Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.




506 posts

Ultimate Geek
+1 received by user: 28


Topic # 191444 4-Feb-2016 13:09

Hi Guys,

 

So I am with the ASB Low Interest Rate Credit Card.

 

I have read a few posts on geekzone that people are collecting the rewards part of the credit card. (so use it like eftpos and then top up when you get paid)

 

Is this better then having a lost interest rate on your credit card.

 

Going by the ASB website the low interest rate is 13.5% and the rewards one is 20% (this is on the purchase)

 

Guess its better for people to go with the rewards if they make the balance $0 every month?


View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2
1617 posts

Uber Geek
+1 received by user: 729


  Reply # 1485164 4-Feb-2016 13:14
Send private message

I'm running a couple of cards at the moment (under review depending on impending fees). Both get paid off in full on their due date every month so all rewards are a bonus.  This equates to roughly 1% of my spend.  Need to consider with every purchase if any additional benefits (e.g. travel insurance) are worth it if the retailer demands a credit-card surcharge.





Don't use 'beefstew' as a password.  It's not stroganoff.


2502 posts

Uber Geek
+1 received by user: 928

Subscriber

  Reply # 1485165 4-Feb-2016 13:15
One person supports this post
Send private message

If you pay it off during the interest free period (usually between 30 and 60 days depending on card, bank etc), the rewards works out better than a lower interest rate. If you keep an interest-bearing balance of any size, lower interest is often better, but you'd need to calculate the specifics for your situation.





Windows 7 x64 // i5-3570K // 16GB DDR3-1600 // GTX660Ti 2GB // Samsung 830 120GB SSD // OCZ Agility4 120GB SSD // Samsung U28D590D @ 3840x2160 & Asus PB278Q @ 2560x1440
Samsung Galaxy S5 SM-G900I w/Spark

 
 
 
 


Try Wrike: fast, easy, and efficient project collaboration software


506 posts

Ultimate Geek
+1 received by user: 28


  Reply # 1485168 4-Feb-2016 13:18

Inphinity:

 

If you pay it off during the interest free period (usually between 30 and 60 days depending on card, bank etc), the rewards works out better than a lower interest rate. If you keep an interest-bearing balance of any size, lower interest is often better, but you'd need to calculate the specifics for your situation.

 

 

I have around 6k balance on my Credit Card.

 

Can't pay that off straight away so having a lower interest rate is probably better for me until that's paid and then switch to the rewards card.

 

Thanks for the feedback.


3122 posts

Uber Geek
+1 received by user: 868

Trusted

  Reply # 1485190 4-Feb-2016 13:44
Send private message

Yeah, probably better to go with lower interest rate in that case.  My approach to credit cards for a long time has been to pay it off in full every month just before pay day. This ensures that I don't pay any interest and also don't become "reliant" on it.  i.e. don't let the balance on it become greater than the amount you have "left" of your pay at the end of the month after all living costs, bills and any savings go out.


2140 posts

Uber Geek
+1 received by user: 643

Subscriber

  Reply # 1485193 4-Feb-2016 13:47
7 people support this post
Send private message

Do a balance transfer to another CC and pay it off interest free. 


13794 posts

Uber Geek
+1 received by user: 1717


  Reply # 1485256 4-Feb-2016 15:20
2 people support this post
Send private message

If you have a credit card, you always pay it off before it accrues interest. That is finances 101.  Otherwise I wouldn't recommend  getting one, otherwise you will get caught in a debt cycle. This is because the interest rates are crazy high, compared to what they are lending to people buying houses, and what they are offering savers (2-3%). There are only a few reasons I use a credit card, 1 is to get points, 2 is to get the free use interest free usage of the money for 1 month before you have to pay it back. 3 is insurance if traveling, and sometimes you can get extended warranties if the CC was used for purchase.


