Email received that if you take out a cash withdrawal via your Coles MasterCard credit card you can have this for 0% paid over 12 months, after 16 weeks if loan still active and still a good customer 25,000 fly buys will be credited to your account. There is a one off 1.99% set up fee. If ya want cheap money and $125 fly buys this might be a great deal.
You must not have previously taken up a Cash Instalment Plan with your Coles Mastercard.
Oh sorry, yeah did not see that .99% for 6months also available…
So it's not interest free then, it's 0.99% or 1.99%
It’s a one-off fee of 0.99%/1.99% of the total loan value. No ongoing interest.
Then it's just a regular loan with interest paid up front disguised as a "fee"
Ok
But it is ongping interest after 12 months isnt it so that statement is incorrect
No, the plan has to be paid off after 6/12 months. The loan can't be extended past 6/12 months, unless you feel like going into default.
The loan itself is interest free.
It's not interest free, it's just disguised as a "fee" instead. What would be the difference between this and another product that was a 12 month loan with 1.99% interest?
At the end of the 12 months you are paying the same amount.
Depends if the loan is fixed or compound interest.
Keep in mind it's part of your credit limit meaning if you have 5k limit for example you will have an effective 2.5k limit after, slowly growing back with each month.
I took up the offer, was probably too much hassle for the benefit (points + loan offset) for me but if you need the money, I guess it's a cheap loan.
Does anyone actually offer a $5/10k personal loan for 2%?
What stopping you putting the $10k in a 5.5% saving account for the year?
May as well put it on your mortgage etc.
This is an installment plan meaning you pay it out over the period in monthly installments, so you won't get the full benefit
The best way to benefit is to take out an amount you’d be saving anyway, e.g if you’re adding an extra $500 a month to your offset, you’re better off taking a $2500 loan and repaying it over 6 months at $416 a month and letting the $2500 sit in the offset over that period.
My card limit is only $500
So the answer to price gouging is lend the suckers more money?
This offer has been around for a good while, but yes, this has always been the answer 🙃
Targeted
Thanks
There are credit cards with 24 months interest free and $0 set up fees.
Also no monthly/yearly fee for the first year and then it's like $59 per year.
I got this last year with ANZ.
Coles deal seem way worse to me
This one charges a small up front fee, you get $125 Flybuy points and you can bank the cash with ING, etc. Free money but not a lot.
Wait sorry, i may have misunderstood something, did you say free money?
Yep, if you class 25000 flybuys points as money and bank the instalment to earn up to 5.5% pa interest for the cost of a 0.99 or 1.99% up front fee.
Are these credit cards interest free for cash advances?
I just signed up to this coles credit card hoping to do a cash instalment plan at 1.99% but they say i can't do it. I have to wait until its offered to me which could take months….now i have a large credit card that i don't want
Unsure what cash advances are
For those interested in the math for use with interest, I did it for you. (Correct me if I'm wrong)
Borrowed Amount: $2500
Savings/Offset Interest rate: 5.5%
Flybuys fixed benefit: $125
12 Month Instalment
Fee: $49.75
Earned Interest over 12 months: $74.48
Total Profit: $149.73
6 Month Instalment
Fee: $24.75
Earned Interest over 6 months: $40.10
Total Profit: $140.73
6 Month Instalment with 4 month early exit
Fee: $24.75
Earned Interest over 4 months: $34.38
Total Profit: $134.63
Profit is less if you factor in tax from a savings account.
0.99% for a 6-month term or 1.99% for a 12-month term.