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  1. #1
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    Default Using rewards credit cards

    Hi does anyone use these to pay for pretty much everything monthly to rack up rewards points then pay balance at the end of the month (while having wages sitting on homeloan offsetting interest?)

    I have a friend who does this it seems a win win to me offset interest on mortgage, earning bonus rewards and paying balance off at end of month so not paying interest.

    Does this really work and what kind if account set up do you need?

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    We do. We have a credit account with Commonwealth, which we have a MasterCard and an Amex card for. We use the Amex wherever possible because we earn more points per dollar on it than the MasterCard, but not everyone accepts Amex.

    We put everything on the credit account, and DH just pays it off on our netbanking at the end of every month, so we don't pay interest.

    Your points add up to a dollar value, and we just booked a trip through Flight Centre, they allow you to use that dollar value toward the cost of your trip. We got $460 off our holiday thanks to the rewards system!

  3. #3
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    Yes, we do. We have an offset mortgage account and a credit card linked. We use the credit card to buy everything- our NAB account has the Velocity rewards system. We buy Coles shopping vouchers with it as soon as the points total is reached- some save the points up to the end of the year and buy shopping vouchers for Christmas. I also have the Coles flybuys card, which earns me flybuy dollars as well as many, many other specials (eg: at the moment, if my weekly shop hits $180, I get a free $20 voucher)- I also pay with my credit card so I am getting points for 2 rewards programs at the same time. It gives me hundreds and hundreds of dollars for nothing every year when I cash in my rewards.

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    We are doing this as well. We don't have an offset account, DH is paid monthly directly into the home loan. We just redraw what we need when we need it. The money sitting on the loan saves interest just the same as an offset account does. We also pay off our cc monthly. We have a Coles rewards credit card and it has been fantastic. With the cc you get 2 flybuys points per dollar spent anywhere. We are racking up about $5k per month on the card which earns 10000 flybuys points, I then cash in the points for flybuys dollars which can be spent at any Coles Myer store (target, coles, kmart, coles fuel). The annual fee is $49 but I earn at least $50 a month in flybuys dollars (I always use them at Coles) so its worth about $600 a year off my groceries and paying no interest! You need to keep track if spending monthly though, it is very easy to get carried away

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    Quote Originally Posted by bubbaboys View Post
    We are doing this as well. We don't have an offset account, DH is paid monthly directly into the home loan. We just redraw what we need when we need it. The money sitting on the loan saves interest just the same as an offset account does. We also pay off our cc monthly. We have a Coles rewards credit card and it has been fantastic. With the cc you get 2 flybuys points per dollar spent anywhere. We are racking up about $5k per month on the card which earns 10000 flybuys points, I then cash in the points for flybuys dollars which can be spent at any Coles Myer store (target, coles, kmart, coles fuel). The annual fee is $49 but I earn at least $50 a month in flybuys dollars (I always use them at Coles) so its worth about $600 a year off my groceries and paying no interest! You need to keep track if spending monthly though, it is very easy to get carried away
    Cool thanks. This is the what I am looking at doing we have a no fee home loan so re draw for free and was wanting pays to go in their. And also he same credit card as I can get it without the annual fee. The only thing I'm hesisitant about is the $6000 minimum limit it comes with. Is this a large limit for a minimum ?

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    The minimum must have changed. Mine is $5000 but that is approximately our monthly spend anyway.

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    We do it too. We're with ANZ and have Qantas frequent flyers where we earn at least 1000 points a week with DP FIFO and we have the woolies points card so are always earning points! I love it.

    We also do direct pay, so our credit card bill goes from the 1st till the 1st ish each month but we don't pay till the end of the next month, after the 55 days interest free and it just pays itself off so we never have to think about it!

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    We put everything on our CBA MC & AMEX cards. I think the annual fee is $400, but we easily recoup that in rewards points.

    Our credit card limit is about $20,000 these days. Just because you have a minimum higher than you want, doesn't mean you have to spend that much.

    Sent from my HTC Desire X using The Bub Hub mobile app

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    Quote Originally Posted by Mummy12 View Post
    Hi does anyone use these to pay for pretty much everything monthly to rack up rewards points then pay balance at the end of the month (while having wages sitting on homeloan offsetting interest?)

    I have a friend who does this it seems a win win to me offset interest on mortgage, earning bonus rewards and paying balance off at end of month so not paying interest.

    Does this really work and what kind if account set up do you need?
    We have a redraw mortgage so buy everything on credit and pay any bills we can on credit (alot charge a % to pay by credit). We then wipe the balance at the end of each month (this is now direct debited due to forgetting to pay when ds was a newborn a couple times -late fees and 27% interest on several thousand hurts).

    There are a few things to consider in my opinion before doing this:
    * Is there an annual fee.
    * are you responsible enough to spend within your means and pay it off each month
    * if you don't pay the full balance the interest is charged from the time of purchase and with rewards cards the interest rates can be quite high.

    We have an amex because the rewards program fee is waived because of dh industry of work.

    We previously accrued 1 point per dollar but have changed to platinum so we pay $99 per year fee. On the rewards points alone I dont think its worth it, but we get 1.5 points per dollar but also get a return flight anywhere in australia per year. We fly to Melbourne atleast once per year which costs more than $99 so in our instance it's worth it.

    Others who don't fly probably not worth it (we also have the fee reduced from the general publics amount through dh work).

  10. #10
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    Thanks everyone we just got the coles platinum rewards card those who sit their wages on their homeloan are you able to get your wages paid directly to the homeloan 'account' or do you simply just transfer to it your homeloan on netbank or something?


 

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