Apply for a new Low Rate or Low Rate Gold credit card by 28 October 2020 and get $200 cashback if you spend $1,000 by 31 January 2021.
Keep in mind: If you’ve had a Low Rate or Low Rate Gold credit card in the last 12 months, you won’t be eligible for this offer.
Low Rate credit card
Purchase rate of 13.24% p.a.
An annual fee of $59
Minimum credit limit of $500
Mod Edit: Requires existing netbank login.
Said no OzBargainer ever ;-)
Pls a record on ur credit report. Definitely not worth
If you already have a mortgage and no other debts would it matter? Thinking of going for it can't turn down free $ as an ozbargainer. Already got the citibank mastercard the other day though don't want to tank my credit too much.
Too many credit enquires on your file can cause issues if you ever want to refinance. If you bank becomes noncompetitive, you don't want to be stuck paying their absurd rates because you wanted this $141 for free.
@Tyrx: Not really, if you cancel it after getting this cashback … that is it and that is fine…
That is how I did with Coles credit card 2 times & Commonwealth bank different type of credit card… this will be the fourth time.
Home loan refinanced with Athena without any issue.
Not a big hazel… couple of pay slips, DL, Medicare card and 15min form fill…
Too many credits enquires on your file can cause issues if you ever want to refinance. If your bank becomes non-competitive, you don't want to be stuck paying their absurd rates because you wanted this $141 for free.
hmmm… it appears that I never had this problem before…
I had many credit cards and still have a handful. When I refinanced my current home plus invest properties, even I brought it to multiple banks to compete for better lowest rates early this year. FYI, this is not my first refinance either.
TBH, it brought me the confidence to show these finance institutes that I can manage my cash flow well and clean credit record no matter what I've been entrusted to.
Unless that (no offence) if you had or have difficulty to pay off any of your holding cards hence it shows black spot tainted on your record then this definitely well minus your credibility to borrow.
Worst case that I had ever been advised, was get rid of a few credit cards or lower the credit to a certain amount each, or total not to exceed whatever they told you.
But I've never ever been shown out the door because my credit record is being checked way too many times (laughable belief). You only need to ask the right question to the right lender.
Never ever to forget that you bring business to them and they earn their living by signing up your mortgage.
Having said that, I never apply for a personal loan, so not sure what damage this will cause for the person had/has this on their record, above experience purely base on a credit card owned and credit checked from cards institutes.
Why would this be on your credit report? Shouldn’t be an issue if you pay on time?
It will show as a credit query/application and it does affect your score in some way or another. I guess not by much though, although this might make you ineligible for any future CBA cc deals that might be better.
@mrvaluepack: It affects your score by stuff all. Like, 860->856 or so for my last application.
Whether the number of credit card applications can harm you, that I don't know. I suppose when getting a mortgage a good banker would ask why so many, but I kinda doubt that most responses would have any impact.
I'm about to game the freebies. Short of a divorce I probably don't need another mortgage in my life though.
Any credit inquiry including a credit card application will be on your credit report. How it affects your rating is ambiguous, e.g. having too many applications at the same time leaves the impression that you're struggling financially. On the other hand, paying on time every single time positively impacts your report.
@firestint: I have 6 credit applications (homeloan, credit cards) over past 2 years.
When I refinanced, my lender asked me what happened to those applications.
I told them that I did not like the rate they offered so I backed out.
At the end, I got the homeloan refinanced successfully.
I told them that I did not like the rate they offered so I backed out.
Great respond. Even though that was a lie (not accused you) but very well reasonable explain is sufficient.
@firestint
On the other hand, paying on time every single time positively impacts your report.
This is definitely important. You can own a credit card but doesn't mean you have to use up the credit limit.
e.g. having too many applications at the same time leaves the impression that you're struggling financially.
my experience is when you started to fill up your credit report, having too many application but got refused was likely similar to struggle financially. But once got it once and you build up in time your flawless record, it just works out beautifully.
FYI, now I'm just reaping any benefit whatever the cards out there have to offer.
Yes, this would absolutely appear on your credit report- any credit does, that's what it's for.
No, it won't be an issue if you pay on time.
My credit score has always >800 and I regularly cycle credit cards. Had no problem getting my mortgage, then immediately going through another 1-2 cards.
Things you don't want on your credit score are defaults, a huge number of applications in a short time, or being declined for credit.
Do credit reports really mean anything in Australia?
not a problem with smart people
Trust me credit report equals your person value. This works everywhere, not just in Australia.
Yes, all banks will use credit reports and the output of these reports (a bureau credit score) in their lending decisions in some way or another. It’s by no means the only factor but it’s one of the factors. Depending on the product you’re applying for banks may put an automatic decline threshold for credit scores below a certain score.
