Manufacturer Credit Cards

Many computer companies will offer their own line of credit on their own card. Interest may be lower than a traditional credit card, and it may offer special incentives such as points toward future purchases, discounts on accessories, or special introductory rates. Some manufacturers offer no interest if paid off within a certain time frame.

Often this type of credit card can be applied for at the same time as purchasing the computer. The extended warranty or service contract may also be better with the manufacturer’s credit card. Be sure to compare offers and services between computer manufacturers as this can influence your buying decision.

Computer manufacturer credit cards typically allow only purchases of their own merchandise, and cannot be used for outside items. The payments are also often set lower than a regular credit card, allowing you to spread out the amount longer if necessary.

Introductory rates

Some credit cards will offer low introductory rates for applying, many of them at 0% for a period of time. Look into which card will provide the best offer for an introductory rate and apply before making your computer purchase. This will save money over the long run if you pay it off during the time frame. Some cards that offer low introductory rates:

• Citibank Clear Platinum Visa
• HSBC Credit Card
• St. Georges Vertigo Credit Card
• Aussie MasterCard

Some cards do not provide immediate approval upon application, so be certain to give yourself some lead time before purchasing the computer. The other alternative is to do a balance transfer to a card with a low rate after the purchase is complete. If you transfer a balance, be sure to check that it does not nullify any service contracts you may have set up.

Points

For larger purchases such as a computer, it is a good idea to consider a credit card that rewards points for purchases. The points are then redeemed for cash back, gift cards for particular stores, items, or travel miles. For frequent hotel and airline users, points or miles can add up quickly when buying a computer system, often resulting in free travel options.

Watch out for annual fees on credit cards, particularly if you intend to use the card for a one time purchase. If you pay the computer off within a certain time frame to prevent interest, you don’t want to be surprised by a annual fee when you were not expecting it.

When purchasing a computer, take the time to research all the possibilities to make sure you get the best deal for your credit card. You can save money and potential problems based upon the criteria of your card. Be sure to compare all the benefits of each card before making that large computer purchase.

Using a credit card in this manner makes paying bills more efficient. Keep in mind, however, that you need to be careful with these types of accounts.

Monitoring Payments

We can easily become complacent when it comes to checking over our monthly statements. We may completely miss the fact that we are being overcharged for a monthly bill or that a bill is due to hit the account.

Check that the payment amounts are correct and that they are being charged at the proper frequency. You may be surprised at how often you can be overcharged without realizing it. Check your statements carefully.

Watch Your Spending Limits

If you lose track of the monthly payments that hit your account you may find yourself over your credit limit and accruing penalties and higher interest because of it. Keep a close eye on your credit limit and know which payments are due to hit it.

It is a good idea to put on your calendar all payments that automatically hit your credit card account. Some of these payments may be monthly and some may be annual, semi-annual, etc. They are easy to lose track of so put them on your calendar so you do not get into trouble.

Keep Vendors Updated

We change credit card numbers for many reasons. Sometimes our credit cards expire, sometimes we lose our credit cards and sometimes they are stolen. Regardless of the reason for changing your credit card number it is important that you update all the vendors who automatically bill your credit card with this information.

If you fail to update the vendors and a payment is declined because of it you may be forced to pay penalties and interest that can add up quickly. You may even find that your account is closed.

It is a good idea to keep a list of every account that has your credit card attached to it for this reason. The more up to date the list is the better equipped you will be if you change your credit card number for any reason.

Closing Accounts

If you close any accounts that have your credit cards attached to them make sure you remove any credit card information stored and check your account to confirm that no further payments are taken out of your credit card. If you find that they have been make sure you take care of it quickly.

The bottom line is that if you use your credit card for monthly bills you need to stay on top of them and not get too complacent. Put a system in place that includes monitoring the payments and updating the vendors as needed.

Know the Perks

You should know all of the perks associated with each credit card you have. This means know the interest rates, the consumer protections, the reward points, etc. The more information you have about the credit cards the better equipped you will be to choose the right credit card for each purchase.

Purchase Protection

Purchase protection is an important consideration when choosing which credit card to use. Many credit cards offer consumers additional protections including warranties on purchases using that credit card.

If you are purchasing items that can benefit from additional warranties then you will likely want to choose the credit card that offers you the purchase protection. If you are buying something like groceries, however, you may choose a different credit card since groceries will not receive purchase protection.

Interest Rates

You should be aware of the interest rates for all of your credit cards. The interest rate should play a key role in the decision as to which credit card to use. If you have two credit cards, for example, that offer you purchase protection but they have different interest rates you will likely want to use the card with the lower interest rate.

Do your best to keep this information at your fingertips. If you are making a purchase online you can actually use a repayment calculator to see the difference in payments based on the interest rates of each card. This will help you choose which card to make the purchase on.

Managing Limits

You will also want to keep a close eye on your credit card limits so you do not exceed them. It is important that you know which cards are close to their limit so you can avoid using them. If you exceed your limit the transaction may be declined and/or you may have to pay penalties, higher interest and other fees.

You should check all your credit card limits before you go shopping. Leave home any cards that you do not want to use. This will help protect you from accidentally using a card that you should not have used.

Rewards Points

Try to know which cards have the best rewards points and if all else is equal you will want to use those credit cards instead of those cards with lesser rewards. You need to weigh the rewards against any difference in interest rate and fees as well.

The bottom line is that there are a number of factors you should consider when you decide which credit card to use for a particular purchase. Choosing the card you grab first is not the best way to make a good decision about which credit card is best for that particular purchase.

Why do credit card companies charge annual fees? If you are a person who pays their card off each month, then it is a way for them to make money since they do not get it from your interest. If you are that type of credit card user, then look for a card that does not have an annual fee. This also pertains to credit cards that are used infrequently or for emergency use only.

Sometimes the type of card accounts for the annual fee. More prestigious cards such as Gold Cards or Black Cards, that offer more perks or rewards, will charge a fee to justify the extra services. Often this can be negotiated by the user. Cards that give cash back, special discounts, or travel vouchers will often charge the annual fee to offset their costs.

The Benefits of Annual Fees

Not all annual fees are a bad thing, especially if you receive services that pertain to certain aspect of your lifestyle. For instance if you travel frequently, the annual fee will cover things like frequent flyer miles and travel insurance. Others will provide protection against fraud or credit card theft, with purchases being covered.

Hotel and Restaurant discounts, reward points for shopping with particular vendors, as well as extended warranties on larger purchases of electronics can be provided with the annual fee. When you are shopping around for a new credit card and it has an annual fee, inquire into the potential benefits you will receive. You will also want to compare amounts.

No Annual Fee Cards

If you find that an annual fee is not providing any additional benefits for you, then there are plenty of cards in Australia that do not have them. Below are some options for no annual fee credit cards:

• Westpac 55 Day Card
• BankWest Zero Card
• ANZ First Visa Card
• HSBC Credit Card
• Commonwealth Bank Low Fee Card

When you research the no annual fee cards, be sure to read the fine print. Some cards only offer no annual fees for an introductory period. Others will only keep it if you pay on time and have a particular credit rating. There will also be credit cards that require you to spend a particular amount in a year’s time in order to avoid the fee. You will want to be aware of the particulars in the event the fee shows up on your statement unexpectedly.

Keep in mind that an annual fee does not have to be a bad thing for your credit card; you just need to be aware of what it is for. It may be worth the extra expense if it is conducive to your spending or travel habits.

If you are in the process of starting your credit history you should start thinking about things from your very first credit card.

Choosing Your First Credit Card

When you are choosing your first credit card you want to make the right decision. Choosing the right one may be counter-intuitive. You are probably thinking you want a card with a big credit line and lots of perks. Those are two things you definitely want to avoid with your first credit card.

First and foremost, get a credit card with a relatively small credit limit. You do not want to start accruing debt before you have had a chance to really understand how credit cards play into your overall finances, etc. You can always increase credit limits so start off by applying for a credit card with a small limit.

Pesky Perks – Avoid Them

Perks including reward programs sound great. For the most part they can be great. The problem is that they promote credit card use. In the early stages of your financial life you do not want anything that will promote you using credit cards. Rewards cards are designed to entice you to keep using them so you earn rewards.

You should avoid credit cards with perks when you are first applying for credit. Start with a traditional card that can help you learn more about budgeting, etc.

Interest Rates – Read the Fine Print

Your first credit card should be one with a low interest rate. This is the most important thing for you to consider. You want to learn about debt and interest rates, etc by first seeing how a low interest rate impacts your debt. If your first credit card has a high interest rate you may find yourself behind before you had a chance to even stay even.

Find a card with the lowest possible interest rate and a modest initial credit balance. This will be your best bet.

Apply for One at a Time

Apply for one credit card at a time. Most credit card companies make very fast decisions so there is no real need to apply for multiple cards at the same time in order to enhance your opportunity to get approved.

If you apply for several cards at the same time you run the risk of getting yourself into financial trouble. It is best to start with one, low rate credit card and see how it impacts your budget including the repayment of the card. You want to make sure you can afford to pay the balance in full rather than just the monthly payment. This will help you learn important money management techniques.

The newest smart phones are actually smart in more than one way. You can save money with many of the shopping applications and electronic coupon applications on the phones. iPhones, Droid phones and other smart phones have amazing applications all designed to save you money.

Understand the Apps

You need to understand the application before you add them to your phone. Make sure you read about them and understand exactly what they do and confirm that they include shopping in Australia.

There are millions of applications for iPhones, Blackberry phones and Android phones. Not all of the applications are global. In fact many of the applications are geo-specific. There is no sense in downloading a shopping application that is for the United States or the United Kingdom, for example.

In addition to knowing whether or not they work for Australia, you want to make sure that the application will work for your phone and the carrier of your phone.

It is important to note that not all applications are supported on all phones. For example some applications may work on one model of Blackberry but not another. Some applications are even carrier specific. Make sure the application is for your carrier.

Application Types

There are different types of phone applications including some that search for the lowest prices for a particular item you want to purchase as well as some that find a coupon for the item you are interested in purchasing. You can also use applications that create shopping lists based on the cheapest places to find your most commonly purchased items

Recent applications include barcode scanners that can provide detailed information about the products and where you can buy them and at what price.

The phones with the most shopping applications are: iPhone, Android (by Google) and Blackberry.

How to Save Money

If you use the applications for all your major purchases and some of your most common purchases you should save money. In fact you can likely save a great deal of money. The first thing you should do is play around with the applications and to learn them. The more familiar you become with the applications and how to use them the better equipped you will be to take full advantage of them.

You can test the applications with products you are very familiar with so you know whether or not the application is working. Once you know that the application is working well, you can start using it to save money.

Go ahead and download some applications today to help you save money while shopping online and in local stores.

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Four Top Tips On Avoiding Credit Card Fees
Would you like to know how to avoid credit card fees?  Credit cards can be useful tools that can help you manage your finances – but not when you get charged an easily avoidable fee!  Here are four top tips on avoiding credit card fees.
1.  Choose A Fee Free Credit Card
One of the easiest ways to avoid credit card fees is to choose a card that doesn’t have an annual fee.  Ideally, one of the best credit cards for your needs may be a card that has no annual fee and has 55 days interest free on purchases.  That way you get the best of both worlds – zero interest on purchases if you pay the balance off in full every month and no annual fee.
2.  Forget About Cash Advances
Did you know that the usual interest rate for a cash advance on your credit card is 19 percent or more?  And that even if your card features 55 days interest free on purchases that that feature probably doesn’t apply to cash advances?  So another easy way to avoid credit card fees is to forget all about getting out a cash advance.  If you need to pay cash for some items, then consider getting the cash out of your bank account instead.  Otherwise, you can charge the items to your credit card if you know you’ll be able to pay off the balance in full when your monthly statement falls due.
3.  Be On Time With Your Monthly Payments
Another way to avoid credit card fees is to make your monthly payments on time, in order to avoid a late fee.  If you rely on internet banking to make your credit card payments, then you need to remember that it will take at least one full business day for your credit card payment to be processed through the banking system.  So if your payment is due on the third of the month and you make your payment on the third, the credit card company may not receive your payment until the day after, which means your payment was actually late and you may be charged a late payment fee.
4.  Pay In Advance If You Have Zero Interest Free Days
Another idea to avoid credit card fees is to pay off your credit card in advance if your card doesn’t give you any interest free days on purchases.  If you have one of these cards, then as soon as you use your card to purchase an item, interest starts being charged to your card.  By the time you receive your monthly statement, you’ve already been charged interest since the day you bought the item.  So in order to avoid being charged interest on your purchases, pay off your card as soon as you make a purchase.  If you want to be really savvy and know you are going to be using your credit card to buy a particular item, then make a payment on your credit card for the cost of that item before you actually purchase it.  That way your card will be in credit, and you shouldn’t be charged any interest on your purchase.

More Information

To make this simple, here’s our run down on the HSBC Credit Card so you can make an informed decision  if this card is a good choice for you.

The HSBC is a no-frills, simple Visa card which promises never to charge an annual fee for life.  In addition, you can enjoy a balance transfer rate of 0%.

Top Five Benefits:

• Apply Now For A Bonus $50 credit just for purchasing on your card!
• No annual fee for the lifetime of the card
• 0% on balance transfers for 6 months
• 16.99% on purchases
• Up to 55 days interest free period

Card details

Annual Fee   $0

Interest Rate   16.99% p.a. on purchases

Interest Free Period  up to 55 days

Application Criteria  Minimum Income $20,000 p.a. & a good credit rating

Credit Card Type  Visa

Cash Advance Rate  20.75% p.a.

Rewards Program  N/A

Balance Transfer Rate  0% p.a. on balance transfers for 6 months

Other Stuff & words from our guru.

As well as a superb balance transfer rate, HSBC Credit Card holders enjoy access to discounts and benefits worldwide with HSBC’s home&Away privilege program. Purchase interest rate applies to purchases only. Cash advances are charged at the cash advance interest rate. All interest rates are subject to change.

As with most credit cards, you will need to be a permanent resident of Australia, over 18 and have a good credit rating & earn over $20,000 a year for this card.

HSBC tells us this application takes approximately 10 to 15 minutes to complete & cards are processed in 5 to 10 days, you can start your application easily to the right.

How did we do? We hope this page was useful!

]]> http://creditcardrewards.com.au/hsbc/credit-card/feed/ 0 http://creditcardrewards.com.au/article/how-to-use-your-credit-card-safely-online-4-handy-tips/ http://creditcardrewards.com.au/article/how-to-use-your-credit-card-safely-online-4-handy-tips/#comments Sat, 24 Jul 2010 22:11:41 +0000 Jess Murphy http://creditcardrewards.com.au/?p=2292 With all the online shopping options available, it’s important that you know how to purchase items safely online using your credit card.  So here are four handy tips on how to shop safely online.

Though people often look for ways to save money few take the time to look in their garage rather than in the cupboards.

Saving Money – Car Insurance

Car insurance is a necessary expense. Overpaying for car insurance is not necessary. It is generally a very good idea to take the time to request price quotes regularly. Different car insurance companies offer different pricing and incentives. You do not have to wait until the end of the year to check auto insurance prices.

Check insurance rates periodically and make policy adjustments as necessary

Saving Money – Petrol

Save money on your petrol expense by using less air conditioning and also buying petrol with a petrol rewards credit card. Petrol rewards credit cards can save you significant money on your overall petrol expenses. Compare offers and get the petrol credit card or credit cards that are right for you.

Saving Money – Maintenance

Getting regular maintenance on your vehicle will actually save you money. Vehicle repairs can be costly and regular maintenance is a way to minimize the need for costly repairs. If you follow the standard maintenance suggestions of the manufacturer you should be able to save money over the course of the year.

Saving Money – Cost of Ownership

If you are in the market to purchase a vehicle you should look online for the cost of ownership. Cost of ownership includes maintenance and other average costs. This will help you determine which vehicle is the most economic. This is a good time to also factor in the cost of financing, etc.

Most comparisons for cost of ownership base the figures on a 5 year cost of ownership.

Saving Money – Do-it-Yourself

You can also save money by doing certain things yourself. Though some maintenance and repairs certainly require experts, there are some things you can do yourself. You can change your oil, check the fluids in your car, wash your car at home, etc.

The more you are able to do directly the more money you can save. You can easily find do-it-yourself videos online that will walk you through the process of what you are trying to do. Again, it is important to keep in mind that some things require a professional mechanic. Do not let the goal of saving some money result in you making mistakes that will prove to be much more costly than the mechanic would have been.

Saving Money – Warranties

It is important that you know what is and is not covered in a warranty. Take the time to look into it carefully and really understand what the limitations are, what is and is not covered, where you can get repair work done, etc. Do not rely on other people doing this research for you. If you are told something is not under warranty that you think is under warranty make sure you push the issue.

If you follow some of these basic tips you should be able to save money on your car.

Depending on your planned use of the card these introductory rates may be something you take seriously or force yourself to ignore.  A closer examination will explain why.

Low Introductory Rates on Purchases

A number of credit card programs in Australia offer low introductory rates for purchases.  These rates are for a short period of time and then the rates jump to the traditional rates on the card.

If you are planning on making a major purchase on a credit card then the introductory rate may be something important to consider.  You may wish to get the card immediately prior to your making the major purchase in order to take advantage of the low rates.

Consumers that generally do not make large purchases or who do not make many charges monthly may not see the value in low introductory rates.

Here are some credit card offers at the time of this writing that offered low introductory rates for purchases:

• Aussie MasterCard (2.99% for six months)
• St. Georg Vertigo (2.99% for six months)
• Woolworth’s Everyday Money (0% for a limited time)

Low Introductory Rates on Balance Transfers

You will find a number of different credit card programs that offer low introductory rates for balance transfers.  It is important to keep in mind that the balance transfer rates may have a limited time (e.g. 6 months or 12 months).

It is typically a good idea to have a plan in place regarding the repayment of the balance to be transferred so you can compare cards based on the rates you are likely to pay.  Here are some programs you may wish to review:

• HSBC Credit Card (0% for 6 months)
• Woolworth’s Everyday Card (0% for a limited time)
• St. George Vertigo (2.99% for 6 months)
• Suncorp Clear Options (2.9% for 12 months)
• Westpac Clear Rate (3.99% for 6 months)
• Bankwest Lite MasterCard (3.9% for 9 months)
• ANZ Low Rate (0% for 6 months)
• Citibank Clear Platinum Visa (0% for 6 months)
• Aussie MasterCard (2.99% for 6 months)

Using Balance Transfer Options

Using balance transfer options for credit card can help you save money.  If you are able to shift a balance or several balances from high interest rate accounts to lower interest rate accounts you will be saving money.

Make sure you close out any old accounts.  Speak to the bank that issued the card and find out the process for closing an account once the balance has been transferred.  After a couple of weeks you should call the bank back again and confirm the account was properly closed.

Use the information above to find and apply for the right Australian credit card with introductory rates.  Make sure you close any old accounts after transferring balances.

Savings Account Plans – Start Small

The first thing you need to do is to start off small. Some people think they first have to wait and save a large sum of money before they open a savings account. There is no need to do this. If the bank has a minimum deposit required to open an account then open it as soon as you have that minimum amount. No one is judging you based on the amount of money you are opening a savings account with.

Savings Account Plans – Establish a Plan and a Routine

You need to establish a plan for saving money. The plan should include how much money you will deposit and when you will be making those deposits. For example, you will want to establish a routine that includes regular deposits in your savings account. You can do this by establishing either a minimum dollar amount per pay period you will deposit or a minimum percentage.

Savings Account Plans – What are the Minimums?

Remember that a minimum dollar is just that a minimum. When you are establishing how much you will deposit each pay period do not start with the highest amount you think you can save. This will set you up for failure before you even begin.

Choose a dollar amount that is realistic. Try not to create a budget that changes everything you do. This may lead you to get frustrated and give up too soon. Take baby steps. Start with the minimum amount you determined and slowly and gradually increase those amounts making sure that you are able to comfortably sustain the new budget.

Savings Account Plans – Avoid Temptation

You need to avoid temptation. If you are saving money for the very first time you may get tempted to spend it when you see the balance climbing. Avoid that temptation. If you are the type that has a difficult time avoiding temptation you need to make it difficult for yourself to take funds out of the savings account.

Consider opening a savings account that does not have an ATM attached to it. Also make sure that it is not too easy to transfer money from one account to another account that you have easy access to. Though this may seem somewhat silly to some people, it may be exactly what many people need to do in order to protect themselves from themselves.

Bottom Line

The bottom line is, that if you have a goal of saving money, you need to put a plan in place and stick to that plan. Your ability to stick to the plan you put in place will help you reach your financial goals.

]]> http://creditcardrewards.com.au/article/establishing-realistic-goals-for-savings/feed/ 0 http://creditcardrewards.com.au/article/using-your-australian-credit-card-overseas/ http://creditcardrewards.com.au/article/using-your-australian-credit-card-overseas/#comments Wed, 14 Jul 2010 17:57:16 +0000 Jess Murphy http://creditcardrewards.com.au/?p=2274 Most major credit cards are able to be used internationally.  If you are planning a trip overseas you may want to verify with your credit card company that your card can be used internationally.  You should also alert them to the fact that you will be traveling overseas so they can note your account.

Notifying Credit Card Company of Overseas Trip

It is a good idea to notify your credit card company that you will be traveling overseas. Typically, when a credit card is used in a country other than the one it was issued in, fraud protection monitors are piqued.  You want to make sure your card is not frozen while they determine whether or not you authorized the purchases.

Some credit card companies are more diligent than others.  If you know that your credit card company is aggressive with their fraud protection you should definitely notify them of your trips in advance.

Understand How Exchange Rates will Work

It is a good idea to speak to your credit card company and find out how they determine the exchange rate of your purchases.  Ask them the exchange rate they use and the interest rates that will be applied (including if you take a cash advance).

Knowing how the exchange rate will work can help save you from shock when you get your statement at the end of the month.  It may also help you determine when the best time to make a major purchase is (or is not).

Staying on top of the exchange rates when you travel is important. The fluctuations can be quite dramatic. Some savvy travelers actually check out and back into hotels on dates when they see a very low exchange rate or ask the hotel to charge their card on specific dates during the trip.

You can speak to your overseas vendors as well and ask them if they can charge your card in Australian dollars.  Some vendors may have the ability to do that, others may not.

Consumer & Trip Protection

Make sure you know whether or not your credit card offers consumer protection while overseas.  Each credit card company is going to have a different policy on this.

You should also know if your credit card company offers any type of insurance or emergency help while traveling.  More of the credit card companies are offering these protections and it is good to know what you are entitled to.

Ask your credit card company about:

• Emergency cash
• Local offices
• Medical insurance
• Roadside assistance
• Trip disruption insurance

The more information you know before your trip the better equipped you will be to handle different situations that may arise during your time overseas.   Do not make the same mistake as many other consumers and assume that your credit card company does not offer you any protection.

Often, consumers have protections they are not even aware of.  These can be part of the annual fees you pay or paid by the interest rates the company charges.  Do not be afraid to ask questions.  You are better off asking them before your trip.

Take with you all emergency contact information for your credit cards.  Store them in your phone and keep them somewhere else in hard copy.

With these tips in mind you may find that your Australian credit card is your best travel companion.

More Information

Woolworths Everyday Money Card

It doesn’t get any better than this! The Woolworths Everyday Money Card revolutionises value with:

Up to 55 days interest free on purchases

$0 annual fee 1st year, a saving of $49!

0% Balance Transfer For 6 Months!

You can also earn reward points everywhere that you use the card, including racking up bonus points on Woolworths Selects products and at Woolworths group stores.  These points are then converted into an Everyday Money Shopping Card for you to use on whatever you like.

Top Five Benefits:

• $0 annual fee for the first year & a low $49 after that
• 1 point per $1 spent on general purchases
• Balance Transfer 0% for 6 months
• Add an additional cardholder to your account at no extra cost
• Up to 55 days interest free on purchases

Card details:

Annual Fee   $49 (waived in the first year)

Interest Rate  19.49% p.a. on purchases

Balance Transfer 0% for 6 months

Interest Free Period  up to 55 days

Application Criteria  N/A

Credit Card Type  MasterCard

Cash Advance Rate  20.99% p.a.

Rewards Program  Everyday Money Shopping Card

Other Stuff & words from our guru.

As well as a card which offers superb value, a microchip is embedded in the Woolworths Everyday Money Credit Card plastic. The chip-enabled card carries more sophisticated payment applications, including enhanced security programs that provide better protection against unauthorised card use.

Cardholders can also use their card with the ePump service at over 420 participating Caltex Woolworths/Safeway co-branded fuel outlets to save time and earn extra reward points.

Fees, charges and interest rates apply and are current as at July 15th, 2010 and are subject to changes.

Important Information

The Everyday Money™ credit card is issued by HSBC Bank Australia Limited ABN 48 006 434 162 and HSBC is the credit provider. Lending criteria applies. Fees, Charges and Interest Rates apply and are current as at 1 July 2010 and are subject to change.

¹ Reward points are not earned on Dick Smith interest free promotions, balance transfers, cash advances and business expenses.

² Interest Rate of 0% per annum will apply for the first 6 months of your balance transfers from non-HSBC credit or store cards. After this period, any balance outstanding from the balance you transfer will accrue interest at the Cash Advance Interest Rate applicable at the time (currently 20.99% p.a. as at 1 July 2010 and subject to change).

Though there is certainly global acceptance of these credit cards you still want to take some precautions before you travel.

Call Your Credit Card Company

Let your credit card company know when you are traveling and where you are traveling to.  This will help them note your account so the fraud safeguards do not freeze your card.  Typically fraud alerts are raised when a credit card is being used outside the country of issuance.

Your credit card company should also be able to tell you where there are banks and ATMs that accept the card if you are traveling to a country that may not have as much access to these things as there are in Australia.

When you are speaking to the credit card company ask them about any potential surcharges or fees associated with traveling to the country or countries you are visiting.   You should know this information ahead of time to help you make better economic decisions.

Ask your bank how they handle exchange rates, etc when using your credit card overseas.  This may help you manage your trip by selecting the dates certain expenses hit your card.

Contact Your Hotel

Contact your hotel or hotels in advance and confirm that they accept your credit card.  You should have no problem in most major cities, however, it is always best to double-check.  Ask them if they know whether or not your card is widely accepted in the city or town you will be in.

Ask your hotel about whether or not you can designate the day your trip is charged on your card. With fluctuating exchange rates you may want the hotel to charge your card on a specific day.

It is worth asking these questions to save you time and hassles later on.

Store Contact Information

Make sure you store your credit card’s emergency phone numbers and related information in your cell phone and keep a copy in writing.  You will want phone numbers associated with any travel rewards, benefits and programs offered by the credit card or cards you are using.

Make sure you immediately contact your credit card company if you lose your card, it is stolen or you are concerned about the security of your card for any information.

Keep Copies of All Receipts

Keep copies of all your receipts so you can compare them against the charges that hit your account.  You should also make sure you get the phone number of all the vendors you purchase from just in case you need it after you leave.  If you have any questions about the charges you can speak to the vendors as well as the credit card company.  It may be the exchange rate that caused the difference in the charge.
Take these precautions and considerations seriously and you can have an easier time during and after your trip.

