Help Me Getting My First Credit Card

akastyl13 on 17/11/2014 - 11:53

Hi everyone,

I have been looking at credit cards topics for a while, and I would like to get a personalized answer from users.
I am 26yo, I have about ~30k on my saving and no debt, always paying everything in time.

Within the next month I am about to plan few trips spending around $3,500 for flights tickets and other stuffs or $7,000 if I pay for my girlfriend too.
Is a credit card useful in this case? I mean, would it be THE situation where a credit card is making its job?
Then, I don't think I will have huge expenses after these for next 6 months.

I always pay groceries, gas, rent, restaurants/drink/extras with my everyday account. Is the credit card useful for these types of expenses?

Will you recommend getting a credit card just for these expenses?

Thanks a lot.

Financial

Comments

    • cypher67 on 17/11/2014 - 12:05
      +4

      He has $30k saved, credit cards are very practical for things like travel insurance etc. Not to mention the points you can earn to save yourself more money down the track. I agree you shouldnt over extend but it sounds like he could benefits from a decent CC. I spend everything on the CC for this reason, never paid a cent interest, just recieved the benefits.

      • akastyl13 on 17/11/2014 - 12:19
        +1

        That is correct, I do have the money and can afford the trip I will get it back within a month with salary, I was thinking about "keeping the money" longer for interests + points / insurance cover if I get a credit card.

  • raymond y on 17/11/2014 - 12:09
    +2

    Getting a credit card relies on income more than savings. There are many options available, you might even be able to get a decent one that gives you some insurance perks, I have a Coles Master Card for price protection and I paying it properly I don't pay any of the premiums. Since you're travelling a card with travel insurance might be useful.

    What's your yearly spend likely to be if you paid everything you could with the credit card and repaid it back on time, earning interest and possibly points.

    So long as you have discipline, you can use it to your advantage.

    EG, Coles Rewards Mastercard, annual fee is returned in points with $10,000 spend. So if your annual spend is greater than that, then you can get some cash back too.

    Bear in mind that your bank is likely to give you a greater credit limit, so compare the options they have first.

    • akastyl13 on 17/11/2014 - 12:18

      Ok thanks, my income is fine it is around $3.8k/month after unit rental taken off. Then comes groceries, fuel, extra of life during weekends.
      But I don't think I can use the credit card to do Bpay to the rental agency.

    • pjetson on 17/11/2014 - 12:32
      +2

      I think that the OP has a completely different mindset.

      He seems to be funding his lifestyle entirely without credit, but he wants to go on holidays soon and is asking whether there is any advantage to getting a credit card and using it for his holiday. He expects to pay off the debt in cash before he incurs any interest.

      One possible advantage is that some cards provide some form of travel insurance. Another is that credit card points might be accrued.

      A possible disadvantage is that many cards have an annual fee.

  • adamren on 17/11/2014 - 12:22

    It's fairly easy to get a credit card. If you have the ID, meet the criteria and the salary level, you'll get it. If not it's a mistake and ask for another look in. Or apply at another place.

    Amex are ubercompetitive and are pretty much giving out their cards.

  • stargalaxy on 17/11/2014 - 12:22

    I have the Coles mastercard, every 2000 points earn save me $10, you need to be flybys member as well to use it when shopping at Coles supermarket.

    • akastyl13 on 17/11/2014 - 12:23

      The only problem is I shop only at Woolworths as I do not have any Coles around haha! So I should into the same for Woolworths in your case haha

  • bluedufflecoat on 17/11/2014 - 12:30

    Citibank Signature Card (income >$75k p.a.) (search for it on OzB) free for life is pretty good value. Has a bunch of insurance policies included, including travel which might be of value to you. However, given that you plan to make the bookings within the month, I'm not sure how fast you can get your application approved. Also comes with complimentary airport lounge visits (2x for you, per year) so that might come in useful for you.

    • akastyl13 on 17/11/2014 - 12:35

      Good one I will review it!

