Saw some posts on OB and noticed that the highest return from credit cards was around 2% with Amex, and there were also some limitations on transactions (supermarkets, servos only etc), don't even mention the annual fee staff. While you can get 2% cashback easily with HSBC debit card on most transactions (just split big amount to $99), so what's the advantage for having credit cards?
New to Credit Cards, Tell Me Why Do I Need Credit Cards
AussieBogan on 14/10/2022 - 18:56
Comments
How much money is in your debit account op
I've had $50 cashback pretty much every month this year. Extra insurance on purchases, travel insurance, price protection etc etc.
On which card ?
Bankwest platinum MasterCard.
How?
@m0tyrider: No idea, it's just points. You can buy other random stuff, but it's the same value as cash.
Don't worry about it
It's arguable that half of the reasons to need/want a credit card is no longer an issue…
Prior to Debit Mastercard & Debit Visa cards, you could get away without a real Mastercard/Visa credit card, but IMO life would have been considerably more painful.
* Paying a bill? Mess around with BPAY… nah just whack in the credit card number. Hit submit, the payment succeeds, you move on knowing that the bill is paid.
* Shopping online? If you're lucky, they may accept Paypal, but you can expect almost every online store to accept credit card payments.The real benefit of credit cards over their debit counterparts is cashflow management. I push all of my day-to-day expenses - including bills that auto charge - to the one credit card. I know pretty exactly how much I'm spending it a scary level of precision. This is absolutely invaluable in terms of managing a household budget, not to mention being a very easy way to justify/prove my expenses for my next credit card application. :)
If you can be bothered, credit cards give you a signup bonus with a certain required spend in the first 3 months. This can give you 10 - 15% cashback when facotring in the signup bonus and annual fee.
To become a normal ozb member
Getting easier chargebacks is another path open to you, compared to using a VISA debit card.
And credit cards are good to spend money you don't have yet for things, it's basically all the advantages of Afterpay. Buy nice workbooks when you need them that'll last a lifetime and pay it back within a month so the balance doesn't carry and you pay no interest. Buy nice things you couldn't otherwise afford instead of filling your house with crap. A credit card is a convenient tool when you don't want to touch your savings, or have none, but need a couple of paycheques worth of spare money at once.
Some people have no self control and will spend more than they can pay off quickly, and do end up paying interest for a bit. Some people shouldn't have credit cards.
good to spend money you don't have yet
Double edged sword…
2% cashback on tap - payments under $100. Better than any CC loyalty scheme, and immediate.
Spend 10k to get 20 dollars back.
Not worth it
I donst fink you maffed gud. 2% of 10k is $200.
Ah .02 is two percent thanks mate.
What card offers cashback?
HSBC
Can't seem to find any credit cards offering cashback.
Just every day account
what's the advantage for having credit cards?
Spend bank's money, not yours.
Because you cant afford to pay in cash 🤣😷
okay cash on hand boy
To leave money in your home loan account as long as possible, keeping your interest payments down
'Offsetting' that is! Agreed. And as interest rates go up the benefit will become more and more apparent.
However people who can't control their spending due to credit card use being almost painless should cut up their credit cards!
Cashflow and reward flights, for me.
Also free travel insurance.
There are so many to choose from these days, my preferred way of using them is usually when I have a big expense coming up, I choose a card with 15+ interests free months on purchases, to offset that payment on a longer period, currently ANZ is offering 25 months interest free for example! Plus the other benefits like travel insurance, purchase protection etc
You can get no annual fee credit card, there're some Amex credit offer, spend X get X back, also extended warranty, purchase protection etc, MasterCard international transaction fee waived.
Some hotels, car rentals etc insist on an actual credit card rather than debit card for deposit for some reason.
Generally disputes, fraud etc credit cards seem to do better than debit. Doesn't make sense to me, seems like the bank considers it their own money at risk with a credit card and your money if it is a debit card, so they try harder.Also a bit easier to manage, you know how much you need in the account with a month or so to get it there, rather than having to work out in advance how much money you need in the card account (generally at much lower interest than a savings account).
This is the main reason.
The only reason to have a credit card is to get a good credit score - that's it
Buy your stuff, and then pay it off by the due date;
don't pay the minimum on your card every month, pay it out in full!
Then use the card again, they pay it out within the specified date;
a month or 60 days or whatever, just don't part pay it as the rest will incur interest.Usually at 20%. Yes junior 20%, or more, that is how banks make their money.
Then they give it back to us at the going reserve bank rate of stuff all percent.
How is that fair? It is not, welcome to life; it where life sucks, then you die.As brendanm said earlier, get the Bankwest Platinum MasterCard it is a grouse card.
I used to use that bank for yonks until this year, then I pulled up roots & went to Great Southern BankI have a credit score over 1000 and no loans or credit cards.
What is your vintage?
60yo with $5 million assets.
Depends on your spending. Otherwise, its good for points that can give you cash back, insurance, gift cards etc. Don't spend what you don't have/can't afford to pay back…
I build up points for travel. I pay the full amount on my CC each month. I don’t have an annual fee because I have a grandfathered deal with my Bank because I have shares. I have a platinum card that provides free travel insurance. Also, it builds your credit score if you are looking for loans.
The way I do it. Let my CC pay all bills and direct debits while my money collects interest in saving accounts. Then I pay the bill a day or two before the last day.
This needs a bit of discipline though, if you miss to pay the bill on time then you will lose out a way lot in terms of the CC interest than what you would get from your savings account. Not to mention a mark in your credit report.
If you are asking this question, the answer is "No, you don't".
Free money.
Simplez