When you choose a credit card, you could be helping yourself out or you could be doing yourself a lot of financial damage. For this reason, it’s important that you find the absolute best credit card for you, and that could mean a long search. Choosing poorly could be just like committing financial suicide.

A survey in 2009 found that only 6% of the people who were asked would visit a credit card comparison website. More than half of the people interviewed only applied for credit cards with their own banks. The banks, obviously, rarely have their customers best interests in mind, but people are often too lazy to get out there and do something that might actually help them out when there’s such a convenient, if worse, option looking right at them. It seems that the credit card for the most people is the one that requires the least amount of effort.

For others, probably others like you, the best credit card is the one that can save them the most money or costs the least to use, or the one that best fits how you might spend with it. Keep these features in mind when choosing your card:

Your Regular Purchase Rate

When you make a new purchase, this is going to be the rate that you’re going to pay on your leftover balance from month to month. You’ll find they generally range between 10% and 20%. If are going to carry a balance regularly, or if you think you might, then the best card for you is probably the one with the lowest rate.

Introductory Purchase Rate

Many cards will offer and introductory rate and this rate applies to new purchases for a limited amount of time. This period is normally between three and six months. This can be a great way to get a short-term low interest loan, but keep the regular rate in mind as it’s the one that you will spend the most time with.

Balance Transfers

If you have a high balance on another, higher interest credit card, then you might benefit greatly from a balance transfer card. This may qualify your specific card as the best credit card if you need the help. Just make sure that you get a card that will allow you to comfortably pay off your debt in the amount of time allotted by the introductory period. Otherwise, you might end up in the same situation.

Annual Fees

If you are never going to have a balance from one month to another, then this is probably the card for you unless you’re going to make full and regular use of a rewards program on other cards. Since you’ll never be paying interest, the higher rate of a zero annual fee card will matter little to you.

Others

There are, of course, other things that you may want to look into. You might want to know how many interest free days you will get, or what rewards are offered by a card. It all depends on how you’re going to use your card and why you want it. Figure out what you want and finding the best credit card for you will be a simple task.

Comparing the best credit cards can help you find the card which is best for you, however you still need to know how to find the card which is best for your needs, and understand the importance of using a credit card responsibly. Owning a credit card does not automatically have to lead to bad debt – not when you choose the card which helps you manage your money, rewards you in your way, and makes your money work harder for you.

The Importance of Comparing the Best Credit Cards

While most Australians have a credit card, few use them well, or to their advantage, that can been seen by the fact that the average Australian credit card balance is around $3,000. However, you don’t have to be one of those people who carry a balance on their card and you don’t have to suffer through high interest payments, and you shouldn’t, because:

• Credit cards don’t have to be evil. When you accrue and continue to rollover a balance on your credit card then yes, this is bad debt, but if you know how to use the right credit card, then your card can actually help you manage your finances more easily by showing you all your purchases in one place, as well as rewarding you for the way you spend.
• Most credit card interest compounds and can get you into trouble quickly. Where compounding interest is what you want in a savings account, it is bad news on a credit card and unfortunately more and more Australian credit card companies are charging you interest on your interest, and on your fees. This means that not only do you have to pay off your interest charges from last month, and from this month, but you also have to pay the compounded interest too, and the larger your balance grows the more compounding interest accumulates and you can quickly have an out of control balance.
• An out of control credit card goes on your credit report. If you have an ongoing high balance on your card, don’t pay your bill on time or have a number of credit cards, this can all be seen on your credit report and can affect your chances of applying for a home or personal loan, or even a new job.

