Hi,
Just want to find out the best way for my wedding reception payment.
The reception will cost around $20000. If I pay with credit card they will charge 1% credit card fee. I am not sure if I should open a credit card to earn point…. will the points worth more than $200? (1%).
I am pulling the $20000 from my home loan off set account, home loan is 4.38%
Have not choose the credit card yet & is open to all suggestion~
why not pay direct deposit?
No reason, OP listed cash or credit as options (and bank cheque are usually accepted as cash) so wasn't sure if DD was an option.
If it is, and OP's bank allows a 20k DD transfer, then that would be another (probably free) option.
My bank has a daily limit of 20k, but if not then 2x10k payments should work.
You can always pay off the credit card straight away, but also can you get a $20000 limit?
Far more importantly is having proof of payment for such a large amount. I strongly suggest paying via direct deposit and not cash.
i'd personally apply for one of these cards or similar.
http://www.citibank.com.au/aus/credit_cards/cards_classic.ht…
0% balance chq to self and no annual fee for 12 months including rewards points.
You just need to ensure to pay the minimum amount at the end of every month.
Do they take AMEX?
Even if they did, here's how it would work out for you:
CBA card with bonus 40,000 QFF points earning 1.25 QFF points per dollar spent = 25,250 QFF points for your wedding cost with approximate value of $168 so you would still be paying an extra $32.
You can get the 40,000 bonus points (worth about $267) without using the card to pay for the wedding.
Alternatively, with the NAB card with 60,000 velocity points for $150 annual fee earning 1.5 velocity points = 30,300 points worth about $167.
On top of this is $180 of bonus points (after subtracting the $150 fee). But once again, you can still get these deals without using a credit card to pay for your wedding.
If you went for the VISA Citibank deal dasher86 linked to above, it appears you would get $223 worth of bonus points and rewards.
Personally I would take the CBA deal with about $267 of FREE points (for spending $500) but still pay with cash for the wedding to save $200 on their fee. You'll be $467 better off in the long run.
How are you working out the value of the points?
Based on the value when redeeming for gift cards. I know you can use them for business class upgrades but seriously I would rather pay $35 for a tiger flight and save my points (and money) for gift cards.
Just put it on credit - youll be paying for the rest of your life anyway
If you do intend to go for a honeymoon trip and/or save up for a special trip taking that once in a lifetime long haul Business/First Class flight, then using the Credit card is worth it.. Especially if able to use a 1.5 pts per $ spend Amex credit card. The NAB Velocity card or CBA QFF credit card promo now is pretty decent too.
Do they take split payments? If you break it up into 205 individual transactions, of $98.55, and pay with ING paywave, you make $200 profit!
Or use Bankwest Qantas Debit card to make 20,000 transactions and get 100,000 QFF points. Or 2,000,000 x 0.01 transactions = 10,000,000 QFF points. Jokes :P
Coles mastercard zero, currently has no annual fee and 15 months interest free. But you will need to be disciplined to pay off when zero interest period ends. And also depends on getting the credit limit you need. You could then put the money into your loan offset account to earn tax free interest. But you need to "very" disciplined to not overspend. Do you trust yourself?
Bank cheque is probably the way to go - depending on your bank it can be anywhere from free to a small fee. Definitely less than $200. And much easier (and safer) than carrying around $20k in cash.
This website shows you the value of various reward points: http://www.creditcardfinder.com.au/reward-program-point-curr…
Of course you then have to factor in any startup and annual fees for the credit card. If you're just planning on using it for this one big transaction, it's not worth it. I'd go with a bank cheque if I were you. And obviously pay it as late as you can (preferably in installments) as the money is best kept in your offset account for as long as possible!