Personal Loan Churning

[Scr77]

I’ve noticed some decent points offers for personal loans recently and was wondering if people were churning these?

Earn Qantas Points on a NAB Personal Loan

Learn how you can earn between 10,000 and 110,000 Qantas Points on a new online NAB Personal Loan.

www.nab.com.au

110k QF points for a $55k personal loan with no early exit fees. It has a $150 application fee and $10/monthly fee (Plus interest obviously). I don’t need the funds, in fact was concerned I may get declined because of not being able to show a need for the funds. Looks like it could be churned in 3 months so the earn rate is reasonable for cost, but it’s all about how hard these thing are to apply for.

Anyone experiences on churning personal loans?

 

[Dr Ralph]

I got the same email and am running the numbers to see if it's viable.

UPDATE: Around $170 in fees (plus some interest) for the $55,000 loan (assuming it takes the 8 weeks to payout it states). This would net 110,000 points.

On this basis the fee is comprable to a credit card.

The advantage is I think it would be easier to get a personal loan (especially if you specificed the full 7 year repayments).

I'm headed overseas soon, but I think I'll apply when I return.

 

[Scarlett]

I don’t need the funds, in fact was concerned I may get declined because of not being able to show a need for the funds.

Anyone experiences on churning personal loans?

Can you not specify land improvement, rtw holiday, or some other such vague ‘need’?

Investing in ‘dogecoin’… it’s a sure thing!

 

[Dr Ralph]

Can you not specify land improvement, rtw holiday, or some other such vague ‘need’?

Investing in ‘dogecoin’… it’s a sure thing!

The purpose is irrelevent as the loan is unsecured. You may as well say 'holiday'!

 

[Bolt]

@Dr Ralph you mentioned that you'd apply for this loan. How did it go?

I note that there is no penalty for early payment, or exit. So, I don't see why you couldn't just pay it all but 8 weeks of the loan out on the first day? Even leaving an extra buffer of 2 weeks payment to be safe. I couldn't see 10 weeks out of 364 being very much to pay interest on at all.

Below the application form shows that a weekly payment on $55000 over 7 years would be $229.61, so you would just need to leave $2296.10 balance on day 1, setup autopayment, and wait for the points to roll in.

With a $150 setup fee, and $10 a month for 3 months, and the interest on $2296.10 would be roughly $72 at 12.69% P.A, not accounting for ammortization. An estimated total of $252 for QFP110K.



It's looking good to me.

 

[Dr Ralph]

@Dr Ralph you mentioned that you'd apply for this loan. How did it go?

I note that there is no penalty for early payment, or exit. So, I don't see why you couldn't just pay it all but 8 weeks of the loan out on the first day? Even leaving an extra buffer of 2 weeks payment to be safe. I couldn't see 10 weeks out of 364 being very much to pay interest on at all.

Below the application form shows that a weekly payment on $55000 over 7 years would be $229.61, so you would just need to leave $2296.10 balance on day 1, setup autopayment, and wait for the points to roll in.

With a $150 setup fee, and $10 a month for 3 months, and the interest on $2296.10 would be roughly $72 at 12.69% P.A, not accounting for ammortization. An estimated total of $252 for QFP110K.

View attachment 308558

It's looking good to me.

Actually, I forgot all about it!

 

[Bolt]

I just applied today, having just opened a NAB credit card 1 month prior. Rejected instantly. No reason given. The world of personal finance is a mysterious one.

 

[yellow22]

Sounds like a lot of effort. I suspect a bunch of personal loans probably wouldnt look good on your credit file as well.