Card Deals for Big Ticket Spends - CAR + International Flights

Linpursuitofhappiness on 16/12/2023 - 07:16
Last edited 16/12/2023 - 07:24

Would appreciate your suggestion guys

Couple of big ticket items are coming up soon and this is the intended plan of action:

  1. Pay for a car $25K via credit card in the next 2 weeks or so, fully pay off the amount in the next billing cycle using 50 days grace period.
  2. Get the sign up bonus points + bonus points on minimum spend of $ 20k-$25K.
  3. By end of January plan to book flights to USA travel for 2 adults + 1 child using the same card. Already have roughly 80K qantas points so would be using them as well in conjunction to points accumulated by car purchase and sign on bonus.
  4. Use the insurance given by the cards during travels.
  5. If there are no international transaction fees on the card, use this to spend overseas.
  6. If not, cancel the card within next 4-6 months after above is achieved.

Will be fully paying off the outstanding balance each month so dont have to pay any interest. Getting approval for a card with $50K limit would not be a problem.

Im with Westpac so most likely would not have to pay annual charges on their couple of CC products.. if this helps.

What options would you recommend ? I dont plan to keep this card, pretty happy with Coles 0$ mastercard with a 5K limit (self imposed) and presently have nothing outstanding.

creditcards #pointhacks #flights #big purchases

Financial Credit Card

Comments

  • RockyRaccoon on 16/12/2023 - 07:26
    +1

    On Point1

    Most car dealers will impose a surcharge for purchases on a credit card, which in most cases will be higher than the points value you receive

    On the others generally no one credit card gives all these benefits, its a case of using different cards for different benefits.

    • inpursuitofhappiness on 16/12/2023 - 07:41
      +1

      Thanks for your reply .. I am getting one via Pickles most likely.

      These were the charges for it.. might only pay partially depending on meeting on CC spending criteria in first 2-3 months or so.
      "
      EFTPOS Payment: If paying by EFTPOS you will incur an administration fee of:
      Cheque or savings account: $2.20 per $1,000 or part thereof.
      Visa/MasterCard/Bankcard: 1.1%
      AMEX/Diners: 3.3%
      "

      Booking flights with sign on bonus + using QFF + travel insurance should be possible with 1 card itself. Basically looking at spending min. on flights out of pocket..

      International transactions free or not is not a very big concern TBH as I might have other alternatives.

      • kerfuffle on 16/12/2023 - 07:44
        +1

        I am getting one via Pickles most likely

        An auction site? Hope you know what you're doing.

        • inpursuitofhappiness on 16/12/2023 - 07:47
          +1

          Yes have bought from them before as well..
          Most used cars you see on the dealership .. a large % is auctioned off in Pickles as bulk buys.
          Dealers would throw 5-7K on top of the purchase price and put it on carsales..

          Ex. Govt , Council cars. Even some fleet ones as well.. which I am not very keen on.

        • MS Paint on 16/12/2023 - 08:41
          +1

          Agree. This one simple trick alone will undo the whole plan.

          • Gunnar on 16/12/2023 - 10:09

            @MS Paint: I was awaiting a follow up thread reading the initial post

      • Drakesy on 16/12/2023 - 11:08
        +1

        Honestly, it's not worth using a CC to buy a big ticket item when you'll get slugged with a surcharge, stuff paying $250 just to transfer money. You'd be surprised how many taxes are imposed on your international FF trip as well. Just do a balance transfer.

        IMHO it's borderline not worth it in your case. This isn't really how points churning works.

  • kerfuffle on 16/12/2023 - 07:39

    You know this isn't Twitter/X and hashtags don't work here, right?

    Have you made sure your car dealer will let you pay $25K for a car on your credit card? I know mine won't.

    Not all cards have a 50 day grace period. Some have as little as 44 days.

    • inpursuitofhappiness on 16/12/2023 - 07:44

      44 days is fine as well..

      that still is a straight gain of 6.7% p.a basis on my offset account, I will take it.

      Pickles charges are posted on top.. a couple of car dealerships might allow this as well..

      • kerfuffle on 16/12/2023 - 07:45
        +1

        Key word: MIGHT. Not will.

      • SBOB on 16/12/2023 - 08:11
        +2

        that still is a straight gain of 6.7% p.a.

        A yearly 6.7% interest rate, for a period of 44 days, does not 'gain' against a fixed 1.1% card fee on your purchase.

        • inpursuitofhappiness on 16/12/2023 - 08:20

          Correct. however if the spending cap for bonus points in 3 months is met for lets say 60-70K QFF then it has already paid for itself.

          • Brick50 on 16/12/2023 - 16:47

            @inpursuitofhappiness: Manheim didn't charge me any extra CC on top of the invoice price despite advising they charge CC fees online, you might luck out at pickles as well

  • Nutrino on 16/12/2023 - 10:36

    you have thought it all through… good luck to you.

  • slknv on 16/12/2023 - 11:19

    Look at an amex qantas card, check what surcharges or limits on card payments your dealer will have. Pick the right amex card with 1.25qff points per spend. Though if you're only redeeming points on economy seats unsure whether you'll get a worthwhile return on points, do your sums on that one. We're going USA in J feb 2024 which is a much better use of points (going rate is something ridiculous like $15,000pp, we're using 250,000point pp return inc some internal flights and $600 in taxes)

    • inpursuitofhappiness on 16/12/2023 - 15:43

      Thanks for that..

      However looking at various options.. as the purchase price is roughly around $25 k mark I might benefit the most from which ever provider that gives maximum sign on bonus within 3 months of signing up lets say on spending 7-10K with the least annual fees.

      The rest $ even if it gets converted at 1 Qff = 1$ spent would be worthwhile.
      Just checked I require around 240,000 points for 2 x adults Perth LA return flights in Economy so I need about 160K more to make this worthwhile.

      • SBOB on 16/12/2023 - 15:53

        Just checked I require around 240,000 points for 2 x adults Perth LA return flights

        plus ~$1k in taxes

        • inpursuitofhappiness on 16/12/2023 - 16:01

          Correct.

          Going by that ANZ FF black CC seem to be the best value.

          • $425 fees offset by 250$ cashback
          • 130K QFF on sign up when spend 5K in 3 months.
          • 1 QFF = 1 $ spent
          • Travel insurance + 2 invites
          • Qantas club fees reduced to $442 p.a

          Then would be Altitude Qantas Black Westpac
          $295 fees reduced to $150 1st yr as with them
          - 90K QFF on sign up when spend 6K in 3 months.
          - 0.75 QFF = 1 $ spent
          - Travel insurance + 2 invites

          • Brick50 on 16/12/2023 - 16:50

            @inpursuitofhappiness: A bit cheeky but have you considered signing up to 2 cards on the same day? I've done that before and usually they run their credit check the same day so likely don't know you applied elsewhere.

            Get approved for both cards and run the purchases across 2/3 different cards to maximise your minimum spend.

  • inpursuitofhappiness on 16/12/2023 - 16:55

    Yes have considered this.. however my mortgage broker has asked me to be careful as we are actively looking buying an IP and also apply for a Building loan soon.

    He mentioned multiple card runs can compromise your credit score.. if you want to recycle 1 each year thats perfectly fine.. as long as you cut back your CC limit as soon as you get the points as that effect serviceability criterea .

    3 months back cancelled my Citi rewards card which had a 60K limit on it, but had held it for 11 months.
    Had used all the points + 0 balance transfer was nearing its time limit + few cash backs + 2 further borrows @ 0% which I put straight into my offset account.

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