travel insurance, buffer when overseas, I would not like having 10k or more on a transaction account on a regular basis but if jumping on a plane heading overseas, I like knowing have that amount available..in caseI've always wondered why people do this. I use a debit card. Essentially acts like a credit card, but acts like EFTPOS on the back end. That sounds like how most ASF members use their credit card anyway if they pay it off in full each month, so why have a credit card in the first place?
The only reasons I can think of are: 1) to get reward points of some sort, but then your card will probably have a yearly fee. Debit cards are fee free. Or 2) In case you need some emergency money like @aus_trader mentioned before, in which case a debit card won't suffice.
As to the security, I believe a VISA Credit and VISA Debit card both use VISA's credit card front end, so should have the same security level.US style of credit rating whereby exhibiting ability to pay off credit raises your credit score; and credit card transactions are supposed to be more secure.
Travel insurance is a good one, and I think specific to certain cards. Perhaps those cards have a yearly fee, but probably cheaper than buying travel insurance separately. And keeping your $10k in a interest earning savings account rather than a 0% transaction account makes sense.travel insurance, buffer when overseas, I would not like having 10k or more on a transaction account on a regular basis but if jumping on a plane heading overseas, I like knowing have that amount available..in case
Historically it was because normal transaction accounts gave you x number of "free" EFTPOS transactions per month after which there was a charge for each and every transaction. That was a long time ago, last century, but it used to be the case.I've always wondered why people do this.
As far as I can tell in chatting with my bank about housing loans, the only thing they really seem to care about is loan serviceability, which equals incoming wage - expenses. Strangely, they don't seem to care about shares or cash you own. Likewise, I get the impression that credit score only matters if it's bad. If you've never used credit before, as long as you have a good wage, you'll get the loan.Aus moved to that trashy US style of credit rating whereby exhibiting ability to pay off credit raises your credit score.
This reminds me. Because I "tap" using my wallet (no need to take out the card), I can only carry one card. Otherwise the NFC fights. And you can't get a credit/debit card without a NFC chip these days.One debit card. One credit card.
Travel insurance is a good one, and I think specific to certain cards. Perhaps those cards have a yearly fee, but probably cheaper than buying travel insurance separately. And keeping your $10k in a interest earning savings account rather than a 0% transaction account makes sense.
Or simply put that cash in a 7 month TD and get 2.75% p.a. and use your credit card for everything and save the hassle of tapping your ME debit card every 7 days...its a pain of sorts.ME Savings account.
I can get 2.85% with my bank, but you have to have no withdrawals etc. ME savings, you just have to tap every week, which I certainly do.
Reward points don't really interest me. I see them through the lense of Barbara from Bank World (if you recall the ANZ ads): The CARROT Card - Can't Achieve Rewards Regardless of Time.
- Earn reward points
- Keep your cash in high interest accounts
We shop every week and always tap, so of the hurdles they create, that one is very simple to achieve.Or simply put that cash in a 7 month TD and get 2.75% p.a. and use your credit card for everything and save the hassle of tapping your ME debit card every 7 days...its a pain of sorts.
Finally! You are a unicorn on ASF.I use afterpay if it is an option.
One debit card. Only small amount held in account to pay for parking, coffee and other minor costs.
One credit card. Groceries, petrol and day-to-day expenses. Paid off in full each month.
Rarely carry any cash. If they don't take EFTPOS they don't get my custom.
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