Wasp needs a credit card

[Wasp]

I ONLY need a credit card for buying things in places where im not, i.e. booking flights online, buying stuff from wreckers (hopefully not this one) and other stuff.

I currently bank with psis, they offer some sort of credit line solution but i dont think its suitable http://www.psis.co.nz/InternetBanking/nt/creditline.asp

This one looks like a good one to me http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Low+interest+MasterCard

Basically if you have any advice on how a credit card works, what not to do, what to do (i hear its good to get a credit rating by letting something earn interest?) etc etc.

Cheers,

[Squeak the Rat]

Shop around comparing fees and interest rates
Use the card only for transactions where it is needed
Do not carry with you in your wallet - too tempting
Pay off every month. Most cards are around 20% interest. If you cant afford something dont buy it.
Put your card in a container of water then put it in the freezer.
Don't use when drunk.
Do the math on rewards points. A lot of schemes require a base fee, worhtless if you don't use your card much.
If you are planning on staying in debt on the card there are low interest options.
Don't stay in debt on the card

[Str8 Jacket]

Waso, repeat after me. I do NOT need a Credit Card! Dont get caught in the trap if you know that you're likely to spend. If you can control your spending and not be tempted to spend up large then you might be alright.... Just be very careful, they can be a huuuge trap!

[Wasp]

its only for things like booking flights online and buying contact lenses (cheaper) from aus and hopefully not for buying parts from bike wreckers.

i will not be using this card very often. it will not replace my eftpos card.

[bungbung]

Go to NZ Post shop and pay $5 for a Prezzie card. It is effectively a pre-pay Visa. Have a look at http://www.nzpost.co.nz/Cultures/en-NZ/Personal/PrezzyCard/Howtouse.htm

[merv]

What every one else is saying - be careful, don't get into the trap of having outstanding balance because if you don't pay it off every month the interest mounts up.

Credit cards are very useful when you are overseas too if that's something you will do.

If you can afford a good life OK and go for one with rewards the annual fee is usually more, but if you can go for one of those then put all your spend on it to accumulate the points, but remembering point 1 you've got to be able to pay it every month. Airpoints are great if you want to fly anywhere, especially Air NZ these days with its simple Airpoints Dollars approach. If you aren't in Airpoints that will cost you a one off joining fee of $50 too.

Make your choice carefully and manage it well.

[Squeak the Rat]

Go to NZ Post shop and pay $5 for a Prezzie card. It is effectively a pre-pay Visa. Have a look at http://www.nzpost.co.nz/Cultures/en-NZ/Personal/PrezzyCard/Howtouse.htm

What a great solution! Wasp, seriously consider this.

It is faaaar to easy to think "I'll just put it on the credit card"......

[Wasp]

Im not so sure about using that pressie card on the air nz website to book a flight to new plymouth..... which is the main (more urgent) reason why i need a credit card.

but then again thats not a half bad idea...... if it will work

[Filterer]

I use mine for anything over $20.
Basically use it as a combined eftpos for me and the gf has a card for the account as well. You can't get combined accounts without fees like I would otherwise being a student.

I think the credit card for both of us and true rewards membership costs around $30 a year but would get back close to $100 bucks of rewards back that I get petrol vouchers for.

This means that I also have no transaction fees etc. On the downside you have to disciplined enough not to overspend.

[dnos]

i think (don't know) that if you don't pay it off on time then interest is charged all the way back to when you made the puchase. So you need to pay it off each month.

Anybody feel free to correct me if i am wrong.

[Str8 Jacket]

i think (don't know) that if you don't pay it off on time then interest is charged all the way back to when you made the puchase. So you need to pay it off each month.

Anybody feel free to correct me if i am wrong.

When I worked at the bank 4 years ago this was true. Also if you pay back the full amount you spend each month then you are not charged fees. But then my everday account at the the bank does not charge me for any electric transactions either. From what I remember if you have a credit balance they pay YOU interest. I may be wrong though....

[Squeak the Rat]

PS Wasp,

If you put something on the card today and pay it off before the due date on your next statement you do not get charged interest.

But the trap is that if you have ANY amount on the card from previous months not paid by the due date you will then pay interest on all purchases for that month.

eg,
Nov you buy a $3 bag of mixed lollies
Nov statement, you pay $2
Dec you buy a $1000 holiday
Dec statement you pay interest on $1001 (circa $20)

[Edit:] as they said above while i was typing my post......

[placidfemme]

Waso, repeat after me. I do NOT need a Credit Card! Dont get caught in the trap if you know that you're likely to spend. If you can control your spending and not be tempted to spend up large then you might be alright.... Just be very careful, they can be a huuuge trap!