How to Compare to Find the Best Credit Card

Hopefully we’ve convinced you that you need to take your choice and use of your credit card seriously, and now you want to know how to find a card which can help you manage your debt. When you compare the best credit cards, make sure you consider:

• Your income and cash flow. This will help you determine which card you can and should apply for and how you will be managing your payments. If you get paid weekly, you may be able to keep on top of your payments more easily than if you are paid monthly and you have to juggle interest free periods with pay periods. If you are paid for contract work your cash flow can be even more unpredictable, so perhaps you could benefit from a low interest rate credit card if you are likely to carry a balance.
• Your spending habits. To make the most of a typical rewards point scheme you need to spend at least $2,000 a month on your card to earn enough rewards to cancel out the fees and interest; $5,000 is better. However, programs like cash backs can reward you for every purchase with a percentage credited back to your account each month.
• Your attitude. Are you the kind of person who would be tempted to spend just to earn rewards – then perhaps a rewards card isn’t right for you. Or do you have trouble sleeping at night if you know you are paying interest on bad debt – then you should consider a card with an interest free period. Or maybe you know you won’t always be paying your balance in full – then consider a low interest rate card so your balance stays manageable.

For more information about the best credit card deals available for your needs, view our comparison tables. When you have found a credit card deal which appeals to your needs, your spending habits and your personality, follow our secure link from the comparison table to sign up today.

The smaller banks also offer some deals that you won’t want to pass up.

The Big Four Banks for Credit Cards

More people in Australia choose to open credit card accounts with the big four- Westpac, ANZ, Commonwealth Bank and Westpac. In fact, more than two-thirds of people who have bank credit cards have one with one or more of those four.

These four banks do offer some excellent deals and incentives that are hard to resist; however there are many smaller financial institutions that Australians should also consider. The smaller businesses of course have to work much more diligently to get customers and keep them, so how do they do that? They offer fantastic deals and perks that sometimes give the big banks a run for their money.

The Vertigo Card from St.George Bank

The Vertigo card is a MasterCard offered by St.George Bank with very low rates and fees for balance transfers and purchases, as well as a very low interest rate. There is only a small annual fee that is assessed to card holders. One of the biggest perks of having this card is being able to take advantage of the St.George Instant Benefits program. The program is not one in which you earn points for dollars charged to the card, collecting them until you have enough to redeem for some prize or special offer. The St.George Instant Benefits program, however, offers instant discounts and deals on purchases you make with the card.

That’s not all, either. The Falcon Fraud System monitors the transactions of customers in real time and immediately alerts the bank to any suspicious activity. Customers are not held responsible for any charges that are found to be fraudulent.

The Aussie MasterCard

The largest financial institution that is not a bank in Australia is Aussie. The MasterCard they offer has one of the lowest interest rates in the entire country. This is not an introductory rate, either- the lowest rate is one that is a long-term rate. When consumers go to apply for an Aussie MasterCard, they will be able to choose between many different deals and promotions, two of which include a 0% annual fee and a low interest balance transfer rate.

Macquarie Bank Credit Card

Macquarie Bank is a comparatively small financial institution, but the Platinum Visa card offered by it happens to be one of the best premium credit cards in Australia. In addition to complimentary travel insurance, there are many other benefits and special offers that card holders can choose to take advantage of according to their needs and preferences. Up to four additional card holders can be added at no extra cost, which makes it a very versatile card. In addition, the rewards program offered by Macquarie is such an excellent one that it is very popular.

Bankwest MasterCard

The MasterCard that is offered by Bankwest offers one of the most extensive and varied rewards programs available in the country. The deals and offers that are presented by this company also include the ability to add up to three additional cardholders to accounts.

The Woolworths Everyday Money Card

One of the most popular credit card offers can be enjoyed by cardholders who have the Woolworths Everyday Money Card. Members are able to shop anywhere and enjoy extra points that are awarded to them for shopping at any of the many Woolworths group outlet locations. The points accrue for four months, and then every four months they can be redeemed as a shopping voucher at any Woolworths store. Card holders of this credit card enjoy a longer grace period than normal (55 days interest free), and they also enjoy paying absolutely no annual fee for the card.

With so many excellent benefits, rewards programs and instant discounts, if you are searching for an excellent credit card, you may want to look beyond the big four banks in Australia and see what you might be offered by one of these smaller (but no less excellent) financial institutions and companies.