No, everyone thinks this is America.
You underestimate Ozbargainers.
$141 for an hour's time and using it to pay a few bills then setting a reminder to cancel once the cashback hits doesnt seem too bad to me
Yep don't get the people who forget to cancel free trials and the like or subscriptions with recurring payments. Just set a reminder using your google voice as youre signing up thats what i do.
Money for nothing, hassle for free sucks nearly as much as Westpac
IT'S A TRAP!
Don't see any mention of ineligibility if you've previously had a CBA Plat/Diamonds/Ultimate card in the past 12 months. Correct me if I'm wrong?
Only if you haven't had a cashback credit card in the past 12 months.
The cards you mentioned are AWARD points earning cards and don't count. I have gotten bonus points and cashback before within the same 12 months
It is clearly mentioned "If you’ve had a Low Rate or Low Rate Gold credit card in the last 12 months, you won’t be eligible for this offer."
All other cards are fine… cashback is not a problem with other cards…
If you are not sure, just chat with them and keep chat history as record.
As someone who's never had a credit card (early to mid 20s), is it worth it to get one consider the $141 cashback value? I'm generally very good with my money (or at least in regards to saving it).
A lot older than you and would like to know this as I never had CC either.
First, I would suggest no more than 1000 limit and prob stick to 500.
Second, if you are really saving the $141 just treat it like a debit card and pay off everything you spend immediately or when the statement arrives.
I doubt I’ll bother. I’ve done it before for 250 less the fee I think.
as long as you are good with budgeting and don't spend above more you can afford then it's fine. I got my first cc at 19 to help build my credit score and was able to purchase my first property at 21. Don't think of it as you have to go out of your own way, spend $1k just for the cashback but instead use to on purchases you would've already payed for on a normal basis such as bills, rent insurance etc.
I got my first cc at 19 to help build my credit score and was able to purchase my first property at 21
Somehow I'm sure it was your bags of equity and cashflow that go you a house. No so much that you had a CC.
yeah obviously but it did help boost my credit score having that line of credit helping me borrow more as well.
having that line of credit helping me borrow more as well.
No way you would know that. To qualify. Having a credit card for 6 months or 20 years has very little impact on borrowing power.
@adu25: Having a credit card would not have impacted your credit score if you got it before 2018… before then Australia was on ‘negative’ only credit reporting. That is, only inquiries, defaults, court judgement etc would impact credit score, not the fact you had an open credit card.
@El-Rhi: I'm not saying just opening it will impact credit score, it's the fact that having the line of credit assists with building your score and maintaining a good score. The size will obviously impact how much you can borrow down the line, hence why a lot of banks or brokers will suggest decreasing limits will allow you to borrow more if needed. Obviously, going out opening and closing cc isn't the answer too but hey, who am i to say, I'm just a random person on the internet and obviously am not suitable to provide financial advice.
FYI - having a credit card lowers your credit rating, even if you pay it off on time and always in full. A credit card is a liability.
But don't they insist that one needs to have a credit history in order to determine they're able to pay their mortgage? I read a number of articles that argue one needs to have held a CC (and of course pay everything off on time) in order to build a credit history. Can I get mortgage if I never ever had a credit card? I never even had a credit line (hope that's what it's called), like when you purchase an appliance and pay it off in installments for a long period of time. I buy everything with cash (on my debit card). The only thing they can check is my rent, internet bill, and utilities etc with direct debit on time, not sure if that's enough for a credit history.
@AussieDaddy: 'Can I get mortgage if I never ever had a credit card?' Yes you can. I got a loan to build my first property at age 17 with zero debt and no 'credit history'. Banks are 'ideally' looking for customers with minimal liabilities. So not having any credit cards works in your favour more so than having a credit card and always paying it off on time.
Edit: you are correct that you need a credit history for banks to know how reliable you will be in paying off future debts. Credit history is just one factor they look at.
So to answer your question, it is possible to get a loan without a credit history as I have done. But you need to be exceptional in other areas, for example: have a stable job/income, significant savings, no dependants etc.
My advice is to seek financial advice from a qualified professional, not us randoms on OzBargain :)
My advice is to seek financial advice from a qualified professional, not us randoms on OzBargain.
Absolutely! Thanks for taking the time for putting this response together. Just looking for info/ideas/experiences, that's all. I have a stable job, I am single, and have saved more than the 20% needed for a deposit, but my weakness is that I have waited for too long as I'll be 41 on August, so that might be a big minus in my case. Will see how it will work out eventually. I am renting cheap now (have been for the last 10 years) so I might just keep renting and forget about buying a house if they make it difficult for me.
