Credit card considerations
Tips to help you save some money and earn extra bonuses along the way.
Interest rates
When considering a credit card, first check out the interest rates. Interest rates vary from 12% right up to 20% with different rates offering different rewards. Higher interest rate cards do offer more benefits, but try to get a low interest rate with benefits you’ll really use.Interest-freedom
To help save money, try to pay your credit card off in full each month. If you pay off your full balance and have an interest-free period card, you can avoid paying interest altogether. Interest-free period cards do offer higher interest and fees but if you’re paying it off, you won’t need to worry. Another perk – you’ll be doubly rewarded with extra rewards that come from these high interest cards.If you’ll have a remaining balance at the end of the month it could be worth finding a card without this interest-free period. While you’ll miss out on those extra benefits, you’ll save with lower interest rates and cheaper card fees, so you can get back in the black.
Balance transfers
If your credit card has a current balance it can pay to switch to a bank offering lower interest rates, or none at all. Often banks will offer up to 6-month interest-free periods which are super worthwhile if you’re trying to pay your card off. Simply changing to a lower interest rate can save you lots of money. Just be careful though, if you don’t clear your balance at the end of the low interest period, you could be stung paying the full interest.Card fees
When you’re focussing on interest rates it can be easy to overlook those extra credit card fees. Lower interest rate credit cards often come with lower fees as there are less extras thrown in. Look out for these fees and you could save a few dollars:
- Annual account keeping
- Late payment fees
- Fees for exceeding your credit limit
- Reward program fees
- International transaction fees
Features and benefits
This is where you can really get the most bang for your buck! Different credit cards offer different rewards so it’s definitely worth doing a little research here. While some features and benefits come with a higher interest rate, there are fantastic cards which offer rewards you can really use.
These include:
- Reward programs (points can be spent on flights or vouchers)
- Travel insurance
- Concierge services
While it’s easy to get overwhelmed by interest rates and the number of credit cards available, you can really save a lot of money if you find the right card for you and your lifestyle.
The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs
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The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the Product Disclosure Statement (PDS) and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.