What are the most popular credit cards in Australia?

Low Rate Credit Cards

If a low rate card is what you’re after, then BankWest Lite MasterCard with its low interest rate of 10.75% might be what you’re after. Compare credit cards to see what else is available because there are other features like annual fees that you need to consider as well. BankWest Lite has an annual fee of $59, so other cards like NAB Low Rate with an annual fee of $49 and a low rate at 10.99% might also be an alternative.

0% balance transfer Credit Cards

Thinking of making the switch? Then keep your eyes peeled for 0% balance transfer credit cards like the St George Vertigo that offers 0% balance transfer rate for 6 months before switching back to a low rate of 11.39%. ANZ Low Rate cards also offer zero balance transfer rate for 6 months and then jump to a low rate of 11.99%. Compare credit cards and make sure you know what the interest rate will be when the balance transfer rate ends.

Long balance Transfer Credit Cards If you need a longer period to pay off your balance after switching credit cards, then long balance transfer credit cards might be an option. These cards offer low interest rates for longer periods of time so compare credit cards before jumping in. For example, the ANZ Frequent Flyer gives you a low rate of 2.90% for 12 months before it climbs to 17.99%, but only if applied through Mozo. It’s always a rewards card, so you can accumulate frequent flyer points as you spend. The Aussie MasterCard is another popular option with balance transfer rate of 5.99% for 12 months before it reverts back to 11.74%. It also has a special offer of 9.99% on purchases for the first year.

Low Annual Fee Credit Cards

Low annual fees are great for the consumer who needs a basic credit card for bill, groceries and the occasional retail therapy. There’s no need to pay for what you don’t need so choose a card like the NAB Mini with the low annual fee of $24 or ANZ First which has a fee of $30. Most cards with low annual fees have higher interest rates, but couple that with interest free days and you’ll avoid getting stung by the higher rates. Always compare credit cards across a range of banks for a better idea of what you’re paying.

Interest free days Credit Cards

Buy yourself some time to repay your credit card bills by opting for a card with interest-free days. In order for this feature to apply however, remember to pay your bill back in full. The Bankwest Lite has 55 interest free days, so does ANZ Balance which rewards you for reducing your balance. However, interest rates and annual fees vary, so compare credit cards to find out what’s best for you.

Where can I compare credit cards?

The easiest and fastest option to compare credit cards is to head to financial comparison websites like mozo.com.au. Here you can narrow down your search according to features like low annual fees, low rate, zero balance transfer or interest free days and compare credit cards from a wide range of banks.

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- Interest-free days are generally found in most, if not all, credit cards. This is how much time you get before the banks start charging you interest for your purchases. So for example, “44 interest-free days” means you have up to 44 days to pay off your monthly credit card spending before the bank starts charging interest. As most people get paid monthly, this gives people some breathing space to get their monthly finances in order. Make sure you compare credit cards to see what suits your financial situation.

- Annual fees vary from card to card. If you want a credit card with a higher credit limit and lots of rewards, annual fees will naturally be higher here. But if you prefer to avoid fees and simply want a card that helps pay the bills, then go for one with low annual fees. Again, it pays to compare credit cards according to their annual fees on websites like mozo.com.au

- Rewards program are typically great for those on a higher income, or people who are frequent users of credit cards. Interest rates and annual fees will be much higher, but you get perks like frequent flyer points, loyalty points to redeem for things like electronics and even free insurance. If this is a handy option for you, it’s a smart choice to compare credit cards to see what reward program they have.

- Credit limit is definitely something you need think about. Just because you’re on a higher income doesn’t mean you need to get a card with a high credit limit. If you know you can’t handle the responsibility, go for a lower credit limit. It could just mean you stay out of debt!

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When you compare credit cards, you make sure things like interest rates, annual fees and rewards points are exactly what you want – not what the banks say you need. Having a credit card is great for those times when you need extra credit to make big purchases like holidays, unexpected medical bills, or car insurance and registration. But it does come with a lot of financial responsibility. You need to ensure that you can control spending and not end up in debt, which means when you compare credit cards, you can see how one card fits into your lifestyle more suitably than the other.

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The idea of credit card reward points is to encourage cardholders to continue using their card. The issuing company wants the holder to continue making purchases on their card due to the effect this has on their profits. Importantly the cardholder may typically prefer to use cash, or debit, in order to avoid spending money that they do not already have – this is why it is important for the issuer to incentivise spending on the card. For the cardholder, a reward scheme can be advantageous if they use the card and then pay it off in full each month. By doing this the customer avoids interest accruing on the card and pays only what their purchase would have cost, but still profits from the reward points.

