I guess what I was looking for with this post was to try and flip this a bit. Someone recently told me get a credit card, buy all your crap with it and before the interest falls due -- pay it off in full. Thus getting all the frequent flyer points = instant free flights etc and paying $0 extra for the item.
For someone like me, that means using the banks money to buy me something, meanwhile I earn interest on the money i would have spent and they give me free flights...it seems too good to be true - but apparently it works this way - you just have to get the bank to wave the annual credit card fee and the sign up fee and your gold - - which the banks have told me they will do.
So I'm scratching my chin, thinking how much further can I take this....thus exploring these things now.
Can you ask your friend how much more in interest she paid with Afterpay? because it seems there is no interest..or did I read it wrong? it's just a fee if you make a payment late.
Now to Splitit - on the surface I buy a sofa. Splitit loans me $1.5K and I gives me 2 years to pay it back. They check my credit limit on my card. They then use the banks money to secure the item (so my limit on the card goes down as if I have borrowed on the card) however I pay no interest what so ever - my monthly repayment just shows as a deposit and my credit limit goes up - the credit card doesn't see I have borrowed anything, but it recognises the purchase and gives my points - I get the points each time I make my regular lay buy like payment in...What is the catch???
I can't run out and buy more things if i borrow too much, as it's set to what ever the credit limit is on the card. I get to pay in installments and making interest keeping my own money with me and I get fly points...It just seems too good to be true for the consumer - as long as I don't buy things I wasn't going to with cash anyways - hope this makes more sense where my thinking is at :)
No worries - cheers for response.
I guess what I was looking for with this post was to try and flip this a bit. Someone recently told me get a credit card, buy all your crap with it and before the interest falls due -- pay it off in full. Thus getting all the frequent flyer points = instant free flights etc and paying $0 extra for the item.
For someone like me, that means using the banks money to buy me something, meanwhile I earn interest on the money i would have spent and they give me free flights...it seems too good to be true - but apparently it works this way - you just have to get the bank to wave the annual credit card fee and the sign up fee and your gold - - which the banks have told me they will do.
So I'm scratching my chin, thinking how much further can I take this....thus exploring these things now.
Can you ask your friend how much more in interest she paid with Afterpay? because it seems there is no interest..or did I read it wrong? it's just a fee if you make a payment late.
Now to Splitit - on the surface I buy a sofa. Splitit loans me $1.5K and I gives me 2 years to pay it back. They check my credit limit on my card. They then use the banks money to secure the item (so my limit on the card goes down as if I have borrowed on the card) however I pay no interest what so ever - my monthly repayment just shows as a deposit and my credit limit goes up - the credit card doesn't see I have borrowed anything, but it recognises the purchase and gives my points - I get the points each time I make my regular lay buy like payment in...What is the catch???
I can't run out and buy more things if i borrow too much, as it's set to what ever the credit limit is on the card. I get to pay in installments and making interest keeping my own money with me and I get fly points...It just seems too good to be true for the consumer - as long as I don't buy things I wasn't going to with cash anyways - hope this makes more sense where my thinking is at :)
Cheers