Best credit card option for a 23yo.

diguinBR on 26/04/2022 - 21:18

Hi everyone!

I have decided to stop using a debit card and start using a credit card to accumulate points as I don’t get anything for using a debit card.

But then as I am looking for the best option, I decided to come here and ask:

What would be the best Credit card option for a 23yo?

I have a good control over my finances and everything. Just looking for something to increase a credit score for the future & get points as well.

I am currently with CBA, but their rewards credit card didn’t look that interesting.

Hope you guys can help me. 😊

Financial Credit Card

Comments

  • sjj89 on 26/04/2022 - 21:21
    +1

    Qantas Amex Ultimate CC

  • Benoffie on 26/04/2022 - 21:21

    I'd steer clear. You don't need a CCard to improve your chances of gaining credit.

    Banks looks at long term trends in spending and saving.

    Most CCards with any points system attached are a waste of money unless you're in a position to fully leverage (business or mortgage etc)

    • Ozbfan on 26/04/2022 - 21:34
      +13

      One of the most ignorant comment I have heard re waste of money. Lol.

      • chrisn26 on 26/04/2022 - 21:58
        +4

        I totally disagree. For most people, a credit card means spending more than than they would otherwise.

        Since you're not seeing the bank balance drop, subconsciously it doesn't feel like you're spending. I'm sure the big brains at mastercard and visa are experts on this phenomenon and are well and truly exploiting it. Sure, for some extremely disciplined people, maybe it's a net benefit. Think of it, how do these cc companies make money?

        • AustriaBargain on 26/04/2022 - 22:17
          +24

          If you don't have the self control to not use it properly then the problem isn't the utility of credit cards, it's a personal problem. If you pay your balance each month then there's no extra fees or interest. Even if you let a balance carry for a couple of months before paying it off, the extra cost is minimal. If something you rely on to make money, like your car or computer, breaks and credit card is the only way to pay for it now, then it makes financial sense to use the credit card and carry that balance for as short a time as possible.

          People post chocolate deals here all the time and no one bats an eye, but endless supply of cheap junk food is far more dangerous than credit cards to have in the house for overeaters with no self control.

        • freefall101 on 27/04/2022 - 08:44
          +2

          They make it off the 50% who carry a balance more than one month, the goal is to stay in the other 50%. The problem is those in debt are paying such an outrageous amount of interest that cover the rest of us, that's how they make money.

          The key difference is between living pay cheque to pay cheque vs having financial stability. The latter is an entirely different mindset, I don't pay much attention to my bank balance either, excess gets funnelled off into savings/investments and it just maintains enough of a balance to live life. If I see that I'm moving less to savings or if there's ever not enough to pay my credit card in my transaction account at any point then it's time to cut back on spending. The incentive to throw $20k on my credit card simply because it's there is non-existent, I have no needs that aren't being met.

          Plus the ridiculous number of points I earn churning cards has paid for more than a few flights/upgrades. The problem with the world is that it's very expensive being poor.

      • Benoffie on 27/04/2022 - 18:46
        +1

        My point was annual fees. The OP wants a card for points. Most charge annual fees. Unless they're flying regularly and can work the system, I'm not sure $120-250pa is worth it for a kid starting out.

        • Ozbfan on 27/04/2022 - 18:55

          Even without flying 100k qantas points can be converted for about $500 in gift cards, so free money.

    • Danstar on 27/04/2022 - 06:04
      +5

      Never spend your own money. Until you have to.

    • Drakesy on 27/04/2022 - 12:18
      +6

      Lol, point systems a waste of money.
      I have half a million Qantas points (enough for 1.5x round the world in business)
      Has cost me roughly $500 in annual fees.

      Previous business class trip to New Zealand was completely offset by points.

      The only people who don't believe in the value of points are those that don't understand the system. The true Ozbargainer would be churning through cards like no tomorrow and taking big banks to the cleaners.

    • dazweeja on 27/04/2022 - 14:59
      +1

      I have 250K QFF points and I've only paid $49 in total (that was a card fee, I've never paid interest). I'm not a big spender by any means. I think you might be doing it wrong.

  • rektrading on 26/04/2022 - 21:22
    +1

    Just looking for something to increase a credit score for the future & get points as well.

    Why do you want credit scores?

  • brokenglish on 26/04/2022 - 21:23
    +5

    We have a guide: https://www.ozbargain.com.au/wiki/credit_card_guide

    It hasn’t been updated in a while but the rule of thumb is still valid.

    1. Amex
    2. Visa/Mastercard for when Amex is not accepted
    3. Cards with no international transaction fee

    Not going to increase your credit scores but gaining point rewards is legit.
    Amex is a must for its statement credit.

    • whyisave on 27/04/2022 - 01:47

      Citibank also do statement credits.

    • Chickenleg on 27/04/2022 - 22:06

      Is there a standard Visa/Mastercard that most OzBargainers keep? I’m about to cancel my card from the latest NAB deal and not sure what to apply for next.

  • rektrading on 26/04/2022 - 21:24
    -1

    I don’t get anything for using a debit card.

    Try a CDC.

  • jv on 26/04/2022 - 21:33
    +6

    Best credit card option for a 23yo

    A free one.

  • Sum-Ting Wong on 26/04/2022 - 21:48
    +12

    The best credit card for a 23 yr old is no credit card

    • Mokr on 26/04/2022 - 21:50
      +3

      They get vote and go to war

  • Mokr on 26/04/2022 - 21:50
    +5

    Unless you spending say 30k plus points don't really matter.

    I would instead focus on credit card churning. So getting the bonus offers.

    Have one main no fee credit card then keep churning offers.

