Ready Credit...?

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From: Al Gogos


I just got an invitation from Citybank witch can give me up to 25K, with NO Fees, No Charges, and a personal cheque book and I was wondering if anyone on the forum has got one or applied for one.

Alex
 
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Reply: 1
From: Russell Chellew


Hi Alex ,

I believe you may be referring to an unsecured credit card called "ready credit" from memory ( I filed it in the WPB).It has an introductory interest rate of approx 9% for 6months and then jumps up to around 16% or 17%.

Might be useful for short term finance,however there are cheaper forms of finance out there.

regards

Russell
 
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Reply: 1.1
From: Al Gogos


Russell hi,

Yes, that's the one, but you're right, I'll stick with my Visa gold, same limit + 55 days free period + point accumulation.

Regards
Alex
 
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Reply: 1.1.1
From: Jeremy Laws


No - don't listen to them! Definitely get it. Cheapest cheque facility you can get. That item has saved me numerous times and well worth keeping in the filing cabinet. There are _always_ cheaper finance packages out there, but when you need them you cannot apply in time. Get the 25k now , it costs nothing to have it, you have a brain use when you need it.
 
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Reply: 1.1.1.1
From: Duncan M




Don't forget that 3% of the available balance will be added onto your
serviceability calculations if you're going for traditional finance..

Duncan.
 
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Reply: 1.2
From: Anonymous


Russell,
Would you mind telling us where these cheaper
unsecured lines of credit can be obtained from ?

Regards

Credit Card Junkie
 
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Reply: 2
From: Anonymous


The Ready credit facility sounds great, but does any one know what income you would have declare on the application to get the full amount of 25 K ?

Any hints greatly appreciated, or any other tips or angles on it.

Regards

Peter
 
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Reply: 2.1
From: Russell Chellew


Peter,

From memory I believe you need to have a taxable income of around $40 to $45 K to qualify for $25K limit.Suggest you ring Citibank direct to obtain exact qualifying details ph 132858 or ph 132484 .

Credit Card Junkie,

Short term finance (up to say 6 to 12 months)Citibank "Ready access" with Cheque facility has benefits , however for LONGER term finance an unsecured personal loan at around 10% is a cheaper alternative to 17% or more after initial 6 months of ready access.

regards


Russell
 
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Reply: 2.1.1
From: Jeremy Laws


Russell,
You will find once you factor in set up charges etc into personal finance, CC's and ready credit style things are way way in front. Also once you pay them off you don't have to reapply for more credit. Makes shopping for cheap hovels very easy. You have 55 days to find the rest of the money!

Just a point I discovered recently. I almost (well, almost...) always pay off my balance in total on CC's. I asked for another CC from citibank for one of my business managers to use and it was rejected. Essentially because my payment history was poor. I often pay a few days (less than a week normally) over the due date, but usually carry a zero balance. It is the due date that is the critical issue it seems, my payment history, despite the zero balance, is poor. I will not do what they require and set up direct debits, so I guess I will either load it onto my bookeeper (gf/some girl I met on the weekend/mother) or put up with the 'poor' payment history.
 
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Reply: 2.1.1.1
From: Owen .


Jeremy,

If you have say $50k in credit cards, how do the banks look at this when it comes to getting finance? Even if they are empty they will still count the funds as used and calculate repayment costs. Same with a empty LOC. How do you get around this while still maintaining the flexibility you want.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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Reply: 2.1.1.1.1
From: Kellie Dutton


Owen you are right, most lenders calculate a repayment factor into servicability on the total credit card limit. Works to advantage though if you don't quite meet criteria with massive c/c limits, you can simply have them reduced and hey presto! they like you again.

Kellie
kdutton@smartline.com.au
0413 925 943
 
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Reply: 2.1.1.1.1.1
From: Owen .


Kellie,

What if the balance of your credit cards was withdrawn via a cash advance and placed in a bank account. If it was my previous example of $50k then this must have an effect on the banks calculations. It would only have to remain in the account for the application period and then you can pay back the cards. Any interest wouldn't be claimable on anything but if it is the difference between getting the loan and not getting the loan then it may be worth it.

What if the same was done with an empty $200k LOC. Transfer the available funds into a 100% offset account so there is no interest cost at all. Then the bank sees a $200k loan (which they are going to factor in anyway) and $200k in cash.

Do the banks like cash or do they like income better?

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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