Best Credit Cards in 2010

May 5th, 2010

Even though most people have become more responsible with their spending since the disastrous Global Financial Crisis, most of us are also slow to completely discard our beloved plastic cards. Of course, if you are using the best credit card for your needs, and are getting the best rewards deals, then you don’t need to worry about rising interest rates or fees because you know how to avoid them. Read on the check whether you are doing everything you can to make the best of your credit cards in 2010.

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Credit Card Trends in 2010

In 2010 Australia has already seen a lot of recovery with our interest rates rising out of emergency levels and the dollar strengthening. However, the recovery of the economy should not be a green light to resume the spending levels pre-GFC, and continue living beyond your means. Instead the credit card trends in 2010 should be:

• More responsible. Even if you were not one of the thousands of people who lost their job or their home in the worst of the GFC, you may have known someone who did, or you simply remember the empathy you felt knowing it was happening. Well remember that feeling before you go to use your credit card next time and think about whether you will be able to afford to repay your purchase, and whether you really need that purchase to begin with.
• Mindful the government grants are running out. Future election promises aside, there is no doubt that the government grants have slowed, Mr Rudd has sent everyone their $900, the bonuses to the first home buyers grant have been scaled back and it’s time for the government to focus on the debt they’ve gotten themselves into with these handouts. Therefore, before you go to use your credit card, think back over your yearly budget and whether you really could have afforded the luxuries you still enjoyed without the stimulus packages.
• Value-added and rewards-heavy. It can still make financial sense to use your credit card for everyday spending, because this leaves your wages free to earn interest in a high interest savings account. However, if you are going to be using your credit card, make sure you are getting the most out of it by using the best rewards credit card deal. Some rewards programs will offer you cash back deals, while others will automatically send you gift vouchers when you have accumulated enough points.

Features of the Best Credit Card Deal in 2010

To help you be responsible with your spending and manage your finances into the future, consider whether you could benefit from the following features on your credit card:

• A low interest rate. Yes, low interest rate credit card deals are out there because not all credit card providers are out there to charge you of every penny you have. A low interest rate credit card deal can see you paying less in interest in 2010 for those purchases which you had to rollover into the next statement period. When you are paying 11% interest instead of 20% interest it makes a big difference to your monthly repayment and means you can regain control of a credit card balance more easily.
• A long interest free period. Can have the same benefits of a low interest rate, but better. Typical interest free periods are 55 days and during that time you can spend the bank’s money while yours goes on to earn interest. This gives you almost 2 months to make purchases interest free, and all that time to make sure you can repay them responsibly.
• A debit card. If you want to really take control of your credit card spending, trade in your credit card for a debit card. A debit card looks and acts like a credit card, but it accesses your own money every time you to the ‘credit ‘ payment option. This means you can’t spend more than you make, but you can still enjoy the security and ease of paying with plastic online, over the phone and in person.

Check out the latest credit cards deals

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)