AmEx While on a Mortgage

PriceSensitive on 20/10/2020 - 06:57

Hey there,

I'm looking for some general online guidance about whether it would be a good idea to apply for an Amex (one of the cards without an annual fee) so I can take advantage of statement credits, collect points and all the other benefits you would expect of a credit card, which you do not receive when using Afterpay/Zippay and other BNPL facilities.

I've had one before, but back then it was one of the factors which affected my borrowing power when applying for home loans so I decided to cancel it.

Now that I have secured a loan and settled on a place, I was thinking about reapplying for another.

Just a heads up - I am a careful spender and keep track of my expenses vs how much I can actually afford.

My questions: Would you recommend doing this? Do you think there are any problems with getting a card while on a home loan.

Thanks!

Financial American Express Credit Card

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Comments

  • ol mate on 20/10/2020 - 07:04
    +2

    Should be fine. The home loan provider doesn't continuously assess, so as long as Amex approves, you'll be fine.

    I've heard that other banks don't like seeing Amex due to their "loose" lending policies, so if you're looking to refinance, you might get asked to cancel it again.

    • netjock on 20/10/2020 - 10:31

      other banks don't like seeing Amex due to their "loose" lending policies

      I like how everyone calls everyone in the money lender business loose. You won't know who is lose until the next crisis comes and who gets a bail out.

  • Duckie2hh on 20/10/2020 - 07:04
    +2

    No problem as I am doing the same.

    As long as your income covers your loan repayments and potential card repayments, you should not have issues.

  • Danstar on 20/10/2020 - 07:47
    +1

    I have 3 credit cards and a home loan…what ever I spend on the CC’s I pay back.

    Feel the rewards mate.

    • Danstar on 20/10/2020 - 08:44

      I feel like someone is stalking me to neg me lol

      Show yourself lol

      • tallkid123 on 20/10/2020 - 09:33

        Just call them a loser. I do it sometimes for a laugh.

  • kerfuffle on 20/10/2020 - 08:01
    +1

    collect points and all the other benefits you would expect of a credit card, which you do not receive when using Afterpay/Zippay and other BNPL facilities

    You can use a credit card on Afterpay and still earn points

    • cloudy on 20/10/2020 - 09:51

      After pay takes Amex?
      Those are the good points and offers.

      • kerfuffle on 20/10/2020 - 19:24

        No. You forget that Mastercard and Visa credit cards also earn reward points/frequent flyer points …

        • cloudy on 20/10/2020 - 20:22
          -1

          Which free MC/VIsa earn points?

  • Elwes on 20/10/2020 - 08:11
    +1

    If you are disciplined, this is a good idea.

    When you have a mortgage with an offset account, every dollar you spend by direct debit and every dollar you have as cash is a loan costing you interest.

    I deposit all my wages into the offset and try to spend only with my Amex or Mastercard. The credit card bills are taken automatically from my offset account on the day they're due, i.e. up to 55 days after I spent the money. In the mean time that money sits in my offset account counter-balancing the loan.

    • netjock on 20/10/2020 - 10:36

      I would agree with you regarding offsets but only for your routine revolving spending like bills. Even if you have revolving $10k a month in bills over a year at current interest rates you'll be saving a grand $300 at 3% interest rates. Back in the days of high interest rates it make sense.

      Anything above and beyond your regular spend + rainy day fund you're better off dumping into something like the ASX200 index which grew 90% over 10 years

  • RetroGameNerd on 20/10/2020 - 08:59

    Just don't go over the top with your limit. Keep the limit as low as you can, as it may affect refinancing in the future.

  • Ughhh on 20/10/2020 - 09:42
    +1

    I cancelled my cc when I got my home loan, as it was required. As soon as it settled, I applied for a CC with a diff bank that I had no history with and was approved for the same limit I requested. Had to cancel that one when I refinanced, and now use the one offered in the package.

  • cloudy on 20/10/2020 - 09:51
    +1

    Get Amex essentials, it’s brilliant.

  • PriceSensitive on 20/10/2020 - 14:31

    Thanks all! Appreciate your help

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