When to Use a Credit Card

Everyone must make a decision for themselves when it is or is not a good time to use a credit card.  Here are some different strategies that are used by consumers trying to stay ahead of their credit card debt:

• Emergency Use Only – if you only use your credit card in case of an emergency you may have an easier time staying ahead of your debt
• Cash Replacement – some consumers use credit cards instead of cash but only use the card when they have sufficient cash to cover the purchase.  In essence you are using the card for convenience rather than necessity.  This will help assure you stay on top of your debt because you never let it accrue.
• Double the Minimum – some consumers make it a policy to always pay at least double the minimum payment due every month.  This helps reduce your overall debt and keep you ahead of your debt.

Review Your Statements

It is important that you review all of your credit card statements.  If you review the statements regularly you will naturally be more aware of your total debt amount and will likely be able to identify some ways you could have accrued less credit card debt.

When you review your statements make sure you see if there are any fees or discrepancies that you need to discuss with the card provider.  You may be surprised at some of the things you find.  Your failure to find these things will just further add to your debt.

Transfer Balances when Available

Keep your eye out on credit card offers with low balance transfer options.  You can save yourself a great deal of money if you transfer high interest debt to cards with low interest rates for balance transfers.

It is important that you find out about any restrictions or rules pertaining to balance transfers before you apply for the card.  Some credit card companies have strict rules about balance transfers.

If you choose to transfer your balances to another credit card you may wish to close your original account.  Do not assume that the card is closed automatically when you transfer the balance.  Speak to the credit card provider and find out the process they require for you to close an account.  After you go through the process you should follow up with the credit card company and confirm that they closed the account at your request.

If you follow these simple principles you should have an easier time of staying on top of your debt and not falling into the same trap that many other consumers do with their credit cards.

Once someone’s credit history is damaged it is important to take the right steps to restore their credit file.

Step 1 in Restoring Your Credit File

The first step in restoring your credit is to clear up any outstanding debts.  Unpaid, past due debts will make it virtually impossible to restore your credit.  If you are not sure of all of your outstanding debt you will need to get a copy of your credit file.

Contact any companies on the list that show an outstanding past due debt.  You can try to negotiate a reduction in the amount owed or payment arrangements.  Speak to them about how they will report it on your credit file so you can make an informed decision as to whether or not it makes sense for you to take the offer.

After you have cleaned up your old debt you can focus on creating new, good credit.

Step 2 in Restoring Your Credit File

The next step in restoring your credit is to find Australian credit cards made specifically to help restore credit.  These credit card programs are specifically designed for people with poor credit that need to restore it.

Most of the bad credit cards either require you maintain a deposit the same size as your credit limit or some percentage of it.  Also called pre-paid credit cards, these cards give you the flexibility of having a credit card while at the same time improving your credit file.

Make sure the credit card is designed to restore credit.  Some pre-paid credit cards do not report to credit agencies.  If the credit card does not report to the credit agencies you will not be restoring your credit.

It is typically a good idea to limit the number of new credit cards you open even if they are pre-paid cards.

Step 3 in Restoring Your Credit File

After opening up one or two Australian credit cards for debt restoration it is important that you use the cards responsibly.  Some of the credit card programs extend credit beyond the amount of your deposit.  Make sure you do not exceed your limit.

Additionally, you do not want to always have your credit card maxed out.  This is something that will impact your credit in a negative way.

If the program allows you to expand your limit over time this is something you should consider doing.  Again, make sure you are using the new card responsibly.

Bottom Line about Credit Restoration

The bottom line is that you can restore your credit.  If you clean up your past due debt and then responsibly open up credit restoring Australian credit cards you can restore your credit file.  Remain to never fall behind in your debt payments and only up credit lines you can comfortably handle.  If you follow these steps you can restore your credit file.

Visit the Bank Websites

You need to have the most updated information about each credit card.  To do this you will need to visit the website of each bank and find out their current rates, reward programs, etc.  If you are relying on a summary you find on the Internet the information may be a little outdated.  The summary articles are useful to help you gain a basic understanding of the different cards and options.

When you are on the bank sites make sure you read the fine print.  Banks, like most businesses, will use the fine print to qualify things they promote on the site.  For example, you may see an amazing introductory rate and the footnote about the rate will tell you it is only for 30 days or requires a minimum balance, etc.

It is worth taking the time to research each card carefully.

Research the Cards on Google and Yahoo

After you have identified one or more credit cards that you may be interested in applying for you want to do some more research.

At this point in the research you know what the credit card companies want to tell you.  It is now time to find out what consumers are saying about these credit card companies.  Do some online research to help you learn more about the cards you are considering.

There are many blogs, forums and review websites that consumers use to provide feedback about products, services, etc.  You will stumble on a few of them when you do this step of the research.  It is important that you take the time to read all the reviews.

It is, of course, necessary to remember that people are more likely to leave a bad review than a good review, so do not be shocked if you read mostly bad reviews.  The key at this point is to read what the bad review is about and whether or not there is a common theme.  If customer service is always bashed in the reviews you know they likely have bad customer service.

Taking the time to read all of the reviews may help you eliminate one or more of your choices.  It may also protect you from making the same mistakes that other consumers made.

Final Step of the Research

The final step of the research will be you doing your homework about the specific bank.  You want to make sure they are a solid bank with a solid reputation.  If the bank is on shaky ground you may find yourself getting notified that their interest rates are jumping up, or their fees have skyrocketed.

At this point your research is complete unless you have some other concerns you want resolved.  If you do and Internet research is not helping you resolve the concern it is time to pick up the phone and ask the company directly.

If you follow these steps you should be able to find the right Australian credit card.

You can be the type of consumer that does not read the fine print and then complains when something is pointed out to you.  Or, you can be one of the consumers who read the fine print and know what they are getting themselves into.

Credit Card Fees

It is important to read all of the fine print about a credit card before you apply for it.  You may want to start with the information about credit card fees.  Some people call them hidden fees, but they are always available for you to see before you fill out your application.

The fine print on credit card applications usually spells out all of the fees.  It is up to us to take the time to read it.

You want to make sure you understand all of the fees and potential fees associated with the credit card.  The more you know in advance the better equipped you will be to decide whether or not that credit card interests you.

Try to find out if there are fees associated with account maintenance, international use of card, cash advances, consumer insurance, etc.  It is a good idea to try to learn which fees are mandatory and which are not (e.g. insurances, etc).

Interest Rate Changes

The fine print may also contain information about how and when your interest rates can change and the method of notification.  Most credit card companies have different interest rates for standard purchases, cash advances and possibly international card use.

The credit card company may post a cap to the rates (meaning they will not go higher).  Make sure you are aware of this information.

Payments and Late Payments

Always read the fine print about payments and late payments.  This is where you will find information about how your credit card company applies payments and handles late payments (including grace periods and late fees).

Pay careful attention to both how payments are applied (you may have mixed interest rates if you have taken a cash advance or used your card internationally) and how you can control that (if you can control it).   Additionally, you want to find out how long the grace period is and if a payment has to clear within the grace period or be received in the grace period.

Know as much as you can about payments and late payments though your goal is obviously to always make your payments well enough in advance that it is not an issue.

If you keep your eye out for these things in the fine print you will save yourself later shock.  Make sure you print all of this information in case any of their policies change.  If you are armed with a copy of the policies in place when you got the card you may be able to successfully argue against policy changes in the future that impact your card use.

Take the time and read the fine print from any and all of your credit cards.

For the most part, when you read about credit cards online you may be reading only the information the credit card companies want you to read.  Their websites are full of information.  They will naturally highlight the positive information while hiding any information they do not want you to put too much attention on.

Though it is important to read the information from the credit card company you want to remember that you are getting a very specific point of view.

Make sure you do a little deeper research.

Reviews by Card Users

Reading online reviews by card users is the best way to find out some “unbiased” information.  It is important to note that for the most part consumers are more likely to post a review about a product or service when they are not happy rather than when they are happy.

Do not be alarmed if the negative reviews outweigh the positive reviews but make sure you do pay attention to them.

Negative Credit Card Reviews

You will find many negative credit card reviews about most of the larger credit card programs.  Since there are more people with those cards they will typically have more positive and negative reviews.

Take your time to read the reviews carefully.  Determine for yourself whether or not you think the review is justified.  You may find some complaints to be meritless.  For example a complaint that the card was declined because someone was over the limit is not necessarily a complaint you need to focus too much attention on.

See if there is a common thread to the complaints.  If the postings are all about the same general problem then you will need to give those complaints more merit.  You also have to determine if the problem being identified is something that is or is not a concern for you.

You should also take note of the dates of the complaints.  You may find the complaints outdated and therefore may give them less consideration.  For example, if the complaints are about an online system and the complaints are several years old there is a good chance the problem has been resolved.

Positive Credit Card Reviews

Positive credit card reviews should also be read.  You want to find out what the users really like about the card.  You may find out that the card has other benefits that you were not aware of which make the card more attractive to you.

When you read positive reviews you should check out the dates as well.  You may find out that a particular reward being mentioned is no longer applicable.

The key thing to remember is that you should take the time to read both positive and negative reviews about credit card programs in Australia before you make the final decision about which card to apply for.

Make sure you protect yourself when using your credit cards.

Always Take Your Credit Card Receipts

You should always take your credit card receipts.  Never leave behind a credit card receipt that can open a doorway to having your identity stolen.  Every credit card receipt should be taken.  If you do not keep receipts for any reason make sure you destroy the receipt completely.

If you are offered the option of getting a receipt or not getting a receipt make sure you get it and either file it or destroy it.  The receipt may still be printed and you do not want to assume that the clerk will properly destroy it for you.

Review Your Credit Card Receipts

Make sure you review your credit card receipts and confirm that the amount on the receipt is correct.  If it is not correct make sure you get the transaction voided and entered properly.  Ask for a copy of the void receipt and keep it so you can confirm you were not improperly charged.

After you receive your credit card statement you want to check again and confirm the amount on the credit card receipt matches the amount on your credit card bill.  If there is a discrepancy you need to contact the vendor and perhaps even the credit card company.

Fight Surcharges

Surcharges have become common place with credit card companies. Many surcharges are completely legitimate but some may be questionable.  Make sure you question any surcharges you do not agree with.

Credit card companies have some flexibility with surcharges.  You may not always be right or always win but it is worth challenging surcharges at times.

If you find that a common activity of yours (like traveling overseas) results in surcharges you will want to speak to the company and see if there are any better credit card options for you.

Only Shop on Secure Websites

If you are one of the hundreds of millions of people who will shop online for something this year make sure you are buying from a secure website.  Confirm that the URL for the page you are entering your credit card information on has https rather than http (this designates a site using a secure server) and that the bottom right corner of the browser has a “lock” insignia.

While shopping, if you receive a warning about the security certificate on a websites you may wish to stop your purchase from that site.

Bottom Line About Protecting Yourself

If you take these few precautions you will be ahead of the game.  Protecting yourself is something you need to do aggressively.  If you get too lax or passive you will be easy prey for credit card companies, vendors or scammers.

Australian credit cards are safe to use but make sure you take extra precautions as well.

Some consumers specifically get a credit card for a major purchase.  This can be anything including furniture, appliances, electronics, etc.

Before you make the purchase here are some things to factor into your decision about whether or not to use a particular credit card or when to use the card.

Introductory Offers

Many credit card companies have introductory offers that include a period of time where you get a very low interest rate.  This may be an ideal time for you to make a major purchase.  Here are some credit card companies that were offering some good introductory rates:

• Aussie MasterCard
• Bankwest Lite cards
• Citibank Clear
• St. George Vertigo
• Woolworth’s Everyday Money Card

If you are unable to secure a new card in time for the purchase you can consider putting the purchase on a different card and then use balance transfer options to move it to a card with a lower interest rate.

Here are some credit cards that offer good rates for balance transfers:

• ANZ Low Rate Card (0% for 6 months)
• Bankwest Lite Cards (3.99% for 9 months)
• Citibank BP Card (2.9% for 12 months)
• Citibank Clear Visa (0% for 6 months)
• Citibank Silver (2.9% for 12 months)
• HSBC Credit Card (0% for 6 months)
• St. George Vertigo (2.99% for 6 months)
• Suncorp Clear (2.9% for 12 months)
• Westpac Earth (0.99% for 6 months)

Free Interest Shopping Days

Save money on your purchase by doing it on a free interest shopping day. The credit card companies will offer a different number of free interest shopping days.  Many offer up to 44 or 55 of these shopping days each year.

You will want to confirm if there are any restrictions and consider making any major purchases on one of these days.

Discounts, Warranties and Assurances

If you are going to make a major purchase you should also see if any of your credit cards offer a discount at a particular retailer.  This can save you considerable money.  Also find out what purchase assurance policies the credit cards have.

Some credit card companies offer extended warranties and other consumer protection for purchases.  This is important especially if you are making a major purchase.  You may determine that one of your cards is better than another once you factor in these protections.

You should also find out if you ultimately do a balance transfer whether or not you lose those protections.  For the most part you should not but again it is important to ask questions before you make the final decision about which card to put your purchase on.

If you take the time to look into these things before making the purchase you can potentially save a lot of money and future problems.  Use the card that is best based on the criteria outlined above and any other factors you think are important.

Credit Cards and Balances

There are different types of credit cards including major credit cards, store credit cards and petrol credit cards.  Very often consumers open credit accounts without thinking of the long term impact of having so many open accounts.

First, keep in mind that every open account means that credit has been extended to you.  This is something future creditors will consider.  If you have too much available credit there may be a concern that you will get into trouble staying on top of your credit card debt.

If you have open credit card accounts that you do not use often or use at all you may wish to consider closing the accounts.  If you are going to close the account make sure you contact the credit card company and find out the procedure to close the account.  Simply cutting up your card and not using the account is not sufficient to close it.

Aside from keeping on top of the amount of available credit you have it is important that you keep tabs on the size of your debt.  Credit card debt can add up quickly.  Interest rates may increase based on the size of your balance or a number of other factors so make sure you keep a close eye on your overall debt.

Payments

It is important that you make all your credit card payments on time.  Late payments will appear in your credit file and damage your credit rating.  At the very least you should make the minimum required payment on all of your credit cards.  If possible you should always pay more in order to start to lower your overall debt.

Make sure your payments arrive at the credit card company in time and that you sent in any payment coupon or billing statement needed.  If you make your payment online make sure you keep your reference information.

Reviewing Your Credit File

Review your credit file at least one time per year.  Make sure the information is accurate and dispute any information that is inaccurate.  If you do not know something on your credit file make sure you find out what it is or dispute it.  You may be the victim of identity theft.

If your credit cards reported late payments on your credit file you should contact them and ask them to remove that from your credit file if it was not accurate. If they are unable or unwilling to help then you need to find out the process to dispute it directly.

Stay on top of your credit file.  Know what is in it and do your best to stay on top of all of your credit card payments and other debts.  If you keep these things in mind you can protect your credit file.

The first line of defense is you.  If you are diligent you will minimize the possibility of having your identity stolen.  There are a few things you can do to make it more difficult for someone to steal your identity.

Never Throw Credit Cards Away

You never want to discard credit cards intact.  It is important that credit cards be cut-up or shredded before they are discarded.  Even if the credit card has expired it is important that it be destroyed properly.

If you discard or misplace a credit card you should request a new credit card number rather than a replacement card with the same credit card number.

Be Careful with Credit Card Receipts

Credit card receipts should never be left behind or discarded.  If you wish to discard of your credit card receipts make sure you shred them or otherwise destroy them.  An intact credit card receipt can give someone enough information to potentially steal your identity or use your credit card information.

It is also important to keep your credit card receipts so you can compare them against your statement when you receive it.

Purchase from Home Computer Only

Never make online purchases from shared computers.  Computers can store data without you being aware.  If you are going to make online purchases you should do so from your home or work computer.  Never use a public or shared computer for online purchases.

When you use a credit card online you also want to make sure you are purchasing from a secure website. When you are on the webpage where you are entering your credit card information make sure the URL starts with https rather than http.  This indicates that the webpage is on a secure, encrypted server.

If you get any warning messages from your browser you should not enter your credit card information on that website.

Credit Card Statements

Credit card statements should be thoroughly reviewed and never discarded intact.  Review all charges and fees on your credit card statement and inquire about anything you are not able to identify.

If you are going to discard credit card statements you should shred them or otherwise destroy them.

Fraud Protection Programs

Many major credit card companies offer fraud protection, in fact most do.  It is important that you contact your credit card companies and find out what fraud protection they offer.  If you do not find that he company has sufficient fraud protection you may wish to apply for a credit card from a company that offers greater protection.

Some of the companies that offer the best fraud protection include:

• American Express
• ANZ
• Citibank
• National Australia Bank

Every credit card company is going to have a different policy pertaining to how much and how quickly your credit card restores funds used fraudulently. This is important information to know before you actually need it (hopefully you never do).

Before you start researching Australian credit cards you want to take a few minutes and get ready.

Australian Credit Card Research – Start with Your Dream List

The first thing you should do is to create a list of things that are important to you.  These are the things that will make the credit card fit your needs.  Do not worry whether or not you think you will find all of the things on the list that is not important right now.

Your list can include things like:

• A desired introductory rate
• A maximum interest rate
• A specific rate for balance transfer
• Annual fee maximum
• Interest rate for cash
• International surcharges
• Protection policies
• Specific rewards you are interested in (travel, cash back, etc)

Though the above list is in alphabetical order you will want your list to ultimately be in order of importance with your most important requirements and desires at the top.

Australian Credit Card Research – Starting Your Comparison Table

After you compiled your wish list the next thing you want to do is some basic research online so you can create a list of available credit cards.  You will want to create a comprehensive list. To get you started here are some of the banks you will want to research card options for:

• ANZ
• American Express
• Aussie
• Bank of Queensland
• Bankwest
• Bendigo Bank
• BP
• Citibank
• Commonwealth Bank
• Coles Group
• CUA
• GE Money
• HSBC
• Macquarie Bank
• National Australia Bank
• St George
• Suncorp
• Virgin
• Westpac

There are other financial institutions that also offer credit cards but the above is a good list to get you started.

Australian Credit Card Research – Start Filling in Your Table

Now that you have your table set up it is time to start filling it in.  You want to go one by one through the credit cards and get the answers to each of the things on your wish list.  You can put a check-mark or “x” in the “boxes” for those cards that meet your criteria.

As you work your way through the list you will start to see which cards are the best and worst for your needs.

Australian Credit Card Research – Final Steps

After completing the table you will be able to create a short list of the best credit card options.  Once you have this short list you can dig deeper.  This is when you will compare and contrast each credit card based on the criteria you set up.

You want to know which offers the lowest rates, which has the best rewards program, etc.  The key is to dig deeper.

Once you have done this you can determine which Australian credit card is the best one for you.

Many Australian credit card companies want to see your established credit history before they approve your credit card application.  Without having credit cards it is not easy to establish a credit history.  So the question you may have is – how do you establish credit?

Credit Building Credit Cards

Rest assured that there are credit cards that are designed specifically to help someone establish a credit history.  These credit cards generally have more flexible rules for approval.  Keep in mind that establishing credit is viewed differently than re-establishing credit.

Credit establishing credit cards are geared towards consumers who do not have a credit history.  This is different than consumers who have bad credit and want to fix that.

Some credit card companies will clearly label their credit cards as credit establishing cards.  You may also find that some credit card companies market their cards as “student” cards or a “first credit card”.

How Credit Building Cards Differ

Credit cards geared towards people trying to establish their credit history will differ from traditional credit cards.  They often have lower credit card limits.  The card limits will change as the person proves that they are credit worthy.  It is important to note what the credit limits on a particular card are so you can determine whether or not it meets your needs.

The interest rates on credit building cards may be higher than on traditional cards.  This is because the bank is taking a risk on extending credit to someone who has no history or a limited history of receiving credit.

Some of these cards will offer special incentives for students including discounts, etc.  This should be factored into your decision making process about which credit establishing Australian credit cards you want to apply for.

Pre-Paid Australian Credit Cards

You can establish (or re-establish) a credit history with a pre-paid credit card.  These cards are established for this purpose.  Basically your credit limit is the amount of money you pay in advance to your credit card.  In essence you are extending yourself credit.

Many pre-paid credit cards require you to immediately fund the card.  This means you will need to be prepared to put money on your pre-paid credit card during the application process.  Make sure you know this in advance.

Some of the pre-paid credit card companies allow you to grow your limit over time.  Basically, they will extend some amount of credit based on the amount of money you put down.  For example, if you put down $500 they may give you a $750 line of credit.  This minimizes their exposure and makes someone a better credit risk.

Bottom Line About Establishing a Credit History

If you are looking to establish a credit history in Australia you want to examine credit card options that are specifically designed for people looking to establish their credit.  These can be traditional credit cards or pre-paid cards.

Apply for the credit card that makes the most sense for your needs.

Here is a short guide about how you can find the best credit card program for you.

Step 1:  Start with a List of Australian Credit Card Companies

The first thing you need to do is to create a list of Australian credit card companies and the cards they offer.  Remember that a credit card company can have any number of different card programs.

Here is a list that can help you get started:

• American Express
• ANZ
• Aussie
• Bank of SA
• Bankwest
• Citibank
• Commonwealth Bank
• HSBC
• Macquarie Bank
• National Australia Bank (NAB)
• St. George Bank
• Suncorp
• Westpac
• Woolworth’s

Step 2:  Create a List of Desired Features

After creating your master list of credit card options in Australia you want to create a second list.  The second list is a list of features that are important to you with respect to credit cards.  The list can include things like maximum interest rates, annual fees, rewards points, insurance, warranties, etc.

Put the list in order of importance to you.

Step 3:  Create a Chart

Create a chart that demonstrates which cards meet your criteria for each category.  The cards that have the most characteristics you want are the cards you should consider. It is important to focus on your major concerns first.

The chart should help you narrow down your list of potential credit cards.

Step 4: Research Your Short List

Doing some research about the short list of credit cards you are considering will help you start to learn some additional important information.  You want to learn about people’s experiences with the cards.  Online reviews posted by actual card users can help you decide whether or not you want a particular card.

The research you do should also include learning about the criteria for approval.  Most credit card companies will post eligibility requirements on their website.  You will want to confirm that you meet their eligibility requirements prior to applying for a card.

Step 5:  Do a Final Check

Before you do your application you can do a final check of the program.  Make sure you fully understand how the program works including any rewards programs.  Some of the questions you may want answers to are:

• What are the limits to the rewards?
• Do the rewards expire?
• What costs are associated with any of the benefits (e.g. insurance)?
• What is the policy for rate increases?
• Is any aspect of the program temporary (e.g. introductory offers)?
• Are there any potential surcharges for international use or purchases?
• Are there any costs for additional cards?

Once you have answers to the above questions and any other questions you have you can go ahead and complete your online application.

A charge card allows you to make purchases on the card.  The full balance is due at the end of the period (usually every 30 days).  Failure to pay the full balance results in substantial late fees and other penalties.

Which is Right for You?

Depending on your purpose for getting a credit card or charge card one will likely be your better option over the other.  If you know you can pay the full balance at the end of each month you will likely want a charge card.  If you need credit to help you with cash flow purposes then you should consider a credit card.

Popular Credit Cards in Australia

Program terms change often, however, to help streamline your search here are some of the best credit card programs in Australia at the time of this writing.

ANZ Visa Rewards Credit Card

• 1.5 Reward Points earned for every $1 spent using the ANZ Rewards Visa card
• Points redeemable at retail outlets, for gift cards, travel options and much more
• 19.49%p.a. interest rate on purchases (20.74%p.a. interest rate on cash advances)
• Up to 44 days of interest free shopping

Citibank Clear Platinum Credit Card

• $49 annual fee (first year); $99 annual fee thereafter
• 0% p.a. on balance transfers for six months
• 11.49% p.a. interest on purchases
• Citibank World Privileges (includes 25% discount on select travel, dining and shopping)
• Visa Concierge Service
• Citi World Privileges and many other rewards and privileges

Citibank Gold Credit Card

• 1.9% p.a. interest rate for 12 months for balance transfers
• Credit limits of up to $25,000
• International Travel Insurance
• Citibank World Privileges
• Up to 55 days of interest free shopping
• Citi World Privileges and many other rewards and privileges

St. George Vertigo MasterCard

• 2.99% p.a. interest rate on purchase for up to 6 months
• 2.99% p.a. interest rate on balance transfers for up to 6 months
• 12.49% p.a. interest rate on purchases
• Up to 55 days of interest free shopping
• Phone and online banking
• $55 annual fee
• Discounts and other privileges

Popular Charge Cards in Australia

Some popular charge cards in Australia include the below cards.

American Express Platinum Cash Back Card

• 5% cash back for the first 3 months (up to $300) for the first $6000 spent
• 1% cash back after the first 3 months (or after the first $300 in cash back)
• Annual fee of $99
• 20.49%p.a. interest rate on purchases
• Up to 44 days of interest free shopping
• Platinum Services 24/7
• Platinum Protection (purchase protection)
• Supplementary Credit Cards (at no cost)

David Jones American Express Card

• 13,500 Bonus Points after you use the card (outside of David Jones).  You must use the card outside of David Jones within 7 days of receiving the card and you will also receive a $100 David Jones Gift Card
• Gift Points can be turned into David Jones Gift Cards, Travel, etc
• Up to 5 years interest free when you purchase furniture, bedding, electrical items or homewares of $500 or more at David Jones
• No cap or expiration of points.
• 18.99% p.a. interest on select purchases
• 99% annual fee

American Express Gold Credit Card

• $0 annual fee
• Travel points with 6 airlines
• Earn 1 Membership Reward Point for every $2 spent
• Receive up to 44 days of interest free on select purchases
• 20.49%p.a. interest rate on purchases

Credit Cards – How Many is Too Many?

Consumers often have multiple credit cards.  This includes major credit cards as well as store credit cards and petrol cards.  How many of these cards are too many will depend on your ability to stay current on all of the cards.

If you carry too much debt (or even too much available credit) it impacts your credit file. Creditors may be concerned by either how much debt you have or how much credit is available to you (potential debt).  It is important to keep this in mind because your credit file will impact your ability to get a mortgage, car loan, etc.

How to Close a Credit Card Account

If you determine you need to close a credit card account you want to make sure you do it properly.  The first thing you should do is contact the credit card company and ask them how to close an account.  Each company has its own policy on this and you want to make sure you do it properly.

After you have closed the account with them you should destroy any and all cards you have from them so they cannot be used.  Do not simply discard them.  Make sure you destroy them.

Monthly Payments

At the very least you want to make your minimum monthly payment.  It is a much better practice to pay off your entire balance or as much of it as you can afford to.  Remember, your credit card balance is rising as you pay interest on your outstanding debt.

If you allow your balance to continually rise you will eventually exceed your credit limit and damage your credit file.  Make sure you stay on top of this and pay down your debt as much as you can.

A good practice is to pay for your purchases before the bill even arrives if possible.  You will establish a good credit rating this way.

