Building up a credit balance on Platinum Charge

[Daddogguy]

Hi folks, just wondering if anyone has thoughts or experience doing the following ... this is a bit convoluted.

I like keeping as much cash as possible against home loan in an offset account.

From some research tonight, there are still dozens of low fee balance transfer cards out there, some offering up to 34 months which is ridiculous (this particular Bankwest card had a 2% balance transfer fee).

Hypothetically, would Amex object to receiving funds against the Plat charge card from balance transfers, and actually accumulating a positive/credit balance on the Platinum charge? I have a $150k+ planned expenditure coming up in the next 18 months which I want to run through the Amex Plat for points, but I'm particularly attracted to the idea of having my own cash work for me against the home loan and take advantage of virtually free cash from the BT cards, and pay these back as a trickle over time. The large expenditure is than my existing cash position so is > 100% covered.

Would potentially order the Plat Reserve card to keep using for day-to-day spending/points accum, and put the Amex Plat Charge on ice to build up the positive credit. I feel this would have to be done over time as attempting to go and sign-up for 10 different BT cards at the same time would be problematic I suspect.

Crazy? Too much hassle? Fraught with danger? Keen on your thought's friends.

I think is just a form cash-flow management whilst still being able to grab points. Albeit convoluted. Definitely convoluted.

 

[glasszon]

Don't do it. There's a very high chance Amex will close off all your accounts without warning.

Amex globally do not like people putting their Amex account into balance, and what you are proposing is exactly the type of things Amex hates. (Not the balance transfer part, but the putting Amex card into credit part.)

It might work for a bank issued credit card, but 99% chance Amex will notice it very quickly and will either ask for a bank account to deposit the credit balance (if you are lucky), or will outright close your account for putting your Amex card into credit, which is very likely with the amount that you are proposing to do.

 

[Daddogguy]

Hrm, maybe a more nuanced approach is needed then

 

[MEL_Traveller]

Don't do it. There's a very high chance Amex will close off all your accounts without warning.

Amex globally do not like people putting their Amex account into balance, and what you are proposing is exactly the type of things Amex hates. (Not the balance transfer part, but the putting Amex card into credit part.)

It might work for a bank issued credit card, but 99% chance Amex will notice it very quickly and will either ask for a bank account to deposit the credit balance (if you are lucky), or will outright close your account for putting your Amex card into credit, which is very likely with the amount that you are proposing to do.

This!

Even credit cards aren’t supposed to have positive balances, they are not savings accounts, and aren’t protected by deposit guarantees.

Debit cards in the other hand are fine.

 

[Daddogguy]

There’s also the Qantas Premium card which offers both 80k points bonus and balance transfer (this is like crack for me), but to get the bonus points you need to spend $3k/90 days, but there’s no interest free days if you’ve got a balance transfer amount. But if you put the card in credit by 3k to start with, no interest chargeable right?

 

[MEL_Traveller]

There’s also the Qantas Premium card which offers both 80k points bonus and balance transfer (this is like crack for me), but to get the bonus points you need to spend $3k/90 days, but there’s no interest free days if you’ve got a balance transfer amount. But if you put the card in credit by 3k to start with, no interest chargeable right?

You'd have to look and see how they apply any payments to your account. If you had a balance transfer but also a credit you might find that your balance transfer is wiped out and you would accrue interest or interest free days per normal

 

[dein_gesicht]

If you have a home then, then do the following:
1. Have a credit card with Bank A that has a zero balance
2. Apply for a new credit card with Bank B with BT
3. Tell Bank B to pay max into Bank A credit card
4. Go into branch Bank A and withdraw the funds (might need to do in cash)
5. Deposit cash into offset account

I used to have $200k limits on credit cards over 10 yrs ago, but positive credit reporting has made this more difficult

 

[Daddogguy]

If you have a home then, then do the following:
1. Have a credit card with Bank A that has a zero balance
2. Apply for a new credit card with Bank B with BT
3. Tell Bank B to pay max into Bank A credit card
4. Go into branch Bank A and withdraw the funds (might need to do in cash)
5. Deposit cash into offset account

I used to have $200k limits on credit cards over 10 yrs ago, but positive credit reporting has made this more difficult

Interesting approach. That could work I suppose. I can still use that cash then to pay off the charges on the Amex plat. And then gradually pay off the BT amounts over time.