Credit cards

[b simpson]

I want to get a small credit card maybe $2k limit purely for frequent flyer points, travel insurance and extended warranty of purchases. I don't need the credit.

The problem is the commonwealth bank card which has these features has a min $4k limit. I only want a $2k limit so it doesn't limit my borrowing capability.

What do people think? Should I go with the $4k limit, or is there better card people can recommend?

 

[Aaron_C]

A $4k limit won't really impact on your borrowing capacity. Don't sweat it.

 

[Brady]

The different between a $4,000 & $2,000 credit card is $50p/m in servicing.

So unless your servicing super super tight or overall applications isn't that good, I really wouldnt worry.

Even a $50 shortfall per month isn't much

 

[The Fence]

And...you wont get much benefit from a 2k limit via loyalty programs.

At least with 4k you'll double it (if you spend the limit that is).

We have a limit of over 30k and use the CC for everything possible then pay it off each month religiously.

Get heaps of Flybuys points and benefits let alone cash flow management benefits.

Hasn't impeded our borrowing in the past, but I feel it might one day soon when we try to extend interest only terms....

 

[b simpson]

And...you wont get much benefit from a 2k limit via loyalty programs.

At least with 4k you'll double it (if you spend the limit that is).

We have a limit of over 30k and use the CC for everything possible then pay it off each month religiously.

Get heaps of Flybuys points and benefits let alone cash flow management benefits.

Hasn't impeded our borrowing in the past, but I feel it might one day soon when we try to extend interest only terms....

I actually don't spent much anyway. Maybe maybe $1k per 5 weeks. It's really the travel insurance and extended warranty I'm interested in, and maybe top up my frequent flyer points. I currently do Perth-sydney return every 5 weeks.

 

[westminster]

In regards to the travel insurace do check the fine print. My friend is with CBA and I'm with Westpac and we both have a Visa Gold and her travel insurance now only covers if they spend more than $1000 per person on the card or something like that. Mine has no minimum spend.

 

[DaveM]

I had a big CC cull a few years ago to maximise my servicing, various jobs and loans and offers I had collected them along the way.

I had an ANZ Visa (4k), Commbank gold mastercard (40k), gold amex charge card (no specific limit), citibank mastercard (27k) and a GO Mastercard for interest free (7k).

I cancelled all but the ANZ Rewards Visa and the GO Mastercard, plus my St George Business Visa which is through my company for business expenses. I have an ANZ Amex now as well which is linked to the visa account (combined limit) which has a higher point collection rate than the Visa does. Given my cost of living is $1500 per month all in (rent, food, expenses, bills etc) I have no need for large limits anymore.

 

[Shahin_Afarin]

As Aaron said the difference between a $4k c/c and a $2k c/c is nothing. It comes to about $40 per month in servicing. There are a lot of otherwise to beef up your servicing to make up for any shortfall.

 

[Brady]

In regards to the travel insurace do check the fine print. My friend is with CBA and I'm with Westpac and we both have a Visa Gold and her travel insurance now only covers if they spend more than $1000 per person on the card or something like that. Mine has no minimum spend.

Few different criteria to make you qualify. At top of my head $950 spend will get it or 90% of total spend costs... Not something I look at too frequently. CBA platinum card does offer interstate invoicance insurance, not sure of the criteria but check it out. Good for those interstate flights.

Credit cards can be evil, but used correctly can be a good tool

 

[wobbycarly]

Few different criteria to make you qualify. At top of my head $950 spend will get it or 90% of total spend costs... Not something I look at too frequently. CBA platinum card does offer interstate invoicance insurance, not sure of the criteria but check it out. Good for those interstate flights.

Credit cards can be evil, but used correctly can be a good tool

"Invoicance insurance" For those time we are invoiced incorrectly!

Love it!

 

[Brady]

"Invoicance insurance" For those time we are invoiced incorrectly!

Love it!

No idea how it came out as that :| pretty sure that came from my phone...

Anyway inconvenience insurance