Reward points can be redeened as free flights, frequent flyer points and a host of other rewards. The use of reward points as a cashback scheme is also becoming increasingly popular. After a certain amount of use of the card, and a resultant build-up of points, the customer can request the reward points to be paid as a cash amount into their bank account. Equally, this money can be paid onto the card, which is a popular move if the cardholder has accrued a balance on it. This enables the cardholder to bring down the balance of the card, although it rarely ever qualifies in place of a monthly payment. Credit card reward points are a variable breed. Different cards will have different reward rates, different offers and will have different methods of redemption.

To find out which cards are available to and appropriate for you, the best way of telling the difference is to use a comparison site along the lines of Mozo, which will carry out a search of the best available and break down the results for you in a simple way.

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The two most prominent credit card brands on the planet are Visa and MasterCard. These two rivals have been battling for the larger market share ever since the credit revolution began a few decades back. Unless you are lucky enough to qualify for preferential banking offers, any credit card you are issued will most likely come from one of these companies. The issuing bank will have the most space on the card, with its name and logo having the most prominence, while the iconic and ever familiar MasterCard or Visa logo also be visible somewhere on the card.

As far as the use of the card goes, there is very little difference between these two. Both are widely accepted wherever you go in the world – this is in the merchant’s interest, as not accepting a certain type of credit card will see them miss business, however incremental this loss. As a rule of thumb, if you are traveling overseas it is worth keeping in mind that Europe seems to favor Visa, while the USA is more receptive to MasterCard. The UK seems to have equal provision for both, as do the most popular tourist destinations.

Comparing Visa and MasterCard is rather like comparing two different kinds of bottled water. Both do a perfectly good job for what they are, it is largely a matter of personal taste as to which you select. What you should look out for is the long-term interest rate on each card, rather than any special offers that you are offered. These special offers will often be enough to make a person sign up for a card, but just remember that the bank has to make their money from somewhere, so an excellent initial interest rate may well give way to a less-than-satisfactory one later on.

Credit cards that are more exclusive do exist – the American Express name is known worldwide as a byword for financial big hitting and is often mentioned by people looking to impress with the size of their bank balance. While the AmEx and Diners Club cards used to be used as “charge cards” – with the balance needing to be paid in full each month, both do now allow the holder to carry a balance from month to month. There are, however, both annual fees and credit scoring requirements that put both beyond the reach of many people – particularly in the present climate.

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The first, and perhaps most important, trick is to find a card that is applicable to you and your spending patterns. If you intend to use a card for one big purchase that you plan to pay off in stages, the best card is one with a low overall interest rate. Often, cards with low rates come with few enticing introductory offers – such as interest-free periods – but this becomes a benefit, as the long-term rate is lower. After all, there is little point having an interest-free period when you plan to be paying something off for a long time – interest is going to accrue, so it’s more important to get a rate that’s lower in the long run. For all these reasons, it is always best to compare credit cards before applying for one.

If, however, you use a card for every day purchases and can pay it off in full each month, the opposite is true. Go for a card that offers as many interest-free days as possible, which may make it possible to pay no interest at all. There are many cards available where the interest-free period is more than 40 days, which means if you do pay off the balance in full at the end of each month, you will accrue no interest at all. To ensure you get the best deal, carefully scrutinise the terms and conditions of any card you are considering applying for.

Secondly, a highly important part of using a credit card is to remember this: wherever possible, avoid the cash advance. Credit card companies make an obscene amount of money from cash advances, with some charging up to 27% interest on any cash withdrawals. If you need money for something when only cash will do, there are ways of obtaining the money you need from your credit card without paying a cash advance fee.

Using an online payment system like PayPal, send money to a trusted friend – or even yourself, using a different account – using your credit card as the source of funding. This will count as a purchase, so your normal interest rate will apply. When the money arrives in your online account, transfer it into your bank account. This process takes around five days, but on large amounts it will save you a fortune, as much as $270 on a $1000 transaction.

Finally, one of the most popular credit card tricks is known as ‘stooging‘. Hundreds of credit card companies offer introductory interest-free rates, designed to entice new customers. However, when the interest-free period has expired, the annual rate is usually quite high.

