyway bleh’, well guess what? iPads prices are pretty much the same everywhere, so $200 off (2x $100 off $300 spend offers) my purchase definitely wasn’t bad.

          I can also buy games on release, and claim whatever price drops that happened 2 years down the track, effectively paying $20 bucks on release.

          And if anyone says ‘Oh but then you gotta remember to claim this and that’. Well then okay maybe it probably really is too complicated for them.

          The point is, take control of your finance and use the cards to your advantage, instead of being afraid of them like some posters here suggest.

          P/s: Laybuys and Afterpays are BS tho, don’t use them.

          • jowu15 on 31/05/2019 - 12:40

            @zonra: Thank you very much for the detailed explanation , I have a Coles credit card for more than 10 years but did you say I need to activate price guarantee first? I did not know price guarantee till now, so you think I would miss it out? Any advice would be greatly appreciated

            • Shekster on 31/05/2019 - 14:36

              @jowu15: Coles no longer offer that anymore since they got taken over by (Citibank? Name is escaping me at the moment).

              There's no harm in trying to see if you can somehow have it applied, being such a longtime customer. But don't get your hopes up too high.

            • zonra on 31/05/2019 - 15:24

              @jowu15: Im pretty sure you can’t apply for it anymore but no harm in ringing them up and ask. You can always get 28 Degree for price protection if that fails (you need to claim within 12 months of purchase but that’s still plenty).

              P/s: minimum price difference is $10 before you can claim.

              • jowu15 on 31/05/2019 - 20:50

                @zonra: Thanks for getting back to me. Its really pays to read the detail of terms and conditions

          • Shekster on 31/05/2019 - 14:40

            @zonra: Thanks for the response, what you just described is very similar to what I intend to use it for (appliances, electronics, games).

            I probably don't have enough income to get 2 CC's however my goal is to eventually have a Coles for everyday spending, and the 28Deg for discretionary spending.

  • Fergy1987 on 29/05/2019 - 09:37
    -1

    When is getting a credit card EVER a bad idea?

    • havebeerbelywillsumo on 29/05/2019 - 11:52
      +2

      When is using a credit card EVER a bad idea?………..just change one word and oh what a difference.

  • [Deactivated] on 29/05/2019 - 13:49

    Price protection has some big clauses, never had a purchase where its been activated. Normally a $50 difference minimum before other criteria kick in.
    Credit cards are good if done right, but if just for this purpose i dont see the point.

  • richmond12 on 24/10/2019 - 00:29

    I tried to claim on 28 degrees but they wrote back that i have not purchased insurance on the account? Huh? I have this card for years…

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