Have to totally agree with Str8 Jacket on this one

[James Deuce]

Don't.

Don't get a credit card. Don't. You'll regret it for years. You'll buy $3000 worth of stuff and services and pay $12,000 for it.

Save the money up and use electronic transfers, bank drafts, and money orders. Use real money. If you borrow make sure the total finance cost is no more than 10-12%.

Credit Card companies lie by ommission and micro-dot sized fine print.

Don't do it.

Don't.

[Freakshow]

Wasp yes they are dangerous but also very handy little pieces of plastic!!

I have one of those global plus ones and buy every thing with it no matter how small. I have not paid interest on it in the last 12 months as I keep on top of it. Keep the max credit low like around $500. It works out cheaper than eftops as there are no transaction fees. Biggest bonus is airpoints these do add up as it got me a trip for me and my lady to Fiji last year.

[James Deuce]

PS Wasp,

If you put something on the card today and pay it off before the due date on your next statement you do not get charged interest.

But the trap is that if you have ANY amount on the card from previous months not paid by the due date you will then pay interest on all purchases for that month.

eg,
Nov you buy a $3 bag of mixed lollies
Nov statement, you pay $2
Dec you buy a $1000 holiday
Dec statement you pay interest on $1001 (circa $20)

[Edit:] as they said above while i was typing my post......

The interest will be around $200, not $20.

[James Deuce]

Wasp yes they are dangerous but also very handy little pieces of plastic!!

I have one of those global plus ones and buy every thing with it no matter how small. I have not paid interest on it in the last 12 months as I keep on top of it. Keep the max credit low like around $500. It works out cheaper than eftops as there are no transaction fees. Biggest bonus is airpoints these do add up as it got me a trip for me and my lady to Fiji last year.

I pay $5 a month for unlimited eftpos fees with ANZ. It is a lot cheaper than the yearly Credit Card fee and the interest you accrue if can't manage to fully pay it off.

To have a credit card you need to be a financial god who counts every cent and never commits to a purchase without the sure knowledge that it can be paid off. I can't do it. 90% of people I know can't do it. If you lose your job suddenly you will lose every major item you own fairly suddenly as well.

You can't get a credit card if you've ever made an impulse purchase.

Don't do it.

[Ixion]

I ONLY need a credit card for buying things in places where im not, i.e. booking flights online, buying stuff from wreckers (hopefully not this one) and other stuff.

I currently bank with psis, they offer some sort of credit line solution but i dont think its suitable http://www.psis.co.nz/InternetBanking/nt/creditline.asp

This one looks like a good one to me http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Low+interest+MasterCard

Basically if you have any advice on how a credit card works, what not to do, what to do (i hear its good to get a credit rating by letting something earn interest?) etc etc.

Cheers,

If you have a PSIS card, then the PSIS creditline facility will work for you. It costs $10 per month and gives you a preapproved credit line that you can draw against with you PSIS card. If you repay the credit by due date (up to 55 days ) you pay no interest .

You do have to apply for the line of credit.

Go have a talk with PSIS.

[Freakshow]

I pay $5 a month for unlimited eftpos fees with ANZ. It is a lot cheaper than the yearly Credit Card fee and the interest you accrue if can't manage to fully pay it off.

To have a credit card you need to be a financial god who counts every cent and never commits to a purchase without the sure knowledge that it can be paid off. I can't do it. 90% of people I know can't do it. If you lose your job suddenly you will lose every major item you own fairly suddenly as well.

You can't get a credit card if you've ever made an impulse purchase.

Don't do it.

$5X12 months = $60.. Last year My fees were $50 and $0 interest, and about $100 in airpoints...

Its all about self control, Everyone knows how much they earn and therefore how much they can spend.

My advice is if you bother to get a Credit card don't bother looking at the interest rates as that would mean you intend to use that facility, look for cheap fees, the longest interest free period and best point system. And dont go Amex. No where to use it.:yes:

[Ixion]

You do need to be disciplined. The banks make their money off people who aren't.

One way that works for many people , is to get a card with a low credit limit, that you think will be reasonably close to your monthly spend.

Then set up an automatic payment from your savings account, or wherever your wages/salary/benefit is lodged, of that amount. To come out the day after your money goes in.

Now, your credit card will "automatically" be paid each month. You can't overextend, because the limit is the same as the autopayment. And if one month you put less on the card than the auto payment, that acts like a sort of enforced saving, to allow a "treat" next month. And by scheduling the autopayment around your money being deposited it should go out before you have a chance to be tempted and spend it.

But beware of the banks, thay hate cards with low credit limits and will try to encourage you to increase it.