Review Your Bill Carefully

A careful review of your credit card statement is important.  Make sure you know what each charge and verify you were charged for the proper amount.  Also it is important that you review any fees on your bill and know what they are for.

Do not be afraid to question your bill.  If there are fees or other charges on it that you do not understand contact your credit card company immediately.

If you keep these practices in mind, you will be ahead of the game.  Many credit card users fail to practice these very basic procedures.  Following them will help protect your credit file as well as your wallet.  Credit cards should be taken seriously.  Proper use of credit cards will help your future attempts to get credit.  Improper credit card use can damage your credit file.

More Information

Welcome! To make it simple, here’s our run down on the St George Vertigo Mastercard

If you want a funky, low rate credit card that’s ready to shop when you are, the St. George Vertigo card might be just be your new best friend.

If you love to shop, this lower interest rate credit card may be just for you.  The St George Vertigo Card offers a terrific interest rate of just 12.49% on purchases.

If you want to transfer a balance, you can also take advantage of the 2.99% interest rate for 6 months. With an annual fee of just $55, it really is a great value card.

Top Five Benefits:

• 2.99% on balance transfers for 6 months
• A low 12.49% currently ongoing, 21.24% if you want cash.
• A low $55 annual fee
• Add an additional cardholder to your account at no extra cost

Card details

Annual Fee: $55

Interest Rate: 12.49% p.a. on purchases

Interest Free Period: up to 55 days

Application Criteria: Good Credit Rating, Over 18, Working

Credit Card Type: MasterCard

Cash Advance Rate: 21.24% p.a.

Rewards Program: N/A

Balance Transfer Rate: 2.99% p.a. on balance transfers for 6 months

Other Stuff & words from our guru.

Your St George Vertigo Card also offers the protection of the Falcon Fraud system, which provides 24×7 monitoring and detection of suspicious transactions.  You are also protected against unauthorised transactions provided you did not cause or contribute to the loss. Cardholders also benefit from instant discounts and added extras with St George Instant Benefits.

As with most credit cards, you will need to be a permanent resident of Australia, over 18 and have a good credit rating. Once you make up your mind, St. George tells us you will complete your application in as little as 10 to 15 minutes.

12.49% p.a. and variable on purchases. Interest rates subject to change.

More Information

Aussie Credit Card

Aussie boasts one of the most competitive credit cards on the market, delivering value for consumers synonymous with the Aussie brand. Here’s our summary of this great value card:

The Aussie MasterCard gives you the best of both worlds.  You get a low 2.99% for the first 6 months on purchases (reverts to 12.99%) with an annual fee of just $49. You also get a choice of initial offers including a great 2.99% balance transfer and purchase rate for the first 6 months.  If you prefer, you can pay 3.99% for 12 months on a balance transfer.  Whatever you need; it’s your choice.

Top Five Benefits:

• 2.99% first 6 months (reverts to 12.99%) interest on purchases
• A low $49 annual fee
• Choice of promotional deals for purchases or balance transfer
• Up to 55 days interest-free credit on purchases
• Fraud protection

Card details

Annual Fee   $49

Interest Rate   2.99% first 6 months (reverts to 12.99%) on purchases

Interest Free Period  up to 55 days

Application Criteria  Minimum Income $15,000 p.a.

Credit Card Type  MasterCard

Cash Advance Rate  19.79% p.a.

Rewards Program  N/A

Balance Transfer Rate  Various offers available

Other Stuff & Words From Our Guru

As well as superb rates on purchases and balance transfers, you will also benefit from many of the additional services offered by MasterCard.  This includes MasterCard applause™ – exclusive tickets to theatre, dance, musicals and sporting events.  Aussie MasterCard holders also benefit from discounts at over 2,500 restaurants through the eDine service and membership of the Aussie Wine Club by Cellarmasters.

Standard variable interest rate is 2.99% first 6 months (reverts to 12.99%) on purchases and 19.79% p.a. on cash advances.  Interest rates current and is subject to change.

More Information

NAB Standard Card

Do you want a low cost Visa or MasterCard which you can link to your FlyBuys membership?

The NAB Standard Card gives you the choice of Visa or MasterCard, all for a low annual fee.  With competitive interest rates, emergency travel assistance and purchase protection, this is the perfect card for your everyday shopping needs.

You can also add an additional cardholder to your account and benefit from up to 44 days interest free.  And, you can link your card to your FlyBuys membership and earn FlyBuys points on all your eligible purchases.

Top Five Benefits:

• A low $30 annual fee
• Purchase protection insurance
• Add an additional cardholder at no extra cost
• Link your card to your FlyBuys membership scheme
• Emergency travel assistance 24 hours a day, 7 days a week

Card Details

Annual Fee $30

Interest Rate 19.49% p.a. on purchases

Interest Free Period Up to 44 days

Application Criteria N/A

Credit Card Type Visa or MasterCard

Cash Advance Rate 19.49% p.a.

Rewards Program FlyBuys

Balance Transfer Rate 4.99% p.a. on balance transfers for up to 6 months

Other Stuff & Words From Our Guru

You can link your NAB Standard Card to your FlyBuys membership at no additional cost and earn points towards a great range of credit card rewards as you spend.  Cardholders earn 1 point for every $5 spent on purchases in a statement period.  You can also accumulate points faster when you use your linked NAB Standard Card and present your FlyBuys card at FlyBuys participating businesses.

Cardholders can also benefit from NAB Cellar Selections for great offers on a wide range of wine.

NAB reserves the right to withdraw any balance transfer request, in full or in part at its discretion. Special Promotion Transfer rate of 4.99% p.a. will apply to any balance transfer amount for up to 2 non-NAB credit or store cards for the period from the time the balance transfer is made to your account for six complete monthly statement periods, unless the balance transfer amounts are paid off earlier. These balance transfer amounts are designated cash advances for the purposes of the terms and conditions applicable to your credit card account. If at the end of the six month statement period applicable to any balance transfer amount any portion of that balance transfer amount is owing, that amount will attract interest at the (Cash Advance) Indicator Rate (as advertised from time to time) then applicable to your card. A payment to your NAB Credit Card account under this Special Promotion will be applied to the balance transfer amounts (designated cash advances) before any other cash advance or purchase amounts. The terms and conditions applicable to your credit card account set out in detail the order in which payments are applied. Please note the promotional rate of 4.99% p.a. for up to six months on balance transfer amounts must be applied for at the point of full card application. The promotional rate of 4.99% p.a. for up to six months on balance transfer amounts will appear separately on your NAB Credit Card statement and only applies to balance transfers from 2 non-NAB credit card or store card accounts.

Terms and conditions apply and are available upon registration for the service. Fees and charges may be payable.  Annual card fee and interest rates are subject to change.

Grace Periods

Credit card companies offer a grace period.  A grace period is basically a certain number of days after the due date that they will accept payment without penalty. Each credit card company will have its own policy on this.  It is even possible for each credit card program within a company to have different grace period rules.

It is important that you do not get in the habit of automatically adding the grace period to the due date and getting your payment into the company just under the wire every month.  It is too easy for something to go wrong and your payment to be received late.

Also keep in mind that the credit card company will not receive the payment the same day you send it meaning if you send it at the end of the grace period you will likely have a late payment.

Advance Notice of Late Payment

If you know in advance that you will be unable to make your payment on time you should contact the credit card company and ask them if they can move your due date to a date when you know you can make the payment.

Many credit card companies are more than willing to work with their customers.  Some companies have a policy specifically on this point and you can and should take advantage of it when you need to.

Do not wait until after the payment is late to contact them.  Once you know that the payment cannot be made on time you can contact the customer service department and find out your options.

First Time or Infrequent Late Payments

If you make a late payment for the first time you should contact your credit card company and explain to them the reason for the late payment.  You may be able to convince them to waive the late fee and penalties.

Honesty is typically the best policy.  Chances are the person you are speaking has already heard every possible scenario under the sun.  You may be surprised at how accommodating many credit card companies can be.  Their goal is to keep you as a happy customer.

Even if it is not your first late payment but you make very infrequent late payments the credit card company may be willing to waive all or part of the late fee.

Frequent Late Payments

If you find that you are frequently late on your payments you should see if the credit card company is able to put you on a billing cycle that is more in tune with your cash flow.  If you are honest with the company they may be able to work out a payment schedule that will work for both you and the company.  It is worth the effort to find out what they can do for you.

Traveling – Protect Yourself

If you are traveling and your card is due to expire during your trip or in close proximity to the end of your trip it is a good idea you want to make sure you speak to the credit card company.

You do not want to risk being out of the country and your credit card expiring. Though most credit card companies are good at making sure a new card arrives before the other card expires it is not worth the risk.

When you travel make sure you also have a copy of your credit card front and back in case you lose the card.  Keep a copy of it at home as well.

You should try to memorize the security code on the back of your card (the last 3 digits on a Visa or MasterCard or the last 4 digits on an American Express).  The printing on the back of the card often gets very light or disappears completely over time.

Changing Addresses

If you change addresses make sure you notify your credit card company.  When your credit card is set to expire, the credit card company will send the card to your current address.  You do not want the card to either be sent back to the credit card company or be left at your old home.

It is important that your credit card company is always aware of your best post address.  If you know you will be moving around the time your card is set to expire you can try to get your new card prior to your move.

Contact the customer service department of your credit card company and let them know about your pending change of address as well as the expiration date of your card or cards.

Security Code

The security code on the back of your card is needed when you make a purchase or payment online or through the telephone.  Make sure you either memorize the number or keep a copy of the back of your credit card somewhere safe.

The natural sliding of your credit card into and out of your wallet or through swipe machines often lightens the printing on the back of your card or removes it completely.  You will either have to know the security code on the back of your card or order a new card when this happens.

These may all seem like minor points, however, they are points to keep in  mind so you do not find yourself stuck with an expired card or a card that you cannot read the security code on the back of.

Remember to destroy expired cards before discarding them.  Never throw away any credit card prior to destroying it for your own protection.

Make Sure the Site is Secure

You want to make sure the website you are purchasing from is a secure website.  You never want to enter your credit card information on a website that is not using encryption technology.  You check this by confirming that the website’s URL starts with https rather than http. You can also check in the very bottom right-hand corner of the browser to make sure there is a lock symbol.  This indicates the site is secure as well.

If your browser gives you a warning about the SSL certificate on the site do not enter your credit card information on it.

Research the Retailer

Before you buy something from an online retailer you should do some quick research.  All you need to do is a Google search for the name of the retailer and the retailer’s URL.   You will easily find any reviews about the retailer.

Take the time to read them, especially any negative reviews.  This will help protect you from making a bad purchase.  You may learn that the products or services are not good or the retailer is not good.

A few minutes of online research can save you both time and money.

Check Your Statement

When your statement comes in you want to make sure the charges are accurate.  If there is any discrepancy, make sure you contact the vendor and find out why there was a discrepancy.  If they are unable to give you satisfaction make sure you contact your credit card company immediately.

Keep in mind that when you buy from an overseas vendor there may be surcharges.  Also, the exchange rate may be different between the day you initiated the purchase and the day the purchase went through.  This can have a noticeable impact on your charged amount.

Keep Copies of Everything

Make sure you always print and save copies of receipts, e-mails and other communication between you and any online retailers you purchase from.  Sometimes you will get a confirmation code at the end of your purchase.  Do not assume the code will be sent via e-mail.  Print out the page with the code on it for your reference.

When your products arrive make sure you go through the box carefully and check the packing slip against your purchase receipt.  You want to make sure you received your entire order and that the prices match up with the prices you thought you were paying.

Again, if there are any discrepancies you want to contact the vendor and your credit card company quickly.

If you take these things into consideration you will be able to buy online with a little more confidence.

Many consumers make the mistake of assuming if they stop using a credit card the account simply goes away.  This is not the case.   You need to actively go through specific steps to close a credit card.

Paying Off the Right Amount

The first step in closing a credit card is to contact the credit card company and ask them for a current pay-off amount (which will include interest) as well as the per diem interest on your account.  This will let you know how much interest to include in your payment.

Often consumers send a pay off in the wrong amount and a small balance remains open on the card. This can ultimately lead to late fees and penalties if it is not paid off.

Confirming the Procedure

When you contact the credit card issuer about the pay-off amount you should also ask them what the policy is to close an account once they receive the final payment.  Make sure you fully understand what is required.

If the policy is not clear ask them to explain it again or send it to you via email.  They may be able to refer you to a page on their website that outlines the process.

Follow the Process Carefully

Make sure you follow the process carefully and keep copies of any e-mails, letters, faxes, etc. that you send the credit card company along with the dates the information was sent.

You do not want to get into the mindset that you were “close enough”.  You want to protect your credit file and your wallet so take the time to follow the procedures set out by the credit card company to close your account properly.

Confirm the Account was Closed

After following the procedures you want to verify the account was closed.  Contact the credit card company and ask them the current status of your account.  If they tell you that the account is still open you want to make sure you take care of it right away.

You should also verify how the credit card company reported the card being closed on your credit file.  It is important that your credit file reflect that you closed the account rather than the credit card company closed it.

Bottom Line About Closing a Credit Card Account

It is important that you close your credit card accounts properly.  Follow the procedures set up by the credit card company.  Follow up with them to confirm the account has been fully closed.  Make sure you destroy any cards that you have in your possession or retain them. Do not throw away cards even if the account has been closed.

Confirm that the cards were reported as closed by you on your credit file and then you are all set.

Interest Rates and Fees

You want to make sure you understand the interest rate and fees associated with taking out cash against your credit card.  This may help you make a decision as to whether or not you think it is a good idea.

Many credit card companies charge significantly higher fees for taking a cash advance as compared to making purchases.  In addition to the interest rate being higher the credit card company may also charge you fees (in addition to any ATM fees).

For the most part you should avoid taking out cash advances from your credit card unless it is an emergency situation.

Cash in Foreign Countries

If you are taking out cash in a foreign country you may get sticker shock.  In addition to paying very high interest rates and most likely other fees you may find that you received a very poor exchange rate.

The ATM may dispense Australian dollars in that case you should see on the ATM machine what your fees will be.  Most ATM machines will not dispense Australian dollars.  The machine often will display what the exchange rate will be.  However, depending on a number of variables the ultimate exchange rate may differ.

In the end the exchange rate will be determined on the day the credit card company processes the transaction.  In some cases it may be one or more days later and the exchange rate may have changed.

Best Practices

As a general rule you only want to take out cash advances when you absolutely must.  If possible you are better off using your credit card to make purchases rather than taking out cash.  You can find out how your credit card company handles the purchase of travelers checks, etc to see if that is a better option.

Another option is to look into buying a pre-paid local debit card.  You may find that it is more cost effective for you to purchase one of these cards and use that to withdraw cash if needed.

If you do withdraw cash from your credit card you want to make sure that you pay that back as quickly as possible.  If you have a balance on your card you want to find out how your credit card company applies payments.  Ideally you are paying off your larger interest rates (the cash advance) prior to the lower interest rate purchases.

Ask your credit card company what their policy on this is so you can be sure to minimize the time your cash advance is accruing interest that you must pay.

Keep these things in mind when you are considering a cash advance against your credit card.  If you ultimately choose to take an advance you want to do your best to pay it off quickly.  A phone call to the credit card company should give you the answers you need.

Mortgage or Rent Payments

Most consumers do not consider earning points by making their rent or mortgage payments through their credit cards.  Often these are the biggest bills you pay.  You can earn substantial rewards for making payments through your credit or debit card that is tied to your rewards program.

You should speak to your loan company or landlord and determine if it is possible for you to make your payments in a way that will earn you reward points.  Some of them will allow it and some will not.  It is definitely worth asking.

If you are unable to directly pay via credit card you may wish to see if you can purchase money orders or a similar type of transferable currency that your landlord or bank will accept.

Bill Payments

Any and all bills you can pay through your rewards program should be paid that way.  You can earn points quickly if paying bills through your credit or debit card associated with the rewards program.

You need to contact the company you are paying your bill through and confirm that you can make payments in this manner.  The majority of companies will allow you to make payments this way.  You also want to make sure that your credit card company will credit you for the amounts of the bills.

Daily Expenditures

If you get in the habit of using your credit card for all your daily purchases you will be able to earn points quickly.  Though the purchase amounts may be small they will add up quickly.  Most places you make purchases will accept credit cards.

Make sure your purchases are going through as credit purchases in order to earn points.  It is a good idea to check your statement when you receive it so you can identify which purchases are counting and which are not.

Use Card Responsibly

Use your credit card responsibly.  You should make a payment equivalent to the charge before the bill even arrives.  Instead of writing a check to your creditors you should write one to the credit card company immediately.

Paying your credit card bill before it is due is also a good way to establish a good credit file.  In essence you will be earning points and improving your credit at the same time.

Consider these techniques to earn more reward points.  Once you see how many points you can earn you can make sure you are in the best rewards program based on your credit card usage and the rewards you are most interested in.

Australian credit card companies should allow you to earn rewards by using the cards in the way described above.  Make sure you will earn credit and go ahead and enjoy your reward points.

There are many different reasons people use debit cards.  Students may receive debit cards for emergency use while at university.  Debit cards (pre-paid) can be given as gifts or kept for emergency purposes.

If you are looking for Australian debit cards you may wish to consider one of the following programs:

• NAB Visa Debit Card
• ANZ Access Advantage with Everyday Visa Debit
• St. George Visa Debit
• NAB Gold Visa Debit
• Westpac Debit MasterCard

These programs are fairly similar in structure and fees, though there is enough variation that you may wish to look into each and compare.  The five listed above are the best in Australia.

Debit Cards for Students

If you are going to give a student a debit card for while they are at university you want to make sure there are sufficient and easy ways for you to deposit more into the debit account.  This is an important consideration that sometimes gets overlooked.

You want to make sure both you and the student will have the ability to deposit into the account as needed.

Debit Cards for Online Purchases

Some consumers use debit cards for online purchases in order to minimize their exposure to fraud, etc.  If you are going to use your debit card for online purchases you need to make sure you factor any exchange rate differences into the purchase amount to ensure you have sufficient funds available.

You can confirm how your debit card handles purchases made in foreign currency.

Debit Cards for Travel

If you are going to use debit cards for travel you will want to reconfirm with the debit card provider that you can use the card in the destinations you are traveling to.  You will also want to know if there are any fees or surcharges that may become an issue.

The more information you have in advance of your trip the better equipped you will be.  If necessary you may even decide to obtain an alternate card or use a different source of funding for your travel.

Debit Cards as Gifts

Debit cards can make a good gift. You can choose either just a prepaid card that expires after the amount purchased is depleted.  A better alternative would be a debit card that either you can replenish (e.g. future gifts) or the recipient can replenish the card directly and continue to use it.

Limitations to Debit Cards

For the most part debit cards can be used anywhere Visa or MasterCard is accepted.  You can ask the debit card company if there are any known limitations for the card so you do not run into any problems that could have been avoided.

With these things in mind you can apply for an Australian debit card.

It is important that you choose the right Australian credit card for students and teach your children how to use them responsibly.

Australian Credit Cards for Students

There are a number of credit card programs specifically for students.  They will generally have the option of adding a co-signer and will offer some type of rewards program or discount program that is attractive for students.

It is important that you read the program carefully so you can identify what the program includes.  You want to know that there are set spending controls, clearly defined fees and interest rates and hopefully no fees.

If the student is going to travel overseas you want to make sure that the card does not have surcharges and other fees associated with International use.  Even if you do not think your child is going to travel right away, you may want to keep this in mind when selecting the Australian credit card for your child.

Another consideration is whether or not the card will allow your child to take out cash in an emergency.  Find out the cash limits and interest rates before it is too late.

Here are some of the Australian credit cards for students that you may wish to look into:

• ANZ First Credit Card
• Commonwealth Bank Student Card
• St. George Direct
• St. George Vertigo

Responsible Use of Credit Cards

Many students are not familiar with the proper use of credit cards because they did not have any prior to leaving for school.  It is important that you speak to your child about responsible use of credit cards, especially if you are not going to see the credit card bill.

Many students misuse their credit cards and start off their credit file in a bad way.  It is important that you discuss with them what is and is not permissible.  You should also speak to them about paying their bill on time and keeping enough room on the card for emergencies.

Many of the student credit card programs allow the parents to be notified any time the card is used.  This will help you keep an eye out on your child’s credit card use.

Credit cards can cause some tension between parents and children.  It is important that they are made to understand the consequences of bad credit.  If you are able to teach your children responsible use of credit now they will benefit from it for many years to come.

Bottom Line About Credit Cards for Students

The bottom line is you should select a student credit card program after researching your options and comparing their offerings.  If you find the right program and teach your children responsible credit card use they will benefit for many years to come.

If you are a traveler you want to make sure that you choose the right credit card.  The two key factors to consider are whether or not they offer good rates for international use and what, if any, travel rewards and safeguards they offer.

International Purchasing & Use

Credit card companies in Australia, like everywhere else, will have different policies about international use of the card.  Some credit card companies charge higher interest rates.  Some add surcharges to your purchases and some do both.  You also want to determine how they do their currency exchange (rate used).

For anyone who travels internationally often it is important that you consider these things.  You may be shocked to see how quickly the fees and other expenses can add up.

The best thing to do is to look at your expenses from a recent trip. Then do an analysis of all fees, etc and compare them against other credit cards you are considering.

You may find that there are substantial differences in the fees.  There are some Australian credit card programs specifically for travelers.  Generally speaking these programs will include better fees for international travel.

Here are some of the Australian credit cards you may wish to consider:

• Emirates Citibank Platinum
• Citibank Gold
• Suncorp Platinum
• Suncorp Gold

Travel Reward Programs

Frequent travelers should consider the travel reward programs offered by the credit card companies they are considering.  Some of the programs include frequent flyer miles, hotel points, dining rewards, etc.

When you compare credit card offers you should want to make sure you review the program details carefully.  There may be aspects of the program that make it more or less attractive for you.

Travel Safety Programs

Frequent travelers like to have peace of mind.  Different credit card programs offer different safety programs.  The types of things you want to look into include:

• Access to cash
• Emergency medical care
• Emergency roadside assistance
• Lost/stolen credit card replacement
• Travel interruption insurance

A good way to select which of the Australian credit card programs are right for you is to create a wish list.  The wish list should include any and all things you are looking for.  You can consider the things covered in this article as well as anything else you consider important.

Your ability to find out the details of each credit card program you are considering will help you compare the programs to make the right determination.

Once you have applied for and received your credit card it is always a good idea to make a copy of it, front and back for your records.  You should also store all of the customer service and emergency contact information for the credit card company in your mobile phone.

If you follow these guidelines you should be able to find a good travel credit card in Australia that suits your needs.

Why Consumer Protection is Important

There are a number of reasons why you want to make sure the credit card you apply for has consumer protection.  If you buy products or services that are either defective or never arrive you want to make sure you are not going to be forced to pay for them.  If the vendor refuses to give you a refund you want your credit card company to protect you.

How many times have you purchased something that breaks right after the warranty expires?  Some credit card companies offer extended warranties on purchases you make with their credit cards.

You have likely heard the stories of people who have had their identity stolen or at least their credit card information.  You do not want to be held liable for paying for products or services you did not purchase or authorize.  Each credit card company will have its own policy about this.

Researching Consumer Protection

When you are researching which credit card or cards to apply for you want to make sure you look into what consumer protections they offer.  Though this may not be the most important thing on your list, do not underestimate its importance.

When you find information online you may discover that the credit card company offers protection but they are not entirely clear about the limits of the protection.  You may have to dig a little deeper.

If you are unable to find information on their website about their consumer protection policies you can always pick up the phone and speak to someone in their customer service department.  Ask them the questions you have about their consumer protection policies and also ask if they have that information anywhere on their website.  You can print a copy of the policy for your records.

Identify Theft Policies

Credit card companies are starting to provide more detailed information about identify theft protections and policies. Most credit card companies are taking identity theft seriously and are offering safeguards and insurance against identity theft.

You need to take identify theft serious as well.  Make sure you read the credit card company’s recommendations and understand what you can do to protect yourself from identify theft.

It is also important to know what to do if you think your identity may have been stolen.  Your credit card companies should be notified immediately and they will help you through taking care of any charges against your card as well as closing your current account and opening a new one.

You will find that most reputable credit card companies in Australia offer both consumer protection and identity theft protection and insurance.  You should always double-check and be clear about their respective policies before you make the final decision on which credit card or cards you wish to apply for.

Reading the Fine Print

It is important that you read the fine print of any credit card you are considering applying for.  You want to make sure you understand if the interest rates that are posted require a minimum number or amount of purchases.  You also want to know what fees are associated with your credit card.

Some credit cards base their fees on the number of purchases made in a month or a year.  They may charge fees based on you not meeting a minimum threshold.  As you can imagine credit card companies are in the business of making money.  If you are not using their credit card they are not making money.  They may, therefore, charge you account maintenance fees.

It is also important to know if the account can be closed for inactivity.  Every credit card company in Australia will have certain rules about how and when an account is considered inactive.  The last thing you want to have happen in an emergency is to discover your credit card account was closed for inactivity.

Review Statements and Correspondence

It is important that you read statements and correspondence received from your credit card company even if you did not use your credit card the previous month.  Human nature may be to toss the letter unopened into a file, box, desk or garbage bin.  Avoid the temptation.  The correspondence may be their informing you of a fee or account cancelation.

You can try to dispute fees but generally they do not reverse fees.

Interest Rate Changes

If you are only using your credit card for emergency purchases you may not stay on top of interest rates being charged.  Credit card companies may inform you in writing that your interest rate has changed, or when you applied for the card you may have been notified that your interest rate may go up if you fail to use the card enough.

Make sure you are aware of the interest rates before using the card.  Obviously, in an emergency situation you may not care what the interest rate is.  You can try to dispute the increased interest rate after the fact and you may or may not be able to convince them to use your previous interest rate.

Bottom Line about Emergency Use Cards

The bottom line when it comes to having credit cards for emergency purchases only is you want to make sure you choose the right card.  Some credit card programs will offer credit cards specifically for this type of use. Regardless of whether or not they specific this type of use make sure you do your homework and periodically confirm your card is in working order.

Some of the most common rewards programs are:

• Cash back
• Frequent flyer & Travel Rewards
• Loyalty points

When you are considering which credit card to apply for you may want to consider the rewards being offered by the credit card company.  If the rewards have no value to you, then you are better off ignoring the programs entirely and focus solely on fees and rates.

Australian Credit Cards – Cash Back

Consumers love to hear the term “cash back”.  Basically these reward programs offer you a percentage of your purchases back as a credit on your credit card account, as a check sent to you or as a deposit made into your bank account.

There are a number of variables that can impact cash back rewards so you want to be certain that you understand the program well.  Some of the things to look for include:

• Eligible purchases (what constitutes eligible purchases)
• Limits (minimum or maximum)
• Payout options (how they cash back is given)
• Rewards duration (are the rewards only for a specified period of time)

You may be surprised to learn that not all purchases may be eligible for cash back.  Most credit card programs exclude cash withdrawals from cash back rewards.