@RespectMyAuthoritar: Ok, but also banking requirements have changed significantly in recent years. Even after the primary changes from the sub prime crash it continued to undergo other big changes that have restricted borrowing.
Honestly, unless someone's experience is from within 12 months it's probably out of date.
Depends on your personal situation - how much do you earn, how much do you spend, can you pay off the debt on time, do you value cashback more or frequent flyer points or rewards points more?
Not the best but there are probably a couple of better deals now;
1. 60k + 30k QFF points from this and this for $0 fee, provided you can hit $2.5k in 3 months
2. this, 75k flybuys = $375 if you redeem off your shopping + $100 Kmart gift card - $49 fee, provided you can spend 3k in 3 months
Well 60k QFF points gets you nearly $300 in Bunnings vouchers for no cash. So i'd chase that deal.
Frequent flyers points are kind of dangerous right now. I'm sure it'll be the first thing to go if qantas is in a bit of trouble.
Airlines usually have a trust account set aside for frequent flyer points in case they go bust, and I highly doubt Qantas is gonna go bust as the pride of Australia.
@firestint: Yeah, the gov will keep them afloat for long enough. Wouldn't worry.
Obviously there's not a lot of use for spending points on flights now- but there's still gift cards. Woolworths, good guys, jb hifi, bunnings etc. all net you about $300 per 60k like serp said. I usually want to get a minimum of 3x cash value vs. any fees i incurred from the card. I also track my spending and check I'll comfortably make the minimum spend without having to buy unneeded crap.
If you are looking to get a loan in the next 6-12 months then don't get a credit card as it will hurt your credit score.
What if you never had a credit card and wanna buy a house in the next 6-12 months (depending on what property prices will be like after all this madness ends, or gets worse)?
Edit: Sorry. Have just realized I've asked you similar question above. Didn't check the username. Respect. :D
No worries. You can check your credit score with websites like Credit Savvy and there would be others too. I can't vouch for the accuracy of these websites but it should give you a rough idea of your credit score.
@AussieDaddy: Use creditsimple, getcreditscore and credisavvy all together, they are backed by 3 different ctedit bureaus, ildion equifax and experian. The first two are more popular among credit providers. My creditsavvy reports basically said i am about to be bankrupt, the other 2 says i am awesome.
@od810: I have done it on Equaifax a week ago and all it showed was 2 credit enquiries from a Telco under the 'Consumer Credit Information', the last one back in 2016, with $0 amount, and 1 file access. That's it. I might try the ones you listed here, but as puffingmuffin mentioned below, would doing that show up in my credit file and cause some issues for me along the way?
@AussieDaddy: Depending on your credit enquiries, it might affect your credit scores. I notice that Home Loan will boost your credit score. Utilities won't affect much. Credit card application will bring it down a bit. Though if your scores are high, then you can afford to apply a few credit card before it goes to absolute crap.
@od810: Utilities - when I went to AGL no impact (no check). When I applied for the EnergyAustralia deal I got an entry and my Illion - (creditsimple) went down with 40 points (and that was the only activity since a few months).
So YMMV with utilities.
@AussieDaddy: Don't get so caught up too much about your credit score. Unless you have default, having decent LVR + well plan spending are way more important than your credit score. At one point my credit score was abysmal but i still managed to get a home loan. Once you get the first home loan, refinancing and/or getting another loan shouldn't be an issue.
@AussieDaddy: Using the online services does not affect your credit score. You aren't penalised every time you log into those websites and it displays the number (plus other information).
Requesting your full credit file/report may negatively affect your credit score.
@RespectMyAuthoritar: Will asking for your credit score count as an enquiry and affect your credit score?
@Flowerbomb: Having multiple credit card enquiries will potentially affect your score even if you don't take the cards. Having home loan enquiries generally boost your score.
They have classification of "good" ane "bad" enquiries. Essentially high risk loan enquiries = lowering credit score, low risk loan like homeloan does help your credit scorr
@Flowerbomb: Using the online services does not affect your credit score. You aren't penalised every time you log into those websites and it displays the number (plus other information).
Requesting your full credit file/report may negatively affect your credit score.
Not necessarily, as mentioned above a credit query will increase or decrease your score. However, having credit cards will decrease your borrowing capacity for sure. A rule of thumb is every $1 in your credit limit decreases your borrowing capacity by $4. Lenders being lenders, they assume you would max up your credit limit.
So an alternative is to apply for credit cards well ahead even 6 months before, and then cancel before you get a loan to boost your borrowing capacity.
Is it bad to ask for a lower credit limit for a credit card, and spend around 25% of the limit each month? Paid off on time.