Caveat: There is one opportunity to overspend with this if your money is depsoited at the opposited end of the month to the credit card date. You need to try to get them in sync so the autopayment goes in when the credit card is near maxed out. Not at the beginning of the cycle, otherwise you could spend the payment and the credit limit as well.

[Sniper]

You dont need a credit card. You want it, but you dont need it

[James Deuce]

$5X12 months = $60.. Last year My fees were $50 and $0 interest, and about $100 in airpoints...

Its all about self control, Everyone knows how much they earn and therefore how much they can spend.

My advice is if you bother to get a Credit card don't bother looking at the interest rates as that would mean you intend to use that facility, look for cheap fees, the longest interest free period and best point system. And dont go Amex. No where to use it.:yes:

I can multiply Freakshow, that was unnecessary.

Airpoints are fundamentally worthless unless you actually have the capacity to travel. Airpoints are just another way of sucking you into making a large purchase on your credit card.

Do not get a credit card if you have ever made an impulse purchase.

[Squeak the Rat]

But beware of the banks, thay hate cards with low credit limits and will try to encourage you to increase it.
Most banks these days simply raise your limit and advise you. You then need the extra discipline of ringing the bank and telling them to lower it again.....

My limit's now something ridiculous like $12,000..... eeek

[James Deuce]

.

But beware of the banks, thay hate cards with low credit limits and will try to encourage you to increase it.



They will increase the limit after you "cancel" the card too. No credit card account is ever removed from a banking system. I have personal experience of a card being cancelled, the limit being increased to $16k from $1500 after it was canceled (and paid in full I might add) and then being held liable by the bank.

They will attempt to recover the money that builds up on the single dollar they leave in the account and destroy your credit rating making it impossible to get a mortgage or refinance.

A mildly competent lawyer will take them apart, but that cost $8k and took 2 years for the credit rating issue to go away.

Don't get a credit card.

[The_Dover]

Fuckin New Zealand banks need to get with the program and offer something like a Visa Delta card.

I have one on my UK account and it has all the joy and fun of a Visa card but is using funds from my current account, not credit.

Marvellous.

[James Deuce]

Had one of those when we were in the UK. Bloody brilliant, but the banks in the UK are way more cautious than NZ and good on them.

[ManDownUnder]

Gotta say I have the opposite opinion on Credit Cards.

Marvellous things. The bank gives me their money to use completely free AND they give me brownie point (aka Flybuys) for the prviledge.

The one rule... ALWAYS PAY IT OFF, IN FULL, EVERY MONTH, NO EXCEPTIONS!

If you can't obey the rule, don't get the card. Borrow money from a friend or parents etc... but not the bank.

[bungbung]

Fuckin New Zealand banks need to get with the program and offer something like a Visa Delta card.

I have one on my UK account and it has all the joy and fun of a Visa card but is using funds from my current account, not credit.

Marvellous.

Get a prezzie card!

It works like a prepay phone card. You load it with credit from your regular account, and then spend that money online as if it is a Visa.

No mess, no fuss.

[Squeak the Rat]

It works like a prepay phone card. You load it with credit from your regular account, and then spend that money online as if it is a Visa.

No mess, no fuss.

I think most people using their cards online are probably wanting to make a mess.....

[sunhuntin]

ive got one. i went with westpac [joint card, share with dad]
i got it when i went overseas at 19. im now 21, and continuing to pay it off. it is sitting at $900 right now, down from $5000 or so. im going to take money from my savings when the next bill comes in, and totally wipe it.
ill keep the card, as it has come in handy when my eftpos has declined, or for making purchases online. but i keep a tight restriction of what i use it for, and how much.
its not often used in town, as i generally make sure the eftpos account is well stocked. but sometimes i take more from that account for my savings than realised, and it has saved the day more than once.

i say get one, if you know you will keep on top of it each month. my parents have a handful each, and id hate to think what their balances are like!

[The_Dover]

Get a prezzie card!

It works like a prepay phone card. You load it with credit from your regular account, and then spend that money online as if it is a Visa.

No mess, no fuss.

those things are for poor people with a bad credit rating.

I'm poor with a good credit rating.

Plus you can only buy between 20 and 500 bucks. Those mail order bitches are more expensive than that and I got feeling that's what Wasp wants to order from russia (with love).

[James Deuce]

ive got one. i went with westpac [joint card, share with dad]

ill keep the card, as it has come in handy when my eftpos has declined, or for making purchases online. but i keep a tight restriction of what i use it for, and how much.


Stick it in a plastic container full of water and then stick it in the freezer. You have to REALLY need to use the card to chip it out of a bigblock of ice.