Before you Choose Big, Consider Some Alternatives

While the cards above do have their own merits for performance and features, it can pay off to shop around. I would suggest you consider smaller lenders and get at least three quotes before you apply for any one card. Small lenders can often extend better deals because they don’t have massive overheads. In the end, you have to go with what you deem is best for your particular circumstances.

All these factors will dictate what kind of credit card will be best in terms of saving them money. Making the wrong choice with credit cards, where these elements are not well matched to the individual, can be a very costly mistake.

Making a comparison of the type of card you think you want is the best way to find the best value credit card in any category. Credit card comparison websites are the preferable way to do this because all the facts and figures are side by side on the same page.

There are many categories of credit card, with plenty of variations in each category in terms of the additional features. Sometimes it comes down to the little added extras to really mark out one card as the best value credit card over all the others. However, there are really four main areas you will want to concentrate on to locate the card that’s best for you:

Contender categories for best value credit card

Low interest rates – These are the cards that have an ongoing low rate of interest for purchases. These cards will prove the best value credit card for anyone who makes regular purchases and quite often carries over a part of their balance from one month to the next. There are also cards that have a zero or very low rate as an introductory offer for a period of perhaps 6 months before the higher regular rate kicks in.

Balance transfers – These are a very popular choice for many people who have run up debts that they cannot pay off in a matter of a few months. These allow the customer to shift their balance to a new credit card with another provider who is offering an introductory deal on interest rates for a limited period. Most common is 0% for 6 months, although there are plenty of 12 month deals as well for 2% to 3%. Other limited periods are also available, and unlimited period transfers on some platinum level cards. When used correctly, these can certainly be thought of the best value credit card for many people.

Zero annual fees – These are a great choice for anyone who doesn’t use their card very much, or who always or nearly always pays off their balance in full each month, thus avoiding interest charges (which may be quite high on these cards). If you are paying interest charges, then these will not be the best value credit card as you are probably losing in the long run by not paying an annual fee because your interest paid will outweigh the money saved on the fee.

Rewards programs – These are the best value credit card for anyone who uses their credit card often anyway, therefore may as well earn some points for doing so. However, a program fee may wipe out the value of the points, and building up interest charges will certainly lessen their relative value.

Determining the Best Australian Credit Cards

Asking someone which they think are the best Australian credit cards will get you a different response, depending on who you ask. Not all credit cards will have the same attractions for all customers.

You might be searching for the best balance transfer rate, while another customer might prefer to build up rewards points or aim at a zero annual fee and low purchase interest rate.

The best Australian credit cards to suit one customer may be the worst options available for another.

Best Balance Transfer Credit Cards

If you’re after a credit card that can allow you to reduce the amount of interest you pay on your outstanding balance, then you could benefit from searching for the best balance transfer rate.

Keep in mind that you want the low rate to last for however long it will take you to realistically repay the balance. This is so you don’t end up with a debt when the rate reverts to the higher purchase rate after the introductory cheap rate expires.

Best Low Rate Credit Cards

Some customers may find that they are better off aiming at a credit card with a low ongoing rate on purchases. Recent competition between credit card providers is seeing more offers with low ongoing rates that could really help you save money.

Best Rewards Credit Cards

Frequent credit card users can often benefit by accumulating rewards points that can be redeemed for merchandise, shopping vouchers or air miles.

Best Platinum Credit Cards

Some customers can really benefit from the perks offered to Platinum credit card customers. The perks can include things like International Travel insurance, extended warranty on purchases, purchase protection insurance and access to a concierge, among other benefits.

Which Credit Card is Right for You?

Regardless of which credit card you choose, it’s important you don’t simply take the easy option of accepting whatever card your own bank offers you. It’s been proven during recent surveys that around 50% of people simply walk into their own bank branch when they want a credit card.