Also, there may be a minimum purchase requirement to be eligible for monthly rewards.  There may be a maximum purchase amount as well, so keep this in mind.

Here are some Australian credit card programs you may want to look into:

• Citibank Clear Platinum
• St. George Vertigo
• Aussie Mastercard
• ANZ Low Rate

Australian Credit Cards – Frequent Flyer & Travel Rewards Programs

Frequent flyer miles and other travel rewards programs are very popular.  Consumers can earn miles for a specific airline (or a broad list of airlines) as other travel benefits including hotel points and meal points.

As with any reward programs you want to make sure you understand the nuances of the program including any limitations, reward expirations, etc.

Though there are many good travel rewards programs here is a list of a few Australian credit cards you may want to research:

• Citibank Platinum
• American Express Qantas
• Emirates Citibank Platinum
• NAB Qantas

Australian Credit Card – Loyalty Points

Different credit card companies will refer to loyalty programs in different ways.  Basically these programs allow you to earn points that can then be redeemed in many different ways. You can use points for:

• Travel
• Hotel stays
• Restaurants
• Flowers and gifts
• Purchases at select retailers

These programs offer greater flexibility than other programs but you may also find it takes longer to accumulate enough points to make a purchase, earn a hotel stay, etc.

In the end you need to weigh the different reward programs offered by the Australian credit card companies and choose the one that is best for you.

Most credit card companies offer online applications.  For the most part applying online is fast and safe.  It is important that you take some precautions.

Online Credit Card Applications

You will undoubtedly find that the majority of Australian credit card companies offer online applications.  Some may even only offer online applications.  If you are going to apply online for a credit card you want to make sure you are careful.

The first thing you want to do is to make sure the application page is a secure page.  The way you do that is first to check the URL of the application.  The URL is the webpage address.  Make sure it starts with https and not http.  The https in the URL identifies the page as a secure page (encrypted).

It is important that all of your personal data is sent with data encryption to protect you from scammers who try to steal this information.

In addition to looking for the https, you want to look at the very bottom right corner of the browser and confirm that you see the image of a lock. This indicates the site is on a secure server.

If your browser gives you a warning about the security certificate on the page you may wish to stop the application process and contact the bank directly.

Completing Your Online Credit Card Application

The online credit card application you are working on may have one or more pages or sections.  If the application gives you the option of saving the information you entered before going to the next screen it is generally a good idea for you to do that.

To be extra diligent you can do a screen capture of each page so you have a record of the information you entered on the application.

Work your way through the application and make sure you enter the information completely and accurately.  If you do not understand anything being asked you should call the contact information.  Remember to open a new browser if you need to find the contact number or you may erase your application accidentally.

At the end of the application you may get a reference number.  Make sure you write that down.  Do not assume that you will get that information via e-mail.  Even if the site indicates that a confirmation e-mail will be sent make sure you write down any confirmation information on the site.  Taking a screen shot is even a better option.

Post-Application

After you completed the application you may get an immediate response or have to wait for a response.  If you get an immediate response and you are approved you want to make sure you follow up with the credit card company if your card does not arrive by the time it is supposed to arrive.

If you do not get an immediate response from your application you will want to follow up with the company to find out the status of your application.

Keep these things in mind when applying for Australian credit cards.

As you undoubtedly know, you are paying for these rewards and perks.  You pay for them through annual fees and through the interest rates charged.

When you are comparing credit card offers you should factor in annual fees.  If you are not the type of consumer that takes advantage of rewards programs for any reason then you may want to try to find credit cards with no annual fees or very low annual fees.  Keep in mind that there are other perks that come with the cards with annual fees.

No Annual Fee Cards

If you weigh the pros and cons and determine that you want to get a credit card with no annual fees you will find that you have a number of different options.  Below are some of the credit cards in Australia that do not have an annual fee:

• ANZ First Visa Card
• Bankwest Zero Card (also Gold and Platinum Card)
• Commonwealth Bank Low Fee Card
• HSBC Credit Card
• NAB Standard Card
• Westpac 55 Day Card
• Westpac 55 Day Gold Card and Platinum Card
• Westpac Low Rate Card
• Woolworth’s Everyday Money Card

The above cards are all offered with no annual fee.  You should double check this information when you are ready to apply for a card in order to make sure that the policy has not changed.

Why Annual Fee Cards are Good

People are ingrained to think that paying fees is always bad.  While paying fees is never fun it is sometimes worth it.  Many of the most important perks of a credit card are paid for through annual fees.

Some important perks and considerations for you to review include:

• Concierge Service
• Emergency Card Replacement
• Extended Warranties
• Frequent Flyer Miles
• Hotel and Restaurant Discounts
• Overseas Medical Care
• Purchase Protection
• Retail Discounts
• Travel Insurance

A simple mathematical analysis can help you determine whether or not the annual fee is worth paying for.  The answer will be different for everyone based on their spending habits, etc.

Determine which rewards you may take advantage of over the course of one year.  Determine the dollar value of that reward, perk or advantage.  If the annual fee is less than the benefit you will receive then it is worth the expense.

If you do the analysis and determine that the benefit you will receive is less than the annual fee you may wish to choose a credit card with a lower annual fee or no annual fee.

Before you immediately dismiss any credit card offers that include an annual fee take the time to do the above analysis.  You may find that you determine the annual fee is worth the expense.

More Information

Citibank Clear Card

Do you want a straightforward Visa card with a great balance transfer offer?

If so, you should look no further than the Citibank Clear Card.  For an annual fee of just $65 you can benefit from a great balance transfer rate of 0% for 6 months.  There’s also a great purchase rate of 11.99% for the first 12 months.

With a generous credit limit and exclusive Visa entertainment offers, this card offers superb value for money.

Top Five Benefits:

• 0% on balance transfers for 6 months
• 11.99% on purchases for the first 12 months
• Exclusive Visa Entertainment Offers
• Generous card limits of up to $20,000
• Fraudshield® security protection

Card details

Annual Fee   $65

Interest Rate   11.99% p.a. on purchases for the first 12 months

Interest Free Period  up to 55 days

Application Criteria  Minimum Income $20,000 p.a.

Credit Card Type  Visa

Cash Advance Rate  21.24% p.a.

Rewards Program  N/A

Balance Transfer Rate  0% on balance transfers for 6 months

As well as saving money with the great rates, Citibank Clear cardholders also benefit from access to exclusive upgrades, benefits and discounts at thousands of hotels, restaurants, shops and services worldwide.

The 0% p.a. interest rate applies to balance transfers with this offer for a period of 6 months. Transferred balances are repaid first. At the end of the balance transfer offer period your interest rate will revert to the Cash Advance Clear card interest rate currently 21.24% p.a. The Clear Card current standard variable rate is 11.99% p.a. on retail purchases for the first 12 months. Interest rates are variable subject to change and Citi’s Credit Criteria.

There is no substitute for doing some online research.  You are the only one that can determine if a particular credit card offer is right for you.

A Starting Point

Doing online research can be daunting when you know there are almost an endless number of credit cards to choose from.  To get you started, here are ten Australian credit card companies you should consider:

• ANZ
• Bank of Queensland
• Citibank
• Emirates
• HSBC
• Macquarie
• St. George
• Suncorp
• Westpac
• Woolworth’s

American Express also offers some credit card options but they are primarily known for their charge card.

Who Made the Short List?

The ten credit card companies in the above list are not the only good options, there are other good options. But the above list does represent a good starting point.  The criteria used for the above list included:

• Fee policies
• Interest rates, including introductory rats
• Number of different card options
• Reward programs
• Security
• Service

You can research each of these credit card companies separately by doing a Google or Yahoo search for their name as well as the name of the specific credit card you are considering.

Credit card offers change as do credit card policies.  Online research will help you determine which credit card companies will be on your short list and which will note.

A Deeper List

To help you get a little further with your research we have identified some very good credit card offers at the time of the writing of this article.  You should check and make sure that they are still good offers when you are going to apply for one or more of them.

The determination of which offers were going to go on this list included:

• Balance limits
• Balance transfers
• International purchase policies
• Rates and fees
• Service

Using this criteria as well as bank reputation we were able to identify some credit card offers you may wish to do your initial research on. Here is the list:

• ANZ Low Rate Card
• Citibank Clear Platinum
• Citibank Gold Visa
• Emirates Platinum MasterCard
• HSBC Visa
• St George Vertigo MasterCard
• Suncorp Platinum
• Suncorp Standard Visa
• Woolworth’s Everyday Money Card

These lists are intended to help you jumpstart your own research.  Once you have taken the time to research various Australian credit card options you will be able to make a determination about which offers are the best for you.

It is usually a good idea to identify one credit card offer to apply for at a time rather than applying for many cards at the same time.  Keep this in mind and good luck in getting the best Australian credit card.

Take the time to review your credit card statement in detail.  You may be a little surprised at what you see sometimes.

Review All Purchases

The first step in your review process should be looking over all of the charges.  Compare the amount on the bill to the amount on each of your receipts.  If there is a discrepancy make sure you look into it immediately.

Discrepancies between the amount charged and the amount on your bill can be from clerical errors, data errors, exchange rates, etc.  Unfortunately the difference can be a little more sinister as well.  Compare your receipts to your bill carefully.

Look for any surcharges by the credit card company related to any of your purchases and question them if they do not seem right.  Also, make sure you make note of any consumer insurance you get from using your card.

Check Your Interest Rate

Compare the interest rate on your current bill with the interest rate you thought you were paying.  If there is a difference make sure you find out why.  Keep in mind that your credit card company will charge different rates for cash advances and possibly for international purchases.

If you are unaware of why there is a different interest rate you should contact your credit card company.  Just because they changed the interest rate does not mean that they were able to or allowed to.  Do not shy away from asking tough questions and pushing your credit card company if you do not agree with the rate change.

Double-Check the Due Date and Amount Owed

You should always double-check the due date of your payment.  Though you may know “generally” when it is due, you want to be extra careful.  It is too easy to be off a day or two and wind up with a late payment.

If your payments are sent automatically you want to make sure the credit card company will receive it by the due date (and in the right amount).  It is easy to transpose a figure so be careful when making your payment.

The bill will include the minimum payment required.  Though you can make that payment it is a better to pay your entire balance or at least as much as you can depending on your finances at the time.

Your amount owed will continue to  climb because of the interest you are paying on the debt.

The bottom line is you need to review your bill carefully.  Do not assume it is correct.  Double check the vendors and your credit card company and question anything that does not seem right.  You are your first line of defense against errors or deliberate charges on your credit card statement.

To make your research easier we have identified the 10 best credit cards in Australia at the time of this writing.

Confirm program details before applying.

Best Credit Card with No Annual Fee:  HSBC Credit Card

The features include:

• No annual fee for the entire life of the card
• 0% p.a. for 180 days on balance transfers
• Up to 55 days of interest free shopping
• Home & Away Privilege Program and Instant Rewards
• Posted interest rate of 16.99% p.a. on purchases (20.50% p.a. for cash advances)

Best Low Interest Credit Card:  Bankwest Lite Card

The features include:

• 3.99% p.a. interest rate on balance transfers for 9 months
• 10.75% p.a. interest rate on purchases (21.74% p.a. on cash advances)
• $59 annual fee
• Online banking
• 3 additional cardholders at no cost

Best Balance Transfer Card:  Suncorp Clear Options Card

The features include:

• 2.9% p.a. interest rate for 12 months on balance transfers
• 12.24% p.a. interest rate for all purchases
• 17.99% p.a. interest rate for cash advances
• Access to special entertainment offers

Best Cash Back Card:  American Express Platinum Money Back Card

The features include:

• 5% cash back for the first 3 months (up to $300) for the first $6000 spent
• 1% cash back after the first 3 months (or after the first $300 in cash back)
• Annual fee of $99
• 20.49%p.a. interest rate on purchases

Best Overall Value for the Fee:  Citibank Clear Platinum Visa

The features include:

• $49 annual fee (first year); $99 annual fee thereafter
• 0% p.a. on balance transfers for six months
• 11.49% p.a. interest on purchases
• Citibank World Privileges (includes 25% discount on select travel, dining and shopping)
• Visa Concierge Service
• Additional privileges and rewards

Best Rewards Program Card:  American Express Gold Ascent Card

The features include:

• $0 annual fee
• Travel points with numerous airlines
• Earn 1 Membership Reward Point for every $2 spent
• Receive up to 44 days of interest free on

Best Shopping Rewards Card:  Woolworth’s Everyday Card

The features include:

• 0% p.a. interest rate on balance transfers (limited time)
• 0% p.a. interest rate on purchases (limited time)
• 20.99% p.a. interest rate on cash advances
• Earn up to 3 points for every $1 spent (restrictions apply)
• Receive shopping cards based on card usage

Best Petrol Rewards Card:  Citibank BP Card

The features include:

• 2.9% p.a. interest rate for 12 months on balance transfers
• 5% discount for petrol and other purchases at BP
• 0.5% discount on all other purchases
• 20.89% p.a. interest rate for purchases

Best International Travel Card: ANZ Gold Visa

The features include:

• Bonus Qantas Frequent Flyer Points
• Receive 2 cards with your account:  an American Express card and a Visa card
• Earn 2.5 points for every $1 you spend with your American Express card
• Earn 1.5 points for every $2 you spend with your Visa card
• No cap to the Qantas Frequent Flyer points earned
• Overseas Travel & Medical Insurance

Best Business Credit Card: CitiBusiness Gold

The features include:

• 1.25 reward points for every $1 spent
• 2.9% p.a. interest rate on balance transfers for up to 9 months
• 20.49% p.a. interest rate on purchases
• Complimentary Business Concierge
• Complimentary International Travel Insurance
• Up to 99 additional cards
• Additional offers, discounts and privileges

The below points are just five of the things you should look out for.  It is important to review all aspects of a program before you choose one to apply for.

Balance Transfer Rates

Many of the credit card companies in Australia offer you the ability to transfer existing balances from other credit card companies.  You will find that to be one of the things many credit card offers highlight.

While researching this make sure you note the annual percentage rate as well as the time limit for the rate.  Some credit card companies will limit the duration of time the balance can remain on the card for that interest rate.

Here are a few examples at the time of this writing:

• ANZ Low Rate (0% up to 6 months)
• Bankwest Gold Lite (3.99% up to 9 months)
• Citibank Clear Platinum (0% up to 6 months)
• Citibank Platinum Card (3.9% no time limit)
• Citibank Silver (2.9% up to 12 months)
• HSBC Credit Card (0% up to 6 months)
• St. George Vertigo (2.99% up to 6 months)
• Suncorp Clear Options (2.9% up to 12 months)
• Suncorp Clear Platinum (3.9% no time limit)

Interest Rates on Purchases and Cash Advances

Most credit card companies offer different interest rates on purchases and cash advances.  You will want to take note of that especially if you use your card for cash advances at any point.  It is also important to note if the interest rate advertised is for a limited time or not.

Some of the best interest rates posted at the time of this writing will be:

• Aussie MasterCard (2.99% for 6 months, then 12.99%)
• Bankwest Life Card (10.75%)
• Citibank Clear Platinum (11.49%)
• Citibank Clear Visa (11.99%)
• St. George Vertigo (2.99% for 6 months, then 12.49%)
• Suncorp Clear Options (12.24%)

International Usage and Fees

If you plan to use your card for travel you will also want to make sure that you understand whether or not your card has any additional fees for overseas use.

Many banks, especially banks that do not have global offices, charge foreign bank fees and surcharges that can add up quickly.  You will want to look into this before making your decision about which card to apply for.

Rewards Programs

Rewards programs are quite diverse.  You will want to take the time to look into the program carefully and understand its rules and regulations.  When you review the rewards program look into:

• How rewards accrue
• Are there limits to the rewards
• Do the rewards expire
• How can you use the rewards

If you keep these 5 things in mind when comparing credit card offers you will be able to select the best Australian credit card for your needs.

Avoid the 5 biggest credit card mistakes outlined below.  If you are able to avoid them you will be in a much better position.

Ignoring Credit Card Statements

When you receive your credit card statements make sure you take the time to review them.  A detailed review of your credit card statement can help you discover any changes in interest rates, fees, etc.

Reviewing your credit card statement should include:

• Checking interest rate applied and confirming it is accurate
• Checking and understanding all fees on the card, including surcharges
• Confirming all charges are in the correct amount and you know what they are for

If you have any questions or find any discrepancies you will want to contact your credit card company as soon as possible.

Never discard your credit card statement.  If you have to, make sure you shred or destroy it before you discard it.

Make Payments on Time

Making your credit card payments on time is important to maintain a good credit file.  It is sometimes easy to lose track of time so as soon as you get your credit card statement in you should make your payment or schedule a payment.

If you use automated bill paying it is important that you check the date the payment will be arrive so you can be sure that it will arrive on time.

Most credit card companies offer a grace period before late fees are due.  Try not to rely on the grace period for cash flow purposes and make your payment as soon as possible.

Make More than Minimum Payments

The minimum payment is exactly that – the minimum you should pay.  This means you cannot make a payment below that amount but you can make a payment above it.  In fact you should try to make more than your minimum payment each month.

Your credit card balance continues to grow as your interest rate charges are applied.  Your focus should always be on shrinking your debt.  The more you pay each month towards your credit card debt the faster you will shrink or eliminate it.

There is nothing wrong with having credit card debt as long as it does not get out of hand and cause you financial problems.  When you have the ability to pay more than the minimum due you should.

Overextending Yourself

Credit cards can be used for many different things. It is always a good idea to retain a portion of your available credit for emergency purposes.

One of the biggest mistakes many credit card users make is getting in the mindset that the credit available to them is equivalent to cash.  Spending all of your available credit for non-essential items will leave your overextended and in a tough financial position.  Always use only the portion of the credit limit that you need to.

Try to keep these five things in mind so you can use your credit card responsibly and protect your credit file.

The confidential data shows that banks have been making profit margins of up to 14,000 per cent on the fees that are charged on a variety of basic credit card and banking transactions.

Class action

A recent class action has been launched against the banks in an attempt to recover millions of dollars of fees that have been paid to the banks for such things as late credit card payments and exceeding credit limits.

More than 85,000 people have signed up to join the class action which aims to recover fees paid to banks over the last six years.   Many more are expected to sign up to the action in advance of the case beginning next month.

Ben Slade, of case lawyers Maurice Blackburn, says the outcome of the court action will rest on whether the court decides that the exception fees are deemed penalty fees incurred by clients with overdrawn accounts or justifiable ‘fees for service’.

Excessive fees

The data obtained by Your Money shows that some of the fees can appear quite excessive.  For example, if a bank customer exceeds an overdraft limit by $100 for one day, they can be charged a fee of $40.

Even though the cost to the bank might be minimum – in some cases just a few cents – a $40 charge is equivalent to an annualised interest rate of more than 14,000 per cent.

“The courts in Australia have determined that any pre-estimate of financial damages to the bank (the size of the exception fee) must be a fair estimate of damage and not an exorbitant or extravagant fee,” Slade says.

Fees can range between $25 and $60 although many banks have reduced their fees in recent years due to negative publicity surrounding the level of charges.

The banks have earned an estimated $5 billion over the last six years through four main fees:

• Late payments on credit cards
• Exceeding overdraft limits
• Cheques that bounce
• Exceeding your credit card limit

UK versus Australian fees

The British Office of Fair Trading won a similar case on behalf of consumers in 2007.  It argued that the fees were unfair and the banks lost their subsequent appeal.  More than $1.67 billion has been refunded to customers for overpaid penalty charges.

Slade says that Australian law on penalty fees is more potent than British legislation.

“Australian legislation has developed very positively on this front and we’re confident we have the right line,” he says.

The first round of class actions will target 12 banks including Westpac, ANZ, Suncorp, BankWest, Citi, Commonwealth Bank of Australia, NAB and HSBC.

News.com.au recently reported that Australians pay an average of $1,000 every year in bank charges and fees.  Charges are also increasing at a rate of around 8 per cent every year.

It’s easier than you think to avoid bank fees, and here are our top five ways.

Review Your Accounts

One way you can cut your baking fees is to work out how you use the various accounts you have.  Analyse your spending and where and when you use your bank account or credit card.

Your bank may have an account more appropriate for you.  For example, a predominantly internet account may be cheaper if you do most of your banking online.  And, a ‘balance transfer’ credit card may be better for you if you do retain a balance on your credit card.

Shop around as well, as other banks might offer more competitively priced services.

Stay Within Your Limits

Two of the most common fees that banks charge are for exceeding your overdraft or your credit card limit.  You can pay anything up to $50 every time you go overdrawn, exceed your overdraft limit or spend more than the limit on your credit card.

Keep a close eye on your spending.  Check your accounts regularly and keep a track of your expenditure.  Don’t use your credit card if you know you are near your limit.

In addition, some banks will now actually alert you if you are nearing your overdraft or card limit.

Use Your Own Bank’s ATM

There were 26 million ‘foreign’ ATM transactions (where cardholders used their card at an ATM not owned by their own bank) in Australia in January 2010.  That earned the banks a cool $50 million.

If you can’t find an ATM owned by your own bank, consider using your card at an EFTPOS terminal to withdraw cash.

Use the Internet

Some banks charge fees for depositing or withdrawing money over the counter.  It is expensive to maintain a branch network, and so banks are increasingly levying fees for straightforward cash transactions.

To avoid these fees, make the most of your bank’s telephone and internet banking services.  These allow you to transfer money between accounts and pay bills without incurring a charge.

Reduce The Number Of Accounts

Many people have multiple credit cards, bank and savings accounts, either for historic reasons or to keep money in separate ‘pots’.

However, each of these accounts might be costing you money in terms of account fees, monthly or annual charges.  For example, if you hold several credit cards, you might be paying hundreds of dollars in annual charges.

Close any accounts that are expensive, or that you don’t use regularly.

There are dozens of credit cards in Australia, all competing for your business.  The choice between gold cards, platinum cards, Visa and MasterCards and cards linked to a credit card rewards scheme can be mind-boggling, and often there doesn’t look to be much to choose between the providers and the credit cards on offer.

So, the big question is, is it worth shopping around for a new credit card?

No

There is nothing more boring or time consuming than shopping around for a new credit card.  By the time you have researched the available cards in the newspaper, and online, and by trekking around all your local banks, you have used up hours of your life.

And for what? The possibility that you might save a few dollars on an annual fee or on your credit card interest?  Is it really worth it?

If you are a loyal bank customer, you will probably find that they offer you a decent credit card deal as an existing customer.  You may get preferential rates or pay a lower fee just for being a longstanding customer of a particular bank.

Contact your existing bank and see what they can offer you.  If they have some decent deals for you, why not save on the shoe leather and reclaim hours of your life by taking a credit card with a bank that you know and, more importantly, knows you?

Yes

If you don’t undertake some proper research when taking out a new credit card then it could cost you both time and a significant amount of money.

The difference in fees and interest rates between competing banks is significant.  If you have the average Australian credit card balance of $3,244 and you find a deal that offers a 5% lower interest rate than another card, the lower rate card will save you $162 every single year.  Surely that’s worth a bit of time and effort?

And, it is not difficult in this day and age to research credit cards.  Gone are the days when you would have to visit every bank in town to discover what the latest offers are.  One quick visit to a comparison site such as Credit Card Rewards allows you to look at dozens of credit cards in one -place.

Whatever sort of card you are looking for – a balance transfer, rewards credit card or low fee card – you can compare a range of leading options on one website.  You can do it at the click of a mouse, and, importantly, it doesn’t cost you any time or money.

So, if you’re looking for a new credit card, it really pays to do some research rather than taking the first credit card offer that you see. You could save a fortune.

How safe is your PIN?

Changes in liability for fraudulent transactions

The banking and finance ombudsman, Philip Field, says that PIN based transactions move the liability for unauthorised transactions in the direction of the cardholder.

“As with all EFT [electronic funds transfer] transactions involving a PIN, you have to be very careful about protecting your PIN,” Field says.

With a signature based credit card authorisation, the bank is liable if a transaction is completed with a fake signature. However, PIN-based transactions are covered by the banking industry’s EFT Code, under which the account holder – i.e. you – can be held liable for some of the loss in certain circumstances.

For example, you could be held liable if:

• You disclose your PIN to someone – even a family member
• You record your PIN in ‘an unsafe way’ – for example keeping a note of it in your wallet with your credit card
• You choose a PIN that can be guessed easily – such as your date of birth

The credit card provider will have to prove ‘on the balance of probability’ that the cardholder infringed PIN security or contributed towards the losses by ‘unreasonably delaying notification’ after becoming aware of misuse, loss or theft of their card.

Field also says consumers need to be aware that the new PIN-based cards potentially expose the cardholder to greater liability.

“At least with a debit card it’s the amount you have in your account; with a credit card it’s potentially the amount up to the limit on your card,” he says.

Record the loss or theft immediately

It is vital that you report the loss or theft of a card as soon as you can.

Ultimately, the EFT Code protects people who do the right thing, says the chief executive of the Australian Bankers’ Association, Steven Munchenberg.

“Unless cardholders arm a person with access to their PINs, the consumer is protected under the EFT Code and the credit card charge-back rules,” he says, referring to the right to apply to have unauthorised transactions reversed.

The dangers of card fraud have recently been outlined by a warning from the Australian Crime Commission (ACC) and the banks themselves about a global crime syndicate being responsible for a recent increase in card ‘skimming’ in Australia.  Skimming involves copying information from the magnetic strip of a credit card in order to manufacture fake cards.

The ACC, ABA and the Australian Retailers’ Association last month issued a warning to be vigilant for skimming devices being attached to EFTPOS terminals.

Platinum credit cards offer unrivalled luxury, insurance and security and the NAB Qantas Platinum Card is no exception.  It might not be the cheapest card available, but this platinum card offers a range of benefits that very few Australian cards can offer.

The Provider

National Australia Bank (NAB) is ranked as the 17th largest bank in the world.  It operates 1,714 branches and service centres and 2,939 ATMs globally.

National Australia Bank is one of the largest financial institutions and banks in the country and one of Australia’s top four credit card providers. It operates in countries including Australia, China and the UK and serves 8.3 million consumer and business banking customers worldwide.

The Card

The NAB Qantas Platinum Card allows you to earn unlimited Qantas Frequent Flyer points every time you use your credit card.  You can then redeem your Qantas Frequent Flyer points for a wide range of rewards including flights, merchandise and vouchers through the Qantas Frequent Flyer program.

Each NAB Qantas Platinum Card account comes with two cards: a NAB Qantas Platinum American Express Card for maximum points earning and a NAB Qantas Visa Platinum Card for added worldwide acceptance.  You benefit from one combined credit limit, one statement and one monthly payment.

You will also benefit from all the additional services you would expect from a platinum card including a 24/7 personal concierge service and a wide range of complimentary insurances.

The Top Five Benefits

• 1.5 points for every $1 spent on American Express card
• 2 point for every $3 spent on Visa card
• 24/7 personal concierge service
• Complimentary insurance including overseas travel and price protection insurance
• Add an additional cardholder at no extra cost

Why Should You Take One?

