What Credit Cards Are People Using with Their Offset Accounts?

Lguitargeek89 on 18/02/2020 - 11:03

Hi ozbarginers,
What credit cards do you guys use / recommend? I'm sure some of you are in similar situations as me. There's a lot of hype around different cards and it's become quite confusing to find which is best.

I've recently set up a home loan with an offset account, and intend to spend on a credit card and pay it off once a month / during the interest free period.

I'm trying to find a card to get the best returns on points & features.
We will require 2 cards, and I'm estimating we'll spend around 2k per month.

Interesting feature ive seen is price protection, I'd like that.

We generally fly with virgin so points wise I think that would be good.

I have bp and caltex fuel cards, but I don't think can earn points on either as I'm not the account holder, but I think I used to be able to earn velocity points on the bp one. (work)

Any recommendations? Thanks a heap guys!

Financial Credit Card

Comments

  • mortgagebroker on 18/02/2020 - 11:20
    +1

    If you are paying a package fee look at the credit card your lender is offering, assuming the package fee includes the credit card annual fee.

    More often than not you'll be better off than paying another $200+ annual fee for the credit card

    • unco on 18/02/2020 - 11:24
      +3

      This. I have took up the highest points earning card with annual fee waived due to having the mortgage offset package with them.

      Your lender would probably offer the same.

      • guitargeek89 on 18/02/2020 - 11:43

        Thanks, I'll look into that.
        FYI my finance is with NAB.

  • spiff on 18/02/2020 - 11:32

    Credit card has nothing to do with offset account so not sure why they're in the same sentence/question.

    Search the "credit card" tag on OzBargain to see the best deals but these are geared towards churners. If that's not your goal then just pick an Amex and also a Visa/Mastercard that will both earn Velocity points. For Amex, they have a range of good options that have a decent Velocity earnings rate. Pick your poison based on your tolerance to annual fees. If you will use a domestic flight each year, get the ANZ Travel Adventures card. This card is also good to take travelling since there's no FX fees and has a decent points earning rate. If you won't use a domestic flight each year then I would get any free card, like one that could be bundled with your mortgage with reward points that could transfer to Velocity.

    That being said, Velocity points are harder to earn and redemptions are increasingly expensive, especially if your points are only going to be accumulated through spend (not churning). If you want to redeem points on flights I'd consider focussing on collecting QFF instead.

    There's no price protection policy worth consideration imo as the Latitude price protection policies were grandfathered only for existing cardholders at the time the policy was ceased (for 28 Degrees and Coles).

    • bobwokeup on 18/02/2020 - 13:47
      +2

      What OP is saying he'll put all his money into the Offset account and use that money to pay off his credit card every month. OP will also put all expenses on his credit card to maximise the points. This is what I have been doing for years.

      • spiff on 18/02/2020 - 13:51
        +1

        Right, it was that basic. Gotcha

  • Skramit on 18/02/2020 - 11:57

    Credit card has nothing to do with offset account so not sure why they're in the same sentence/question.

    That was my reaction too.

    OP just get the best card that suits your needs.

    • guitargeek89 on 18/02/2020 - 12:29
      +1

      I thought it might be relevant to include my purpose for getting a credit card, some may have said they are doing a balance transfer, planning to travel, rainy day fund.
      I hadn't considered getting a card with my lender, but others have suggested that if I do, I might be able to get a yearly fee waived. So I am glad that I mentioned it.

      • Skramit on 18/02/2020 - 12:32
        +1

        Fair enough. It does help maximise use of the offset account. it's how my home loan is structured too, by maximising funds in there til end of the month payment on the credit card. But you can honestly just get any old credit card.

        Getting one with your existing lender means easier transferring of funds to pay off the card as well.

  • picklewizard on 18/02/2020 - 12:01
    -1

    Offset accounts are designed to make it incredibly easy to redraw on your mortgage which is exactly what your bank wants you to do.

    If you can make it work for you then more power to you, but be aware that the house always wins!

  • fantacular on 18/02/2020 - 12:51

    if you can get low (under $100) or no annual fee cards with signup points and a good point earn then keep on churning your cards every 11mo and do that. otherwise use the card included in your package.

    you can't earn points with a fuel card.

  • [Deactivated] on 18/02/2020 - 13:05
    +1

    I would recommend not using a credit card.

    Everyone claims they are on top of it and game them for points, but the majority are not.

    • Skramit on 18/02/2020 - 13:08
      +5

      I would recommend not using a credit card.

      Only if you can't manage your finances/spending. Many of us can quite happily.

      • [Deactivated] on 18/02/2020 - 13:12
        +1

        Everyone says that. Very few people claim to be bad gamblers etc too.

        Not doubting that you personally can, but it is a fact that most cannot. Or credit cards wouldn't exist.

        The benefits of points are miniscule not really significant anyway. Not being permanently in debt seems a better option. Financially responsible adults shouldn't really need one anyway.

        • Skramit on 18/02/2020 - 13:21
          +2

          I agree with you, there are lots of people who fail at basic life skills such as managing credit cards.

          I would recommend not using a credit card.

          I guess I find this blanket advice a bit unfair if you don't at least ask the OP if they are good at managing spending/finances etc.

  • ShortyX on 18/02/2020 - 14:49

    Coles Credit Card works for us

    • soan papdi on 20/02/2020 - 16:22

      Agreed. Coles MC is good but their apps are pretty terrible. They don't have Google Pay yet (only Apple and Samsung) and the website is not great either. But points wise it's one of the best deals out there

  • Chaddycop on 19/02/2020 - 14:49

    I've used both Bankwest platinum and 28 degrees which are good for overseas purchases and travel without fees

  • Baysew on 19/02/2020 - 15:47
    +1

    It is a good idea to use your credit card to maximise the balance held in your offset account.

    I would also suggest getting twp separate accounts, one for you one for partner. Ask the issuer to change the cycle date, so that they cards are 15 days apart. Use the appropriate card to maximise the interest free period.

  • daft009 on 23/02/2020 - 15:22

    for a measly $2k/month just get the best "free" one with the mortgage/wealth package.
    or get one which can be "fee free" like the anz travel adventures with its free annual flight and decent earn on $2k/month

    at $2k a month the points earnt will not amount to much.
    yes you will be saving something by keeping the $ longer in your offset account

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