So I received this e-mail today from Coles Mastercard:
Collect 20,000 Flybuys bonus points1 when you turn $2,500 or more of your credit into a Cash Instalment Plan.
Maximum amount eligible in cash* $3,039
0% p.a.
Your choice of a2
• 6-month term with a 1.45% fee (so basically $36.25 for 20,000 flybuys points)
• 12-month term with a 1.99% fee
Has anyone actually done this and are there any catches? I remember once before looking at something like this and basically once you took the cash advance all purchases attracted interest.
*Maximum amount shown within this email is an indicative amount based on account assessed date at 21 September 2022 and may change due to recent account activity. Current amount is available online.
I'd go 12 months, stick the $2,500 in an ING/ANZ/whatever account and collect $100 worth of flybuy points. The interest will mostly offset the fee (assuming you pay it down from the ING balance, you'll average about 1.8% return on it over 12 months with the current 3.6% interest rate).
All these things work off the assumption you won't repay it on time, so you just need to make sure you repay it on time. Don't give into the urge to spend the cash if you can't repay it easily.