Hi All,
Just wondering if its a viable strategy, I did read a finder thread but it was dated. Is it still worth using credit cards for day to day spending while leaving your wages build up in an offset have automatic direct debits payout the card in full each month along with the home loans (we have a split loan)?
Regards,
Sathion
I have a wealth package as part of my loan, the card we just chose comes with no fee's while we are on it. We opted for the banks platinum awards card and should meet the requirements for the bonus points within the 90 days.
It is now even more relevant that the recent past. With higher interest rates on mortgages there will be greater benefits from using the strategy.
Modern day strategy is to combine BNPL with credit card to get extra days of interest free
It's always a good option but it also depends on how much interest you are paying on your home loan vs how much you could earn in other account like a term deposit.
why not get a card with interest free for 12 months etc
https://www.commbank.com.au/credit-cards/low-rate.html?ei=lo…
At 3% interest, every $1000 you have in your offset will save you $0.08 of interest a day or $2.40 per month. So to be honest, its not really all that much of a saving. If you overspend on credit card or pay any interest because you can't pay it off before the due date, it will wipe out any savings that you've made. So you have to be dilligent with your spending to make it work. I think for most people, a cheaper loan without an offset can be better for a lot of people.
The strategy always works. Make sure you have the full amount to pay off every month and off you go.
No
Better off credit card churning
And debt recycling into the stock market
It not going to make much diff with a few thousands bucks and having credit card can get out of control and it may cost you more.
We have $160,000+ in our offset. On a $500,000 loan.
You got high offset already an extra 5-10k on credit card won’t make much difference
But if you already got credit card keep pumping everything through it and paid of off each month
I wouldn’t bother going to get a new one
If you got a rewards credit card can also earn 0.5% to 1% on points.
So you get both benefits of interest free plus points
Same can be said about the money in their offset account; they can decide to spend it all….
Never use your own money to pay for anything; until you have to.
Yes. Just be careful of fees.