The Best Credit Cards

You work hard and you expect your bank to put its best foot forward for your personal finances. Why would you settle for second best when you could optimise what’s in your wallet? In no time at all you can do a comparison of the best credit cards on the Australia market from each of the different features. See how the credit cards stack up against each other.

A Guide to Comparing Australia’s Best Credit Card Deals

Our comparison table presents a selection of the best credit cards currently available on the Australian market. When you are comparing and selecting a new credit card you obviously want to find the very best deal, but the ‘best’ credit card very much depends on your spending habits, financial situation and lifestyle. When you know what type of credit card user you are, you can look at the type that suits you, compare all the different features and find the best deal.

Most credit cards have some key features that you should consider including the interest rates, annual fees and other charges. Australian banks offer a wide variety of cards with extra features and benefits designed to suit all the different types of cardholder. Banks are highly competitive in their search for new credit card customers, so once you know what type of card you are looking for you should be able to find some very attractive deals. Before applying you should look at all the details of the card, terms and conditions, and check that you meet all the eligibility requirements, to ensure it really is the best credit card for you.

Seven Tips on Finding the Best Credit Card

The best credit card is the one that meets your financial needs, habits and lifestyle. Take the time to consider what type of card you are looking for before comparing the deals on offer. Here are some points to look for:

Emergency only: If you plan to reserve your card for occasional usage and emergencies, you should look for a basic credit card with no annual fee and a low interest rate.

Punctual payer: If you always make repayments in full each month and have no ongoing debt on your credit card the interest rate will not be such a crucial concern. You should look for a card with plenty of interest-free days so you can make sure you avoid paying interest, and one with a competitively low annual fee.

Frequent shopper or flyer: If you shop often or frequently fly for business or leisure, you should consider looking for a card with a rewards program. If you can find a program that suits your existing spending habits and lifestyle you could earn rewards for using your credit card. Cash back credit cards are another option, paying money back into your account when you spend on your card.

High earner and big spender: If you earn an above average income and use your credit card often, you may consider a gold or platinum credit card. These cards generally attract a higher annual fee, but do provide access to a variety of extra benefits including insurance covers, higher credit limits, concierge service, rewards schemes and other perks.

Existing cardholder with a credit card debt: If you already own a credit card with a debt that you would like to clear, you should consider a balance transfer credit card. A balance transfer allows you to move your debt to a new card from a different bank, and pay off the debt with low or no interest during the introductory period.

Business owner: Australian banks offer a range of credit cards with features specifically designed for businesses.

Low income, bad credit rating and students: Some credit cards are designed to help you avoid getting into too much debt, with low credit limits and other restrictions. You may also consider a debit card, which means you are only spending your own money rather than borrowing credit.

Best Credit Card Features

When you have decided the type of credit card you are looking for you can start comparing all the features to find the very best deal.

Purchase rate: This is the interest that is applied to your balance when you make purchases using your credit card. The interest is calculated as an Annual Percentage Rate (APR), and applied to any ongoing debt left on your credit card account after the monthly repayment date.

Annual fee: The annual fee is a charge that is applied to your credit card each year to pay for the maintenance of the account and extra features and services.

Cash advance rate: Cash withdrawals at ATMs and bank branches attract a different interest rate (APR) to purchases, often a higher rate.

Interest-free days: This is the period between making a purchase with your credit card and the repayment due date, after which your balance starts attracting interest. If you can always repay within the interest-free period you can avoid paying interest and save plenty of money.

Balance transfer: This feature allows you to move a debt from an existing card to as new card from a different bank. When you move the balance you can repay the debt at a special low interest rate for an introductory period, typically six months to a year. At the end of the promotion the interest rate reverts to a higher rate.

Rewards: Rewards schemes offer incentives for using your credit card, including frequent flyer programs, retail shopping rewards, cash back and other loyalty schemes.

Other features: Different credit cards have various features designed for specific types of cardholder. Make sure you know all the features on offer with deal, and the details of the terms and conditions, when comparing and selecting the best credit card for you.