Your own bank might be happy to offer you a credit card, but it might not be the best Australian credit card to suit your needs and your own personal financial situation.

With new credit card offers coming out all the time, it can be difficult to keep on top of all of them. Below are some of the best credit card offers that we have found for May 2010.

1. Citibank Clear Platinum Visa

2. St.George Vertigo Credit Card

3. Bankwest Zero Platinum Credit Card

4. Suncorp Platinum Credit Card

As far as consumer choice goes, there are a huge range of credit card providers to choose from in Australia. We have looked at the top 6 to see who it is that is so desperately trying to win our financial hearts.

ANZ

ANZ is one of the best 50 banks in the whole world, and one of the largest credit card providers in Australia. It opened it’s first ever office in Sydney way back in 1835, and then a second in Melbourne in 1838, and in fact ANZ still has it’s main office there today.

They are known for their massive range of different credit cards, and have one of the most popular reward programs available too. As well as this they also have a range of low interest rate, and low annual fee credit cards.

Westpac

Westpac was in fact the very first bank in Australia. It opened back in 1817 and was originally known as The Bank of New South Wales. It only changed it’s trading name to Westpac in 1982 after the company acquired the Commercial Bank of Australia.

Westpac currently offers a large range of about 12 different types of credit card, ranging from balance transfer cards, through to rewards cards.

Commonwealth Bank

Commonwealth has become a huge financial power with over 37,000 employees and an estimated 700,00 shareholders on the books.

It opened in the early 1900’s, and boasts the biggest market share of the credit card business with around a 19.7% share. It has an extensive range of cards available, with some very cheap low rate cards, as well as some exciting reward credit cards.

Citibank

Citibank are a component of the Citi group, and as well their own range of balance transfer, cash back and reward credit cards, they also have a range of cards that are all affiliates of the “Citi Rewards” program.

St.George

Opened in 1937 and originally started life as a housing based firm, it won it’s full banking status in mid 1992. It is a proud part of the Westpac group, and provides some very good value cards, that are cheap and simple to run.

Aussie

The last of our top 6 credit card providers, this bank first opened it’s doors in 1992 so is very much a “new kid on the block”. Far from the baby of the bunch however, Aussie has quickly become Australia’s premier non-bank retail finance company. This company is a specialist of the low rate promotional credit card deals.

You can find a lot of great Australian credit card providers, but here are our top six picks for cards. These recommendations can save you a lot of time and trouble when you want the best card, but don’t have time to compare all of them.

Best credit cards

1. ANZ cards

As one of the largest Australian and New Zealand companies, ANZ is the second biggest provider of credit cards in Australia. It began in 1835 as the Bank of Australasia in Sydney. It opened in Melbourne in 1838, and still has its world headquarters there today.

It offers a wide range of cards to choose from and offers one of the best rewards programs in Australia. They are well known for their low rate and low fee credit cards. The most popular cards offered by ANZ are the ANZ Frequent Flyer card, the ANZ Rewards Visa card, and the ANZ Frequent Flyer card.

2. Westpac cards

Westpac is the oldest and first bank of Australia. It began as the Bank of New South Wales in 1817. Its name was changed to Westpac banking Corp. in 1982 after it acquired the Commercial Bank of Australia.

Westpac has over a dozen credit cards you can choose from, which is one of the largest choices of any other bank in Australia. They have top credit cards with rewards programs, as well as low annual fee cards that also have a low interest rate for balance transfers. Their most popular cards include the Westpac 55 Day Visa, the Westpac Altitude Card, and the Westpac Earth Card.

3. Commonwealth Bank cards

Commonwealth Bank is one of the most recognized providers of financial services in Australia. It was formed in 1912 and grew to the size it is now with 38,000 employees and 700,000 shareholders. It has a 19.7% market share of credit cards which is the largest of any credit card company in Australia. It offers cards with rewards programs, low rate cards and low fee cards. Its most popular cards are the Commonwealth Bank Awards Card and the Commonwealth Bank Low Fee Card.

