Compare the Best Credit Cards
March 24th, 2011
Compare Best Credit Cards
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.
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Cash Advance Rate (p.a.) | ||
|---|---|---|---|---|---|
 St George Vertigo | 13.24% | 0.99% for 12 months | $55 | 21.49% |
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 Bankwest Breeze MasterCard | 10.99% | 4.99% for 12 months | $69 | 21.99% |
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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.
Editors Choice: Featured Credit Card Deals
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Cash Advance Rate (p.a.) | ||
|---|---|---|---|---|---|
 Westpac 55 Day Credit Card | 0% for 5 months (reverts to 19.59% ) | 3.99% for 6 months | $0 | 21.49% |
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 Citibank Clear Platinum Card | 11.99% | 2.9% for 12 months | $99 | 21.74% |
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