Compare Credit Cards
There are literally hundreds if not thousands of credit cards available in Australia, choosing a credit card can be a very difficult exercise as many credit cards have similar features.
The fundamental types of credit cards in Australia include:
- Credit Cards issued by banks directly
- Credit Cards “Cobranded” with other institutions or associations
- Special Credit Cards such as credit cards for students or special members
- Credit Cards issued with retailers such as Myer, David Jones, Woolworths
- Credit Cards issued by non-banking institutions
Ways to Choose Best Credit Cards
While each credit card is very similar to one another, and the vast majority credit cards are maintained by the top credit card companies: American Express, Master Card, Visa and to a smaller extent, Bankcard. There is a considerable difference between one another.
Credit Card Deals
We check for the latest credit card deals to ensure that you get a great deal when you compare credit cards at Compare2Save. We list some of the best credit card deals available in Australia to ensure you get the right credit card for your needs be that a low interest credit card, a rewards credit card or an charge card.
Charge Card vs Credit Card
American Express is the only provider that has a dominant market share in charge card. Charge Card means you need to pay the full amount at the end of each month; it will not permit cardholders to delay payments.
Credit Cards, on another hand, allow cardholders to pay either installments (smaller amount of payments) or pay the minimum interest to maintain the credit card.
Credit Card Issuers
Since the early 1990s, many credit cards have been issued by non-banking companies or second tier financial institutions:
- Retailer Credit Cards: Credit Cards issued by major retailers with special bonus points on these credit cards.
- Association Credit Cards: Credit Cards issued by Accounting associations such as CPA gives them special credit card points associated with education
- Student Credit Cards: Special, low limit credit cards for students
- Instore Promotion Credit Cards: Special in-store promotions, interest free credit cards for major retail stores
- Petrol Station Credit Cards: A very popular credit card cobranded with major petrol stations when oil price was high
- Telecommunications Credit Cards: Credit Cards issued by Telcos to offset telecommunications charges
Important Things to Choose Credit Cards:
- Interest Rate on Credit Card: Credit Cards are high interest rate products, their interest rates can be as high as over 20%. There are always special promotions for new credit cards such as interest free periods.
- Credit Card Limit: Each Credit Card is issued with maximum credit, the amount you can use on a particular credit card, this can be as low as $500.
- Rewards Points for Credit Cards: Most credit cards have rewards points program where you can accumulate. Each credit card is different from one another, point system can be quite confusing.
- Rewards Programs for Credit Cards: Rewards programs are different from each credit card, even within the same institution, some have more attractive programs than others.
- Penalties for Credit Cards: Heavy penalties are expected if you default payments for some credit cards, such as very high penalty rate or very high interest rate.
- Annual Fees For Credit Cards: Different fees apply to different credit cards, some are annual fees, some require membership join fees.
Smart Ways to Manage Your Credit Cards:
Credit Cars are not only convenient for consumers, smart business people or consumers use credit cards as a way to manage their money.
The fundamental advantages in using credit cards are:
- Credit Cards are used as deferred payment tools – use credit card to pay your bills actually give you extra time to draw cash payments.
- Credit Cards therefore, assist you to earn extra interest in the way.
- Credit Cards also have rewards points which can be redeemed as cash vouchers
Credit Card Management Example
The following is a good example how you can use credit cards as a money saving tool:
- Monthly Bill of $10,000
- Pay them by Credit Card
- You get 60 days interest free period using this Credit Card
- This money sits your mortgage account at 8% interest rate, so a saving of: $133
- $10,000 on Credit Card gives you an equivalent voucher of $100
- Total saving of $233 each time you pay with Credit Card for $10,000
Important Credit Card Management Techniques
- Pay off outstanding balance on your Credit Card: Again, Credit Card is the most expensive interest-rate product, pay them off as much as you can.
- Use Credit Card Rewards Points: Do not waste points on your credit cards, they are worth a lot of money. Airfares, shopping vouchers are all available.
- Shop around your Credit Cards: Some consumers spend a lot of time shopping around for credit cards, taking advantage of interest free periods.
- Credit Card and Shopping Pattern: If you go to regular stores, taking up in-store credit cards can save you a lot of money.
- Use Credit Card to pay regular bills: Use your credit card as much as possible to pay regular bills and get rewards points from credit cards.
- Use lower interest rate credits to pay off Credit Cards: Many people have used mortgage redraw facility to pay off balances on Credit Cards, to save on interest cost.
