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From: Mic B


Please excuse me if this sounds like a newbie type question but I am new to IP.
Oh well here is the question, can I set up a system to use a 55 day interest free card to repay a interest only investment loan on a on going monthly cycle.
This would enable me to keep the actual cash in my home loan account for longer thus reducing my interest on place of residence.

And now for the biggie, would this spend qualify for reward points on the card.
Just trying to get some back at the banking system.

Regards Mic
 
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Reply: 1
From: Ian Findlay


If I understand your question directly you won't be able to pay your loan
off using a credit card as the merchant (bank in this case) wants all their
money and will not absorb the ~3% credit card processing fee.

You can set up your system to pay all your household expenses by credit card
then pay if off in full at the end of 55 days using BPay etc, then you
maximise money in your hopefully LOC account and thus minimise interest.

Ideally you can have a credit card such as Shell that gives you back 1% of
all purchases - the downside is that you have to spend it in shell service
stations but heck they sell petrol too.

Ian
 
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Using credit cards to pay loans

Reply: 2
From: Paul Zagoridis


Unfortunately Mic, it would be a cash advance. Interest is charged from day 1

Plus they don't earn points.

Keeping trying.

Maybe you could try asking the question differently. One that challenges us to get creative.

How do we get one back on the banking system? Is perhaps too broad. Understand what I mean?

Dreamspinner
 
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Using credit cards to pay loans

Reply: 2.1
From: Mic B


Thanks Dreamspinner, thought it sounded too simple but then again often its the simple things that are overlooked.
The banks may be many things but stupid is not one of them (yes that can be debated depending on the situation) but don't let it be said I gave up at the first setback.

Regards Mic
 
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