How To Choose The Right Credit Card!

How To Choose The Right Credit Card!

Credit cards are easy, fast, and convenient way to pay for things online and in person. It is also an excellent way to build your credit history and qualify for a loan, mortgage, or other financial services. They also provide options for consumers to earn rewards and make purchases! What are you waiting for? Acquire one now!

Credit Card

Benefits Of Owning A Credit Card

There are many benefits of owning a credit card in Australia. Some of these benefits include:

  1. Increased purchasing power – A credit card gives you access to a line of credit, which can increase your purchasing power, especially if you use it for emergencies or unexpected expenses.
  2. Convenience – Credit cards are extremely convenient, especially if you don’t have enough cash on hand to cover an expense. You can simply swipe your card and be on your way.
  3. Protection against theft and fraud – Credit cards offer protection against theft and fraud, which can help you recover any money that is stolen or lost.
  4. Rewards and incentives – Many credit cards offer rewards and incentives, such as points or cash back, for using them. This can help you save money on groceries, travel, and other expenses.
  5. Build your credit history – Owning a credit card can help you build your credit history, which can make it easier to get a loan or mortgage in the future.

Things To Watch Out For

When it comes to using credit cards, it’s important to be aware of the risks involved. Here are a few things to watch out for:

  1. Interest rates can be high – make sure you can afford to pay off your balance each month to avoid interest charges.
  2. Penalties –  Credit card companies may increase your interest rate if you make late payments or go over your limit.
  3. Missing Payments – Carrying a balance can lead to expensive fees and interest charges, so try to pay off your card in full each month.
  4. Watch for Identity Theft – Credit cards can be easy targets for identity theft, so be sure to keep your card information safe and use strong passwords.
  5. Forgetting about the card – If you don’t use your credit card often, be sure to cancel the account before you stop using it, or you may end up paying annual fees.

5 Popular Credit Cards in Australia

Australians love their credit cards, and there are plenty of them to choose from. The most popular credit cards in Australia come with a range of fees and benefits, so it can be tough to decide which one is right for you. Here are five of the most popular credit cards in Australia, along with a breakdown of their fees and benefits.

** All numbers listed below represent values taken in 2022. 

  1. ANZ Low Rate Visa

This card has a low annual fee of $59 and a low-interest rate of 13.49%. It also comes with complimentary insurance policies, including travel insurance and purchase protection.

  1. American Express Platinum Card

This card has a high annual fee of $700, but it comes with a range of valuable benefits, including complimentary travel insurance, airport lounge access, and a concierge service. It also has a low-interest rate of 13.49%.

  1. Bankwest Zero Platinum Mastercard

This card has no annual fee and no foreign transaction fees. It also comes with complimentary travel insurance and purchase protection. It has a variable interest rate of 19.99%.

  1. Commonwealth Bank Diamond Awards Credit Card

This card has an annual fee of $350, but it comes with a range of valuable benefits, including complimentary travel insurance and airport lounge access. It also has a low-interest rate of 12.99%.

  1. NAB Low Rate Credit Card

This card has a low annual fee of $60 and a low-interest rate of 12.74%. It also comes with complimentary travel insurance and purchase protection.

Conclusion

There are a lot of credit cards to choose from in Australia, so it’s important to compare your options and find the right one for you. Consider your spending habits and needs, and look for a card that has low fees and an interest rate. You should also consider whether you need any additional benefits. We hope this guide gives you a head start to choosing the card that best fits your needs!

References

  1. “ Benefits of owning a credit card”  Finder (2022: https://www.finder.com/credit-cards-top-benefits-and-disadvantages
  2. “5 dangers of using credit cards — and how you can avoid them” CreditKarma (2022): https://www.creditkarma.com/credit-cards/i/dangers-of-credit-cards

3. “Australia’s Best Credit Cards August 2022” Mozo (2022): https://mozo.com.au/best/best-credit-cards

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