A few random tips from d00t

[Guest]

OK...seems a lot of n00bs have been coming here lately looking for credit card help and advice... It's really just common sense but here it is anyway:

Rule1: You should always have at least 2 separate credit cards going at any one time. They need to be with 2 different banks so that you can use them as leverage against the other/s. Like mum always said - never put all your eggs in the same basket.

Rule2: If you can't pay off your entire balance monthly - do not use a rewards based card (these are usually 16%+) The points are NOT worth the amount you pay in interest^

Rule3: Don't get trapped in to the interest free days scam. There are only interest free days if you have paid your entire balance in full from the previous months. If you don't pay off the entire balance from last month before the due date, your purchases now will NOT be interest free!

Rule4: If you have an outstanding balance that you're paying off, don't let it sit for more than about 7-8 months on the "promo" rates... around the 9 month mark your interest rate really ends up being around 13% (if you started out at say 5%). This is where Rule1 comes into play.. You need to transfer your balance off this card and on to your OTHER card (hopefully at a good BT rate offered by your bank) ... if they don't offer one... transfer it anyway and wait for an offer for a new BT from your old bank...they'll do anything to get you back in debt!

Rule5: If you're not using a credit card, don't cancel it .. just change the credit product to one that has no yearly fee... that way you're saving your established credit line for use in an emergency, and banks will generally only INCREASE your limit as time passes .. even if you don't use the card!

Rule 6: Make banks compete for your business!!! They make $$$ every single time you pull the card out to pay for even the smallest of things. If you are not getting enough out of your card... transfer the card to a fee-free card (see rule5) and move on to another bank.


Rule 7: Just because you have an amex black/centurion does not mean your dick is big. This is probably the biggest waste of money out there. Go spend it on an army of indian factory workers - at least that will make you rich.


Rule 8: Don't be afraid of change. Just because you've been with xx_BANK for 10 years or you know Joe's mates daughters friend from the post office who went to school with the owners son's uncle that now works at Westpac does not mean you need to stick with westpac. Infact, unless you're willing to change credit card in a heartbeat, you are probably being screwed by the bank or not getting what you could from it.


Rule 9: Don't use cash advances on your card unless you are not paying any fees for it. If you do use them for cash advances, you may want to consider citibank's redicredit which works the same way, however it's much lower in fees. If you already have a citibank credit product, you can also split your credit line between card <-> redicredit.


^ Can be rewarding to buy high ticket items ($10k+) and do a balance transfer ASAP so you are paying NO interest!


Just remember ... not all banks work the same. Read the fineprint. You can only claim you signed induress so many times before they catch on(think amex & citibank @ airports/shopping centres)

Happy Spending!

 

[Guest]

FYI: if you let your cards just idle (on a fee-free-product) - you can bring them out of retirement whenever the bank is running a promotion, to whatever card they have is offerring that promotion

Also I forgot mention that by having many cards, your points capping is not as restricted as it could be. For example, let's say you've got an ANZ FF card and a standard citibank silver card.

You would:
Split your ANZ credit limit to $5,000 - so that you only go spending $5k/month on it - any excess credit you have,...put it on a fee-free card with anz so that you have 2 cards without letting your credit run away.

After your first card is full... start using your citibank silver until you've reached the.. what..30k points a year?

Continue moving on like this and you'll never run out of points even when you're being restricted per bank!

 

[one9]

this is good advice d00t

 

[cpl]

Rule5: If you're not using a credit card, don't cancel it .. just change the credit product to one that has no yearly fee... that way you're saving your established credit line for use in an emergency, and banks will generally only INCREASE your limit as time passes .. even if you don't use the card!

Yes but it's also a way banks try to lock you in because having a high credit limit with them may mean one wouldn't get an equally good credit limit offer from a competitor.

And the combined limits on credit cards have a direct impact on the amount one can borrow eg as a home loan.

 

[one9]

Rule5: If you're not using a credit card, don't cancel it .. just change the credit product to one that has no yearly fee... that way you're saving your established credit line for use in an emergency, and banks will generally only INCREASE your limit as time passes .. even if you don't use the card!

Yes but it's also a way banks try to lock you in because having a high credit limit with them may mean one wouldn't get an equally good credit limit offer from a competitor.

And the combined limits on credit cards have a direct impact on the amount one can borrow eg as a home loan.

the bank only puts a request on your credit file when you apply for the credit card. if you cancel the credit card, then no information is put on your credit file to say you cancelled the card. it looks like you still have the card regardless.

if you apply for another product such as a home loan, when it asks you for your credit limits on your credit cards, you dont need to list you card (as long as it is with another bank) as the bank you are applying to can't see what your limit is, if you were ever approved for the card, and if it is still open.

of course, you may be legally required to list your credit limits.

 

[BlacKnox]

Well done d00t.

Rule 7: Just because you have an amex black/centurion does not mean your d*ck is big. This is probably the biggest waste of money out there...

Here's further support that the (US) blackcard is losing its lustre, and not worth the fee.

Amex Centurion Becomes Just Another Piece of Plastic
from: http://blogs.flyertalk.com/blogs/viewwing/

"The famed American Express Centurion Card (U.S. version) is certainly not worth the $2500 fee any longer.

Centurion members used to get Diamond status in the Hyatt Gold Passport program. Last year that benefit was pulled, and American Express added Platinum status in the Priority Club program instead.

That's hardly a like exchange: anyone can get Platinum status by doing as little as transferring some points into their account from Membership Rewards, the status provides very little in the way of benefits, and I can't imagine that too many Centurion cardholders find themselves staying at Holiday Inns all that frequently in order to take advantage of it.

Now comes news that Platinum status in the Starwood Preferred Guest program will no longer be offered. Everyone signed up for the status through January 21 (about a week ago) will be Platinum through February 28, 2007. New signups will receive Gold status from here on out, and existing members will drop to Gold (unless the requalify on their own) beginning March 1, 2007.

If there was ever a card that you'd expect not to be devalued, wouldn't it be this one? But American Express has opened the floodgates to anyone willing to pay (and demonstrate a history of large charges on an Amex charge card) so it's no longer even that exclusive a product. Without Starwood Platinum status as a benefit I won't even be tempted to get one of these (Delta and Continental Gold status just aren't that alluring)."
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[Guest]

And the combined limits on credit cards have a direct impact on the amount one can borrow eg as a home loan.

one9 is correct ... the banks also have no way to know what your credit limit is without you revieling this data to them (be careful what you sign!)

I could go on for hours!