I got another credit card

Now before you smack me upside the head ūüôā I will first admit that the bank got me when I was pre-occupied and tired. They rang me while I was doing an assignment and for some reason I let the customer service staff member rattle on even though I don’t like or agree with phone-based marketing, even from my own bank!

But after listening for a while (always a mistake!), the card sounded quite good. Not the interest rate, mind you … thats about 20%! But this card is linked to a rewards program voted Australia’s best in Money magazine. And it has quite a few features that I think could fit in quite well with our family.

This is how it works:

  • up to 45 days¬†interest free (if a purchase is made at the start of the monthly cycle), then 19.9 per cent¬†pa
  • two cards linked in one account – one is Amex, and you get double points for every dollar spent using that card
  • points do not expire and can be used with any Australian Frequent Flyer or other rewards program
  • you can link your savings account to the card and use it to withdraw your own funds instead of using the¬†credit
  • There was a balance transfer offer but I don’t remember it because it didn’t count in my decision-making (I don’t have a balance to transfer).

There’s a $100 yearly fee, but you can use your points to pay for the fee, so¬†I will be able to use some of the¬†5000 bonus points I receive for joining to¬†avoid that charge .

I see this as a chance to explore how I can make credit cards work for me now that¬†I have spent 5 months maintaining a nil balance. My usual CC is a basic one – no rewards programs, just a low interest rate.¬† Anything I buy¬†with it gets repaid online the same day. I don’t¬†buy¬†ANYTHING I don’t already have the money to pay for.

Perhaps this¬†card would be good¬†to use when¬†I’m buying large purchases I¬†can pay off immediately in exactly this way. It¬†will be a little experiment to see if¬†rewards programs are as worthwhile as¬†everybody tells me they are.¬† I¬†can only see them being¬†worthwhile if their use doesn’t cost me anything. We shall see, and if this experiment fails I have no qualms about binning the card and cancelling the credit line.

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