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  1. #1

    Default Credit card for rates/insurance

    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

  2. #2

    Default

    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.
    Regards Roberto
    He who laughs last......is the slowest thinker.

  3. #3
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,776

    Default

    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
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  4. #4
    Join Date
    Dec 2011
    Posts
    795

    Default

    Great idea, thanks Jarm

  5. #5
    Join Date
    May 2012
    Location
    Wellington
    Posts
    518

    Default

    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.

  6. #6
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,835

    Default

    Quote Originally Posted by spaceman View Post
    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>
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  7. #7
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,776

    Default

    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
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  8. #8
    Join Date
    Apr 2005
    Posts
    2,701

    Default

    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?
    Last edited by McDuck; 09-11-2012 at 06:12 AM.

  9. #9
    Join Date
    Aug 2010
    Posts
    358

    Default

    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.

  10. #10
    Join Date
    Jan 2004
    Location
    Whangarei
    Posts
    5,867

    Default

    Quote Originally Posted by spaceman View Post
    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


 

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