Which Credit Cards should I choose
and apply for in Australia
Credit
cards have become a way of life for people all
over the world. In fact, studies have shown that there
are nearly 1.2 billion credit and debit cards are
in use in North America alone, and the number of credit
card users is on the rise every year. If you are planning
to apply for a credit card, here are few tips to help
you make an informed decision:
Annual Fee
Before you start using a credit card, check to see
the annual fee associated with the credit card. The
annual fee is the amount you are expected to pay to
keep a credit card active. Even if you do not use
the card for a single transaction, you will end up
paying the annual fees (if there is an annual fee).
Almost all credit card companies offer credit cards
without levying any annual fee, you should make sure
the zero annual fees is for life (and not a promotional
offer for a limited period of time).
APR (Annual Percentage Rate)
or Interest rates
APR is the interest rate applicable to payments that
are spread across a period of time. For example, if
you buy a product for $1200 using your credit card,
and choose to pay off the amount over a period of
twelve months, you will end up more than just $100
a month. The credit card company will charge you interest
for making the payments as EMIs (Equated Monthly Instalments).
The interest rate is calculated and projected annually
(even if you plan to pay of the loan in 6 months).
Before accepting a credit card, make sure you read
the paperwork involved and understand the APR. Look
for a credit card that is charging low interest rates,
the average credit card interest rate is around 18%.
Look for a credit card that
suits your requirements
Credit card companies have credit cards designed to
offer users specific benefits. For example, students
can apply for a student credit card that has a low
credit limit and offers discounts at book stores.
Like student credit cards, travelling business executives
can apply for a credit card that offers frequent flier
miles on every airplane ticket purchased. Look for
a credit card that suits your requirements and is
offering discounts and reward point programs that
meet your needs.
Read the paperwork
Most people feel cheated when they find out about
hidden charges and fine prints. The truth is that
credit cards are one of the most transparent ways
of getting credit, and every single aspect of using
the credit card is spelled out in black and white
in the documentation. Before agreeing to use any credit
card, make sure you read the terms and conditions
completely. If you are not happy with the terms of
use or do not understand certain aspects of using
the credit card, do not hesitate to contact the customer
services department for a clarification. Remember,
there is no such thing as fine print when it comes
to credit cards.
To apply for a credit card online visit
www.credit-card-offers.com.au
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