To get around this, find a card with a large interest-free period on balance transfers. Move your balance over to the card for the interest-free period, and then when that period is nearing an end, apply for another card with an introductory interest-free rate on balance transfers. Again, transfer the balance across from your first card. You can keep doing this for as long as different credit card companies accept you for new cards. Stooging can save you a great deal of money if you have a large balance that you are paying off month-by-month. Just remember to cancel each card before the interest-free period ends and move your balance in plenty of time. Credit card companies don’t like this, but it is perfectly legal.

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Most consumers know how important it is to compare credit cards before applying for one. The problem is how overwhelming and confusing the comparison process can be. There are numerous credit card companies and each company offers several different types of cards. Fortunately, there are sites like Mozo where consumers can quickly and easily compare credit card offers.

All of the important factors outlined above are presented side-by-side. At a glance, you can see which card offers the lowest APR and who charges the highest annual fee. When you find a card that interests you, simply click on it to learn more. Mozo.com.au is an objective third party, so you can trust that their information is completely unbiased. If you decide to apply for a card, Mozo.com.au links directly to the online applications.

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Once you know what kind of card you want, it’s time to start looking at the numbers. Carefully compare the APR (annual percentage rate) offered by each card. There are a couple of things to look out for with regard to interest rates. First, note whether the rate advertised is an “introductory rate.” Often the rate advertised on a credit card offer will only last a short period of time, such as six months. Second, pay attention to whether different rates apply to different types of charges. There may be, for example, one interest rate that applies to purchases and a second, higher interest rate that applies to cash advances.

A variety of other factors also affect whether you’re getting the best deal. When comparing credit card offers, be sure to consider annual fees, rewards, cash back offers and late fees as well.

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Why is it important to compare credit cards?

A credit card is the physical representation of a line of credit you have with a particular financial institution. Having this line of credit enables you to purchase an item now and pay for it later. You are then typically charged interest on the balance.

Virtually all credit cards share this same basic setup, but that’s about where the similarities end. Everything from interest rates to perks and rewards varies widely from card to card. It would be a mistake to simply accept the first credit card offer that arrives in your mailbox. By comparison shopping, you can find the card that best suits your needs and offers the terms that benefit you most.

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Transferring your balance from one credit card account to another is called a balance transfer. A consumer usually performs a balance transfer in order to consolidate their debt and reduce the interest rate they’re paying on the balance of a high interest credit card.

Credit card providers are always looking to attract new customers. One of the most common ways they do it is by offering you the ability to transfer the balance on your existing credit card or cards to a new credit card account. Credit card companies know that two thirds of Australian card holders pay interest on their credit card balance. Some become trapped under debt that continues to mount as high interest rates add up.

A balance transfer is often a viable solution for managing your debt. The credit card issuers make the offer more attractive by presenting you various incentives, such as six months interest free or a low interest rate on the balance transfer amount until you have paid it off in full.

When should I get a balance transfer credit card?

Balance transfer credit cards offer a number of advantages to consumers with credit card debt. By consolidating credit card balances, you can decrease your total monthly minimum payment requirements. Also, if you take advantage of an interest free period or a low interest rate, more of your monthly payments will go toward paying down the principal of your debt. With more money going to the principal and less going towards interest, you will be able to pay off your credit card debt even faster.

There are three major reasons why consumers seek out balance transfer credit cards. One is reason is that they are carrying a balance on a high interest credit card. A second reason is that they have debt spread out over multiple credit cards. A third reason to get a balance transfer credit card is if you are having trouble meeting your monthly minimum payment requirements. To get the best balance transfer credit card, look for the cards that offer the lowest interest rate and the longest introductory time period.

Where can I compare balance transfer credit cards?

Researching and comparing offers is necessary when looking for a new credit card and it can really pay off. A convenient place to do your credit card comparison is at Mozo.com.au. At Mozo.com.au, you can look at a quick side-by-side comparison or delve deeper into the details of each credit card’s terms and offer. You will find basic information about each balance transfer credit card, such as interest rates, annual fees and minimum as well as maximum credit limits. You can also learn more about the various balance transfer offers, including the introductory balance transfer rates, the number of days the issuer includes in their interest-free grace period and special perks and bonuses.

All of the information that you need to make an informed decision will be right at your finger tips, ready for you to analyse and dissect. Once you have found the balance transfer credit card you want, simply click on the direct link provided by mozo.com.au to apply.

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