Platinum cards offer a suite of benefits and the NAB Qantas Platinum Card is no exception.  Not only will you benefit from an enhanced number of Qantas Frequent Flyer points every time you use your card for purchases, but you can also take advantage of the unparalleled service offered by a platinum card.

You will benefit from overseas travel insurance, transport accident cover, domestic hotel burglary insurance, extended warranty cover, purchase and price protection and interstate flight inconvenience cover.

What Else Does It Offer?

You will also be eligible for NAB’s Platinum Concierge service.  You have access to your own personal assistant 24 hours a day, 7 days a week, who can help you with entertainment ideas, dining referrals and much more.

You can also access the ‘entré’ program – a collection of premium offers created by American Express for all NAB Qantas Platinum American Express cardholders.

Anything Else You Should Know?

NAB also offer all their cardholders emergency travel assistance 24 hours a day, 7 days a week.

Annual fee:                                          6/10

Rewards Program:                           7/10

Standard Interest Rate:                 6/10

Service:                                                10/10

Additional Benefits:                        10/10

Platinum cards offer unparalleled service and support.  However, in addition to personal service and complimentary insurance products, platinum cards are often the fastest way to earn the best credit card rewards.  They are also rarely as expensive or exclusive as you may think.

Here is our focus on four of Australia’s leading platinum rewards cards.

Macquarie Bank Platinum Visa Card

If you take out a Macquarie Bank Platinum Visa Card you will be awarded ‘founder member’ status with the Bank, giving you exclusive access to a range of offers and events.

Macquarie Bank offer a generous credit card rewards program through which you can earn flights, gift cards and electrical goods.  You will also benefit from a round the clock Platinum Concierge Service and a wide range of complimentary insurance products.

Macquarie Bank also offer a great range of interest rates on balance transfers.

Westpac Altitude Platinum Card

The Westpac Altitude Platinum Card links both a Platinum American Express and a Platinum Visa or MasterCard to the same account.  You benefit from two cards, one account, one credit limit and the potential to earn unlimited rewards points.

Indeed, if you use the American Express card linked to your account, you will earn a terrific three credit card rewards points for every dollar that you spend on your card.

You will also benefit from all the superb service and security you would expect from a platinum card, including a 24/7 concierge service and complimentary travel insurance, transit accident insurance, purchase security insurance and extended warranty insurance cover.

Commonwealth Bank Platinum Awards Card

As with the Westpac card above, this super platinum card also links two cards to your account.  The American Express card allows you to maximise your credit card rewards whilst the MasterCard offers you the maximum worldwide acceptance.

As well as earning points every time that you use your Commonwealth Bank Platinum Awards card you will also be awarded additional credit card rewards points when you use the card at a range of ‘bonus partners’ including Warner Village Theme Parks, Thrifty and Cellarmasters.

Platinum cardholders enjoy access to a range of exclusive privileges, including American Express Premium Privileges, MasterCard Applause™ and MasterCard® Moments.

Citibank Platinum Card

The Citibank Platinum Card offers cardholders all the luxury service that you would expect from a leading platinum card.

In addition to a concierge service and a range of free insurance, Citibank Platinum cardholders also benefit from a personalised credit card rewards program.  Your reward points will never expire and you can redeem them for anything from gift cards and electrical accessories to  school fees or even furniture for your home.  Citibank also give you the option of transferring your credit card rewards points into Qantas Frequent Flyer miles.

In our ‘6 of the best’ series, we look six of the best credit cards from the Westpac range.

Westpac No Annual Fee MasterCard

The Westpac No Annual Fee MasterCard offers exactly what it suggests.  Whilst you can benefit from great interest rates, up to 55 days interest free and the security of Cardshield, you will never pay an annual fee for this card.

You will benefit from all the worldwide convenience and security offered by MasterCard, all without paying an annual fee.  This is the ideal every day, no-frills credit card.

Westpac Singapore Airlines Platinum Card

The Westpac Singapore Airlines Platinum Card offers all the luxury benefits that you would expect in a platinum credit card.  You can take advantage of travel insurance, purchase protection and a 24/7 personal platinum concierge service.

In addition, you will earn Singapore Airlines KrisFlyer miles for every dollar that you spend on eligible purchases.

Westpac 55 Day Visa/MasterCard

The Westpac 55 Day Visa or MasterCard offers all the convenience of Visa or MasterCard and up to 55 days interest free on purchases.

You will pay no annual fee for this card in the first year.  And, if you spend $10,000 on the card in every subsequent year, you will never pay an annual fee for the benefit of this excellent value credit card.

Westpac Altitude Card

The Westpac Altitude Card links both a Visa or MasterCard and an American Express card to your account.  The American Express card helps you maximise your credit card rewards whilst the Visa or MasterCard afford you the maximum worldwide acceptance.

You will earn Altitude credit card rewards points for every dollar that you spend on eligible purchases.  You can then redeem these through the award-winning Altitude rewards scheme for a wide range of rewards including flights, homewares, gift cards and electrical goods.

Westpac Student Visa Card

The Westpac Student Visa Card is a credit card specifically designed for full time tertiary students.

If you are studying at a recognised tertiary institution, your approval for this student visa card will be based on your income from Austudy, your casual job or from your part-time employment.

The Westpac Student Visa has a low annual fee (which will also be waived in the first year) and you can benefit from up to 55 interest free days on your purchases.

Westpac Earth Card

A Westpac Earth Card also links an American Express and a MasterCard to your credit card account. Here, every dollar that you spend on your card will earn Qantas Frequent Flyer points.

Once you have accumulated a number of Qantas Frequent Flyer points, you can redeem these for a range of superb Qantas rewards including flights, holidays and accommodation.

Balance transfer credit cards may seem like the solution to a painful problem, but you do have to read the fine print very carefully.  For example, if you put any purchases on your new balance transfer card before you’ve paid off the transferred balance, you’ll most likely be charged interest on those purchases, and the interest charged could be as high as 20 percent!

And if you don’t pay off your transferred balance at the end of the special low interest or interest free period, you will either be charged interest on the balance remaining or even interest on the whole amount you’ve transferred across, even though you’ve paid off the majority of it!  So it really pays to read the fine print on these seductive offers so you know exactly what you’re getting into.

On the other hand, if you can be disciplined when using a balance transfer card, then you really can save yourself a lot of money.  For instance, interest of 13.99 percent on a credit card balance of $2,500 is approximately $30 per month.  If you’re just paying the minimum payment of around $50, less than half your payment is going to your actual credit card debt.  But if you made a payment of $50 every month on your new balance transfer card with a zero interest rate, you would be paying $50 off your credit card debt every month.  After six months, you’ve paid off $300 compared to paying off $120 on your old credit card because of that $30 interest charge every month.  That means you’ve saved yourself $180 in interest charges.

Of course, the aim with balance transfer cards is to pay off the whole transferred balance before the low or zero interest period expires.  So if you’re interested in one of these cards, it pays to shop around to get the best deal possible.  If you know you’ll find it easier to pay off the balance in 12 months rather than six, then try to get a zero interest card for 12 months.

But if you do apply for a balance transfer card then you need to make a commitment to yourself to pay off the balance as quickly as possible and without putting any new purchases on it.  That way, you get the best of both worlds;  a relatively painless way to pay off your credit card debt while paying no or very low interest.  And once you’ve paid off the balance, you can use your new card for purchases, or if you don’t need it anymore, even cancel it!

1.  Interest Free Days On Purchases

This can be a great card for you if you can afford to pay off your monthly balance in full each month.  Itís even better if you can find a 55 day interest free card with no annual fee!  That means youíre not paying a fee for the privilege of having a credit card, and you have the ease and convenience of credit without having to pay any interest on it, if you can afford to pay off your monthly balance.  And if such a card has a free rewards program, then youíre even better off, depending on how quickly you can accrue reward points.

2.  Low Interest Rate Card

If you canít afford to pay off your credit card in full every month, then a low interest rate card may be best for you.  It means though, that youíll most likely be charged interest from the moment you purchase an item with your credit card so you wonít enjoy any interest free days on purchases.  But if you can get an interest rate under ten percent, then that may not make much difference in the long run.  The secret to handling your purchases on a low interest rate card is to pay off as much as you can each month.  If you just pay off the minimum each month and your new monthly purchases add up to more than youíre paying off, then your credit card debt will slowly increase each month, and so will the amount of monthly interest youíll be charged.

3.  Balance Transfer Cards

Balance transfer cards can be a really useful aid in handling credit card debt.  If youíre having trouble paying off your monthly balance and know youíre slowly going backwards, then applying for a balance transfer card may be right for you.  The best types of balance transfer cards are ones with no annual fee and zero interest for six, nine or twelve months.  Try to find a card with the longest zero interest rate period you can.  If you canít find a card with a zero interest rate, then a very low interest rate such as 2.99 percent can be useful as well.  Once youíve been approved for one of these cards, your old card balance will be transferred across to your new card.  Then you need to pay off as much of your balance as possible before the zero or low interest rate period expires.  When youíre not paying any interest charges or extremely low ones, itís a lot easier to pay off your credit card balance quickly.  But itís important to read the fine print, as you may be charged interest on any new purchases you make before youíve paid off the transferred balance.  If youíre not totally committed to paying off your transferred debt though, you may find yourself in even more credit card debt if you start making purchases on your new card.

However, even though the market may be dominated by these financial giants, there are dozens of smaller credit card providers that offer a range of great value, innovative credit cards.

Have you considered a credit card from a lesser known provider?

Bankwest More MasterCard

The Bankwest More MasterCard offers an excellent credit card rewards program.  You will receive points for every dollar spent on the card, and new Bankwest customers also receive bonus points just for activating their card.  There are over 3,000 rewards in the Bankwest range.

You can add up to three additional cardholders at no extra cost and you can access your account around the clock through Bankwest Online Banking.

St George Vertigo Card

The St George Vertigo Card is a great every day credit card.  It offers a range of great rates on both balance transfers and purchases as well as boasting one of the lowest standard credit card rates in Australia.

Your St George Vertigo Card also offers the protection of the Falcon Fraud system and cardholders also benefit from a range of exclusive offers through St George Instant Benefits.

Woolworths Everyday Money Card

The award-winning Woolworths Everyday Money Card allows you to earn points everywhere you shop.  You will also benefit from enhanced credit card rewards points at Woolworths’ group stores.

Assuming you have collected enough points, every four months, your points are turned into a shopping card that you can use in any Woolworth’s group store.

You’ll pay no annual fee for the first year and will benefit from up to 55 interest free days.

Aussie MasterCard

Over the last 18 years, Aussie become Australia’s leading non-bank retail financial services company.  In addition to their other innovative products, Aussie offer the Aussie MasterCard which offers one of the lowest long term credit card interest rates in the country.

When you take out an Aussie MasterCard, you can also choose from one of four promotional deals.  You might choose a ‘no annual fee’ deal, or a low balance transfer rate.  Either way, it’s your decision.

Macquarie Bank Platinum Visa Card

Although a relatively small personal financial services provider, the Macquarie Bank Platinum Visa Card is one of Australia’s leading premium credit cards.

You will benefit from complimentary travel insurance as well as being granted ‘founder member’ status, offering you a range of exclusive offers and benefits.

You will also collect points towards Macquarie Bank’s excellent credit card rewards program.  And, you can maximise your rewards by adding up to four additional cardholders to your account at no extra cost.

Here are seven great ways that you can reduce the amount you spend on your Visa or MasterCard.

Discipline yourself

The first step to reining in your spending is to be disciplined. Always ask yourself whether you really need an item before you decide to buy it.  And, where possible, buy it from the money you have in your bank account, not on credit.

Don’t use them for cash advances

If you need cash, use your debit card to withdraw money from your bank account.

Cash advances using a credit card pile up your debt as well as being extremely expensive, due to the higher interest rates that are charged on cash withdrawals.

Don’t take them out with you

The easiest way to avoid being tempted to pay for goods and services using your credit card is to take it out of your wallet.  Leave your credit cards at home, and then you can only spend the money you actually have in your bank account.

Destroy them when they are paid off

If you have been successful in repaying your credit card balance, then cut up your card and close your credit card account.  If you do this, you will not only have the satisfaction of clearing your debt but you will not be tempted to use the credit card again in future.

Avoid using them for essentials

Recent surveys have shown that increasing numbers of Australians are using credit cards to pay for essentials such as groceries or fuel.

Try to buy your essentials using cash from your bank account.  Don’t pay for vital goods on credit.

Try a charge card

Charge cards offer the flexibility of credit cards in that you only pay your bill when your statement arrives.  However, a charge card requires you to pay your bill in full every month.

Using a charge card makes you think much more about whether you can actually afford to pay for that item when your statement arrives.  Try using a charge card rather than a credit card for your purchases.

Don’t pay more interest than you have to

Many credit card users can end up in an ‘interest trap’.  This means that your monthly minimum payment is roughly equivalent to the interest that you are being charged.  It means you will never make a dent in your actual debt.

If you look for a better interest rate on your credit card, then more of your monthly repayment goes towards actually repaying your balance, rather than just servicing the credit card interest.

What is ‘skimming’?

EFTPOS and ATM skimming has become a sophisticated operation.   Skimming involves fraudsters stealing information from your card including the card number, expiry date and PIN code.  A wide range of devices are used to do this, including skimmers (which are attached to ATMs or EFTPOS terminals), recorders, video cameras and PIN pad copiers.

Fraudsters then copy your card details onto a counterfeit card which is then used to make transactions.

Is it safe to use your credit card?

Heather Wellard from the Australian Bankers Association says that banks are vigilant to these sorts of attacks.  “Banks take security seriously and have computer systems in place to constantly monitor transactions.   If a transaction is identified as suspicious, it will be investigated to ensure there is no breach of security.”

If you have seen a cover over a PIN keypad at an ATM, then this is one step the banks are taking to avoid fraud.

In Western Australia, the identity theft laws are about to become more stringent, with a maximum penalty of seven years in prison proposed in a new amendment bill, currently being considered by the senate.

How you can avoid skimming

There are a number of steps that you can take to ensure you do not become a victim of credit card fraud:

• Don’t ever let anyone see your PIN.  Cover the PIN pad when using an EFTPOS terminal or ATM machine so no-one can video you entering your PIN
• Always be vigilant for unusual devices attached to EFTPOS terminals or ATMs. If anything looks out of the ordinary, don’t use your card
• Check there have been no modifications to the keypad and that nothing looks or feels unusual
• Change your PIN regularly at your bank or at an ATM
• Check your credit card account for unusual transactions and report anything suspicious immediately
• Always make sure it is your card that is handed back to you in a store
• Don’t let your card out of your sight – for example in a bar or restaurant. Always make the staff member bring the EFTPOS terminal to you

The Qantas Frequent Flyer scheme is one of the most popular airline credit card rewards programs in Australia.  This excellent NAB card not only offers the chance to collect points towards Qantas rewards, but also all the benefits you would expect from a leading gold credit card provider.

The Provider

National Australia Bank (NAB) is the fourth largest credit card provider in Australia and one of the largest financial institutions and banks in the country. It operates across 10 territories, including Australia, China and the UK and it serves 8.3 million consumer and business banking customers worldwide.

NAB is ranked as the 17th largest bank in the world.  It operates 1,714 branches and service centres and 2,939 ATMs globally.

The Card

The NAB Qantas Gold Card allows you to earn Qantas Frequent Flyer points from making your everyday purchases.  You can then redeem your Qantas Frequent Flyer points for a wide range of rewards including vouchers, flights, merchandise and more in the Qantas Frequent Flyer credit card rewards scheme.

Each NAB Qantas Gold Card account comes with two cards: a NAB Qantas Visa Gold Card or NAB Qantas Gold MasterCard Card for wide worldwide acceptance and a NAB Qantas Gold American Express Card to maximum your points collection.  You have one statement, one credit limit and you make one monthly payment.

The Top Five Benefits

• 2 points for every $2 spent on American Express card (for first $3,000)
• 2 point for every $3 spent on Visa or MasterCard (for first $3,000)
• Great balance transfer rates
• Complimentary insurance including VIP Lost Card Cover and overseas travel insurance
• Add an additional cardholder at no extra cost

Why Should You Take One?

If you are looking to collect airline credit card rewards then the NAB Qantas Gold Card may be just what you are looking for.  You will collect points every time you use your card which you can then redeem through Qantas’ superb Frequent Flyer program.

As this is a gold card, you will also benefit from enhanced insurances including purchase protection and extended warranty insurance.  You will also receive complimentary overseas travel insurance (as long as you buy at least 50% of you and your family’s travel costs using your NAB Gold card).

You can also take advantage of great balance transfer rates and up to 44 days interest free.

What Else Does It Offer?

You can also take advantage of a years’ free VIP Lost Card Cover which protects your NAB and other cards against loss or theft.

NAB American Express cardholders also have the exclusive opportunity to connect with some of the best entertainment, shopping, dining and travel offers available through American Express Selects.

Anything Else You Should Know?

NAB also offer all their cardholders emergency travel assistance 24 hours a day, 7 days a week.

Annual fee:                                         7/10

Rewards Program:                           7/10

Standard Interest Rate:                 6/10

Service:                                                8/10

Additional Benefits:                        8/10

NAB are one of the country’s leading credit card providers and this excellent gold credit card combines an award-winning airline credit card rewards program with all the traditional benefits you would expect from a gold credit card.

The Provider

By market capitalisation, National Australia Bank (NAB) is ranked as the 17th largest bank in the world.  It held total assets of A$657 billion as of 30 September 2008 and operates 1,714 branches and service centres and 2,939 ATMs globally.

NAB is one of the largest financial institutions and banks in Australia in terms of market capitalisation and customers. It operates across 10 countries, including Australia, China and the UK and it serves 8.3 million consumer and business banking customers worldwide.

The Card

The NAB Velocity Gold Card links both a Visa and American Express card linked to your account.  You have one combined credit limit, monthly payment and statement and you can earn unlimited Velocity points by using either of the cards

Every dollar that you spend on eligible purchases earns you Velocity credit card rewards program points.  Velocity is the award winning loyalty program of Virgin Blue, V Australia, Pacific Blue and Polynesian Blue.  You can then redeem your points for a wide range of Velocity credit card rewards including domestic and international flights, travel, accommodation, entertainment and car hire.

You will also benefit from a range of insurances that you would expect from a leading gold credit card including overseas travel insurance and extended warranty cover.

The Top Five Benefits

• 2 points for every $2 spent on American Express card
• 1 point for every $2 spent on Visa card
• Complimentary insurance including VIP Lost Card Cover and overseas travel insurance
• Add an additional cardholder at no extra cost
• Great balance transfer rates

Why Should You Take One?

The NAB Velocity Gold Card offers all the superior benefits you would expect from a gold card in addition to Velocity credit card rewards.  Your range of complimentary insurance products includes overseas travel insurance and purchase protection insurance and you can access your account whenever you wish through NAB Internet or Telephone banking.

What Else Does It Offer?

Cardholders also benefit from 12 months complimentary VIP Lost Card Cover.  VIP Lost Card Cover is a registration service offered by Card Alert which keeps a confidential list of your registered credit cards, or any other cards you would keep in your wallet, that you would want to cancel and replace urgently if they are lost or stolen.

NAB Velocity Gold Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine as well as benefiting from purchase protection insurance and overseas travel insurance.

Anything Else You Should Know?

NAB also offer all their cardholders emergency travel assistance 24 hours a day, 7 days a week.

Annual fee:                                         7/10

Rewards Program:                           7/10

Standard Interest Rate:                 6/10

Service:                                                8/10

Additional Benefits:                        8/10

In March 2010, there were 15.5 million credit and charge cards in circulation in Australia.  Plastic has never been more popular, with almost 140 million credit and charge card transactions in Australia in March alone.

Whilst many people criticise credit cards as a path to easy debt, used carefully and responsibly they can be a useful financial tool.  In our ‘6 of the best’ series, we look six of the best reasons to own a credit card.

To manage your spending

One of the main benefits of a credit card is that you do not have to pay for your purchases straight away.  If you pay with a debit card, the money will be deducted from your bank account immediately.  With a credit card, you pay for your purchases when you receive your monthly statement.

Credit cards can therefore help you manage your money more effectively.

To benefit from interest free days

Most credit cards offer you anything from 44 to 55 interest free days.  This means that you benefit from several weeks between making your purchase and paying for the item.

As you don’t have to pay for your purchase straight away, you can benefit from extra credit interest or offset savings by keeping the money in your account until the time comes for you to pay your monthly bill.

For credit card rewards

If you use your credit card regularly, and intend on repaying your balance every month, you can benefit from a wide range of credit card rewards.

With a credit card linked to a credit card rewards scheme, every dollar that you spend using your card will be converted into rewards points.  You can then redeem these points for flights, gift cards, homewares or even charitable donations.

For convenience

Visa, MasterCard and American Express credit cards are accepted in tens of millions of locations worldwide.  Rather than carrying large sums of cash with you, a credit card can help you pay for all your purchases easily and securely.

For online purchases

More and more of us are using the internet for everything from shopping to banking.  It has never been easier to buy your groceries, clothes or CDs and DVDs from the comfort of your own home.

Credit cards can help you pay for these online purchases securely and conveniently.

For travel

If you are travelling – either domestically or overseas – carrying a credit card can help you manage your trip.  Not only do you not have to worry about converting your money into local currency, but you can also pay for all your hotels, car hire and meals using your credit card.

Australia’s so-called ‘big four’ banks – Commonwealth Bank, National Australia Bank, ANZ and Westpac – control over two thirds of the credit card market between them.  They offer dozens of different credit cards from low fee cards, cards affiliated to credit card rewards schemes to leading gold and platinum cards.

Here is our focus on the credit cards offered by Australia’s ‘big four’.

Commonwealth Bank

CBA are Australia’s leading credit card provider.  Whilst they do not have the widest choice of credit cards in the market, they offer excellent rates, value and credit card rewards.

Their standard, gold and platinum cards are all linked to Commonwealth Bank’s excellent Awards credit card rewards scheme which offers thousands of potential rewards.  The Awards cards also link two cards to your account, allowing you to maximise your points collection whilst ensuring the widest worldwide acceptance.

Westpac

Westpac offer one of the widest ranges of credit cards in Australia with over a dozen cards to choose from.  As well as excellent niche cards such as their Student Visa Card and Singapore Airlines Cards, Westpac also offer an award-winning credit card rewards scheme.

Their Altitude range of cards offers a range of excellent benefits including superb credit card rewards.  Westpac also offer a range of Earth credit cards, through which you can earn Qantas Frequent Flyer miles.

As well as rewards cards, Westpac have a range of low fee and low rate cards, including their excellent 55 Day Visa range which are an idea every day, no-frills credit card.

National Australia Bank

National Australia Bank (NAB) offer a great range of credit cards including several linked to airline credit card rewards programs.

NAB’s Velocity cards offer up to 44 interest free days on purchases as well as the opportunity to earn points to redeem through the excellent Velocity airline rewards program.  Alternatively, you can select an NAB Qantas Card which links two cards to the same credit card account and lets you earn points towards Qantas’ Frequent Flyer scheme.

NAB also offer a standard range of cards which offer great rates and benefits, plus the ability to earn points towards the FlyBuys credit card rewards scheme.

ANZ

ANZ are Australia’s second largest credit card provider and offer a leading range of low fee, Frequent Flyer and rewards credit cards.

The ANZ First Visa card is a great every day shopping credit card, whilst the ANZ Balance Visa is an innovative card that allows you to earn credit card rewards for repaying your card balance.

You can also take advantage of the ANZ Rewards credit card rewards scheme through either the Rewards or Rewards Gold card.  Alternatively, you can take one of three ANZ cards linked to the Qantas Frequent Flyer program.

Here are our top five reasons why a charge card could be perfect for you.

Pay off your balance in full every month

The main difference between credit and charge cards is that you can’t maintain a balance on your card (this is called a ‘revolving’ debt).  You have to pay the card balance in full each month.

The Amex vice-president in Asia for international public affairs, Luisa Megale argues that a charge card customer necessarily pauses at the point of purchase to consider whether they will be able to pay for the item at the end of the month, whereas that discipline isn’t required of a credit card holder.

“They think, ‘Can I afford this, do I need this? Because I’m going to be paying it off at the end of the month.’ ”

Charge cards also have an advantage over debit cards.  Debit cards require you to have the money in your account immediately in order for a purchase to be approved, whereas a charge card holder can leave that money in a high interest account earning interest for up to 55 days until the charge card bill is due.

No pre-determined credit limit

Charge cards do not come with a pre-determined credit limit.  The amount of money that you spend on your charge card is determined by your income and what you can afford.

Many credit card companies have been criticised for providing very high credit limits on their card, which encourages consumers to spend up to that limit.  With a charge card, you cannot be tempted to overspend as you have to pay your bill in full every month.

Complimentary insurance

Many debit cards and credit cards do not come with any additional benefits.  However, many charge cards offer a range of associated complimentary benefits such as overseas travel insurance, purchase protection insurance or extended warranty cover.

No interest charges

One of the main advantages of charge cards is that they do not charge any interest on your ‘borrowing’.  As you have to pay the bill back in full every month, interest charges never apply to your account.  This means that you don’t have to worry about rising interest rates, or be concerned that you are paying a very high rate of interest on your card balance.

Customers who don’t pay off their American Express charge card in full every month face a penalty of $20 or 3 per cent of the outstanding balance, whichever is higher.

Card Rewards

Charge cards also often offer the chance to collect membership rewards for every dollar that you spend on your card.  Many debit cards and credit cards do not offer this facility.

Just by using your card for your weekly spending, you can earn rewards to redeem on everything from flights to homewares and electrical goods.

Australian consumers are denying banks $150 million in fees by increasingly avoiding using so-called ‘foreign’ cash machines.  These are machines offered by other banks which typically charge $2 for withdrawing your cash.

Changes to regulations surrounding ATMs took effect in March 2009 and since then Aussies have been shunning foreign ATMs and saving millions of dollars in fees.

Changes to legislation

In March 2009, regulations required ATMs to display any charge they would levy for a ‘foreign’ transaction prior to any withdrawal.  Customers had the option to cancel a withdrawal before paying any fee.  In addition, the Reserve Bank of Australia introduced a direct charge system, whereby cardholders would pay the ATM owner for a ‘foreign’ withdrawal, rather than their own bank.

Before the changes kicked in on March 3, 2009, foreign fees were not displayed at the time of withdrawal.  Instead, they would instead be debited to the cardholder’s account and would appear on their statement at the end of the month.

Since these reforms forced ATM owners to warn of fees before a withdrawal, Australians have cut their usage of ATMs by more than 73 million transactions – a reduction of 18 per cent.

Considering that the average charge for withdrawing money from an ATM not owned by your own bank is around $2, the costs of withdrawals have declined by almost $150 million since March 2009.

Christopher Zinn from the consumer advocate Choice says, “This is money saved by consumers. People are against fees.”

Changes in ATM withdrawal behaviour

According to data from the Reserve Bank of Australia, in March 2008 almost half of ATM withdrawals were undertaken at ‘foreign’ ATMs.  By February 2010, this figure had reduced to less than forty per cent.  The RBA is planning to comment on these findings when it releases a paper on its ATM reforms in the next few weeks.