2780 posts

Uber Geek
+1 received by user: 673


  Reply # 1485320 4-Feb-2016 16:24
Send private message

Totally agree about always avoid paying interest on a credit card - if one can't manage this, then don't have a credit card (of course, if everyone was this fiscally controlled there'd be no point banks offering them!). As mentioned, equally important to paying it off monthly is ensuring you have the money to do so! We achieve this through never buying something on the card unless we have the money put aside to cover it (and we buy everything we can on the card to maximise rewards).

 

The approach some take to credit card debt consolidation can be dangerous - ie using money from a mortgage to pay off a credit card. While the interest rates are clearly way lower, often the mortgage is taken over a long period so total interest paid may end up even greater. The solution in this situation is to pay off that component of the mortgage quickly, easiest if it's floating or revolving credit (the latter being a dangerous option for those who carry credit card debt! It can be tempting...).

 

Transferring to a different card with a new bank with a period of nil interest may be a better option, but in those situations aren't there quite a number of limitations on how the card can be used to maximise the "no interest" benefit? (I assume it's best not to use the new card for purchases, only to focus on paying it off within the interest-free period.)


20905 posts

Uber Geek
+1 received by user: 4107

Trusted
Subscriber

  Reply # 1485333 4-Feb-2016 16:43
Send private message

jonathan18:Transferring to a different card with a new bank with a period of nil interest may be a better option, but in those situations aren't there quite a number of limitations on how the card can be used to maximise the "no interest" benefit? (I assume it's best not to use the new card for purchases, only to focus on paying it off within the interest-free period.)

 

 

Yeah, you need to not use it at all, unless they will let you prioritize payments to the new purchases and not the transferred balance.

 

Not all require you to close the old card, so you can keep using that for new purchases paying in full each month and just work on paying off the other one before its interest free runs out. They rely on people that get into high debt not being able to do that so at the end of it all they are in the same situation but with them rather than some other bank. = much profit for very little risk.





Richard rich.ms

4384 posts

Uber Geek
+1 received by user: 819

Trusted
Lifetime subscriber

  Reply # 1485367 4-Feb-2016 17:09
One person supports this post
Send private message

Oriphix:

Inphinity:


If you pay it off during the interest free period (usually between 30 and 60 days depending on card, bank etc), the rewards works out better than a lower interest rate. If you keep an interest-bearing balance of any size, lower interest is often better, but you'd need to calculate the specifics for your situation.



I have around 6k balance on my Credit Card.


Can't pay that off straight away so having a lower interest rate is probably better for me until that's paid and then switch to the rewards card.


Thanks for the feedback.



To me - if you aren't able to pay that off for whatever reason, you should not think about the rewards at all. The rewards are not worth the hassle.





5015 posts

Uber Geek
+1 received by user: 1001

Trusted
Subscriber

  Reply # 1486551 6-Feb-2016 16:58
Send private message

Oriphix:

 

Hi Guys,

 

So I am with the ASB Low Interest Rate Credit Card.

 

I have read a few posts on geekzone that people are collecting the rewards part of the credit card. (so use it like eftpos and then top up when you get paid)

 

Is this better then having a lost interest rate on your credit card.

 

Going by the ASB website the low interest rate is 13.5% and the rewards one is 20% (this is on the purchase)

 

Guess its better for people to go with the rewards if they make the balance $0 every month?

 

 

 

 

Just be careful about taking cash off the credit card if it is in credit (ie: they owe you money). Most banks will ding you at least $1 for a "cash advance" even if the card has a credit balance. 

 

 





____________________________________________________
I'm on a high fibre diet. 

 

High fibre diet


20905 posts

Uber Geek
+1 received by user: 4107

Trusted
Subscriber

  Reply # 1486556 6-Feb-2016 17:07
Send private message

Its only a dollar. I know someone that will walk several 100m to use an ATM of their own bank to avoid a small 50c-$1 fee, yet when I say I will give you a dollar to walk to the dairy and get me a drink they refuse? Very strange.

 

The biggest thing is, if you lack the self control to not max the card out and then complain that you are paying interest on things that you couldnt afford, then do not get another card at all. Just get rid of it. Prepaid cards and debit cards are made for people with zero self control and should be used by them. Giving them credit cards is the banks way to make easy money off them.





