0% p.a. for 26 months on balance transfers. One off 1.5% BT fee applies, reverts to 21.74% p.a. cash advance rate. Fees and charges apply. T&Cs apply. Credit criteria apply. New cards customers only.
I receive streams of questions every day from people just like you wanting to know more about credit cards or how to use them better. The truth is that only a small percentage of the population actually understand credit cards and how to get the best out of them. Knowledge is power and frankly its difficult to cut through all the sales hype and really work out what card would be best for your personal situation. That’s why I created Credit Card EDU. An online place where you can study a range of credit card topics anytime on mobile, tablet or desktop. Please let me know what you think and congratulations if you pass the final exam and receive your certificate.
Looking at how you use your card will tell you what features in a credit card that works best for you.
If you pay off your balance in full each billing cycle. This gives you access to interest free days on most cards. Paying off your card each month will also assist you in avoiding interest. If you are this type of credit card user. Then the interest rate should not be a concern. You should be looking at cards that will earn rewards on your spent. Look at features that you will use e.g. overseas travel insurance. Map out your average monthly spend to see what rewards card could be right for you.
If you currently have credit card debt. Then a balance transfer could be an option for you.
Firstly, what is a balance transfer? You currently have credit card debt. You are approved for a new balance transfer credit card. Your new bank makes a payment on your behalf off your old card. The debt is transferred from your old card to your new card.You receive a special interest rate, typically 0% for up to 2 years.
Some key points are that a balance transfer must be between different banks e.g. Commbank to Westpac. You can only transfer your own debt – not your partners or family. The simple online application process takes around 10-15 mins. You must have good credit to get approved for a new balance transfer credit card.
If you are not spending much on your credit card or use it very infrequently. Then it's likely that a no annual fee or low annual fee product could suit. These cards tend to have interest rates around 20%. So if you do hold a balance this is still a concern. Though if you do pay off your balance in full each billing cycle. Then not paying an annual fee can work in your favour.
Australian’s spend over one million dollars a day just on credit card foreign fees. If you like to travel or spend online in overseas currencies. Then you should look at a card that offers no foreign fees on purchases. An important point is to also understand what exchange rate the card is using.
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