In another interesting change in consumer behaviour, people are withdrawing larger amounts when they use an ATM.  Looking at comparative figures from before and after the legislation change, the average withdrawal level has been up to $10 higher since the warning was introduced.

Mr Zinn agreed there was a cost associated with providing ATM services but said transparency was the key.

The RBA said that the change to direct charging would improve competition within the system.  One of the other aims of direct charging was that it would also bring down the cost of accessing cash via foreign ATMs.  “That prediction is yet to manifest itself,” Mr Zinn said.

Federal police recently discovered a Russian website that tricked at least 50 people into disclosing Westpac account passwords and PINs.  The website, which Westpac believes is operated by a Russian crime group based in Moscow, sent a so-called ‘phishing’ e-mail message to thousands of Westpac bank customers.

Phishing scam

Phishing scams are one of the most common ways that fraudsters attempt to obtain personal information such as account details and passwords.  This particular attack involved a fake e-mail bearing Westpac symbols, being sent to thousands of Westpac banking customers.  The e-mail asked account holders to complete a ‘quick identity check’ by clicking on a website link.

Westpac’s David Lording said that the bank’s automated security detected the bogus link.  “Our internet security team has started procedures to close down the website,” he explained.  “We are working with the Australian Federal Police’s hi-tech crime unit to ensure the website is removed from the internet by international authorities.”

Westpac has been using its sophisticated tracking software to identify the customers who clicked on the web link.  As yet, it is not known whether the computers of those Westpac customers who clicked on the link were hacked.  The bank has contacted all of these account holders in order to cancel account numbers and passwords.

“Where customers are defrauded of cash through no fault of their own, Westpac will recompense the stolen amount in full,” said Mr Lording.

Avoiding internet scams

Phishing is one of the most common types of online fraud and it is vital that you never click a link in an e-mail purporting to be from a bank.  A reputable credit card company will never ask you to confirm your personal information either in an e-mail or by telephone.

As David Lording from Westpac confirmed, “Customers should be aware that Westpac never asks customers for secret passwords and log-on details in emails.”

If you are unsure, you should always contact your bank before sharing any personal information.

Other ways that you can protect yourself against internet credit card fraud include:

• Only using secure websites – check that a website is secure and has strong encryption before you share any credit card details
• Don’t click on any links in your e-mail inbox or on sites such as Twitter and Facebook that you do not recognise
• Make sure you have a good anti-virus and security system installed on every PC that you use for online transactions
• Don’t click a link to access your bank’s website.  Always type the address into your browser

There are dozens of credit cards in Australia that charge an annual fee.  They can range from anything from $30 to over $250 although many offer a range of benefits included for this charge.  However, there are also many cards which offer great benefits but that don’t levy an annual fee.

So, the big question is, should you pay an annual credit card fee?

Yes

Whilst you might be keen to avoid a credit card fee, there are circumstances in which paying the fee can be worthwhile.

For example, many gold and platinum credit cards charge an annual fee.  However, they also offer a wide range of built-in benefits including enhanced credit card rewards, free travel insurance and other insurances including purchase protection or extended warranty cover.  These benefits may be worth at least the annual fee to you.

Similarly, some of the credit cards that offer the lowest interest rates will have an annual fee.  You should cost up the savings that you will make for a balance transfer or on your purchases taking into account both the interest rate and the annual fee.  You may very well find that you are still better off on a lower interest rate deal even if you have to pay an annual fee for the card.

No

As competition between credit card providers increases, more and more companies are offering credit cards with no annual fee.

If you are looking for a no-frills credit card that you intend to pay off every month, there’s really no reason why you should pay a fee for the privilege of holding a credit card.  Many cards, including the HSBC Credit Card offer up to 55 interest free days without charging a fee.  You can use the credit card to manage your finances, and if you pay off your balance in full, it won’t cost you a cent for the privilege.

In addition, some cards will waive their annual fee if you spend a certain amount on the card every year.  You can therefore benefit from some of the added incentives offered by certain credit cards, and still not pay a fee for these services.  Just be careful that you don’t overspend by trying to reach the threshold above which you’ll avoid the charge.

It is even possible to benefit from a gold or platinum card without paying an annual fee.  The Bankwest Zero Gold MasterCard and Zero Gold Platinum card offer all the insurance, service and security that you would expect from a premium credit card, without charging for the privilege.

Charge cards

Charge cards are accepted with retailers in much the same way as credit or debit cards, but they require you to pay the balance in full every month.  Rather than a debit card which withdraws money from your account immediately, or credit card that allow you maintain a balance, charge cards require you to pay for your spending on a monthly basis, when your statement is issued.

In Australia, charge cards are issued by American Express (who also offer traditional credit cards) and Diners Club.

Charge cards increasing in popularity

Card market analyst Mike Ebstein, principal of MWE Consulting, says there are signs that charge cards, like debit cards, are increasing in popularity with Australian consumers.

“Debit cards are experiencing significant growth in Australia … [and] one of the drivers of the growth in debit is the control afforded by these cards in a time of economic uncertainty, rising interest rates and volatile markets,” Ebstein says.

“There’s some evidence that the discipline of meeting the payment in full each month that’s required on a charge card has [also] stimulated an increase in demand over the last year.”

High net worth earners

Ebstein argues that the nature of charge cards means they tend to appeal more to high income earners.  “The market attracted by charge is likely to continue to be dominated by the high-net-worth segment that has no need for a roll-over capability and doesn’t want the imposition of a credit limit,” he says. “They’re not a mass-market proposition.”

Ebstein estimates that there are around half a million charge cards on issue (about 3.4 per cent of all cards).  However, charge cards account for annual spending of about $20 billion, which is a disproportionate 8.8 per cent of spending on cards.

The Amex vice-president in Asia for international public affairs, Luisa Megale, says charge cards “are more relevant now than ever”.

Advantages of charge cards

The main advantages of charge cards are:

• Money not deducted from your account immediately – you pay when your statement arrives
• No interest charges as you pay your bill in full every month
• Many cards offer additional benefits such as membership rewards or complimentary insurances
• Interest free days – you can typically benefit from up to 55 days ‘interest free’
• No pre-determined credit limit – you can spend what you can afford

If you are, then a platinum credit card should be high on your shopping list.  They offer a superior level of service and are nowhere near as exclusive or expensive as you may think.  Many of them also bear the MasterCard brand which offers worldwide acceptance and benefits.

Here is our focus on four of Australia’s leading Platinum MasterCard credit cards.

Bankwest Zero Platinum MasterCard

The Bankwest Zero Platinum MasterCard is a unique offering.  You can benefit from all the enhanced service and features you would expect from a platinum credit card, but this credit card carries no annual fee.

As well as no annual fee and a great balance transfer rate, the Bankwest Zero Platinum MasterCard also offers many additional insurance benefits.  Cardholders benefit from complimentary airline travel and accident insurance protection, 12 month warranty extension and automatic purchase protection.

You can also add up to three additional cardholders at no extra cost, all of whom who can use Bankwest’s 24/7 concierge service.

Westpac Earth Platinum MasterCard

The Westpac Earth Platinum Card links both an American Express and a MasterCard to the same account.  You benefit from two cards, one account, one combined credit limit and the potential to earn unlimited Qantas Frequent Flyer points.

You will be awarded Qantas Frequent Flyer points for every dollar that you spend on your card, with bonus points awarded for spending with any of the credit card rewards program partners.

Cardholders also benefit from the Earth Platinum Concierge Service as well as purchase security insurance cover, extended warranty insurance cover and overseas travel insurance cover.  You will also have access to superb privileges schemes including American Express Selects™ and MasterCard® applause™.

Commonwealth Bank Platinum MasterCard

As with the Westpac Earth Platinum card above, cardholders benefit from both a MasterCard and an American Express card linked to the same account.

The Commonwealth Bank Platinum MasterCard is also linked to Commonwealth Bank’s excellent ‘Awards’ credit card rewards program.  By using your platinum credit card you can earn points to redeem against a wide range of superb credit card rewards.

Cardholders will also benefit from a range of complimentary insurance products and access to CBA’s 24/7 personal concierge service.

Citibank Emirates Card

The Citibank Emirates Card offers all the luxury, flexibility and ‘best in class’ benefits you would expect from a platinum card.  For example, you can take advantage of one chauffeur driven ride to and from the airport, or a complimentary pass to an Emirates lounge at an Australian airport when travelling with Emirates.

Cardholders will also benefit from a 24/7 personal concierge service, extended warranty cover, complimentary international travel insurance, enhanced purchase protection and all Citi World privileges.  You will also gain complimentary access to the stunning Marhaba Airport Lounge in Dubai.

NAB is one of Australia’s leading credit card providers and this gold card offers a wide range of benefits.  In addition to superior service and support, you can also earn FlyBuys points every time you use your gold card.

The Provider

NAB is one of the largest financial institutions and banks in Australia and the fourth largest credit card provider. It operates across 10 countries, including Australia, China and the UK and it serves 8.3 million consumer and business banking customers worldwide.

National Australia Bank (NAB) is ranked as the 17th largest bank in the world.  It operates 1,714 branches and service centres and 2,939 ATMs globally.

The Card

The NAB Gold Card offers you the choice of either a MasterCard or Visa card, each offering an enhanced range of gold card services.  You can benefit from the peace of mind of overseas travel insurance, extended warranty cover and purchase protection insurance, all for a competitive annual fee.

Every time you use this card for purchases, you will also earn FlyBuys credit card rewards points.  Your card is linked to your FlyBuys membership scheme and so you can earn points wherever you use your NAB Gold card.

You will also benefit from up to 44 days interest free credit and you can add an additional cardholder to your gold card at no extra cost.

The Top Five Benefits

• Complimentary insurance including overseas travel insurance and extended warranty cover
• Earn FlyBuys points through spending on your card
• Emergency travel assistance 24 hours a day, 7 days a week
• A low annual fee
• Add an additional cardholder at no extra cost

Why Should You Take One?

You can link your NAB Gold Card to your FlyBuys membership at no additional cost and earn one point for every $5 that you spend on purchases.  You can then redeem these points for a wide range of credit card rewards.

You will also benefit from an enhanced range of complimentary insurance products including purchase protection insurance, overseas travel insurance and extended warranty cover.

What Else Does It Offer?

Cardholders also benefit from 12 months complimentary VIP Lost Card Cover.  VIP Lost Card Cover is a registration service offered by Card Alert which keeps a confidential list of your registered credit cards, or any other cards you would keep in your wallet, that you would want to cancel and replace urgently if they are lost or stolen.

NAB also offer all their cardholders emergency travel assistance 24 hours a day, 7 days a week.

Anything Else You Should Know?

NAB Gold Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine as well as being eligible for either the Visa Entertainment or MasterCard applause schemes.

Annual fee:                                         8/10

Rewards Program:                           6/10

Standard Interest Rate:                 6/10

Service:                                                8/10

Additional Benefits:                        8/10

Banks are increasingly using credit reference information to decide whether they will grant you a new loan, mortgage or credit card.  It has therefore never been important to keep your credit in order.

Here are our top seven tips to keeping a good credit rating.

1. Don’t associate with bad credit

In credit terms, ‘association’ means being named with a joint applicant on some form of credit.  This can include a mortgage, loan or a joint bank account.

If one party to a joint financial commitment has a poor credit history, you need to make you keep your finances separate in order that you maintain your own credit rating is maintained.

2. Keep applications to a minimum

Your credit score will suffer if you apply for lots of different types of credit within a short period of time. Each time you apply for credit, a note is left on your credit file (this is called a ‘credit search’).  Multiple searches can actually damage your credit rating.

3. Build and maintain a good history

A common reason that you might be refused credit is not because you have bad credit, but because you have so-called ‘thin credit’.  This means that lenders cannot find enough information about you on the credit file to make a decision.

A good way of building and maintaining a good credit history is to open a simple credit card account and make your repayments in full and on time every month.

4. Always make your payments

To maintain a good credit rating, you must always make the minimum repayments on any loan, credit card or overdraft, and stay within any credit limits.

Even if you are struggling, do not default or miss payments.   If you do this once or twice it could affect you for a long time as these missed payments will stay on your credit file for several years.

5. Proactively manage your credit rating

Try to regularly obtain a copy of your credit file in order to check it is accurate.

If there are any adverse issues on your report, then you should take steps to correct these.  Contact the company and ask them to wipe it from your file.  If that fails, you can complain to the Banking & Financial Services Ombudsman (BFSO).

6. Minimise changes

Lenders tend to look more sympathetically on people who can show a high level of stability.  This means that employed people who have been in their job for some time, home owners and those who have been with their bank a long time will all generally have a better credit score.

7. Always change your address

If you move home, always make sure that you update your address on every single credit commitment that you hold.  Even if you haven’t used a particular account for years, if it is registered under a different address it can damage your credit rating.

The NAB Standard Card is a straightforward day to day credit card that offers great value.  As well as a low annual fee and competitive interest rates, you can also earn FlyBuys points on all your eligible purchases.

The Provider

National Australia Bank (or NAB) is one of the largest financial institutions and banks in Australia in terms of market capitalisation and customers. It operates across 10 countries, including Australia, China and the UK and it serves 8.3 million consumer and business banking customers and over 2.3 million wealth management customers.

By market capitalisation, NAB is ranked as the 17th largest bank in the world.  It operates 1,714 branches and service centres globally and held total assets of A$657 billion as of 30 September 2008.

The Card

The NAB Standard Card gives you the choice of a MasterCard or Visa card, all for a low annual fee.  With competitive interest rates and with emergency travel assistance and purchase protection included, this is the perfect card for your day to day shopping needs.

You will also benefit from up to 44 days interest free and you can add an additional cardholder at no extra cost.  Furthermore, you can link your card to your FlyBuys membership and earn FlyBuys points on all your eligible purchases.

The Top Five Benefits

• A low annual fee
• Purchase protection insurance
• Add an additional cardholder at no extra cost
• Link your card to your FlyBuys membership scheme
• Emergency travel assistance 24 hours a day, 7 days a week

Why Should You Take One?

If you are looking for a no-frills credit card for your everyday purchases, the NAB Standard Card could be for you.  It has a low annual fee and gives you up to 44 days interest free.

You can also link your NAB Standard Card to your FlyBuys membership at no additional cost.   Cardholders earn 1 point for every $5 spent on purchases in a statement period which you can then redeem towards a great range of credit card rewards.

What Else Does It Offer?

As well as great value, the NAB Standard Card also offers a great balance transfer rate.  You can take advantage of automatic purchase protection for up to 90 days and secure online shopping when you register for free with Verified by Visa or MasterCard SecureCode.

Anything Else You Should Know?

NAB also offer all their cardholders emergency travel assistance 24 hours a day, 7 days a week.

Annual fee:                                        10/10

Rewards Program:                           6/10

Standard Interest Rate:                 6/10

Service:                                                7/10

Additional Benefits:                        7/10

If so, it’s important that you take care when choosing a card.  There are dozens of balance transfer deals available and not all of them will be suitable for you.  Ask yourself these five questions before committing to a balance transfer credit card.

1. Is The Balance Transfer Worthwhile?

The simple first question that you should always ask yourself is whether undertaking a balance transfer is actually worthwhile.

You might already have a very good interest rate on your credit card.  Or, alternatively, your balance might be quite small and any savings may be eaten up in fees and charges.

Don’t blindly transfer your balance before you have worked out whether it is actually worth your while.

2. Have I Shopped Around?

You may be tempted to take an attractive looking credit card from your own bank.  Or, you may have seen an advert for a good looking cad or have received a mailshot through your door.

Even if these deals are all better than your current credit card interest rate, don’t automatically take the deal without researching your options thoroughly.  Head online to an independent comparison site (such as Credit Card Rewards) to make sure that you have exhausted all the possible options before selecting a card.

3. Have I Checked The Card Criteria?

You may very well spend hours researching the market to find the right credit card for you.  However, this time will be wasted if you fail to check the criteria for that particular card.

For example, there may be a ‘minimum income’ requirement to qualify for a particular card.  You might also have to have exemplary credit, or be an existing customer of a certain financial institution.

4. How Long Will It Take Me To Repay the Balance?

When deciding which sort of balance transfer deal to choose, it’s important that you have some idea of how long it will take you to repay your credit card balance

• 0-9 months – you may be better with a ‘short term’ low rate deal.  Take a short term deal appropriate to the amount of time it’s likely to take for you to repay the balance, whether than is 4, 6 or 9 months.
• 12 months or over – you are likely to be better with a low rate ‘lifetime of the balance transfer’ deal.  This ensures your interest rate remains low for the entire life of your balance; however long it takes you to pay it off.

5. Are There Any Fees To Pay?

Before you finish the research into what credit card might be the best choice for you, don’t forget to take any annual fees into account.

If a balance transfer will save you $200 in interest, but the new card has a $129 annual fee, it may not be worth your while to actually undertake the transfer.  Make sure you take any fees into account.

However, these cards are not for everyone.  So, the big question is, should you take a rewards credit card?

Yes

Do you pay your credit card balance off in full every month?  If you do, then a rewards credit card could be perfect for you.

Cards linked to a credit card rewards program award you points for every dollar that you spend on your card.  So, if you are using your credit card on a regular basis anyway, why not accumulate thousands of reward points in order to benefit from a free holiday, iPod or shopping trip?

Rewards credit cards are also useful if you are planning to make a large purchase on your credit card.  Many cards will award bonus points for using your card for the first time, and you will potentially earn a large number of points in you spend a large sum on your card.

No

If your intention is to maintain a balance on your credit card, you should think twice before consider a card linked to a credit cards rewards program.

Credit card rewards are earned with every dollar that you spend on your card.  So, if you use your credit card regularly and for large purchases, you could collect a large number of points which you could redeem for some valuable rewards such as flight or electrical equipment.

However, if you maintain a balance on your rewards credit card, you will probably pay interest on this balance at between 15 and 20 per cent.  On a $2,000 balance, that is around $300 to $400 every year.  You’ll probably also pay an annual credit card fee.

If the value of the rewards that you are chasing is less than this interest charge, then you will be out of pocket.  The interest and fees that you pay on the card will be higher than the value of your rewards.  In this situation, you may be better off ignoring the credit card rewards and seeking out a better deal on your credit card interest.

Even if you do pay your balance off in full every month, a rewards credit card may still not be for you.  If you don’t use the card very often, it can take an extremely long time for you to build up the level of points you need for a decent reward.

For example, in the year to June 2009, Roy Morgan Research found that the average Australian spent $156 a week in supermarkets.  Using this figure, it would take seven years to earn enough points for a Virgin Blue flight from Melbourne to Sydney using the FlyBuys credit card rewards scheme.

So, what better way to use that additional money than by repaying your credit card balance?

What cuts are coming?

There are two cuts on the way:

• the threshold for the 30 per cent rate is being lifted from $35,000 to $37,000
• the tax rate on income between $80,000 and $180,000 is being cut from 38 per cent to 37 per cent

What this means, according to the Sydney Morning Herald, is that these two changes will deliver between $150 and $1300 to everyone earning more than $35,000.

Tax advice

The traditional advice when tax rates are coming down is to defer what income you can until the new financial year (when you will pay less tax on your income) and bring forward possible deductions to this year (when they will be more valuable).

The director of Strategy Steps, Louise Biti, says that advice makes sense this year, even though the tax savings won’t be particularly significant. However, because Australians won’t be making giant tax savings, Biti argues that taxpayers should be looking to put them to productive use rather than allow them to be gobbled up by your normal day to day spending.

Repay your credit card debt

Biti provides this example of how just a few extra dollars a week can help clear your credit card balance much more quickly.

Say you had a credit card debt of $2,000 at an interest rate of 18.5 per cent.  If you only made your minimum payment every month, Biti says that it would take 33 years to repay the balance in full.

If you kept up the current $40-a-month repayment (rather than reducing your payment as the balance and therefore the minimum payment reduced), you’d clear the debt in around eight years.

However, if you paid an extra $5 a week (from your tax savings) and increased your monthly repayments to $60, you could pay off the whole balance in just four years.  Not only would this clear the debt more quickly, but it would save you a significant sum in interest payments over the time it took you to repay the balance.

Whilst the tax savings might not be spectacular, even a small saving (if used properly) can make a significant difference to the rate at which you pay off that outstanding card balance.

Many of Australia’s leading credit card rewards schemes offer cardholders the choice of two cards linked to their account.  Whilst this may seem complicated, it is actually a really good way of helping you maximise the number of points you can collect on your card account.

Linking two cards

Many of Australia’s leading credit card rewards programs offer both an American Express card and a Visa or MasterCard linked to the same account.  Some of the cards that offer this facility are:

• Westpac Earth Card
• ANZ Frequent Flyer Card
• Commonwealth Bank Gold Card
• NAB Velocity Standard Card

Even though you have two cards, you will still have just one combined credit limit, one account and one monthly statement detailing all your card transactions.

Why link two cards?

Linking two credit cards to the same account has various advantages.  The main one is that it allows you to combine the widest worldwide card acceptance with the ability to maximise your points collection.

For example, the American Express card linked to your account will typically earn you more credit card rewards points than spending the same amount on your Visa or MasterCard.  In some cases you can earn up to twice the number of points for the same dollar spend on your card.

What adding a Visa or MasterCard to the account does is increase the number of worldwide locations that will accept your card.  If a retailer doesn’t accept an American Express card, you can still pay using your Visa or MasterCard and you will still earn credit card rewards based on the value of your transaction.

Enhanced collection using one card

If you want to maximise your credit card rewards, the best way to do it is to use the card that offers the highest rate of points collection.  As we saw above, this is generally the American Express card that is linked to your account.

Where possible, you should always use this card to pay for goods or services as it will mean that you will build up your points total much more quickly.  Only where a retailer or store doesn’t accept that brand of credit card should you turn to the alternative card linked to your account.

Other ways to maximise your points collection

There are several other ways that you can maximise the number of points you collect:

• Use your credit card with any ‘bonus partners’ – other retailers linked to your provider’s credit card scheme
• Consider a card that offers bonus points for activating or using the card
• Use your card as often as possible

Many Australian credit cards – particularly gold and platinum cards – offer customers a range of complimentary insurance products as part of their suite of benefits.  Often, you can benefit from a wide range of useful insurances if you choose your credit card correctly.

Here are four of the most common complimentary insurances included with Australian credit cards.

Travel Insurance

Domestic and overseas travel insurance is one of the most common types of complimentary insurance that is included with Australian credit cards.

It typically provides cover for such events as missed connections, travel cancellation, lost luggage, overseas medical expenses, lost travel documents, accidental death and disability, missed connection, and more serious issues such as hijack, kidnap and ransom.

Make sure that you check any terms and conditions that may apply to your travel insurance policy.  For example, some credit card providers will only provide cover if you have paid for your flights and/or accommodation using that specific credit card.  Some other companies insist that a proportion of your holiday must have been booked using the card before you can benefit from the cover.

Purchase Protection

Purchase Protection Insurance typically provides insurance protection for most new personal retail items purchased with your credit card.

Most retail items are protected against loss, accidental damage or theft for a specified period of time (generally 3-6 months) from the date of purchase.  You will almost always have had to purchase the item using the credit card that provides the insurance.

If you claim under this cover, the item may be repaired or replaced on a ‘new for old’ basis.  Again, you should check the specific terms and conditions of your policy.

Extended Warranty Cover

Having a domestic appliance break down just outside its warranty period can be incredibly frustrating.  That is why ‘extended warranty cover’ is becoming increasingly common with Australian credit cards.

The cover generally applies if you have paid for an item in full with the specific credit card providing the cover.  This insurance extends the original manufacturer’s warranty, typically for up to one year.  Alternatively, the warranty period may be doubled if the initial manufacturer’s warranty is less than a year to begin with.

Lost Card Cover

There are a number of different ‘lost and stolen card’ schemes that operate in Australia.  These schemes involve you registering all your credit and debit cards with one confidential service.  In the event that your wallet is lost or stolen, you make one call to the ‘lost card’ service and they will notify all of your card providers immediately to cancel your cards and to request replacements.

Many credit cards come with this insurance as a complimentary inclusion, although it is also available to everyone for a small annual fee.

The NAB Velocity Standard Card is a great, everyday shopping credit card that allows you to earn travel rewards through the award-winning Velocity credit card rewards program.

The Provider

By market capitalisation, National Australia Bank (NAB) is ranked as the 17th largest bank in the world.  It operates 1,714 branches and service centres globally and held total assets of A$657 billion as of 30 September 2008.

NAB is one of the largest financial institutions and banks in Australia in terms of market capitalisation and customers. It operates across 10 countries, including Australia, China and the UK and it serves 8.3 million consumer and business banking customers worldwide.

The Card

The NAB Velocity Standard Card allows you to collect points to redeem through the award-winning Velocity credit card rewards program.

You will benefit from both an American Express card and a Visa card linked to your account.  You have one credit limit, monthly payment and combined statement but you can earn unlimited Velocity points by using either of the two cards linked to your NAB account.

For a low annual fee, you can also add an additional cardholder for no extra cost and take advantage of up to 44 days interest free.

The Top Five Benefits

• 1.5 points for every $2 spent on American Express card
• 1 point for every $2 spent on Visa card
• A low annual fee
• Add an additional cardholder at no extra cost
• Great balance transfer rates

Why Should You Take One?

Velocity is the award winning loyalty program of Virgin Blue, V Australia, Polynesian Blue and Pacific Blue.  You will earn Velocity credit card rewards points with every dollar that you spend which you can then redeem for range of Velocity Rewards.  These rewards include international and domestic flights and a great range of entertainment, car hire, travel and accommodation rewards.

The American Express card linked to your NAB account will help you can maximise your credit card rewards whilst the Visa card gives you wide worldwide acceptance.  You will also benefit from a low annual fee and up to 44 days interest free.

What Else Does It Offer?

NAB Velocity Standard Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine.

You can also add an additional cardholder at no extra cost and you can manage your account easily through NAB Internet and Telephone Banking.

Anything Else You Should Know?

NAB also offer all their cardholders emergency travel assistance 24 hours a day, 7 days a week.

Annual fee:                                        9/10

Rewards Program:                           7/10

Standard Interest Rate:                 6/10

Service:                                               7/10

Additional Benefits:                        7/10

Many platinum cards bear the iconic Visa logo, and so here is our focus on five of Australia’s leading Platinum Visa cards.

ANZ Frequent Flyer Platinum Visa

With an ANZ Frequent Flyer Platinum card you benefit from both an American Express and a Visa card linked to the same credit card account.  Whichever card you use for your purchases, you will earn Frequent Flyer points for every dollar that you spend.

In addition to earning credit card rewards, this card also offers overseas travel and medical insurance, 90 day purchase security insurance and extended warranty cover.

Cardholders also benefit from exclusive access to Visa Platinum Concierge and Visa Platinum privileges with ANZ Frequent Flyer Visa Platinum.