      I just think about something… I am not a resident yet, but under a 457 visa (company/employee) not sure if I can get a credit card…

      • Baysew on 17/11/2014 - 12:58
        +1

        Generally an income of $50k, and work visa isn't about to expire.

        (http://www.creditcardfinder.com.au/credit-cards-for-temporar…)

        Best to contact issuers before applying.
        (Also sometimes applications will be automatically declined, however for non-residents can be reviewed manually)

        • akastyl13 on 17/11/2014 - 13:13

          Perfect, thanks for your link !

      • conan2000 on 18/11/2014 - 07:55

        Also, worth checking if the Insurance that comes with the card covers you if you aren't an Australian permanent resident.

    • akastyl13 on 18/11/2014 - 09:45

      The Signature card.
      Get to where you want to be sooner with the card that takes you places. Apply for the Citibank Rewards Credit Card - Signature now and receive 60,000 points on your first spend1 and 0% p.a. for 6 months on balance transfers3 (reverts to cash rate). You will also receive a reduced $299 annual fee for life (usually $395 per year)

      It says $299 annual fee ? Not free for life anymore ?

  • jackofspade on 17/11/2014 - 12:46

    There's been so many credit card deals posted on ozbargain. Take your pick.
    Useful card for travel https://www.ozbargain.com.au/wiki/cards_with_no_overseas_tra…
    Nothing wrong with having a credit card as long as you pay off the balance each month. It's probably a good idea to have one and maintain a good positive credit history.

  • rewardscompared on 17/11/2014 - 14:44

    A credit card can be rewarding, but can also be expensive if you don't use it right. Follow these principles to ensure it's rewarding - http://rewardscompared.com/tips - the most important being to pay it off the balance every month.

  • eqv on 17/11/2014 - 15:10
    +1

    I started using Qantas Cash recently for everyday transactions. It's like a prepaid master card, but you get qantas ff points for spendings you make on them. Not too bad for prepaid travel card either.

  • Mysterious on 17/11/2014 - 15:21
    +1

    As a suggestion you can get a Commonwealth Bank Travel Card for just $15 when you go to a branch. You'll save a bit of money compared to using a regular card or going through exchangers.

  • Cheeper on 17/11/2014 - 16:30

    For overseas travel a MasterCard or Visa Card is a must have. The same for travel insurance.
    Which card do you get from all the offers… up to you.
    Commonwealth Bank MasterCard that is 100% free if you spend $1000 per year on it and pay your balance owing each month. It is easy to make up the $1k per year spend to get the fee waived, just pay a couple of bills with it each year.. car rego, insurance, land rates, etc.

    That would be a no fuss card through a reputable finance institution and ideal for basic / low use.

    You can load money onto your CC so you have a positive balance but be careful as some issuers don't like you doing this. Just make a deposit onto it at your local bank.

    Credit cards only become a problem when you use them for a source of finance or living beyond your means. You don't seem to be like that. Used correctly they are very worthwhile having and can get you out of a lot of tricky situations.

    Some cards can include travel insurance cover or product warranty extensions and other bonuses but read the fine print (PDS) carefully as they usually fall short or have tricky exclusions.

  • cpho on 17/11/2014 - 20:02
    +1

    Overseas - 28 degrees for 0% currency conversion fees. has everything except reward points.
    If you have a hard on for reward points, maybe look at the fee free Amex? If you're booking flights with Virgin/Qantas, get a Velocity/Qantas Amex and add to your point balance when you go grocery shopping

    The Citibank card was probably the best but its not free any longer and not work the annual fee.
    Point conversion is pretty much same as the free Amex, and same benefits as the 28 degrees

  • akastyl13 on 18/11/2014 - 09:42
    +1

    Thank you for so many replies !

    I already have a QFF account that I use with shopping at woolworths, but the flying tickets I will be buying soon are on Virgin Australia…
    So I guess I should open a Velocity account first thing and then see what direction to take for the credit card, an AMEX Velocity maybe

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