Just wondering around Aus - who pays their deposit using their credit card? Only due to the points system etc.
Paying deposits with Credit Card (AMEX etc)
- Thread starter Melbournian
- Start date
Hi Melbournian,
A friend of mine took cash advance from a CC to pay deposit for his house (part of it, I would say, he had to come up with 30K for dep, he took cash advance of 10K from Citibank and ANZ and thats how he came up with part of the deposit)
I am not sure if you can do Balance transfer then to some other card and enjoy a 0% for next 6 months .. Can you do Balance transfer that includes cash advacnes to other card or its only purchases thats allowed?
Regards
A friend of mine took cash advance from a CC to pay deposit for his house (part of it, I would say, he had to come up with 30K for dep, he took cash advance of 10K from Citibank and ANZ and thats how he came up with part of the deposit)
I am not sure if you can do Balance transfer then to some other card and enjoy a 0% for next 6 months .. Can you do Balance transfer that includes cash advacnes to other card or its only purchases thats allowed?
Regards
Balance however it came about is transferable subject to approval by new card issuer.
Issue is moreso that your credit score is strong enough to cover the multiple cards & monthly repayments along with other liabilities.
Issue is moreso that your credit score is strong enough to cover the multiple cards & monthly repayments along with other liabilities.
Hi,
If balance (incl cash advances) is transferrable to other cards with 0% interest for 6 months, then it gives you the flexibility to play around and have that extra breathing space...
Only thing is you should not make purchases from the card where balance is transferred and be ready to pay annual fees for the new card, but i guess its worth it.
regards,
If balance (incl cash advances) is transferrable to other cards with 0% interest for 6 months, then it gives you the flexibility to play around and have that extra breathing space...
Only thing is you should not make purchases from the card where balance is transferred and be ready to pay annual fees for the new card, but i guess its worth it.
regards,
actually i was more into using the card to get the points and then paying it off after the free interest period ends. You can generate enough to get you business class return a few times a year.
I would expect that this type of transaction would be considered a cash advance, and hence not earn points.
I would expect the agent would have a 2.2% surcharge, if they accepted AMEX at all.
Last transactions with developer wasn't any surcharge and wasn't any advance. Put a deposit on 2 X land and paid around AUD80 over multiple swipes on paying 20% downpayment with a discount - got like double flight points on AMEX
which means 2 X return flights business class to Asia.
Also negotiated a 1K bunnings voucher
no rocket science - just trying to work the system
which means 2 X return flights business class to Asia.
Also negotiated a 1K bunnings voucher
no rocket science - just trying to work the system
I work for an AU bank as a lender - whilst in theory it would work, there are a few issues - generally speaking, you would not be able to "purchase" something like your deposit or your stamp duty on your credit card, as often a vendor/agent will not accept them. You would have to cash advance it. Meaning that it will default to the higher (around 20%) interest rate and it is not eligable for awards points.
Secondly if you have a less than 20% deposit, there is often a requirement is that those funds be considered "genuine" savings, so would need to have sat in an account for a while (around 3 months).
Thirdly while you can balance transfer it to a new card, you need to be very careful. The balance transfer is a low % rate for a period, but after that it will revert to a cash advance rate - normally 20+% depending on the provider.
If you use the card at all during the balance transfer period for purchasing, the order of repayment is credited to purchases first and balance transfers second. Obviously there is nothing (apart from your credit rating) to apply at another institution and transfer the remainder to a new card.
IF you do not clear the card back to $0 then the interest free period does not kick in, and interest will keep cycling. It is all in the small print, please read and ask questions of the credit provider, so that you do not find yourself wasting $$ unnecessarily.
Please bear in mind that this is general and may not apply to all cards but for the ones I am aware of that is the case. Hope that helps.
Secondly if you have a less than 20% deposit, there is often a requirement is that those funds be considered "genuine" savings, so would need to have sat in an account for a while (around 3 months).
Thirdly while you can balance transfer it to a new card, you need to be very careful. The balance transfer is a low % rate for a period, but after that it will revert to a cash advance rate - normally 20+% depending on the provider.
If you use the card at all during the balance transfer period for purchasing, the order of repayment is credited to purchases first and balance transfers second. Obviously there is nothing (apart from your credit rating) to apply at another institution and transfer the remainder to a new card.
IF you do not clear the card back to $0 then the interest free period does not kick in, and interest will keep cycling. It is all in the small print, please read and ask questions of the credit provider, so that you do not find yourself wasting $$ unnecessarily.
Please bear in mind that this is general and may not apply to all cards but for the ones I am aware of that is the case. Hope that helps.
Lizzie, not all banks have credit cards where the balance transfer reverts to the cash rate after the period expires, also, same with payment allocations - not all banks direct the payment to whatever is accruing the lowest amount of interest first. Might be worth reading the T&C's of other banks.
It is all in the small print, please read and ask questions of the credit provider, so that you do not find yourself wasting $$ unnecessarily.
Please bear in mind that this is general and may not apply to all cards but for the ones I am aware of that is the case. Hope that helps.
Kesse - totally agree that some may not, but I do see alot of people get caught - very very recently someone to the tune of 60K in interest, due to a $small cash advance some 3-4 years ago, despite his purchasing being regularly paid off.
I work for an AU bank as a lender - whilst in theory it would work, there are a few issues - generally speaking, you would not be able to "purchase" something like your deposit or your stamp duty on your credit card, as often a vendor/agent will not accept them. You would have to cash advance it. Meaning that it will default to the higher (around 20%) interest rate and it is not eligable for awards points.
Secondly if you have a less than 20% deposit, there is often a requirement is that those funds be considered "genuine" savings, so would need to have sat in an account for a while (around 3 months).
Thirdly while you can balance transfer it to a new card, you need to be very careful. The balance transfer is a low % rate for a period, but after that it will revert to a cash advance rate - normally 20+% depending on the provider.
If you use the card at all during the balance transfer period for purchasing, the order of repayment is credited to purchases first and balance transfers second. Obviously there is nothing (apart from your credit rating) to apply at another institution and transfer the remainder to a new card.
IF you do not clear the card back to $0 then the interest free period does not kick in, and interest will keep cycling. It is all in the small print, please read and ask questions of the credit provider, so that you do not find yourself wasting $$ unnecessarily.
Please bear in mind that this is general and may not apply to all cards but for the ones I am aware of that is the case. Hope that helps.
swiped it - no actually redraw from it. Worked 5-6 times did not really have any issues.
strange they didn't charge me that. Maybe the developer was desperate to push units quickly.
I only use the credit card due to the membership reward points - I have the cash - i could basically pay off the next day. The only reason was to utilize the reward points.
hahah that was a good one.
you're probably right as most developers do that
i did spend an hour negotiating till they asked me to sign a non-disclosure on price after i signed up as they didn't want other ppl to know what discount i got.
you're probably right as most developers do that
i did spend an hour negotiating till they asked me to sign a non-disclosure on price after i signed up as they didn't want other ppl to know what discount i got.
if you get a cash advance to pay the deposit, then you do not get an interest free period on this money.
interest free is on "purcahses" only.
got the statement to show it.
I haven't come across an swipe machine that allows withdrawals from my AMEX platinum card before. that includes the the Coles and woolworths.
Even if i paid it out in 1 day and incurred 1-2 days interest, it would still be worthwhile being you have a business class ticket worth 5-6K to asia and a few limo ride back and forth from your destination and departure locations.