Suncorp Clear Options Platinum Visa

The Suncorp Clear Options Platinum Visa card offers a terrific combination of service, support and insurance. As well as a 24/7 platinum personal concierge service, you will also earn credit card rewards points every time you use your platinum Visa card.  You can then redeem these points for a wide range of rewards including travel, homewards and shopping gift cards.

The card has a generous credit limit of $30,000 and you will also benefit from a range of complimentary insurance products.  These include international travel insurance, purchase protection and emergency travel assistance.

Macquarie Bank Platinum Visa

As a Macquarie Bank Platinum Visa Card holder you will automatically be granted ‘founder member’ status, with exclusive access to offers and events.  The card is also linked to Macquarie Bank’s credit card rewards program through which you can earn electrical goods, gift cards and flights.

In addition to superb interest rates and rewards, the Macquarie Bank Platinum Card offers complimentary overseas and domestic travel insurance, purchase cover, a ‘zero liability’ guarantee on online purchases and extended warranty insurance.

Westpac 55 Day Platinum Visa

The Westpac 55 Day Platinum Visa offers the unrivalled service and security you would expect in a platinum card.  You will never pay an annual fee if you spend $20,000 on purchases every year on your platinum card and you can benefit from up to 55 days interest free.

All 55 Day Platinum Visa Card cardholders also have access to a Priority Service Line as well as access to Platinum Privileges through Visa Entertainment.

Citibank Platinum Card

The Citibank Platinum Card offers excellent service and support.

Cardholders benefit from Citibank’s personalised credit card rewards points program which offers points that never expire and can be redeemed for anything from gift cards, school fees or furniture.  Alternatively, you can transfer your points into Qantas Frequent Flyer miles.

You will also benefit from complimentary travel insurance for you and your family.

The amendment is designed to help reduce the so-called ‘swipe fees’ that small businesses pay on every debit card sale.

The law change

The Durbin amendment would direct the US Federal Reserve to issue rules that will ensure that debit card fees are reasonable and proportional to the processing costs incurred.  Visa and MasterCard currently charge ‘debit interchange fees’ of between 1% and 2% of the transaction amount.  These fees are far higher than the actual cost of processing debit card transactions, and they mean that small businesses and merchants always lose a small proportion of their income when a customer uses a debit card to make a purchase.

Swipe fees have been the convenience and petroleum retailing industry’s second largest expense item — behind staff costs — for a number of years, according to the National Association of Convenience Stores (NACS).

Assistant Senate Majority leader Dick Durbin said, “Passage of this measure gives small businesses and their customers a real chance in the fight against the outrageously high ’swipe fees’ charged by Visa and MasterCard.  It will prevent the giant credit-card companies from using anticompetitive practices, allow merchants to offer discounts to their customers and restore common sense and fairness to this broken system.”

He added, “By requiring debit-card fees to be reasonable, and by cleaning up Visa’s and MasterCard’s worst abuses, small businesses and their customers will be able to keep more of their own money.”

A ‘big battle’ lost

According to the MasterCard President for U.S. Markets, Chris McWilton, the two major credit card networks, Visa and MasterCard lost “a big battle” for future revenues following this Senate vote.

“Now we’ve got to make sure we win the war,” McWilton said.  “We lost this battle. It’s a big battle. But the war wages on and we’ll be working really hard over the next week or so to stop this.”

MasterCard said that it was too soon to determine exactly what the impact of the legislation on its business would be.  But “to the extent that the ecosystem would be upset, the chance that our revenues could be impacted,” McWilton said.

Impact on credit card fees?

The amendment does not directly limit credit card interchange fees, just those on debit cards.  However, many industry experts fear that this regulation could lead to wider restrictions on credit card fees.

Here is our focus on five of Australia’s leading airline credit card rewards schemes.

NAB Velocity

NAB link their Standard Velocity Card and Gold Velocity Card to the Velocity airline credit card rewards program.

Velocity is the award winning loyalty program of Virgin Blue, V Australia, Pacific Blue and Polynesian Blue.  You earn Velocity credit card rewards points with every dollar that you spend on your NAB Velocity card.  You can then redeem these points for a range of Velocity Rewards including domestic and international flights, accommodation, entertainment and car hire.

Westpac Earth

With a Westpac Earth Card you will have both an American Express and a MasterCard linked to the same account.  You benefit from two cards, one account, one combined credit limit and the potential to earn unlimited Qantas Frequent Flyer points.

As well as earning Qantas Frequent Flyer points on your Westpac Earth Card wherever you use it, you can earn points twice by spending with Qantas Frequent Flyer program partners – once on your card and once with the program partner.

American Express Qantas

American Express link their Classic, Premium and Ultimate cards to the Qantas Frequent Flyer program.

For a competitive annual fee, you can build up airline credit card rewards in addition to benefiting from all the superb service and card protection you associate with American Express.  You will also benefit from receiving bonus points just for using your card for the first time.

Citibank Emirates

The Citibank Emirates card offers all the unrivalled security, service and credit card rewards you would expect from a leading platinum credit card.

As well as earning Emirates Skywards miles every time you use your credit card, you will benefit from additional Emirates perks including a chauffeur driven trip to the airport or complimentary passes to the Emirates lounge at selected Australian airports.

ANZ Frequent Flyer

With the ANZ Frequent Flyer Card you will benefit from the enhanced points collection of an American Express card and the worldwide acceptance of a Visa card.  You will earn points for every dollar that you spend on your card which you can redeem through the Qantas Frequent Flyer airline credit card rewards program.

As an ANZ Frequent Flyer cardholder you can also earn bonus rewards points through ANZ’s ‘bonus partners’ including Hertz and Accor Hotels.

Airline credit card rewards are some of the most popular in Australia as card users can benefit from domestic and international flights simply for using their credit card to buy household groceries and fuel.

In our ‘6 of the best’ series, we look six of the leading Australian airline credit cards.

Westpac Singapore Airlines Platinum Card

The Westpac Singapore Airlines Platinum Card offers all the service and support you would expect from a platinum credit card including a 24/7 personal concierge service and complimentary travel and purchase protection insurance.

The card links both an American Express and a Visa to the same account.  You benefit from two cards, one account, one credit limit and the potential to earn unlimited Singapore Airlines KrisFlyer miles.

Citibank Emirates Card

The Citibank Emirates Card offers all the luxury, flexibility and ‘best in class’ benefits you would expect from a platinum card.  When flying Emirates, you can take advantage of a complimentary pass to an Emirates lounge at an Australian airport or one chauffeur driven ride to and from the airport.

You will also earn Skywards Miles towards your next Emirates flight with every dollar that you spend on your card.

Westpac Earth Card

With a Westpac Earth Card you will have both an American Express and a MasterCard linked to the same account.  You benefit from two cards, one account, a combined credit limit and the potential to earn unlimited Qantas Frequent Flyer points.

As well as earning Qantas Frequent Flyer points on your Westpac Earth Card wherever you use it, you can earn points twice by spending with Qantas Frequent Flyer program partners – once on your card and once with the program partner.

ANZ Frequent Flyer Card

ANZ describe their ANZ Frequent Flyer Credit Card as “Two cards. One account. One credit limit. One statement. Simple.”  With every dollar that you spend you earn points to redeem through the Qantas Frequent Flyer scheme.

You can use your ANZ Frequent Flyer cards at any of ANZ’s Bonus Partners with the ability to earn Bonus Points and your Qantas Frequent Flyer points are automatically credited to your Qantas Frequent Flyer account every month.

American Express Qantas Classic

The American Express Qantas Classic Card offers the chance to earn Qantas Frequent Flyer miles wherever you use your card.  For a competitive annual fee, you can build up airline rewards in addition to benefiting from all the superb service and card protection you associate with American Express.

NAB Qantas Gold Card

The NAB Qantas Gold Card allows you to maximise your Qantas Frequent Flyer points from everyday purchases to get the rewards you deserve faster.  You can use your Qantas Frequent Flyer points on a wide range of rewards including flights, vouchers, merchandise and more in the Qantas Frequent Flyer program.

There are dozens of credit cards in Australia, each offering slightly different features and benefits.  Choosing the right credit card for you can be a minefield and so here are the top five factors you should take into account when selecting your new credit card.

Interest rate

The single biggest factor that most people take into account when deciding which credit card to apply for is the interest rate.  Depending on what you need your credit card to do, there are three interest rates you should consider:

• Balance Transfer rate – the rate of interest applicable to debt that you transfer from another credit card
• Purchase rate – the rate of interest applicable to any purchases you make using your credit card
• Cash Withdrawal rate – the rate of interest applicable to any cash withdrawals you make at an ATM using your credit card

Make sure you pick the credit card with the most appropriate rate for your specific needs.

Provider

There are dozens of credit card providers in Australia.  Whilst you might think that the specific interest rate and benefits offered by the credit card itself might be of utmost importance, you shouldn’t ignore the consideration of who the provider is.

Do they have a good customer service record?  Can you access a representative of the company at a branch convenient to where you live and work?  Are their fees and charges fair?  Do they have a good environmental record?

All these factors should be taken into account before you decide which company to entrust your custom to.

Interest Free days

When you buy something using your credit card, the card provider will generally allow you some ‘interest free days’ to pay this bill.  This is the period between the date of purchase and the date when your monthly payment has to be made.

The higher the number of interest free days, the more time you have to pay your credit card bill.  Typically, you will find that interest free days range from around 40-60 days.

Annual fee

Credit card annual fees vary significantly from bank to bank, and from card to card.

It’s important to remember that you should not necessarily take the card with the lowest fee.  A card which charges an annual fee might have a lower interest rate, better credit card rewards or other benefits which make the charge worthwhile.

Criteria

When comparing credit cards you should check one very basic point: are you eligible for the card?

If you don’t research the qualification criteria, you could waste your time finding and applying for the perfect card, only to be declined when you discover it has a minimum income requirement above your current salary.  Or, perhaps it requires a perfect credit record and you have missed a couple of payments in the past?

The esteemed economist Milton Friedman is famous for this quote, but is it true of zero per cent credit card deals?  Can paying no interest on your credit card really be worthwhile, or are there hidden conditions which make these deals less attractive then they seem?

In our “The Big Question” series, we look at both sides of the argument as to whether zero per cent credit card deals are worthwhile.

Yes

On the face of it, paying no interest on your credit card debt seems too good to be true.  However, if you have a balance that you expect to be able to repay during a ‘nil interest’ period, it could well be the perfect deal for you.

By transferring your card balance to such a deal, you will have the period of the low rate deal to clear your balance without having to pay a dollar’s more interest.  Instead of paying 15-20 per cent interest with your current card provider, you can speed up the repayment of your debt by ensuring that your repayments go towards the balance, not towards a high rate of interest.

Even if the card you are applying for has an annual fee, you may well find that the interest savings you make on your debt significantly outweigh any annual fee that the new card provider might charge.

All you need to do is make sure you clear the debt before the end of the zero per cent period.  If you don’t, you’ll end up paying interest at a much higher rate once the promotional deal has ended.

No

Short term credit card deals can seem appealing, but many of them have flaws which you need to take into account.

Firstly, such a deal may come with a card which charges a high annual fee.  It might seem like great value to pay no interest, but if you are paying $150 to $250 in an annual fee, that will eat into any interest savings that you might make.

The other main warning when considering a zer per cent interest deal is that this rate will only last for a short period.  Once it ends, you will end up paying a credit card provider’s standard interest rate which may be in excess of 20%.  You might make some short term savings, but you could end up paying significantly more interest in the long run.

In this situation, it may be better to take a low interest rate for the lifetime of the debt, even if it is a higher interest rate.  You will generally find that you save more money in the long term.

Here are five reasons to change your rewards credit card.

A better rewards scheme

Not all credit card rewards programs are the same.  They differ in terms of the points collection rate, the range of rewards on offer and the number of points you have to redeem to benefit from a reward.

You should use a credit card comparison website such as Credit Card Rewards to research the various credit card rewards programs that are available.  For example, you may a rewards scheme which offers bonus points at a retailer you use regularly.  Or, you may find a program that offers a more flexible travel service which allows you to take advantage of a wider range of flight benefits.

Don’t stick with your existing credit card rewards scheme for the sake of it.  See if there is an alternative scheme more suited to you.

More rewards points

A simple reason why you might want to switch your credit card is to accumulate more points for the money that you spend.

Not all card providers and credit cards offer the same rate of points collection.  For example, most credit card rewards programs offer one point per dollar that you spend on your card.  However, there are cards and schemes that offer up to three points per dollar spent.

By changing your credit card you might find that you accumulate significantly more rewards points without having to spend any more on your card.

Service

When was the last time you experienced poor customer service from your credit card provider?

If the service you are receiving is poor, vote with your feet and look for another provider.  You might have to queue for hours in your local branch to make payments to your card, or you may have incurred charges which you believe were unfair.

Shop around and find a company that offers a credit card rewards program with better, more personal service.

Lower interest rates

One of the main reasons you might wish to switch credit cards is to benefit from a lower interest rate.

If you have a card that is affiliated to a credit card rewards scheme, you should ideally be paying off your credit card balance every month to get the most from the program.  However, if you do maintain a small balance, or if you want to pay off a larger purchase over several months, you should be looking for a lower standard interest rate on your credit card.

Additional card benefits

Many rewards credit cards also offer additional benefits.  These often include complimentary travel insurance, purchase protection or online fraud protection.

If these are benefits that you may use, changing your card or provider to a credit card which offers these additional features may be worthwhile.

However, there’s no need to pay hundreds of dollars in fees and charges.  By considering a credit card balance transfer, you could save yourself a significant amount.

What is a balance transfer?

A balance transfer is a process whereby you switch your credit card debt from one credit card provider to another.

For example, you may have a $5,000 balance on a Bankwest credit card and you may be paying 19% interest on that borrowing.  You notice that Westpac have an offer where you’d only pay 1.99% on the balance for 9 months.

By taking out the new credit card, you can transfer your credit card balance from one card to another to take advantage of the much lower interest rate on offer with the new provider.

What types of balance transfer deals are there?

There are typically two distinct types of balance transfer deal and it is crucial that you pick the right one for your circumstances.

• Short term deal – These are very low interest rates (or sometimes even a ‘nil’ interest rate) for a short period of time – generally 4-9 months.  If you are planning to repay your credit card balance in full within the low rate period, then these are deals that you should consider as you’ll pay a much lower rate of interest whilst you clear your balance
• Lifetime deal – These are low interest rates which apply to the credit card balance for its lifetime – i.e. until you pay the balance off, however long that may take.  If you estimate it will take you longer than, say, a year to repay your credit card balance in full, these types of deal are likely to be better for you

It is crucial that you are realistic with your estimation of how long it will take you to repay your credit card balance, and that you select the most appropriate scheme.  If you don’t, you could end up paying a lot more interest charges than you need to.

Shop around for the best card

Once you have decided which type of balance transfer deal is going to be most suitable for you, you should undertake some research to find out which card is likely to be best for you.  Take the following factors into account:

• The balance transfer interest rate that will be charged
• Any annual fees that are applicable to the card
• How easy it is to manage your account.  For example, can you manage your credit card through online or telephone banking?
• Whether the card has any additional benefits such as online fraud protection or complimentary insurance
• What level of service you can expect from the card provider

Whilst the interest rate and any fees might ultimately be the determining factor in which card you choose, you should not ignore these other areas.

Gold cards offer an attractive mix of great interest rates, card and purchase protection and credit card rewards.  Westpac offer an impressive range of credit cards, and this gold card offers security, support and access to an award-winning credit card rewards program.

The Provider

Westpac is Australia’s third biggest credit card provider and offers one of the widest choices of cards in Australia, offering low fee, low rate and rewards credit cards alongside a superb range of ‘premium’ credit cards.

The company itself is Australia’s first and oldest bank. Established in 1817 as the Bank of New South Wales, the company changed its name to the Westpac Banking Corporation in October 1982 following the acquisition of the Commercial Bank of Australia.  It also owns St. George Bank.

The Card

The Westpac Altitude Gold Card allows you to earn points to redeem on an excellent range of rewards from flights to homewares and gift cards.  As well as earning points for every dollar you spend, you will also receive bonus credit card rewards when you first use your credit card to make a purchase.

The Westpac Altitude Gold Card links both a Gold American Express and a Gold Visa or MasterCard to the same account.  You benefit from two cards, one account, one combines credit limit and the potential to earn unlimited rewards points.

The Top Five Benefits

• 2 points for every $1 spent on American Express card
• 1 point for every $1 spent on Visa or MasterCard
• Receive bonus Altitude points when you first use either card for a purchase
• Great balance transfer rates
• A range of complimentary insurances

Why Should You Take One?

The Westpac Altitude Gold Card is ideal if you are looking for:

• Competitive rates and fees
• The support and complimentary insurances that you would expect from a gold card
• Access to one of Australia’s leading credit card rewards programs

You can collect credit card rewards points with every dollar that you spend, whilst taking advantage of the peace of mind of a range of insurance products and the knowledge that 24/7 support is just a phone call away.  You can also collect reward points through a range of bonus partners.

What Else Does It Offer?

As well as earning Altitude Rewards points through your Westpac Altitude Gold Card wherever you use it, cardholders will benefit from a range of complimentary insurances.  These include travel insurance cover, transit accident insurance cover, purchase security insurance cover and extended warranty insurance cover.

Anything Else You Should Know?

For the 5th year running Altitude has taken top honours in the Best of the Best awards. In the 2010 awards the Altitude Platinum American Express® Card was awarded first place in Money magazine’s Bank Best Rewards Credit Card category.

Annual fee:                                         6/10

Rewards Program:                          10/10

Standard Interest Rate:                 6/10

Service:                                                8/10

Additional Benefits:                        8/10

More and more of us are heading online for everything from finding old friends to grocery shopping.  Internet banking is one of the big growth areas, and it is now possible to research, apply for and manage your credit card at the click of a mouse.

Here are our top ten reasons why you should head online for your credit card.

1. Convenience

Instead of visiting each of your local banks individually to find out what credit card deals are available, you can find all the information you need to know at the click of a mouse.  Use a comparison site such as Credit Card Rewards, to see all of the various credit card options in one place.

2. Advice

Credit card comparison websites contain a huge amount of advice.  You can read reviews, customer comments and credit card news as well as tutorials to help you manage your credit card more effectively.

3. Information

In addition to advice which can help guide you as to which credit card to choose, the internet contains a huge amount of information about the range of credit cards on offer.

4. Instant approval

Rather than waiting days for your credit card application to be posted, underwritten and returned, many providers will provide an instant approval for your credit card when you apply online.  The process is quick and easy and you can benefit from your application receiving an instant approval.

5. Manage your account yourself

Once your credit card account is up and running, most banks will now let you manage your own account online.  You can check your card balance, access your statements and make payments to your credit card, all from the comfort of your own home.

6. Speed

Applying for a credit card by post can take weeks, and managing your card account through your local branch can be time-consuming.  Choosing, applying for and managing your credit card online is not only convenient, but quick.

7. Cost

Heading online is also cheap.  It doesn’t cost you anything to research credit cards on the internet and neither does it cost you anything to make an application for your instant approval credit card online.

8. Recommendations and feedback

By heading online to research the many credit cards on offer, you can also benefit from the experiences of others.

Many websites have feedback or comments pages where customers can register their own satisfaction (or dissatisfaction) with a card or a card provider.

9. Security

All credit card sites are encrypted and offer a high level of security.  Postal applications might be lost or mislaid in the mail, but you can be sure your card details are secure when you use a reputable bank’s online service.

10. Up to date information

If you head online to research and apply for a credit card, you can be sure that you are getting all the very latest up to date information and deals.  When you apply online, you can also be sure that you guarantee you benefit from the promotional deal on offer.

Simply by paying for your weekly groceries and fuel, you can rack up points to redeem for flights, gift cards or even the latest digital camera.  With many of Australia’s leading credit card providers offering a credit card rewards program, your choice has never been better.

In our ‘6 of the best’ series, we look at six of the leading Australian credit card rewards programs.

Westpac Altitude

Westpac link three of their credit cards to their Altitude credit card rewards program.

Your credit card rewards points will be accrued depending on the money you spend on your rewards card and whether you use the Visa, MasterCard or American Express card linked to your account.  You can also earn additional points through a range of bonus partners.

There is a wide range of rewards you can benefit from, including flights, experiences, gift cards and homewares.

Commonwealth Bank Awards

Commonwealth Bank is Australia’s largest credit card provider and they link three cards to their Awards credit card rewards program.  On all CBA Awards cards, you will benefit from a MasterCard and an American Express card linked to the same account.

You can exchange your Commonwealth Bank Awards points for Velocity Points or for gifts, a credit to your credit card or a range of experiences.

American Express Membership Rewards

American Express is one of the world’s leading card providers and so their Membership Rewards program is arguably the best credit card rewards scheme.  There are five cards linked to the program and a terrific range of rewards on offer.

American Express offer cardholders a dedicated travel desk and you can redeem your points for whatever flights you wish using their Travel Rewards service.

ANZ Rewards

ANZ offer a wide range of credit cards and two distinct credit card rewards programs.  The first is their ‘frequent flyer’ scheme, but they also offer an excellent flexible card rewards scheme called ANZ Rewards.

You earn one point per dollar spent, and you can earn additional points through bonus partners or other ANZ products.

There are two cards linked to the scheme, and your points can be used for a terrific range of rewards.

Citibank Citi Rewards

Citibank offers a great credit card rewards program, particularly for its Gold and Platinum cardholders.  AS well as the excellent Citi Take Flight scheme, cardholders can redeem their points for a wide range of experiences, gift cards, electrical and homewares.

There are a wide range of ‘bonus partners’ where Citibank Gold and Citibank Platinum card holders can earn additional Citi Rewards points.

Bankwest More Rewards

With up to 3,000 choices in their rewards catalogue, Bankwest offer one of the widest choices of credit card rewards in the country.  As well as gift cards and merchandise, they offer an excellent range of experiences, wherever in Australia you are.

Bankwest have three cards linked to their More credit card rewards program and you earn 1.5 points for every dollar that you spend.

More Information

NAB Qantas Platinum Card

Do you want the unrivalled service of a platinum card whilst earning Qantas Frequent Flyer points?

The NAB Qantas Platinum Card allows you to earn unlimited Qantas Frequent Flyer points wherever you use your platinum credit card.  You can use your Qantas Frequent Flyer points on a wide range of rewards including flights, vouchers, merchandise and more in the Qantas Frequent Flyer program.

Each NAB Qantas Platinum Card account comes with two cards: a NAB Qantas Platinum American Express Card for maximum points earning and a NAB Qantas Visa Platinum Card for added worldwide acceptance.  You will have one combined credit limit, one statement and one monthly payment.

You will also benefit from all the additional services you would expect from a platinum card including a 24/7 personal concierge service and a wide range of complimentary insurances.

Top Five Benefits:

• 1.5 points for every $1 spent on American Express card
• 2 point for every $3 spent on Visa card
• Complimentary insurance including overseas travel and price protection insurance
• 24/7 personal concierge service
• Add an additional cardholder at no extra cost

Card Details

Annual Fee $290

Interest Rate 19.99% p.a. on purchases

Interest Free Period Up to 44 days

Application Criteria N/A

Credit Card Type American Express and Visa

Cash Advance Rate 19.99% p.a.

Rewards Program Qantas Frequent Flyer

Balance Transfer Rate 6.99% p.a. on balance transfers for up to 6 months

Cardholders also benefit from complimentary overseas travel insurance, extended warranty cover, purchase and price protection insurance, domestic hotel burglary insurance, interstate flight inconvenience cover, transport accident insurance and 12 months VIP Lost Card Cover.

NAB Qantas Platinum Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine.

You can also take advantage of NAB’s 24/7 emergency travel assistance and personal concierge service and benefit from dining, entertainment and travel offers through American Express Selects.

NAB reserves the right to withdraw any balance transfer request, in full or in part at its discretion. Special Promotion Transfer rate of 6.99% p.a. will apply to any balance transfer amount for up to 2 non-NAB credit or store cards for the period from the time the balance transfer is made to your account for six complete monthly statement periods, unless the balance transfer amounts are paid off earlier. These balance transfer amounts are designated cash advances for the purposes of the terms and conditions applicable to your credit card account. If at the end of the six month statement period applicable to any balance transfer amount any portion of that balance transfer amount is owing, that amount will attract interest at the (Cash Advance) Indicator Rate (as advertised from time to time) then applicable to your card. A payment to your NAB Credit Card account under this Special Promotion will be applied to the balance transfer amounts (designated cash advances) before any other cash advance or purchase amounts. The terms and conditions applicable to your credit card account set out in detail the order in which payments are applied. Please note the promotional rate of 6.99% p.a. for up to six months on balance transfer amounts must be applied for at the point of full card application. The promotional rate of 6.99% p.a. for up to six months on balance transfer amounts will appear separately on your NAB Credit Card statement and only applies to balance transfers from 2 non-NAB credit card or store card accounts.

Terms and conditions apply and are available upon registration for the service. Fees and charges may be payable.  Annual card fee and interest rates are subject to change. Correct as at 20 April 2010.

More Information

NAB Qantas Gold Card

Do you want to earn Qantas Frequent Flyer points whilst benefiting from the security of a gold card?

The NAB Qantas Gold Card allows you to maximise your Qantas Frequent Flyer points from everyday purchases to get the rewards you deserve faster.  You can use your Qantas Frequent Flyer points on a wide range of rewards including flights, vouchers, merchandise and more in the Qantas Frequent Flyer program.

Each NAB Qantas Gold Card account comes with two cards: a NAB Qantas Gold American Express Card for maximum points earning and either a NAB Qantas Visa Gold Card or NAB Qantas Gold MasterCard Card for added worldwide acceptance.  You will have one combined credit limit, one statement and one monthly payment.

Top Five Benefits:

• 2 points for every $2 spent on American Express card (for first $3,000)
• 2 point for every $3 spent on Visa or MasterCard (for first $3,000)
• Complimentary insurance including VIP Lost Card Cover and overseas travel insurance
• Add an additional cardholder at no extra cost
• Great balance transfer rates

Card Details

Annual Fee $145.50

Interest Rate 19.99% p.a. on purchases

Interest Free Period Up to 44 days

Application Criteria N/A

Credit Card Type American Express and Visa or MasterCard

Cash Advance Rate 19.99% p.a.

Rewards Program Qantas Frequent Flyer

Balance Transfer Rate 4.99% p.a. on balance transfers for up to 6 months

Other Stuff & Words From Our Guru

Cardholders also benefit from complimentary overseas travel insurance, extended warranty cover, purchase protection insurance and 12 months VIP Lost Card Cover.  VIP Lost Card Cover is a registration service offered by Card Alert which keeps a confidential list of your registered credit cards, or any other cards you would keep in your wallet, that you would want to cancel and replace urgently if they are lost or stolen.  You can also take advantage of NAB’s 24/7 emergency travel assistance service and benefit from dining, entertainment and travel offers through American Express Selects.

NAB Qantas Gold Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine.

