Author Topic: Credit card Cash Back offer in Aus - will it affect credit history?  (Read 4045 times)

Anatidae V

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So, this seems like an easy credit card reward for us to attempt:
https://www.commbank.com.au/personal/credit-cards/250-cash-back.html?intcmp=persc2:personal:cc:summer:cards-tt.html

Spend $500 each on a CC, (total of $1000), then get $250 back each ($500) - anything I should know about the way Australian credit scores are looked at? I imagine we'll close the cards later in the year.

andystkilda

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #1 on: January 04, 2016, 04:24:43 PM »
Will just be 1 enquiry on the file for both of you, so no major impact.
You can close the cards before the 2nd year annual fee applies.

syednaeemul

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #2 on: January 04, 2016, 05:08:49 PM »
I've taken advantage of this offer already and got the $250 back within a week after hitting the $500. Now just waiting for the cricket draw to be called out in February before cancelling.

If you tend to spend mainly on your credit card, you can also look at Westpac's low rate card offer: for the 1st 6 months, if you spend above $500, you get $50 back each month.

Anatidae V

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #3 on: January 04, 2016, 05:25:46 PM »
Will just be 1 enquiry on the file for both of you, so no major impact.
You can close the cards before the 2nd year annual fee applies.
Brilliant, I thought that's how it worked over here.

I've taken advantage of this offer already and got the $250 back within a week after hitting the $500. Now just waiting for the cricket draw to be called out in February before cancelling.

If you tend to spend mainly on your credit card, you can also look at Westpac's low rate card offer: for the 1st 6 months, if you spend above $500, you get $50 back each month.
Oh, I'll look into that. It seems there are OK deals for CC in Australia, or maybe they're just starting to pop up more?

Minion

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #4 on: January 04, 2016, 05:53:15 PM »
With a $59 annual fee, this works out to $191 cash back? Still seems a good deal.

JLR

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #5 on: January 04, 2016, 08:20:11 PM »
Thanks for mentioning this card. It looks like good deal. Making sure you don't close the account before you get your money seems to be the main thing to watch out for. And to consider whether you want to buy a property in the short term, i.e while you will have the card open. It may affect your borrowing power.

alsoknownasDean

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #6 on: January 05, 2016, 05:29:19 AM »
Yeah I've noticed that and I'm tempted to apply. My current card is pretty crappy but at least it has no annual fee.

The only issue I have is that I've had a few credit enquiries in the last year (2 credit card applications, and I've applied to change phone carrier a few times). As a couple of the applications were declined a few months ago, I'm unsure if it's worthwhile doing any new credit applications for a while.

My fault for changing mobile providers every few months. :)

Anatidae V

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #7 on: January 05, 2016, 05:59:03 AM »
How many is "too many"? I plan on closing the account before purchasing a PPOR, but may purchase one within 12 months.

kaetana

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #8 on: January 14, 2016, 04:53:39 PM »
How many is "too many"? I plan on closing the account before purchasing a PPOR, but may purchase one within 12 months.

Unfortunately this is up to the bank's discretion. I've heard stories of people who were declined for loans because of credit cards (this couple had a $100k limit between them) but I've also heard of a bank not caring after my friend explained that he only got credit cards for the rewards points. It's hard to tell. And yes, it absolutely affects your credit scores.

I applied and was approved for the CommBank card you mentioned. I already have other cards and only intend to hold this one until I get my $250. Given this, I lowered my limit to $1000 although they offered me a much higher amount. If you did this, I personally would go for it. I wouldn't think $1,000 would make much of a difference given the rest of your finances are solid.

There are heaps of great credit card offers all the time. Here are some of my favourites:
Citibank Signature - no annual fee, generous limit, and the ability to take 80% of your credit limit as cash, borrowed at 0%. I put this money straight onto my offset account, saving me more interest than I could earn with a savings account. I then pay the balance back in full when it comes due. I believe the balance transfer term started at 6 months when I got it. 2 years and two extensions later, I'm still on the 0%.

28 Degrees Mastercard - no annual fee. This is my go-to card for travelling and overseas purchases because it has no foreign transaction fees or currency conversion fees. It also has price protection, which means that if you buy something in Australia which then drops in price from the same store within 6 months, they'll refund you the difference. Price protection is free IF you have the discipline to pay your card off in full BEFORE the statement comes out (which, as a YNAB user, you shouldn't have an issue with).

Westpac Altitude Black - This is a good candidate for a credit card churn (ie a card that you only keep for the year). I think I got 80,000 points when I first applied for it, plus a great rate for actually earning frequent flyer points. Comes with an Amex and a Mastercard. First year is free-- so get in, use it, and then close it before you have to pay the $400 annual fee!

Astatine

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #9 on: January 14, 2016, 09:40:14 PM »
Not sure I have the mental energy to apply (2 hospital admissions in the past 3 weeks has kind of taken it out of me) but I am tempted.

However, it would break my lifetime of no credit cards. :p DH has one but he had it before he met me (we use it to smooth out cash flow plus we get reward points for Myer which we use for gifts or occasional household needs). I have a couple of debit cards but have never signed up for an actual credit card.

kaetana

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #10 on: January 15, 2016, 03:55:22 AM »
If you're disciplined enough (which shouldn't be a problem for a Mustachian) to only spend on credit cards what you could pay off immediately if you had to, then credit cards are amazing! Close to 100% of my spending is on credit cards, but I of course pay them off in full every month, except for the aforementioned Citibank Signature card. In addition to cash back or reward points or what have you, most cards also offer 55+ days interest free, during which the money I would have used to pay them off can be sitting against my mortgage offsetting the interest I would have had to pay.

It's true that the more cards you have, the more time you need to maintain them and make sure you're not paying any fees. So maybe you could just start out with one and see how you go? You could always just set up a direct debit so that it's all automated. That shouldn't take up too much time.

Anatidae V

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #11 on: January 15, 2016, 04:17:40 AM »
We already have a rewards credit card, paid in full every month, so we're comfortable with using one. I got this in the mail today and will now buy some grocery gift cards with it :)

nnls

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #12 on: January 22, 2016, 09:39:23 PM »
I've taken advantage of this offer already and got the $250 back within a week after hitting the $500. Now just waiting for the cricket draw to be called out in February before cancelling.

If you tend to spend mainly on your credit card, you can also look at Westpac's low rate card offer: for the 1st 6 months, if you spend above $500, you get $50 back each month.

Is this offer still available I cant seem to see it

Primm

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #13 on: January 28, 2016, 01:31:04 AM »
Is this offer still available I cant seem to see it

I just applied using the link in the first post. It's still there.

nnls

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #14 on: January 29, 2016, 01:20:06 AM »
Is this offer still available I cant seem to see it

I just applied using the link in the first post. It's still there.

Thanks, I meant the Westpac offer though :)

Primm

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #15 on: January 29, 2016, 03:01:51 AM »
Is this offer still available I cant seem to see it

I just applied using the link in the first post. It's still there.

Thanks, I meant the Westpac offer though :)

Comprehension fail on my part, sorry!

nnls

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Re: Credit card Cash Back offer in Aus - will it affect credit history?
« Reply #16 on: January 29, 2016, 05:51:08 PM »
Is this offer still available I cant seem to see it

I just applied using the link in the first post. It's still there.

Thanks, I meant the Westpac offer though :)

Comprehension fail on my part, sorry!

All good :)