Credit card for rates/insurance

[Jarm]

Hello,

Can anyone offer any advice paying insurance/rates by credit card.

If I were to have multiple IP with the insurance/rates on each, would it make sense to set up a credit card that all insurances/rates come out of automatically in order to receive the benefits that that credit card offers ie air point/flybuys etc, then have an automatic payment which transfers money from a flex account (which has no air points/flybuys benefits etc) so i am never caught with the high credit card rates. It seems like an interesting avenue, any advice?

What would be the draw backs if any?

What credit cards have the best rewards program?

Regards

Jarm

[Roberto9]

it would pay to check with your insurer and the council as to weather they accaept these c/c payments without charging a fee for the privilage. If you cop 2.5% fee as some councils charge would the air-points etc be worth paying for, the extra to get them.

[spaceman]

Don't forget that you need to declare any points to the IRD.... Other than that I can't see any downside, unless as already mentioned there is a extra % charged for paying by CC

Cheers
spaceman

[Eugene]

Great idea, thanks Jarm

[Nice]

You also might want to check with the credit card issuers that they actually pay out the benefits on those type of transactions. understand they got wise to your sort of proposal some years back and now only pay them out on some transactions - those that are high margin to them anyway. Some large businesses were doing what you suggest with their routine commodity accounts, and reaping huge rewards.

[Perry]

Don't forget that you need to declare any points to the IRD.

Spaceman is usually on to such stuff, but where does this
"declare any points" come from? On the IRD site, I did find
rulings related to employees and corporate cards, but that
was all. That would be unlikely to fit a PI's position.

I pay my annual insurance by credit card and don't make
any declarations on that.
<looks over shoulder for dark, sinister figures>

[spaceman]

At the risk of opening a giant can of worms and being moderated to oblivion ....

The points are close enough to being money, that the IRD treat it as money

ie: Get fly buys ....get stuff ....stuff = money (kinda) or sell stuff for money and money = money.....that money is seen as income by the IRD.....income needs to be declared or you are being naughty.

I think you'd be right with just one lot of insurance, the amount per year is going to be low enough to not cause any alarm bells, even though you are technically failing to declare income......would be a lot harder to justify......multiple IP with the insurance/rates on each...........especially when the stated reason for doing it is ....... receive the benefits that that credit card offers ie air point/flybuys etc...........



Cheers
Spaceman

[McDuck]

If you miss a payment for some unforeseen reason, then you’d have to be quick on damage control.

Conceptual question, could you set up a chain of six credit cards and endlessly loop the money through the lot, thus gaining endless bonus points? If not why not, where’s the cut-off point?

AKA: What would the equation look like?

[JABlog]

Not sure what you mean by endless loop, if you mean pay one credit card with the other than its cash advance so ypu pay the credit card interest rate from day 1.

[drelly]

At the risk of opening a giant can of worms and being moderated to oblivion ....
The points are close enough to being money, that the IRD treat it as money

Bartercard trade dollars are treated the same as money

[Jarm]

Thanks Roberto, will check. An endless loop! Could you also, if you were able to get large enough limit, do an endless loop for putting down a deposit for a house, keep looping it round until you can raise the value, then refinance the deposit?

[speights boy]

Thanks Jarm

That, plus what my hairdresser and taxi driver were saying last week, is interesting.

[AMR]

Thanks Roberto, will check. An endless loop! Could you also, if you were able to get large enough limit, do an endless loop for putting down a deposit for a house, keep looping it round until you can raise the value, then refinance the deposit?

Yes, everyone does that.

[Jarm]

Yes, everyone does that.

Im a little unsure how to do this. My mortgage broker thinks that when you transfer funds to pay off another credit card it costs normal interst (not 0%). Is that right? If I have 3 seperate banks with a credit card facility of $50k at each can i raise 100k in interest free funds and loop that round every 15 days or so with a bit of juggling?

[speights boy]

Jarm
Someone has been pulling your leg.
Hint....it's not your mortgage broker.

Cash advances attract interest from day one and at a higher rate than purchases.