[judecatmad]

I ONLY need a credit card for buying things in places where im not, i.e. booking flights online, buying stuff from wreckers (hopefully not this one) and other stuff.

I currently bank with psis, they offer some sort of credit line solution but i dont think its suitable http://www.psis.co.nz/InternetBanking/nt/creditline.asp

This one looks like a good one to me http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Low+interest+MasterCard

Basically if you have any advice on how a credit card works, what not to do, what to do (i hear its good to get a credit rating by letting something earn interest?) etc etc.

Cheers,

Post Shop have a cool thing going at the mo (not sure if it's just an Xmas promo tho) - it's a card which is accepted wherever Visa is accepted, but you load it up with funds before you spend on it. You might want to check that out - less hassle than a credit card application where you have to provide a million and one bits of evidence to support your application!

Sounds pretty good to me especially since it's a debit card not a credit card. And no annual fees!

If you're not going to pay your balance off each month (BAD, BAD, BAD!!!) then go for a low interest rate card (Westpac/ANZ/BNZ/ASB/Bank Direct all have low interest rate cards). If you are ALWAYS going to pay off your bill then I'd say go for the one with the lowest annual fees or the best rewards points scheme. Also, keep your credit limit low if you're an impulse spender - don't let the provider keep putting up your limit. And if you ARE an impulse spender, leave the card at home! If you see something you'd like, by the time you go home to get the card you'll have had time to think about whether you REALLY need to buy the thing or not.

I wish bank cards over here would work the way they do back home - I used to have a cashpoint card which was also a cheque guarantee card (redundant over here, I know) and was also able to be used for Visa purchases so long as there was enough money in my bank account to cover the purchase. Made life really easy :)

[Dilligaf]

Yeah I'm with MDU. I now get free stuff for spending things that I would have anyway. All my bills get paid directly so I have a once a month bill - AMEX and money is sitting in my account to pay it on the due date. So all my groceries, fuel, bills which I would have been paying cash for, now earn me reward points - money for nothing peope :rockon:
But as everyone else has said, you need to be disciplined enough to pay it off every month - amex you have to anyway...

[MrMelon]

Credit cards are sweet. I've got one thru asb and they've set it up so the full balance is automatically paid off each month. I don't think I've ever paid any interest on it in the 5 years I've had it. Just use it like you'd normally use an eftpos card and don't buy shit you wouldn't otherwise be able to afford. Easy.

You get reward points on it too which can be pretty handy. I usually get a couple of hundy worth of fuel vouchers out of it a year for just using it.

[Freakshow]

Stick it in a plastic container full of water and then stick it in the freezer. You have to REALLY need to use the card to chip it out of a bigblock of ice.

Now that is a clever Idea..

make sure you wrap it and don't memorise the number as online no matter where it is the number and exp date will still work.

[crazybigal]

be careful with westpac! my mrs works for westpac, their fees are the worst and they are a crap outfit!


I ONLY need a credit card for buying things in places where im not, i.e. booking flights online, buying stuff from wreckers (hopefully not this one) and other stuff.

I currently bank with psis, they offer some sort of credit line solution but i dont think its suitable http://www.psis.co.nz/InternetBanking/nt/creditline.asp

This one looks like a good one to me http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Low+interest+MasterCard

Basically if you have any advice on how a credit card works, what not to do, what to do (i hear its good to get a credit rating by letting something earn interest?) etc etc.

Cheers,

[Hoon]

Yep I use my VISA for everything. The only time I use EFTPOS is at places that don't accept credit cards like McDonalds. This saved me $20 a month on EFTPOS fees (and $40/yr worth of reward vouchers) but like others say you have to pay it off every month which I just transfer out of my EFTPOS account as one transaction.

Get a credit card, its so simple these days that banks are practically giving them away.

Just remember to pay it off every month. If you don't you'll fall into the debt trap and when you finally claw your way out you'll be all the wiser.

[bane]

To be honest, its difficult to live without a credit card.
Try booking accomodation/travel/rental cars without one... it can be done, but generally not without inconvenience.

Credit cards allow you to live on the banks money, whilst your own earns interest in the bank - fantastic!

1. pay it off in full in time - I have an automatic payment from a savings account that does this for me - never have to worry when its due etc.

2. dont get sucked in by reward points - go for the card with the lowest annual fee - dont have to care about interest rate as you will always pay it off on time.

3. If you cant trust yourself, request a low limit (~$1000), and cut up any correspondence from the bank asking to increase it.

Personally my limit started at $2k and after 5 years its up to $15k - ive gleefully accepted every credit rise offered

Ive never got into trouble as I dont buy it on the card unless I have the cash in the bank. Then I get the bank to buy the item while I enjoy interest on my own money for 30-50 days.