NAB reserves the right to withdraw any balance transfer request, in full or in part at its discretion. Special Promotion Transfer rate of 4.99% p.a. will apply to any balance transfer amount for up to 2 non-NAB credit or store cards for the period from the time the balance transfer is made to your account for six complete monthly statement periods, unless the balance transfer amounts are paid off earlier. These balance transfer amounts are designated cash advances for the purposes of the terms and conditions applicable to your credit card account. If at the end of the six month statement period applicable to any balance transfer amount any portion of that balance transfer amount is owing, that amount will attract interest at the (Cash Advance) Indicator Rate (as advertised from time to time) then applicable to your card. A payment to your NAB Credit Card account under this Special Promotion will be applied to the balance transfer amounts (designated cash advances) before any other cash advance or purchase amounts. The terms and conditions applicable to your credit card account set out in detail the order in which payments are applied. Please note the promotional rate of 4.99% p.a. for up to six months on balance transfer amounts must be applied for at the point of full card application. The promotional rate of 4.99% p.a. for up to six months on balance transfer amounts will appear separately on your NAB Credit Card statement and only applies to balance transfers from 2 non-NAB credit card or store card accounts.

Terms and conditions apply and are available upon registration for the service. Fees and charges may be payable.  Annual card fee and interest rates are subject to change.

More Information

NAB Gold Card

Do you want a gold card which offers great premium benefits with the ability to earn FlyBuys points?

The NAB Gold Card offers you the choice of a Visa or a MasterCard, both offering an enhanced range of gold card services.  You can benefit from the peace of mind of overseas travel insurance, purchase protection insurance and extended warranty cover, all for a competitive annual fee.

You will also benefit from up to 44 days interest free and you can add an additional cardholder to your gold card at no extra cost.  If this wasn’t enough, you can also link your gold card to your FlyBuys membership and earn FlyBuys points on all your eligible purchases.

Top Five Benefits:

• A low $90 annual fee
• Complimentary insurance including extended warranty cover and overseas travel insurance
• Link your card to your FlyBuys membership scheme
• Emergency travel assistance 24 hours a day, 7 days a week
• Add an additional cardholder at no extra cost

Card Details

Annual Fee $90

Interest Rate 19.49% p.a. on purchases

Interest Free Period Up to 44 days

Application Criteria N/A

Credit Card Type Visa or MasterCard

Cash Advance Rate 19.49% p.a.

Rewards Program FlyBuys

Balance Transfer Rate 4.99% p.a. on balance transfers for up to 6 months

Other Stuff & Words From Our Guru

You can link your NAB Gold Card to your FlyBuys membership at no additional cost and earn one point for every $5 that you spend on purchases.  You can then redeem these points for a wide range of credit card rewards.

Cardholders also benefit from 12 months complimentary VIP Lost Card Cover.  VIP Lost Card Cover is a registration service offered by Card Alert which keeps a confidential list of your registered credit cards, or any other cards you would keep in your wallet, that you would want to cancel and replace urgently if they are lost or stolen.

NAB Gold Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine as well as being eligible for either the Visa Entertainment or MasterCard applause schemes.

NAB reserves the right to withdraw any balance transfer request, in full or in part at its discretion. Special Promotion Transfer rate of 4.99% p.a. will apply to any balance transfer amount for up to 2 non-NAB credit or store cards for the period from the time the balance transfer is made to your account for six complete monthly statement periods, unless the balance transfer amounts are paid off earlier. These balance transfer amounts are designated cash advances for the purposes of the terms and conditions applicable to your credit card account. If at the end of the six month statement period applicable to any balance transfer amount any portion of that balance transfer amount is owing, that amount will attract interest at the (Cash Advance) Indicator Rate (as advertised from time to time) then applicable to your card. For NAB Low Rate Visa Cardholders, please note the cash advance interest rate applicable to your NAB Credit Card Account is higher than the purchase interest rate. The rate currently is 20.99% p.a. as at 16 March 2010 and is subject to change. A payment to your NAB Credit Card account under this Special Promotion will be applied to the balance transfer amounts (designated cash advances) before any other cash advance or purchase amounts. The terms and conditions applicable to your credit card account set out in detail the order in which payments are applied. Please note the promotional rate of 4.99% p.a. for up to six months on balance transfer amounts must be applied for at the point of full card application. The promotional rate of 4.99% p.a. for up to six months on balance transfer amounts will appear separately on your NAB Credit Card statement and only applies to balance transfers from 2 non-NAB credit card or store card accounts.

Terms and conditions apply and are available upon registration for the service. Fees and charges may be payable.  Annual card fee and interest rates are subject to change.

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Information

NAB Velocity Gold Card

Do you want the superior service offered by a gold card with the ability to earn travel rewards?

The NAB Velocity Gold Card allows you to collect points to redeem through the Velocity credit card rewards program.  Velocity is the award winning loyalty program of Virgin Blue, V Australia, Pacific Blue and Polynesian Blue.  You earn Velocity credit card rewards points with every dollar that you spend which you can redeem for range of Velocity credit card rewards including domestic and international flights and a great range of travel, accommodation, entertainment and car hire rewards.

You will benefit from both a Visa and American Express card linked to your account.  You have one combined credit limit, monthly payment and statement and you can earn unlimited Velocity points by using either of the cards.  You’ll also maximise your rewards when using the American Express card linked to your account.

Top Five Benefits:

• 2 points for every $2 spent on American Express card
• 1 point for every $2 spent on Visa card
• Complimentary insurance including VIP Lost Card Cover and overseas travel insurance
• Add an additional cardholder at no extra cost
• Great balance transfer rates

Card details

Annual Fee $150

Interest Rate 19.99% p.a. on purchases

Interest Free Period Up to 44 days

Application Criteria N/A

Credit Card Type Visa and American Express

Cash Advance Rate 19.99% p.a.

Rewards Program Velocity Rewards

Balance Transfer Rate 4.99% p.a. on balance transfers for up to 6 months

Cardholders also benefit from 12 months complimentary VIP Lost Card Cover.  VIP Lost Card Cover is a registration service offered by Card Alert which keeps a confidential list of your registered credit cards, or any other cards you would keep in your wallet, that you would want to cancel and replace urgently if they are lost or stolen.

NAB Velocity Gold Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine as well as benefiting from purchase protection insurance and overseas travel insurance.

NAB reserves the right to withdraw any balance transfer request, in full or in part at its discretion. Special Promotion Transfer rate of 4.99% p.a. will apply to any balance transfer amount for up to 2 non-NAB credit or store cards for the period from the time the balance transfer is made to your account for six complete monthly statement periods, unless the balance transfer amounts are paid off earlier. These balance transfer amounts are designated cash advances for the purposes of the terms and conditions applicable to your credit card account. If at the end of the six month statement period applicable to any balance transfer amount any portion of that balance transfer amount is owing, that amount will attract interest at the (Cash Advance) Indicator Rate (as advertised from time to time) then applicable to your card. A payment to your NAB Credit Card account under this Special Promotion will be applied to the balance transfer amounts (designated cash advances) before any other cash advance or purchase amounts. The terms and conditions applicable to your credit card account set out in detail the order in which payments are applied. Please note the promotional rate of 4.99% p.a. for up to six months on balance transfer amounts must be applied for at the point of full card application. The promotional rate of 4.99% p.a. for up to six months on balance transfer amounts will appear separately on your NAB Credit Card statement and only applies to balance transfers from 2 non-NAB credit card or store card accounts.

Terms and conditions apply and are available upon registration for the service. Fees and charges may be payable.  Annual card fee and interest rates are subject to change.

More Information

NAB Velocity Standard Card

Do you want a great value credit card through which you can earn superb travel rewards?

The NAB Velocity Standard Card allows you to collect points to redeem through the award-winning Velocity credit card rewards program.

You will benefit from both a Visa and American Express card linked to your account.  You have one combined credit limit, monthly payment and statement but can earn unlimited Velocity points by using the two cards linked to your account.

You can also take advantage of up to 44 days interest free and the ability to add an additional cardholder at no extra cost, all for a low annual fee.

Top Five Benefits:

• 1.5 points for every $2 spent on American Express card
• 1 point for every $2 spent on Visa card
• A low $65 annual fee
• Add an additional cardholder at no extra cost
• Great balance transfer rates

Card Details

Annual Fee $65

Interest Rate 19.99% p.a. on purchases

Interest Free Period Up to 44 days

Application Criteria N/A

Credit Card Type Visa and American Express

Cash Advance Rate 19.99% p.a.

Rewards Program Velocity Rewards

Balance Transfer Rate 4.99% p.a. on balance transfers for up to 6 months

Card Details

Velocity is the award winning loyalty program of Virgin Blue, V Australia, Pacific Blue & Polynesian Blue.  You earn Velocity credit card rewards points with every dollar that you spend which you can redeem for range of Velocity Rewards including domestic and international flights and a great range of travel, accommodation, entertainment, car hire, and shopping Partners.

NAB Velocity Standard Card holders can also benefit from NAB Cellar Selections for great offers on a wide range of wine as well as benefiting from purchase protection insurance and emergency travel assistance.

NAB reserves the right to withdraw any balance transfer request, in full or in part at its discretion. Special Promotion Transfer rate of 4.99% p.a. will apply to any balance transfer amount for up to 2 non-NAB credit or store cards for the period from the time the balance transfer is made to your account for six complete monthly statement periods, unless the balance transfer amounts are paid off earlier. These balance transfer amounts are designated cash advances for the purposes of the terms and conditions applicable to your credit card account. If at the end of the six month statement period applicable to any balance transfer amount any portion of that balance transfer amount is owing, that amount will attract interest at the (Cash Advance) Indicator Rate (as advertised from time to time) then applicable to your card. A payment to your NAB Credit Card account under this Special Promotion will be applied to the balance transfer amounts (designated cash advances) before any other cash advance or purchase amounts. The terms and conditions applicable to your credit card account set out in detail the order in which payments are applied. Please note the promotional rate of 4.99% p.a. for up to six months on balance transfer amounts must be applied for at the point of full card application. The promotional rate of 4.99% p.a. for up to six months on balance transfer amounts will appear separately on your NAB Credit Card statement and only applies to balance transfers from 2 non-NAB credit card or store card accounts.

Terms and conditions apply and are available upon registration for the service. Fees and charges may be payable.  Annual card fee and interest rates are subject to change.

Westpac are one of Australia’s leading credit card companies and they offer this excellent value everyday credit card.  With a low fee and up to 55 days interest free, it is the perfect no-frills, value credit card.

The Provider

Westpac is Australia’s third biggest credit card provider and offers one of the widest ranges of cards in the country.  The company offers over a dozen unique credit cards which offer a wide choice of high quality benefits.

Westpac has a long and proud history as Australia’s first and oldest bank. It was established in 1817 as the Bank of New South Wales and changed its name to the Westpac Banking Corporation in October 1982 following the acquisition of the Commercial Bank of Australia.

The Card

The Westpac 55 Day Visa or MasterCard gives you the choice of the two leading credit card brands.  It offers all the convenience of Visa or MasterCard with a low annual fee.  Indeed, your annual fee will be waived entirely in the first year and in every subsequent year as long as you spend $10,000 on your card.

You will also benefit from up to 55 interest free days on purchases as long as you pay your closing balance (including any promotional amount) in full by the statement due date each month.  Cardholders can also benefit from some terrific promotional interest rates.

The Top Five Benefits

• Great promotional interest rates
• A low annual fee (waived in the first year)
• Annual fee waived in subsequent years when you spend $10,000 or more on purchases in the previous year using your card
• CardShield™ security protection
• Up to 55 days interest free on purchases

Why Should You Take One?

If you are looking for a great value credit card for all your everyday purchases, the Westpac 55 Day Visa or MasterCard could be for you.  If you spend $10,000 on your card every year you will never pay an annual fee, and you can benefit from up to 55 days interest free on all your purchases.

You can choose between a Visa or MasterCard depending on your preference, and benefit from the worldwide acceptance afforded by either of those two leading card brands.

What Else Does It Offer?

As well as a rate which offers superb value on your purchases and balance transfers, you can benefit from the security of CardShield™.  Cardholders can also get extra security when they shop at participating online retailers by registering with MasterCard ® SecureCode™, or Verified by Visa ®, through Westpac Added Online Security service.

Anything Else You Should Know?

You will also benefit from 24/7 Falcon™ fraud protection which monitors your credit card account for irregular activity.

Annual fee:                                        10/10

Rewards Program:                           N/A

Standard Interest Rate:                 6/10

Service:                                                7/10

Additional Benefits:                        6/10

According to the latest statistics from the Reserve Bank of Australia (RBA), the value of credit card purchases rose by 12.2 per cent over the last year, but balances owing rose only 6.4 per cent.  This suggests that more and more of us are using our credit card, but that we are being more careful about repaying the money that we spend.

Latest figures

The RBA report that the value of credit or charge card purchases in March 2010 was $19.908 billion, up by $2.167 billion from a year earlier.  If you include cash advances, the increase was $2.174 billion or 11.6 per cent from March 2009, to a total of $20.950 billion.

The number of transactions in March was 139.425 million with an average transaction size of $150.26.

Credit card repayments also grew more quickly than the recent average, with a rise of 8.7 per between March 2009 and March 2010, compared with an average of 7.9 per cent over the previous five years.

Total credit and charge card balances outstanding in March 2010 were $47.177 billion, an increase of $2.819 billion (or 6.4 per cent) from a year earlier.

Average credit card balance falls

The average credit or charge card account balance actually decreased by 0.2 per cent to $3,243.92 in March from $3,250.49 in February.  However, the average Australian credit card balance is still 4.6 per cent higher than it was in March 2009.

The reason that the increase in the average credit/charge card balance was slower than the total outstanding debt was that the number of credit and charge card accounts rose by 1.6 per cent over the year to March 2010.  There are now over 15.5 million credit and charge card accounts in Australia, up from 14.3 million a year earlier.

Cash withdrawals

The RBA figures also indicate that people are more wary about using their credit cards to make a cash withdrawal.  Within the total of credit and charge card transactions, the value of cash advances was $1.042 billion in March 2010, only 0.7 per cent higher than the $1.034 billion recorded a year earlier.

This could be because of the changes to regulations in 2009 that now sees ATMs display any charge they will make for withdrawing money during a transaction.  It could also be because more and more people are becoming aware of the true cost of cash withdrawals.

Cash advances typically do not attract any ‘interest free’ days, which means that you start paying interest on the money immediately.  The interest rate charged on cash advances is also generally higher than for purchases or balance transfers.



If so, you should be interested in a new court case about to begin in Australia.  A class action is being launched against both local and foreign banks for repayment of dishonour and late fees.  The class action, being run by a subsidiary of litigation funder IMF, will relate to honour and dishonour fees on bank accounts, and ‘over the limit’ and late fees on credit cards, reports ABC News.

Excessive bank and credit card fees

Official figures show that Australian banks collected nearly $1.2 billion in these bank account and credit card fees in the 2008 financial year.

The big four banks – Commonwealth Bank, National Bank of Australia, Westpac and ANZ – recently scrapped or reduced many of those charges. Westpac and St. George Bank reduced their overdrawn fees on all credit cards and savings accounts to $9 from the start of October 2009 as well as cutting their over-the-limit and outward dishonour fees to $9.

The court action

Financial Redress, the subsidiary behind the class action, says the claims will pursue exception fees deducted from accounts over the past six years.  Maurice Blackburn Lawyers are the solicitors running the action against Australia’s twelve largest banks.

Tony Burke, acting chief executive of the Australian Bankers Association (ABA), says his organisation has seen media reports that IMF is taking the class action.  “If IMF proceeds, then ultimately it is for the courts to decide the merits of this claim,” he said.

The case will be based on the claim that the fees are illegal because they amount to a penalty rather than a legitimate fee. Bernard Murphy from the law firm says that, if successful, the class action could generate billions of dollars in compensation.

“It’s a very substantial action because, for example, in 2008 alone the Reserve Bank state these exception fees totalled $1.2 billion,” he said. “So there is an estimated claim value in the order of $5 billion.”

Avoiding credit card fees

Even though many banks have reduced their credit card fees, they can still mount up if you don’t manage your credit card carefully.  Some suggestions for avoiding credit card fees are:

• Set up an automatic transfer from your transactions account to your credit card to pay the minimum payment every month. You will therefore ensure you make at least the minimum payment on time
• Keep a record of your spending to make sure that you do not exceed your credit limit
• Pay more than the minimum balance every month
• Keep a careful note of when your credit card payments are due and leave yourself plenty of time to transfer the money from your bank account to your card

Two independent Australian studies have recently looked at the interest rate charging practices of the country’s major credit card providers.  Although different companies have different policies regarding their charges and fees, both these reports have criticised some of the ways that Australia’s leading credit card companies charge their fees.

Three ‘unfair’ credit card practices

The first report has been published by the consumer advocate Choice. It outlines three common practices employed by many credit card companies which it calls ‘unfair’. These are:

• Interest-free periods cancelled if a credit card bill is not paid on time and in full
• No credit given for partial repayments to a card balance
• Interest backdated to the date of purchase

The Choice study found that if you are late paying a credit card bill by even a day (or if you pay less than the full balance) most credit companies will apply interest, calculated daily, all the way back to the date of the original transaction.  Choice said, “This means that for being one day late you could be charged retrospective daily interest on all transactions for up to 55 days.”

“Equally unfairly, if not more so, is that if you make a partial repayment on time, most institutions do not give you any credit for it,” Choice says. “They still backdate interest on the full amount of your original purchases.”

Backdating interest

Financial products researcher Canstar Cannex’s research agreed with that of Choice.  It also found that only a handful of credit card companies don’t charge interest in full and most backdate interest in the event of a partial or a late card payment.

For example, if your credit card bill is $2,000 and you pay $1,000 off before the due date, in all likelihood, you will pay interest on the full $1,000.  Interest charges are typically backdated on the full amount back to the date of the original transactions.

Another interest trap

Harry Senlitonga , a senior analyst at Canstar Cannex’s also outlines another what he calls  ‘interest trap’.

This relates to ‘balance transfer’ deals – where you transfer your card debt from one card provider to another to take advantage of a lower interest rate.

If you still have a card balance when your promotional ‘balance transfer’ deal ends, interest will be charged as if that money is a cash advance.  In the worst case, while the low-rate card you’ve moved to may have a transaction rate of about 11 per cent, its cash advance rate could be as high as 20 per cent.

Senlitonga says that the different ways that card companies apply interest makes it hard to compare credit cards in terms of their actual fees and charges.

Mobile banking is one of the biggest growth areas for banking, with the advance of the iPhone, Blackberry and Android handsets leading to increasing numbers of mobile based applications.  Hundreds of thousands of people – possibly millions – are now downloading personal finance applications to their smartphones, including many that can help you manage your credit card debt.

Credit Card mobile applications

Apple’s iTunes app store has more than 200,000 free and priced apps across a number of different categories, including finance.  Over 85 million iPhone and iPod touch users have downloaded them.

Google’s Android Market has more than 38,000 free and paid-for applications, and the company says people have downloaded an average of 80 apps to their devices.  Four out of five Android users download at least one application every week.

Blackberry’s AppWorld offers 145 apps in its finance category.

Online Banking Review editor Chris Palmer said Australians were beginning to embrace personal finance applications for their smartphones.  ”There’s been really good take-up of the mobile banking apps,” he said.  ”The growth rate has been significantly higher than the growth rate when they (the banks) first got internet banking.

”It’s a small base still, but we’re talking upwards of 10 or 20 per cent of their internet banking users are using mobile banking. The actual downloads of the apps are in the hundreds of thousands range.”

Managing your credit card on your mobile

Westpac recently upgraded its mobile banking application and you can now pay bills, transfer cash between Westpac accounts (including paying credit cards), undertake business banking functions and view your account balances.

Westpac ATM and online banking general manager Harry Wendt said at the time that more than 100,000 Westpac customers banked using their iPhone.  Most of these users log in once a week to transfer money and to check their balances.

Other banks, such as St George, are offering ATM locators.  These allow you to use your mobile handset’s GPRS to find your bank’s nearest ATM.  This helps you avoid the $2 charge for using your credit card at a so-called ‘foreign’ ATM.

The best apps for helping you manage your credit card debt

Here are three leading applications to help you manage your credit card debt on your mobile:

• Budget ($1.19) lets you track your spending and keep to a budget.  It shows you your total income and expenditure for a specific period, including what you spend most of your money on
• Expense Tracker ($3.99) – This is a simple application that lets you log all your expenses
• Credit Card Pay Off ($1.19) – This application tells you how long it will take you to pay off your credit card and how much interest you will pay

In a nutshell, this is how credit card rewards schemes work.  There are dozens of rewards credit cards available in Australia, offering everything from toasters to travel just for using your credit card to buy your everyday groceries or fuel.

But, what are credit card rewards?  How do they work?  And are they worthwhile?

Credit card rewards

Almost every major credit card provider in Australia offers a credit card rewards program.  They are affiliated to certain credit cards within a bank’s range, and they allow you to earn points every time you use your card to make a purchase.

Each time you use the rewards credit card, you will earn points for every dollar that you spend.  These points will be accumulated in an account and once you have collected enough points, you can redeem them for a reward from the card provider’s catalogue.

What rewards are on offer?

Many credit card rewards schemes offer literally thousands of rewards.  You can choose from a number of different rewards including:

• Flights and travel
• Electrical goods
• Charitable donations
• ‘Experiences’ including adrenaline days out and tickets to tourist attractions
• Gift cards and shopping vouchers

Would a rewards scheme suit you?

Credit card rewards schemes are not for everyone.  As they award points per dollar that you spend, they wouldn’t be much use to you if you only ever use your credit card occasionally or for very low amounts.  You simply wouldn’t accumulate enough rewards (when you take into account any annual fee) to make the card worthwhile.

Similarly, if you expect to maintain a balance on your credit card, a rewards card might not be for you.  You may find that the interest that you pay on your balance outweighs the benefit of any rewards that you might earn.

However, if you use your card regularly and pay your balance off in full every month, a card linked to a credit card rewards program might be ideal.  You can rack up points towards a wide range of rewards simply by using your card for all your regular purchases.

Factors to take into account when choosing a rewards credit card

There are dozens of different rewards credit cards and so it is important to shop around to find the right card for you.  Sites such as Credit Card Rewards can help you.

When shopping around for the best card for you, you should take these factors into account:

• How many points you earn for each dollar you spend
• Whether the credit card rewards program offers the sort of rewards you are interested in
• Whether there are any additional ways for you to earn points
• Any annual fee that is charged

One of the best ways to try to build up your credit history is to apply for a credit card. This is a good way to show that you can stay in control of your spending and are able to repay your bills on time and eventually in full. It can be hard to get your first credit card as, with all forms of credit, the decision to give you a card by the provider is based on your credit history. However, it is possible to get a credit card and there a quite a few options available. Perhaps the best option is to approach your bank. They will already have had financial dealings with you and as such will have an existing relationship with you. Providing that you have acted responsibly with your accounts, your bank will more than likely offer you a credit card as it will mean extra business for them and will also be a way for them to keep you from changing banks. Another option would be a store card, often offered by most high street shops and department stores. Whilst the acceptance rate for these cards may be higher than for normal credit cards, this means a higher interest rate and often higher and additional charges. If you choose to use a store card to build up a credit history it is important to only spend what you know you can pay back and don’t get mislead by offers and rewards often linked to these cards in store. Secured credit cards are particularly suitable for people with no credit history as they are almost guaranteed to get accepted. With these cards, a deposit is made against the cards limit which the bank then holds on to as a form of payment in the event you can’t meet your repayments. However, some providers of secured credit cards don’t report any payments made to credit companies and as such they can be useless when trying to build up a credit rating. It is therefore important to contact your provider and ensure they are reporting all your payments if you decide to use a secured credit card.

Although it can be hard at first to start building up your credit history, once you get a credit provider willing to take a chance on you it won’t be long before you can begin improving your credit rating.

In recent years there has been a lot of talk about credit card fraud, including the vulnerabilities associated with using your card online. Using your card online or over the phone to make payments does put you at risk to certain types of fraud. Online, this can happen in a number of ways – most of which can be easily avoided. When using a shared computer or a computer that isn’t virus or spyware protected it is important not to save any user names, passwords or card details on your computer. It is also important to avoid any sites that aren’t secure as only secure sites are guaranteed to protect your details. Whilst you can keep an eye on how your details are stored and what sites they are used on, this is impossible to do if your card is lost or stolen. If your card falls into the wrong hands, it is easier for thieves to use it online than it would be for them to use it in person in a shop, restaurant etc. It is therefore important to keep your card safe and report it to your bank as soon as you are aware it is missing. Another important security step is to regularly check your credit card statements and report any suspicious transactions to your bank. Even if you do follow the above steps to avoid online fraud, using your credit card online still carries an element of risk. Thankfully, credit card transactions where the card holder does not sign are protected by the Electronic Funds Transfer Code. And whilst credit cards are more protected than debit cards in some element, some debit cards allow charge backs against undelivered or poor quality goods in an attempt to protect against fraudulent websites and sellers.

Whilst there is an obvious risk of fraud and theft when using your credit or debit card online, the fact remains that the vast majority of people will never experience this. As long as you only use secure sites and keep your details safe, internet shopping is one of the safest ways to shop. It is also one of the most convenient ways to shop by enabling people to shop anywhere and at any time, whilst also using one of the easiest ways to pay – by card.

Gold credit cards typically offer superior service, complimentary insurances and access to enhanced credit card rewards collection.  And, importantly, they are nowhere near as expensive as you might think.

Here is our focus on four of Australia’s leading Gold Visa credit cards.

Westpac 55 Day Gold Visa Card

Westpac are one of Australia’s leading credit card providers and this card offers great benefits.

As the name suggests, the Westpac 55 Day Gold Visa Card offers up to 55 days interest free in addition to some great interest rates.  There is also a competitive annual fee which will be waived in the first year, and in every subsequent year if you spend over $15,000 on your card.

Westpac 55 Day Gold Visa Card holders are also protected by complimentary overseas travel insurance, purchase security insurance cover and extended warranty insurance.  All 55 Day Gold cardholders also have access to a Priority Service Line to manage their account quickly and easily.

ANZ Gold Visa Card

With an ANZ Gold Visa credit card you will enjoy peace of mind with a range of complimentary insurance protection.  Cardholders can take advantage of both overseas travel and medical insurance and 90-day ‘purchase security insurance’.  Cardholders also benefit from double the manufacturer’s expressed Australian warranty on goods (by up to 12 months) when the entire purchase is charged to your ANZ Gold Visa card.

As well as a great rate and insurance benefits, cardholders also have access to ANZ Gold Liberty.  This is a global concierge service which you can access if you need emergency services, travel assistance services, or ticket replacement assistance.

HSBC Gold Visa Card

HSBC are one of the best known names in world banking and their superb Gold Visa card offers a great mix of service and rewards.

HSBC Gold Visa Card holders benefit from all the superior service and support you would expect from a gold credit card in addition to access to the HSBC Rewards Plus credit card rewards scheme.

As well as some great interest rates and a low annual fee (which will even be waived in the first year), you can earn points towards a wide range of credit card