Using Citi Payall to pay myself

pr0o on 15/09/2023 - 00:01

Hey guys,

So I want to purchase a place and would like to save up a big deposit to have lower monthly repayments.

I have Citi Simplicity Card, with $18.5k limit. I have a plan and I am not sure if it will work how I want it to work.

So the plan is;

  • Move $18.5k from my credit card using Citi Payall (0% on transfers) to my high interest saving account
  • Apply another credit card with 0% Balance Transfer for 28-32 months and pay it off slowly. For example, St Georges Credit Card and transfer my debt there for 0% for 32 months.

This will give me $18.5k for my home deposit now, and I can slowly pay this over 32 months period with 0% interest. This way, I can either use the capital for home deposit or even just keep it in the high interest saving account, earning me 5%.

What do you guys say? Would it work lol?

Financial

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Comments

  • Muzeeb on 15/09/2023 - 00:16
    +3

    $18.5k cc limit will severely disable your mortgage borrowing capacity.

    • Iwantthebestprice on 15/09/2023 - 00:28

      And not only an 18k credit limit, it will be 18k of debt! I think the bank won’t look too kindly on a maxed out credit card limit.

      Edit: saw a post from OP previously:

      “I have been approved for $330k loan with $30k deposit so I can afford $350k home. I don't like the apartments so I am only looking for house.”

      If OP can only get a $330K loan and wants to have 18K of debt that 330k “approved” loan will drop by a 3rd, or be flat out rejected.

      • jjjaar on 15/09/2023 - 08:32

        Exactly, the mortgage amount drops way more than the credit card limit.

        I just plugged some basic stuff into this borrowing power calculator (single, no dependents, 100k income, pre-filled av spendings of 2105/mo)…

        With no credit card, “You could borrow up to $565,310”
        With an 18.5k credit card, “You could borrow up to $483,960”

        So, OP, if your borrowing power is an important part of how you’re going to afford the property (which it sounds like it might be if you’re coming up with ways to get the deposit quicker), it’s best you check your numbers with a bit more detail.

  • randomusername2017 on 15/09/2023 - 09:28

    Planning on closing the citi card or carrying 40k+ ?

  • coffeeinmyveins on 16/09/2023 - 14:37

    Would it work lol

    Lol no lol

    If it was this simple everyone would be doing it mate. That's not how it works

    • blah314 on 18/09/2023 - 13:52

      I mean it would work if they’re willing to extend them that much credit. The more usual thing to do is to use the payall to stick cash in the offset most of the month, while also earning the points.

      • coffeeinmyveins on 19/09/2023 - 09:05

        OP wants to use this to pay a deposit for a home though, which won't work as others have said.

  • asc on 30/11/2023 - 16:29

    With the soon to be introduced account name matching, will paying yourself still work?

  • Homr on 21/12/2023 - 13:43

    My citipyall failed and I don't understand why so hopefully someone can help me out

    Got a text last Friday 15th saying payall will be processed on the 25th December so ensure theres sufficient funds in the account.

    I transferred all the funds required and it appeared on my account on 19th December. Got a text yesterday saying that it failed? WTF? First time it failed in 2yrs for me

    • JHoliday on 03/01/2024 - 21:06

      Same thing happened to my sister last month and just happened to me now. Saw they want like a $47.50 fee to set it up again

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