Richard rich.ms

:)
2867 posts

Uber Geek
+1 received by user: 84

Subscriber

  Reply # 1486591 6-Feb-2016 17:51
Send private message

richms:

 

Prepaid cards and debit cards are made for people with zero self control and should be used by them. Giving them credit cards is the banks way to make easy money off them.

 

 

I consider myself financially responsible (and have self control!), but I have a preference to use my EFTPOS and visa debit. The rewards vs. fees vs. having to regularly have the conversation about waiving fees are really not worth my time.

 

I'm not sure I'd put enough money through a credit card to make it worth it either.

 

I know you didn't mean Visa Debit is only for people with no self control, but I thought I'd mention even us with self control use them ;) 

 

 

 

I do have a GemVisa, simply because there are regular long term interest free deals with a lot of retailers, plus a 6 month interest free period with every purchase over $250- up to 55 days interest free applies to purchased below that. I still don't use it for day to day spending though.

 

 

 

 






20905 posts

Uber Geek
+1 received by user: 4107

Trusted
Subscriber

  Reply # 1486601 6-Feb-2016 18:09
Send private message

Visa debit I find to be too risky since its straight into an account with my money in it. Sure, you can set up another transaction account etc and only put some money in when you want to use it, but getting unarranged overdraft fees refunded etc when its compromised is something they keep saying is a one off blah blah and means interacting with the bank. I am super careful with my debit card details, whereas my credit ones I really dont give a crap on one of them since I have nothing recurring on it.





Richard rich.ms

Mad Scientist
18119 posts

Uber Geek
+1 received by user: 2273

Trusted
Lifetime subscriber

  Reply # 1486652 6-Feb-2016 21:09
Send private message

Never buy things you cannot afford. You will suffer till your grave if it spirals and it is very easy to spiral due to a credit mentality itself.

 

If you have that mentality use a debit card.

 

Eg: one does not NEED an iPhone 6S. one needs a phone, and there are other more affordable alternatives.

 

one does not NEED to eat out. one needs to eat yes. etc


26214 posts

Uber Geek
+1 received by user: 5804

Moderator
Trusted
Biddle Corp
Lifetime subscriber

  Reply # 1486681 6-Feb-2016 21:51
Send private message

A debit card is fine if you want your money used for holds and preauth's and are happy that your money could temporarily be available if your card is compromised - and I'd never ever contemplate wanting a debit card for those reasons. A proper credit card has so many advantages over a debit card I really am surprised they're becoming so common.

 

 


 1 | 2
View this topic in a long page with up to 500 replies per page Create new topic



Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

TCF and Telcos Toughen Up on Scam Callers
Posted 23-Apr-2018 09:39


Amazon launches the International Shopping Experience in the Amazon Shopping App
Posted 19-Apr-2018 08:38


Spark New Zealand and TVNZ to bring coverage of Rugby World Cup 2019
Posted 16-Apr-2018 06:55


How Google can seize Microsoft Office crown
Posted 14-Apr-2018 11:08


How back office transformation drives IRD efficiency
Posted 12-Apr-2018 21:15


iPod laws in a smartphone world: will we ever get copyright right?
Posted 12-Apr-2018 21:13


Lightbox service using big data and analytics to learn more about customers
Posted 9-Apr-2018 12:11


111 mobile caller location extended to iOS
Posted 6-Apr-2018 13:50


Huawei announces the HUAWEI P20 series
Posted 29-Mar-2018 11:41


Symantec Internet Security Threat Report shows increased endpoint technology risks
Posted 26-Mar-2018 18:29


Spark switches on long-range IoT network across New Zealand
Posted 26-Mar-2018 18:22


Stuff Pix enters streaming video market
Posted 21-Mar-2018 09:18


Windows no longer Microsoft’s main focus
Posted 13-Mar-2018 07:47


Why phone makers are obsessed with cameras
Posted 11-Mar-2018 12:25


New Zealand Adopts International Open Data Charter
Posted 3-Mar-2018 12:48



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.