4. Citibank cards

As part of the global Citi group, Citibank has big plans for their Australian credit card business. They have the exclusive Citi Rewards program that offers a great rewards scheme along with cash back and low rate cards. They also offer a business credit card. Their most popular cards are the Citibank Silver, the Citibank Clear and the Citibank BP MasterCard.

5. St.George Bank cards

St.George started its company in 1937 as a financial institution that was housing based. In July 1992 it received full banking status and has now joined the Westpac group. It has a small range of cards, but they are all excellent and full of value. Their most popular cards are the St.George Vertigo Card and the St.George Platinum Card.

6. Aussie cards

Aussie was established in February 1992 and has become the leading Australian retail financial services group that is not a bank. It offers one credit card only, but this card is packed with excellent benefits. You can choose from different promotions on your card such as no annual fee for the initial year or low interest rates on balance transfers. It’s most popular card is the Aussie MasterCard.

These are some of the best credit cards you can find in Australia today , and these six providers are all well established financial institutions that you can believe in 100%.

Find Everything You Need in One Place

Let’s face it. We all live in a fast-paced world. Taking the time to research credit cards to find the best one is just something that is not possible for most people. Now, there is another option. With Ratecity.com.au, you can research and apply for credit cards online.

Even though you are applying for “credit cards online” does not mean that it should not be taken as seriously as if it were in person or on paper. When you apply for a credit card, you are asked about everything under the sun from your income to your employment history to your assets and outstanding debts. In addition, if you are new customer applying, you will be required to come into a branch for a visit to provide your Personal Identification.

Word to the Wise

When you are applying for credit cards online, you should take extra measure for security. You should not, under any circumstances, provide sensitive details via the Internet unless you are certain that it is a secure site. You will know this because the website address is usually preceded by “http” and will have a padlock icon featured.

Be very wary of e-mails that come unsolicited asking for private information. Do not click on any links to take you to a provider’s site. Go directly to the site yourself. That is always the safest option for applying for credit cards online.

Who can boast of having the best credit cards offer? To know the answer, you need to understand what specific feature in a credit card you are most interested in. Many credit cards offer low interest rates, low annual fees, great rewards programs and great balance transfer deals – but no single credit card offers the best deal on all of the different features. So, in order to select the best credit cards offer, you need to first decide which particular feature will suit your circumstances best. Read on to learn about the various credit cards for different aspects of credit card use.

1. Best introductory credit card – The best introductory credit card is the HSBC Credit Card. This card offers a combination of a great balance transfer deal of and a no annual fee offer.
2. Best balance transfer card – The best balance transfer card is the ANZ Balance Visa, which offers % interest for the first months on balance transfers.
3. Best value for money credit card – The best value for money credit card overall is the Citibank Clear Platinum, which offers platinum benefits, low interest rates and a modest annual fee.
4. Best low interest credit card – If you are interested in obtaining a credit card which has a very low interest on purchases, you should select the Bankwest Lite MasterCard, which offers p.a. interest on purchases. Of course, you should keep in mind that this is the interest charged on purchases and not cash advances – the cash advance rate is p.a.
5. Best no annual fee credit card – The best no annual fee credit card is the HSBC credit card, which does not charge any annual fee. It also offers low interest rates and a great balance transfer deal.
6. Best cashback credit card – The best cashback credit card is the American Express Platinum MoneyBack Card. Cardholders can earn up to 5% cash back on purchases during the first three months, and an ongoing 1% cash back after the initial period of three months is over.
7. Best rewards program credit card – The best rewards program credit card is the American Express Gold Ascent Card. This card offers complimentary membership into the Membership Rewards Ascent program of American Express. The rewards include transferability of points to airline miles with 7 leading airlines, gift cards, travel packages and more, for a mere annual fee.

Now that you know what the best credit cards offer, hopefully you will find it easier to pick your ideal credit card.