$0 fee credit card

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Jul 12th 2010, 5:07 am

#16

bcworld

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Joined: Jun 2007

Location: Melbourne

Posts: 10,994

Re: $0 fee credit card

Quote:

Originally Posted by iamthecreaturefromuranus

Hang on a min... you are always telling us how little you shop for at Woolies and Coles and now you're telling us you spent $28,000 in Woolies last year.

It's not just for spend at Woolies.

Jul 12th 2010, 5:31 am

#17

iamthecreaturefromuranus

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Joined: Jul 2006

Posts: 14,188

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Re: $0 fee credit card

Quote:

Originally Posted by bcworld

It's not just for spend at Woolies.

Gotcha... thought it was a Store card type thingy.

Jul 12th 2010, 6:09 am

#18

mpgrewal

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Thread Starter

Joined: Mar 2009

Location: SE suburbs,Vic

Posts: 828

Re: $0 fee credit card

Quote:

Originally Posted by DownUnderPaddy

You may have misread the product specs there MP. It's a MIN LIMIT of 1k, not <1k as you have written.

Does it means that if I purchase <1k and pay within 30 days, I won't be charged anything. But if I purchase for 1k+x, they will charge me interest on x. Financial terms are generally dubious for me

Jul 12th 2010, 6:19 am

#19

ColonialCousin

Forum Regular

Joined: May 2009

Posts: 162

Re: $0 fee credit card

Quote:

Originally Posted by mpgrewal

Sorry for confusion, I meant to say to build credit history after purchasing credit card. That credit history which can be used to take big loans for car and house.

Pity that banks here don't care as much about your bank balance as about your credit history while giving you a loan

Taking a credit card has become 'unwanted necessity' for me.

Unfortunately, there is no concept of building up your credit history in Australia. Here, you either have no credit history, or bad credit history. Initial applications for credit can get declined if you have no previous credit applications (sounds stupid, I know) but once your credit file is there, you shouldn't have any problems obtaining credit unless there is a default listed on the file, or if the file shows a lot of credit applications within a short period of time.

Credit Reporting Agencies in Australia do not record the positives (i.e timely repayments etc) which might be used to generate a "score" for the applicant.

Jul 12th 2010, 8:14 am

#20

DownUnderPaddy

Melbourne - NE suburbs

Joined: Jun 2008

Posts: 1,032

DownUnderPaddy has a reputation beyond repute

Re: $0 fee credit card

Quote:

Originally Posted by mpgrewal

Does it means that if I purchase <1k and pay within 30 days, I won't be charged anything. But if I purchase for 1k+x, they will charge me interest on x. Financial terms are generally dubious for me

You are just overanalysing.
The product offering is extremely clear.
You cannot get this card with a lower credit limit than 1,000.
Simple as that.

Your upper limit gets increased automatically over time by the bank unless you specifically tell them not to. Customers who fully clear their balance at the end of each 30 day period are bad value for the banks as they make no money out of them.

Jul 12th 2010, 8:21 am

#21

ABCDiamond

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Posts: n/a

Re: $0 fee credit card

Quote:

Originally Posted by iamthecreaturefromuranus

Hang on a min... you are always telling us how little you shop for at Woolies and Coles and now you're telling us you spent $28,000 in Woolies last year.

You don't have to use it only in Woolworths.

Just made me look up how much I did spend at Woolworths. Ave $48 pw

Jul 12th 2010, 8:26 am

#22

iamthecreaturefromuranus

Account Closed

Joined: Jul 2006

Posts: 14,188

Re: $0 fee credit card

Quote:

Originally Posted by ABCDiamond

You don't have to use it only in Woolworths.

Yes, we already established that.

I thought it was more of a store card than a general credit card.

Jul 12th 2010, 8:51 am

#23

ABCDiamond

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Posts: n/a

Re: $0 fee credit card

Quote:

Originally Posted by DownUnderPaddy

Customers who fully clear their balance at the end of each 30 day period are bad value for the banks as they make no money out of them.

I disagree with that. They get paid by the shops, at whatever % they sign up to.
I used to pay 3% to our merchant supplier, so for every $100 sale, we got $97 from the card company, and they kept $3. ie: 3% for one months credit supply to their card holder. If they can keep that going, that's quite a return, especially as the card company/bank didn't pay us immediately anyway.