| These days, life without a credit card
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| | - that figure in black and white on your
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| would be hard to imagine. We have become
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| | statement (not just the minimum payment
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| so used to the convenience of "plastic",
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| | required) by the due date. If you don't,
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| we don't leave home without it. (Sound
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| | be warned. You will be charged interest
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| familiar?) While you can't dispute the
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| | right back to the date of purchase on
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| ease and convenience of not having to pay
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| | each item. In effect, you forfeit the
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| in cash at the supermarket, petrol pump
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| | interest-free period on those purchases.
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| or pub, here are some handy credit card
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| | 5. Search beyond the local banks
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| reminders.
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| | These days, there's a lot more choice out
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| 1) Say no to cash advances
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| | there - not just the usual local banks.
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| Some people just don't get it, but the
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| | Look at credit unions, building
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| bank does. The Interest-free periods
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| | societies, community banks, boutique and
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| offered on credit card accounts never
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| | online banks. Chances are you may get
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| apply to cash advances. In the majority
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| | offered better interest rates or lower
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| of cases, you will pay interest on the
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| | fees than the big banks because these new
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| cash right from the second you withdraw
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| | providers are anxious to win business or
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| it from the ATM or over the counter. The
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| | they are non-profit organisations. We put
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| dollar penalty can really add up, so it's
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| | this theory to the test. We tried HSBC
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| best not to do it. Ever.
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| | credit cards and came up with 5 different
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| 2) Watch out for Store Cards. Loyalty can
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| | types of credit card.
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| cost you
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| | 6. Do you qualify for a "relationship
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| How often have you been at the cash
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| | discount"?
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| register and asked if you would like to
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| | If you consolidate your banking business
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| apply for a store card? Probably plenty
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| | and finances with one lender or bank, you
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| of times. Department stores such as
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| | can qualify for a special treatment.
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| David Jones and Myer may offer you the
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| | Loyalty does have its rewards. You can
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| benefits of customer discounts, added
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| | enjoy home and personal loan interest
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| warranties and extended credit, but they
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| | rate discounts, term deposit bonuses,
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| aren't cheap. Although you don't pay an
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| | savings account fee waivers and of
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| annual fee, the interest rate can be
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| | course, credit card annual fee waivers.
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| considerably higher (sometimes several
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| | 7. Do you qualify for annual fee waivers?
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| percent) than alternative credit cards.
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| | If you spend enough on your credit card
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| It's fine to use them for store specials
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| | on an annual basis, some institutions
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| and loyalty benefits, but pay the balance
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| | offer to waive the annual fee. For
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| in full by the due date. In this way you
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| | instance: If your card spend is more than
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| avoid being whacked with huge interest
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| | $5000-$10,000 a year, you could choose a
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| charges.
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| | card with all the benefits you want and
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| 3. Choose a card that matches your
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| | avoid the annual fee. However, make sure
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| lifestyle.
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| | you use your card to make purchases you
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| Think about your spending habits and
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| | were going to make anyway. Spending up
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| patterns. For example: if you use a card
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| | big for the sake of reducing fees or
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| for extended credit and don't pay off the
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| | earning rewards points is false economy.
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| full balance each month, just a basic
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| | 8. Sweet deals? Don't be distracted by
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| payment, choose a card with a lower rate.
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| | them.
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| It may not offer any interest-free
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| | Introductory discount rates, fabulous
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| period, but the lower interest rate
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| | reward programmes and special insurance
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| should save you more dollars over time.
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| | offers. Some lenders offer enticements
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| If you use your card for everyday
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| | on credit cards that can make a big
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| groceries or filling up the car, go for
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| | impression on first glance. Be practical.
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| credit card with maximum interest-free
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| | Look at the overall, ongoing cost of
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| days. Make sure you pay it off in full
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| | credit of any card option. Compare the
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| each month. This way you get the benefit
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| | standard interest rate, interest-free
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| of up to 55 interest-free days on
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| | period and annual fees - and weigh these
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| purchases, as well as rewards, discounts
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| | up against the real value (if any) of the
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| and frequent flyer points. But watch the
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| | added extras.
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| annual fees on rewards cards.
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| | Credit cards are great. But remember that
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| 4. Interest-free periods are void unless
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| | you are the one in control and
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| you pay in full
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| | responsible for your debt. If you can't
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| Don't let your credit card get out of
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| | resist a bargain or a shopping centre
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| control. To avoid paying interest on your
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| | blitz, leave the card at home. Pay cash.
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| purchases, you must pay the full balance
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