    • CaptainHoltisDad on 26/04/2022 - 22:08

      Yeah second that. Similar age to OP, i focus on credit card churning to rack up bonus points. Usually get through 3 cards per year, getting a few hundred thousand points along the way. Not focussed on credit score, but it's not bad since I put most of my spending on the card and back it pay without interest.

  • Ughhh on 26/04/2022 - 22:14
    +1

    Depends on what type of card you would be approved for. Some of the better cards require higher income and minimum credit limit.

  • altomic on 27/04/2022 - 00:24
    +7

    if you were 22 or 24 then I could help.

  • 777 on 27/04/2022 - 01:48
    +1

    I'll suggest get Amex ( no, of deals, passes, travel credit, Amex exclusive offers, travel insurance, screeen protection, point and pay,etc)

    Then go and decrease you limit to minimum~2k, pay it off every month and even put more money in there and use as "debit" card and pay no interset.

    When I was your age got cc for 25k-40K range and no one was able to guide me + irresesponsible lending

    Imo as long as you can manage your finances and you outsmarting CC companies is actualy a good move.

  • whyisave on 27/04/2022 - 01:49
    +2

    Get a credit card, after your home loan approval.

    ( otherwise, any "credit" to your name,
    eg. car lease, credit card, etc. affects your borrowing ability negatively )

    • Quantumcat on 27/04/2022 - 07:55
      +3

      Agree, I had to reduce my credit limit to $2k to get my home loan. And a credit card doesn't help you if you don't either have a mortgage or some other investment that you will benefit by leaving cash in as much as possible, or a high flying lifestyle, spending many thousands a month where you can use the points for business class travel etc. Otherwise it is just giving yourself an opportunity to get into trouble.

      • peppet on 28/04/2022 - 16:51

        I'm OPs age with a mortgage, no parents for advice. Could you tell me how having a mortgage helps with credit cards? I've only been using a debit card but OzB keeps saying credit cards are better

        • Quantumcat on 28/04/2022 - 17:43
          +1

          Because you can spend money but don't have to lose the cash until the end of the month when you pay it off. That money can stay in your mortgage and means you pay less interest. But you need to have an offset account (so you can take money out easily) and at least part variable interest (otherwise you get punished for paying more than your monthly mortgage amount, or can't).

          Generally you get your salary paid into your mortgage account, pay for everything with a credit card, and pay it off fully each month fun the mortgage account.

          • peppet on 28/04/2022 - 17:58
            +1

            @Quantumcat: Oh that was quite obvious, now I feel stupid.Thank you! I'm only a few months in so I spose haven't missed out on too much

    • Mokr on 27/04/2022 - 08:24

      Dude is 23 gonna be 15 plus years

      • Some Human on 27/04/2022 - 10:52
        +3

        Dude is an ozbargainer. He’s probably already making 150k in an internship and driving a Beamer

        • dust on 27/04/2022 - 15:16

          With a few million in heritance due to come their way?

    • Rupture on 29/04/2022 - 09:54

      Don't think this is necessarily something people need to do. Whilst credit cards DO impact borrowing capacity, banks will be more than happy to advise you whether you need to close a credit card or reduce credit limits in order for them to approve a loan if that's the difference between approval or not.

  • Danstar on 27/04/2022 - 06:05

    It's not what's the best credit card. It's what is the best credit card you can be approved for.

  • Rako on 27/04/2022 - 07:56
    +2

    You can apply for a Woolworths rewards card without needing a credit card, same goes for FlyBuys sometimes I think we end up spending more just to get the reward points!
    As for credit cards mostly I think people are better of using a debit card, the advantage of credit cards used to be you had an interest free loan for 55 days so your funds could earn interest in your bank account, now rates are so low now that advantage is basically obsolete. Hope this helps!

    • Danstar on 27/04/2022 - 08:44
      +2

      The advantage of credit cards beyond points and other card features is zero liability.

  • cashless on 27/04/2022 - 08:34
    +1

    If you want to collect FF points, this is probably the best place to start looking

  • EFC94 on 27/04/2022 - 09:28
    +1

    I remember when I was 21/22/23 and had a similar mindset to OP, now I'm 28 with about 5k debt (which should be paid off in a couple of months), drive a $5k bomb of a car, live at home and have no savings. There is a little more to the story, and I do own a fair bit of miscellaneous crap. But at the end of the day I think I'd be in a far far better position financially if I hadn't ever got into personal loans or credit cards.

    • Mokr on 27/04/2022 - 09:50

      Bennie babies?

  • Hvrd on 27/04/2022 - 09:44
    +1

    24 yo here, i got an amex essentials last year and its been great, getting cash back with points and their is constant discounts in the app has saved me some money. Just remember to set up direct debit.

  • ESEMCE on 27/04/2022 - 12:17
    +1

    The ones issued by the Reserve Bank of Australia are pretty hard to beat no matter the age.
    Available just about anywhere in a variety of convenient denominations, accepted everywhere and have no expiry date.

    • dust on 27/04/2022 - 15:17

      The what?

      • ESEMCE on 28/04/2022 - 08:31

        Cash mate… The original Gift Voucher.

        • dust on 28/04/2022 - 09:28

          Gift voucher? I thought we were talking about credit cards here.

  • Drakesy on 27/04/2022 - 12:20
    +1

    Credit score is not really that important at your age, its more a thing perpetuated in america.

    As for a credit card, take out an ANZ platinum depending on your income. But by no means use it as a credit card, as in only spend what you can pay back within the same month.
    That's the key.

    • dust on 27/04/2022 - 15:19

      Agree with everything in this comment. The concept of a credit score is not as important in getting loans in Australia as it is in America. You certainly don't need to have a theoretical credit score if you wanted a home loan in the future (they look more at your income and spending patterns).

      And yes only spend money that you can afford to pay back without interest!

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