[rwh]

The interest [on $1001 for one month] will be around $200, not $20.

How does that work? Last I heard, cc interest rates were in the ballpark of 20% per annum, not 20% per month ...

Richard (avoiding doing any visible multiplication)

[rwh]

I can multiply Freakshow, that was unnecessary.

It was kind of useful for the rest of us to see where the $60 figure came from, though.

Richard

[The_Dover]

I thought you were a geek Wasp?

If you were real smart you'd wait until after a beer or two on one of the big wellywood rides. locate one of the rich cunts (they ride poofy italian bikes and drink pissy european beer). sneak a credit card out of one of their wallets (gold good, platinum better, black your on a winner) clone the bastard. have fun. rich people wont even notice unless you're really dumb and overspend at the whorehouse

[crashe]

Wasp - Do NOT get a credit card........

You do NOT need one.

You will be forever in DEBT to a bank

Save your moneyy and buy whatever you need by using CASH.

Again I stress to you.....
DO NOT GET A CREDIT CARD.

[The_Dover]

yeah wasp, just send cash over the internet dude.

[Pathos]

I've got a credit card only for internet/phone transactions.

I just buy something then top the card back up with internet banking on the same day. I don't think visa has made a cent out of me yet.

often I purchase things on behalf of my brothers if they've got the cash.

credit cards are only dangerous in the hands of idiots who don't appreciate the consequences if they are misused. Same goes for finance companies.

[Wasp]

im thinking that prepay visa that steam suggested (cheers dude) is the way to go to book my flight to new plymouth.

im a lazy cunt and hate filling out forms so applying for a credit card is definately out.

if i do get one i would only use it for things i need (like when i borrowed my brother's to buy a new rear set from a wrecker in aus) and would probably deposit cash into the account when i purchase something. all my everyday transactions would be by eftpos as i dont pay any fees.

[The_Dover]

all my everyday transactions would be by eftpos as i dont pay any fees.

dirty, unwashed student.

[Wasp]

not a friggin student, i work full time 40 hour weeks at proper pay

[magicfairy]

One thing to be aware of with a Credit Card. When applying for a loan from the bank -.e.g mortgage, personal then even if you dont owe anything on the credit cards you own, they will ask the maximum limit on your credit card and regard it as a money you owe under liabilities. The reasoning is "you could go into debt by that much so we have to take that into account"
Even if you always pay it off every month.

So it will affect your "balance sheet"

So keep the max as low as you can.

[Flyingpony]

One problem with a $500 credit limit, is that what you spent last month will still be sitting there this month until it's paid off. So if you spent $300 last month, then this month you can only spend $200. Therefore workout what you'll spend over two months, add a safety margin and that limit should put you sweet. Setup a direct debit system where by the credit card full due balance will automatically deducted from your cheque account - that way you never miss a payment and have one month to sort out your credit card budget blow out.

Like others have said, ignore interest rates since you should always pay the required balance off monthly. Look at membership fees and reward system options - this may also have a membership fee. Find a reward system that can pay you in cold hard cash so it's useful, not flybuys or airpoints. Some do AA points.

With the right management, you can actually make a profit off your credit card :yes: Not much but a $1 is a $1.

Don't do Amex or American Express, nobody accepts it. Stick to MasterCard or Visa.

One VERY good habit then would be to replace your eftpos card with your credit card and only use your eftpos card where credit card isn't accepted. That way you won't double spend your money.

[James Deuce]

How does that work? Last I heard, cc interest rates were in the ballpark of 20% per annum, not 20% per month ...

Richard (avoiding doing any visible multiplication)

Yeah, they say per anum. In retrospect the actual finance cost has never looked anything like that. More like 20% per month.

[SuperDave]

If you only require it for the convenience of shopping online then you'll be planning on paying the balance back in FULL each month before the due date. If you can do this then it'll only cost you a card/insurance fee which IIRC is 6 monthly and like $10 or something. If you're planning on paying it back in full each time then the interest rate doens't matter.

[Shadows]

I'm totally with Jim2 on this, don't do it.

I've never had a credit card, although I have been tempted for the same reasons as you. I've managed to resist the temptation for this long.

I'm totally with Jim2 on this, don't do it.

Cheques are useful for buying shit by mail and there's always direct deposit via that interweb thingy.

I'm totally with Jim2 on this, don't do it.

There's always another way, and because everybody else is after your money, they'd be disadvantaging themselves if they made it too hard for you to give it to them.

I'm totally with Jim2 on this, don't do it.