Targeted 3.99% offer

[pauly7]

Hey all,

Just got a targeted offer via snail mail from Amex, reducing my interest rate on purchases to 3.99% for 12 months.

Better than a personal loan! Anyone else get this offer?

 

[oz_mark]

Hey all,

Just got a targeted offer via snail mail from Amex, reducing my interest rate on purchases to 3.99% for 12 months.

Better than a personal loan! Anyone else get this offer?

Yep - got it about a month ago.

 

[diesmile]

i got a mail a few months ago, was for 0% interest rate for half a year for transfers, then a few months later, got another one says 3.9% interest rate for 1 year, but they are no use to me, cos my limit was rather low.

 

[deft]

Would the plan below work?

Use 100% of my monthly salary to pay the house mortgage for the next 12 month.

Use my AMEX (as much as possible anyway) for everything. Pay the minimum balance each month. Before the 12 months is up, pay off the entire balance (assuming I can redraw from the home loan for no cost)

 

[pauly7]

Would the plan below work?

Use 100% of my monthly salary to pay the house mortgage for the next 12 month.

Use my AMEX (as much as possible anyway) for everything. Pay the minimum balance each month. Before the 12 months is up, pay off the entire balance (assuming I can redraw from the home loan for no cost)

I think so.... Makes sense in theory!! Provided you had a decent cc limit too.

 

[hummel]

Can you tell us what cards you have? Perhaps they are trying to increase spending on those cards?

Certainly a different offer.

 

[ColinP]

I got the 3.99% offer last week but only for 6 months

At the same time I also got an offer to increase my credit limit by 50%. Could this be an attempt to encourage me to have a balance after 6 months that I can't afford to pay off in full? I have some bad news for them if that's the case

In response to #6 My card is a Qantas Amex Premium card.

 

[mini2]

Yep I've received an e-mail about this - 3.99% for 12 months with my Plat Reserve (that's the freebie with the Plat Charge).

I think I gonna be making the most out of this, new toy here we come

 

[StevePER]

I got this several months ago and signed up for it - doubt I'll make use of it but who knows what the next 12 months will bring?

 

[kamchatsky]

I also got the similar offer from Amex. I registered it but I don't intend to use it.


What happens is that unless you are very disclipined and not forgettful to pay, you end up paying a lot more interest than 3.99% if not pay by end of 6th or 12th month. To me it is not really worth it.


To me it is similar to those 36 month interest free offer from Harvey Norman for people to buy furnitures.


Amex is offering this probably people are now spending less.

 

[mini2]

What happens is that unless you are very disclipined and not forgettful to pay, you end up paying a lot more interest than 3.99% if not pay by end of 6th or 12th month. To me it is not really worth it.

Yep, discipline. I suppose as soon as you get the statement from Amex, goto your bank account and schedule the BPay payment then this may overcome this issue?

 

[rechoboam]

Yeah. Miss one payment and 20something% interest quickly makes up for the difference between 4 pc and 7 pc for a few months. You might make a few hundred bucks though.

 

[Chatterbocks]

look up 'credit card arbitrage' - i tried it once but it was a pain and not really worth all the hassle

once you make new purchases it usually messes everything up - I got the same offer but didnt look into the fine print

i would recommend putting everything into a spreadsheet with estimated purchases, your current mortgage rate etc - often there is a factor you miss which kills any benefit - eg - when bankwest offered something like this to me a few years ago I accepted and then noticed a transaction fee in the fine print which basically brought everything back above the mortgage rate

 

[MarcB]

I got this offer a few weeks back. As far as why I was targetted...I imagine so they can make some revenue from me...I never carry a balance so in the time I have been an Amex customer, I have never paid even $1 in interest. My current card is the QF Ultimate card.

 

[gibspmuh]

I'm another of those that received the offer - I got it back in April, running from mid-May 2011 for 12 months. I've taken up the offer, I'm sure I can make use of it before paying it all off next year. The rate's clearly reflected on the statements, so that's a reassuring positive.

 

[JohnK]

I got this offer earlier this months as well as an ANZ offer for 2.9% balance transfer offer (don't know why I typed in 1.9% ) for 18 months which I have taken up without hesitation.

At the same time I also got an offer to increase my credit limit by 50%. Could this be an attempt to encourage me to have a balance after 6 months that I can't afford to pay off in full? I have some bad news for them if that's the case

I think so. The offer takes effect on 1 August and I intend to max out the Qantas Amex Premium card and then pay off the balance in January 2012 if the annual fee is not waived. It is nice to have 3.99% on purchases for 12 months but the savings do not offset the annual fee.

 

[Flashback]

Can you tell us what cards you have? Perhaps they are trying to increase spending on those cards?

Certainly a different offer.

Plat credit card here. Just received the e-mail, I assume there is postal mail on its way, too.

As I've been O/S my monthly spend has dropped to around 2k/month. Still gets paid on the day the statement is raised in full though so odd. May as well take it up "just in case".

 

[kyle]

The problem I can see is that I lose the 55 interest free days

 

[delfredo]

Would the plan below work?

Use 100% of my monthly salary to pay the house mortgage for the next 12 month.

Use my AMEX (as much as possible anyway) for everything. Pay the minimum balance each month. Before the 12 months is up, pay off the entire balance (assuming I can redraw from the home loan for no cost)

If you have a big enough credit limit, you can do a balance transfer to the amount of your limit to another credit card, then request for cash refund for the credit balance that you have created and use that to pay down on your home loan. Savings come in the form of difference between balance transfer rate and home loan rate. Downside is you won't be able to use your credit card until you fully pay off your balance transfer amount unless you're happy to pay interest on your purchases (interest free days will not apply until balance transfer amounts paid off, unless you're with NAB).

 

[coolsteps]

If you have a big enough credit limit, you can do a balance transfer to the amount of your limit to another credit card, then request for cash refund for the credit balance that you have created and use that to pay down on your home loan. Savings come in the form of difference between balance transfer rate and home loan rate. Downside is you won't be able to use your credit card until you fully pay off your balance transfer amount unless you're happy to pay interest on your purchases (interest free days will not apply until balance transfer amounts paid off, unless you're with NAB).

delfredo i dont think balance transfers are allowed under the terms so it wont work. this is the email offer i got it says for purchases "With a 3.99% p.a. interest rate on your Card, you can enjoy a little extra room to move.
Enrol before 24 July 2011 to take advantage of this ultra-low rate on all purchases made for the next 12 months, starting from 1 August 2011." btw you can request an automatic credit limit increase online now. it might be a good idea to do so to make full use of the offer?