Gem Visa - with or without purchase protection?

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Gem Visa - with or without purchase protection?

groynk

234 posts

Master Geek

#167396 12-Mar-2015 12:04

Looking at getting the Gem Visa for infrequent large purchaces (Macbook Pro right now - $1850).
Main everyday card is Airpoints platinum master, but unfortunately doesn't have price/purchase protection.

Thing I can't decide is wther the 1% shoppers protection is worth it... $18.50 p month until I pay it off/down right? (estimate 3-4 months to pay off at the moment).

Billgates, you around? You posted this in 2012:

Reply # 736640 23-Dec-2012 18:52

Thanks for the replies people. Have applied for it just now with the Purchase protection insurance. Will only use the card when purchasing something considerably expensive or purchasing products from overseas with significant value. This way the insurance premium amount will either be $0 or at best very low every month depending on the usage. Still going to keep my ASB Visa.

khull

1245 posts

Uber Geek

#1257033 12-Mar-2015 12:26

Yikes gem visa for a $1850 purchase?

richms

28191 posts

Uber Geek

Trusted

Lifetime subscriber

#1257035 12-Mar-2015 12:28

khull: Yikes gem visa for a $1850 purchase?

Over $250 so you get 6 months interest free no matter where you buy from. So long as you never put anything under $250 on the card they are a great card.

Richard rich.ms

Amosnz

567 posts

Ultimate Geek

Lifetime subscriber

#1257039 12-Mar-2015 12:30

richms:
khull: Yikes gem visa for a $1850 purchase?

Over $250 so you get 6 months interest free no matter where you buy from. So long as you never put anything under $250 on the card they are a great card.

Agree, precisely why we have one too.

Speedtest

groynk

234 posts

Master Geek

#1257058 12-Mar-2015 12:54

Amosnz:
richms:
khull: Yikes gem visa for a $1850 purchase?

Over $250 so you get 6 months interest free no matter where you buy from. So long as you never put anything under $250 on the card they are a great card.

Agree, precisely why we have one too.

Yep after many comparisons and research have ended up here. 12 months interest free through apple store. Won't use it for anything else, everyday airpoints card is for that.
Just debating the shoppers protection. Effectively makes it 1% interest. Anyone got experience and advice on that?

richms

28191 posts

Uber Geek

Trusted

Lifetime subscriber

#1257080 12-Mar-2015 13:09

I dont have it. Didnt even know it was a thing they offered.

Could probably do well on it with apple stuff since you could buy before new stuff was announced and old stuff got cheaper etc.

Richard rich.ms

Aaroona

3196 posts

Uber Geek

#1258271 14-Mar-2015 10:39

You can enjoy the peace of mind of Shopper’s Protection for just 1% of your monthly closing balance, up to a maximum of $50 a month – so you’ll never pay more than that. It’s automatically debited to your card account, so there are no hidden costs or extra bills to pay and you’ll see the premium on your statement.
Source

I wonder what that means if I pay for it on my card, then pay off the balance immediately. Does that essentially mean I get free insurance for up to 6 months?

sonyxperiageek

2959 posts

Uber Geek

Trusted

#1258291 14-Mar-2015 10:53

So just for me to understand these cards a bit more.. Why not just save up for the item you want to buy, instead of putting it on a card with interest free? You're gonna have to pay the balance off eventually, and what happens if you've saved up for your debts but at the last minute, you had to use it for something a bit more important?

By the way, this is not directly for this OP's situation.

Sony

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

richms

28191 posts

Uber Geek

Trusted

Lifetime subscriber

#1258292 14-Mar-2015 11:01

It's not like the lame interest free offers at Harveys or noels where you can't get a good price off them.

It processes just like any other Visa. Place you are shopping at has no difference to a standard bank issued Visa.

As for the why don't you save comment. Who says you have to save? I put things on the gem visa I could buy outright or use my normal one and have to pay it in one month all the time. 6 months is better than one month so no good reason not to.

Plenty of valid reasons to buy something on interest free or even interest bearing hp when you can't afford it outright too. To say why don't you save sounds like sad old person talk. "Didn't have finance in my day" also didn't have to pay for education or spend 7 average incomes on a house.

Richard rich.ms

Aaroona

3196 posts

Uber Geek

#1258295 14-Mar-2015 11:08

I use it because there are benefits for me using it.
Sure, I could go pay for it up front if I wanted to.. but the way I see it, my money is better in my bank for as long as reasonably possible. If i have a no interest credit card, I'll pay what's due, when it's due, while getting earning interest on what I haven't paid.

That's just one reason why... I'm sure there are plenty of others. And depending on how this insurance type thing works, that would also be a benefit.

billgates

4705 posts

Uber Geek

Trusted

#1258296 14-Mar-2015 11:11

I applied for the card online and never heard or got a reply back in either email or a letter.

Do whatever you want to do man.

eXDee

4032 posts

Uber Geek

Trusted

#1259415 14-Mar-2015 17:21

$55 one off establishment fee + $52 annual fee = $107 after the first year.

$2000 in the bank at 4% compounding interest (generous for standard savings account) is $40 after 6 months if compounding annually.
$4000 is $80
$6000 is $120

I think i'd rather put it on a rewards credit card myself, unless it was approaching $5k or over.

JaseNZ

2576 posts

Uber Geek

ID Verified

Lifetime subscriber

#1259421 14-Mar-2015 17:45

We have one and its mainly been used at Harvey Norman's , we put our bed on it when they had their sales. Bed was 3.5k on sale where as was normally 5k so got a good saving and interest free for 24 months.
We didn't have 3.5k in the bank so was an easy way to get it so was handy for us. Paid the bill off in 35 weeks.

Ding Ding Ding Ding Ding : Ice cream man , Ice cream man

Lurch

1061 posts

Uber Geek

#1259455 14-Mar-2015 19:37

$3.5k on a bed? Wow.... I have one but just about paid off, once paid off will most likely cancel it. Credit cards are dangerous things as I've found out ;-) The good thing about a credit card is if an emergency comes up you can not afford i.e. car breaks down.

JaseNZ

2576 posts

Uber Geek

ID Verified

Lifetime subscriber

#1259460 14-Mar-2015 19:50

Lurch: $3.5k on a bed? Wow.... I have one but just about paid off, once paid off will most likely cancel it. Credit cards are dangerous things as I've found out ;-) The good thing about a credit card is if an emergency comes up you can not afford i.e. car breaks down.

Yup bought one of these.

http://www.harveynorman.co.nz/bedding/bedroom-furniture/mattresses-and-ensembles/moonstone-ultra-plush-king-bed-by-sealy-posturepedic.html

Fantastic bed and worth the money, I would never in my life thought I would ever spend that sort of money on a bed but we did and I don't regret it. I do 60 hour weeks and its great to have a comfy bed , being king it also means a bit of space between me and the missus if I need it.

Ding Ding Ding Ding Ding : Ice cream man , Ice cream man

billgates

4705 posts

Uber Geek

Trusted

#1259472 14-Mar-2015 20:17

You spend 1/3 of your life on a bed. Why cheap out on that time? Need a good night sleep and comfort. Always splash out on beds, computer monitor, keyboard, mice, mattresses. You use them so much in your daily life.

Do whatever you want to do man.