Hey guys,
I've never had a credit card in my life, but I feel that I can use one to my advantage now after hearing stories of free flights etc. I'm just wondering which ones are decent and if anyone can explain the pros/cons of them. I know its a vague question, but I am a noob with these things and would like to learn.
Thankyou
Kyle
You can see a comparison between some reward credit cards in the wiki section:
http://www.ozbargain.com.au/wiki/credit_card_rewards_compari…
The Canstar Cannex ratings were a (seemingly) good comparison of cards when I was considering mine. I haven't researched their objectivity but as far as I'm aware, they're independent and they do cover a very wide range of products:
http://www.canstar.com.au/credit-card-rewards/
Although, that said, I didn't have to think too much since my CC came along with my recent home loan.
As mentioned above, there's heaps of options and you've just got to weigh up what's most important to you and pick and spend wisely.
You should do your own credit card comparaison if you want it just for points. I've found that most credit cards, when you compare what you spend versus what rewards (in terms of gift vouchers) that you get, it is usually around a 0.5% return. For example, with the woolworths credit card, you get 1pt for every $1. Their rewards programs mean that if you spend $4310, you get $25 back in gift vouchers, which is equivalent to a 0.46% return.
I find that AMEX cards usually offer the highest returns (around 1.1%), especially when linked with the Qantas frequent flyer program. And different banks usually offer a different amount of points per $1 spend, but as long as you work out what your return is on comparable gift vouchers, like a DJs or Myer voucher, you can decide if its worth the annual fee that you pay.
Hi all,
I'm trying to help out a couple of family members who are looking for credit cards. They both have fee free American Express cards, which they find are limiting (as they also buy from some people who don't want American Express).
They are both looking for:
- no annual fee, ever
- interest free days (and they will pay back on time)
- some reward points (ideally QANTAS)
- Visa or Mastercard
- if it helps, one of them is a senior
Anyone know of any such cards? :)
I tried Googling and found a few sites which didn't quite fit the bill. Also, I noticed the sites conflicted on what they thought were the features, so I realized what I find when I finally visit the bank can be different to what the credit card finder says I will see. (Also, those credit card finder sites may list only the cards that give them referral commissions)
I've been happy with my Myer Visa card. Their annual fee is $39 and you can earn decent points on non-Myer purchases as well.
* 1 point/$ for non-Myer spending (Shopping Credits awarded for spend outside of Myer are capped at 2,000 Shopping Credits per month)
* 3 points/$ for Myer spending
—->2,000 points gets you a $20 Myer voucher
The interest rate is exuberantly high, like 20%, so only get this card if you can plan ahead and not go beyond the 55 interest free days. One good this about this card is that you can pay off it off anytime (even before the bill comes), in any Myer store by just walking in and quoting how much you want to pay.
Some pros:
And of course some cons:
Personally I've had the Virgin MasterCard for years (now the Westpac Ignite card), and haven't really been tempted to take up an alternative. Sadly you can't get them any more but I think some of the better cards going around include the Wizard Clear Advantage Mastercard, or maybe try the Woolworths one which I think you can link with a Quantas Frequent flyer rewards account…
Maybe also have a search on www.mozo.com.au and www.infochoice.com.au to compare some of the offerings out there.
I have just 1 credit card now, and because I am a student I don't pay any fees. It's with the Commonwealth Bank, it's an "Awards" card which gives me points and best of all, no fees :)
Most credit cards will attract a $55-59 yearly fee in addition to the usual fees. I guess the questions that you should ask yourself are:
Can you control your spending? Will you be able to pay it off within the 55 day (or whatever) interest free period?
Do you need a credit card? Visa Debit / MasterCard Debit offer similar functionality but don't have reward points.
Are you thinking about a credit card to buy something you can't afford? Or do you just want it for general use?
I have had my CC since I turned 18 (actually applied for it on my 18th birthday, hah) and I've been very happy with it. Always paid off my bills and have a relatively low credit limit to ensure it doesn't get out of control (I can easily control spending, though). I started with a $500 limit but found myself having to pay it off too often, went to $1000 and now I'm on $1500 and it's just right.
Rewards points wise, I've gotten a few hundred dollars worth in petrol cards just for making normal purchases - and I don't pay any fees! So realistically, getting the CC has actually saved me money. Even at $59 a year, I'd still be saving money with the amount I spend anyway.
For my particular account, I need to spend roughly $8000 to get a $40-50 gift card for petrol or a department store.
Buying flights, accommodation with points is a bad idea! They offer poor rates and even though it sounds fun - "spend money you'd spend anyway, and get a holiday!" you're MUCH better off putting the money towards petrol (as good as cash) or Myer/Woolies cards, etc. You can easily calculate the points-to-dollar ratio on products and find out what suits you most. Buying cordless phones, flights, etc. represent poor value.
That's about it! If you're a student, check out the Commonwealth Bank - they give you not only a free account, but the points system too. You pay your bills just like any other bill. My savings acct is with CBA too so it's again easier.
There's not a whole heap of catches. Pay your bill in time or face 18%+ interest. Don't withdraw cash from an ATM with your credit card unless you like paying interest from the second you withdraw cash. Don't purposely use your credit card to get points - you'll end up losing. Use it as you normally would if it were a savings card (bank debit card) and you'll be fine!
Feel free to ask for any clarification :)