Compare Credit Cards for Australia

comparedinkum Featured Credit Cards for September

The ranking does not represent an implied recommendation for a particular financial product on the part of comparedinkum. Visitors should evaluate each individual product and choose the product that suits their requirements the best.

Comparing Credit Card Features : A mini guide to the different card types.

Credit cards offer their holder a safe and convenient way to make payments whilst also providing a flexible way to borrow each month. When a credit card is used to make a payment, what is effectively happening is the card issuer is lending the holder money to make the payment. The card issuer will send the card holder a statement at the end of every month which will detail all the transactions made by the holder over the course of the month. The card issuer usually offers the card holder a certain amount of time to make a payment without charging interest. If the holder manages to pay the entire balance off, then no interest is charged at all. Credit cards offer a number of advantages.

Credit Card Benefits

Free short-term credit As long as the card holder pays the entire outstanding balance in full at the end of each billing cycle by the time the payment is due, the holder is getting short term credit completely free of charge.

Credit cards also enable holders the ability to make convenient and safe payment for goods and services both in Australia and internationally. This means the card holder can use the credit card to make purchases by mail order, phone or internet.

Purchase protection – Both retailers are issuers of credit card a responsible for purchases that are faulty. This means if a card holder uses the card to make a purchase that ultimately turns out to be faulty, or never receives for whatever reason; the card holder is entitled to claim a refund from the card issuer.

Fraud protection – Card holders who find their card details have been used fraudulently are not liable for any payments made by criminals using their card.

Incentives – Card issuers often provide incentives to holder so that they use the card more often, and this can include air miles, loyalty points and cash back.

The credit card is the only truly global currency and payments using credit cards are accepted in almost all countries around the world.

If you are looking for a credit card deal then the financial comparison site Money-AU is the best place to begin your search. As a financial product aggregator, Money-AU shows a range of different options from a number of different banks organized in an easy to understand manner. This allows consumers the opportunity to make a quick and informed choice, enabling them to select the product that is most suitable for them.

Credit Cards Explained

Credit cards give their holders immediate access to a pre-arranged amount of credit which can be spent anyway they want, so long as the card issuer is paid back. Credit cards work in exactly the same way as debit cards, and come with a pin number and a chip. When a holder makes a purchase with a credit card, the holder is given a grace period where no interest is charged (typically 55 days). Once this period is over interest and fees start being charged.

The amount of interest and fees that are charged depends on the card. The best way to compare credit cards is to use the Annual Percentage Rate (APR) that each card charges. This is the rate of interest the card issuer charges once the interest free period ends and is charged on a monthly basis. For example a borrower who spends $500 on their credit card that has a 16% APR would be charged $6.67 in interest every month to hold that debt.

Interest charges can quickly accumulate for borrowers who are not careful. All card issuers expect borrowers to make a minimum payment at the end of a billing cycle, and this is usually 2.5% per cent of the outstanding balance, which is then added to the interest charge. In the above example, where the borrower carries $500 in debt, the minimum payment would be $19.17 and even with that payment, the amount of debt outstanding would remain the same. Borrowers seeking to avoid the minimum payment trap should pay off as much of their debt as is possible at the end of the month and should also respect their credit limit. Card holders who either max their credit cards at the end of each month or miss payments will likely incur significant charges.

The best way to avoid such problems is to check the balance of the card regularly and to either make regular payments by setting up a direct debit facility.

No matter what you are looking for from your credit card, whether it is low interest rates, balance transfer deals or rewards schemes, Money-AU is your one stop shop for comparing credit card deals.

Latest Credit Cards News from the comparedinkum Blog

New Report Suggests Many Australians Are Struggling With Credit Card Debt

A new report by ASIC has found that 18.5% of Australians are struggling with credit card debt. The outstanding credit card debt in Australia totals $45 billion with $31.7 billion of that incurring interest. ASIC Deputy Chair Perter Kell says the findings prove that credit cards can result in financial difficulties for many Australians. Other research suggests that one fifth of all cardholders in the country are in a long-term debt trap with 1 in 10 carrying credit card debt for over a decade. Continue reading

Australians Not Using Balance Transfer Cards Properly

Balance transfer cards are popular with Australians seeking to pay down their credit card debt because they come with an interest free period. That does sound good doesn’t it? Unfortunately, the reality is most Australians are seriously misusing these cards and its costing them a packet. According to RateSetter 44 per cent of Aussies who use these cards to try to pay down debt fail to do so within the interest free period because they are unable to resist the temptation of spending more. A further 12 per cent simply lack the discipline to make the monthly minimum payment. Continue reading

Common Balance Transfer Pitfalls

Balance transfer cards are useful because they allow credit card borrowers to consolidate their debt onto a single card that usually has a long interest free period. This means the borrower is able to pay off their debt without incurring additional interest rate charges. This does sound too good to be true doesn’t it? Well to some extent it is, there is a catch, lenders are increasingly tacking on fees to transfer a balance, which is usually some fraction of the balance being transferred. Continue reading

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