@Flowerbomb: just look at this way: if you have $1000 limit, bank will straight away say you have $1000 debt (doesn't matter you use $1 each month or $999).
you cant argue but i only use 25% of it.
@CyberMurning: Yeah that’s fair. Thanks! Makes sense that when one applies for a home loan, to cancel all the unused credit cards.
No. Run from credit cards like your money depends on it.
Get the CBA low fee card, been using it for years.
You dont earn any points, but its also completely fee free.
There’s annual fee if you spend under $1000 a year…
I'm nearly 30 and never had a credit card. There will be only very few use cases where I might get a credit card (i.e. For traveling overseas as many banks does offer travel insurance when you pay your ticket with a credit card) but other than that, I'm more than happy continue on using my debit card. Even with this $141 value, I don't think it worth the hassle, specially if your time poor.
Can you buy stuff on eBay or Amazon or pay Netflix subscription using a debit card? I’ve only ever used a credit card.
Why not? I use a debit card for all such purchases. I also only transfer money to that transaction account when I need to do a purchase to be on the safe side.
I find credit cards are worth the hassle if you travel/take a yearly holiday as these can drastically lower the costs and save thousands in the long run. In this day and age it's a no brainer, given that 90% of Ozbargainers would pay it off in full each bill cycle.
If you have a mortgage, it will save you a bit and improve your cashflow. Last year i ran some number, spending everything on credit card would also give few hundreds $ on cashback, enough to pay for my building insurance
get it if you are already spending
don't get it to spend
Gosh, 13.24% is not low rate in 2020
What would be a low rate in 2020?
(credit card, very low annual fee)
does your credit score lower if you cancel credit card?
No
Yes
No? What makes you say yes
@firestint: If you have a lot of recent applications. Applying for a lot of credit cards (or other credit accounts) over a few months increases the level of risk for your existing and potential lenders. It may suggest that you're struggling with debt or that you're jumping from one credit card to another in order to take advantage of introductory offers.
If it was your only credit account. Cancelling a credit card when you don't have any other loans or credit accounts limits the amount of information you'll have on your credit file. That means your credit score could drop or remain unchanged until you apply for a new card.
@TomGum: All above situations had happened to me, i can verify that. Credit score going up or down depends on your situation, not on whether you cancel or request a credit card.
@TomGum: What you just said is very different to a straight out "yes".
I agree with your first point as I mentioned the same earlier, and cancelling doesn't necessarily lower your score. In fact, it could increase your score in some instance and boost your borrowing capacity. Bottom line is, there is no one size fits all when it comes to credit score, depends on your personal situations.
Your credit score may even improve (i.e. credit score increases) if you cancel your credit card.
When does the money actually get paid to you? From memory with CBA on one of these things it can be up to 6 months AFTER the qualifying period is finished?
From the T&Cs - To be eligible for the $200 cashback, you need to spend at least $1,000 on eligible purchases (not including balance transfers and cash advances) using your new card by 31/1/2021. Cashback will be credited within 90 days of you meeting the spend criteria and will appear on your statement as 'CASHBACK $200'. Cashback only available on one credit card per customer. We reserve the right to close the offer prior to 28/10/2020.
That isn't too bad. A lot better than the T&Cs a few years back.
There is never any good deal to be had that involves opening up a credit account.
In this case, the good deal is getting $141 for free.
It’s not a good deal if it involves opening up a credit account, in my opinion of course.
Don't buy something you don't need. Problem solved. If you are greedy, that's not somebody else's fault.
@baldur: I’m afraid I have an issue with the systemic, predatory nature of credit. Sounds like you disagree. No worries.
Easy lad you don’t have to participate in usury if you pay your bill on time. Not everyone is irresponsible.
How delightful of CBA to be enticing people to get into debt during a global pandemic.
Who is getting into debt? You just pay it off on time. All CBA get is $49.
I have many amex, cba platinum, and 28 degrees cards. I earn lots of points simply using cards. In fact, i save money from amex and 28 degrees. As far as you repay within couple of week from your salary, i dont see any harm in having credit cards.
There is a big difference between good and bad debts. Your comments are too generalised and this deal doesn't deserve a downvote.
I disagree, but respect your opinion.
I think you'd find on Ozbargain that most users are paying their credit card off each bill (the average wage on here is 6 figures). If this is happening there's no risk for a fairly big reward (insurances flybuys etc.) given that you'd get none of these on a debit card.
Wondering when the Annual Fee gets debited.
My experience is that it has been done on the anniversary of getting the card. In which case this may be a worthwhile effort.
Unfortunately I can't see it happening here.
200-59=141
Not worth the hassle.