Over the past few years and increasing number of people have come to rely on their credit cards to make everyday and one off purchases, and many enjoy the convenience, ease, and security that these credit cards provide. If you use a credit card you should make sure that the card that you have suits your needs and that you are using it effectively, as you may otherwise find that borrowing on your card is far more expensive than it needs to be.

Although most of us enjoy the convenience of credit card use most of us do not want to be lumbered with costly credit card fees and charges, and there are ways in which you can minimise on these simply through being cautious and sensible. Many people find that they are charged a fortune on their credit cards because they make only the minimum repayment each month, and this is something that should always be avoided. In fact, you should try and repay your balance in full each month, as you can then enjoy the ease and convenience of a credit card without having to pay interest on your borrowing.

Using your credit card to withdraw cash or make cash transactions can also result in high charges and fees being applied, so don’t use your card for these transactions unless urgent. In order to determine what is class as a cash transaction you should speak to your card provider, but some of the transactions that come under this category may include using your card to pay bills, gamble online, or buy gift vouchers.

It may seem that using your credit card overseas is the ideal solution for ease and convenience, but you may also find that there are hefty charges associated with this so you need to be careful. Make sure that you are aware of what foreign transaction and currency conversion fees your provider charges for using the card abroad before you go, so that you can avoid nasty shocks.

Many credit card providers have increased their card interest rates over the past year even thought the base rate has fallen by close to 50% in this time. Taking this into consideration if your credit card rate is hiked up suddenly then it may be worth contacting the card company, as some will drop the rate back down if the consumer questions it.In cases where the lender is not willing to budge on the interest rate you can simply switch to another card provider, and get a lower rate of interest that way.

Choosing the right card for your needs is another way of saving money on your credit card borrowing costs, so make sure that you do your research and find a card that suits you. For example, using any interest free credit cards or balance transfer credit cards could help you to avoid paying interest on your credit card borrowing costs. The card that you choose can make all the difference, and with a range of credit card comparison sites in operation you can easily determine which is the card best suited to your needs.

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When there are so many credit cards on offer all claiming to be the best, comparing credit cards can seem like a scary task. Where to begin?

It will help a lot if you first figure out the reason for obtaining a card before you start to compare credit cards. The best credit card for you is the one that most closely fits your spending and lifestyle so think carefully about this. These serve as the criteria against which you evaluate the various credit card features.

In looking for the best credit card deals, these things should be considered:

Interest rate. Look particularly for the rate that will be used to calculate the finance charges every billing cycle. Pay close attention to the default interest rate — the rate imposed when payments are late and credit limits are exceeded. This rate is above the standard purchase APR or interest rate.

The Balance calculation method. If you intend to carry a balance, make sure you understand the card issuer’s manner of computing the balances on which interest will be charged. The methods that produce the lowest interest are the adjusted balance and average daily balance excluding new purchases.

Balance transfer opportunities. Offers of very low introductory rate for a specified period are intended to entice you to transfer balances from a competing credit card. This usually reverts to a higher interest rate after the period, so find out how high that rate will be. Using a credit card comparison website allows you to sort cards by interest rates.

Annual fee. Depending on the features or prestige of a card the annual fee can really vary. Be zealous in your credit card comparison to look for the least fee. To be competitive, there are many cards that do not charge any annual fee but the trade-off might be in higher interest rate, so check carefully.

Cashback. Some cards offer cashbacks, varying from 1% to 3%, on your purchases. This does give you a welcome discount but if your plan is to carry a balance, the 1% discount will mean nothing compared to the 14% interest on your outstanding balance.

Late payments and other fees. If you don’t have the minimum due amount paid in time you will be hit with high late payment fees. If you break a card rule then their are often other fees imposed. Credit card comparison is very important to look for the cards with the lowest penalty rates, over-limit fees, and other fees.

Rewards. The best credit card rewards programs require the least number of points to redeem the item you want. Aim for a card that gives bonus rewards at stores where you already shop the most.

Credit Limits. Check how much credit will be allotted to you. Credit card comparison is needed against the amount of purchases you expect to charge to the card on a regular basis. You don’t want to be exceeding the credit limit. To allow for a buffer and the fact that you have some time to pay your credit card bills you should aim for a credit limit at least twice your avaerage monthly usage.

Foreign transaction charges. Some cards sneak in fees with excessive currency conversion fees so check the foreign transaction fees if your a regular traveller.

Cash advance charges. Interest rates and transaction fees for cash advances are usually much higher than normal purchase transactions. You don’t want to make cash advances, but in case you will need to it is best to know in advance how much it is going to cost you.

This article by Richard from compareyourbank.com.au who compare products including Aussie credit card.

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Rewards credit cards offer a range of benefits to people in all walks of life by offering a variety of incentives to use their cards. The credit card issuers seem to have thought of everyone at brought out rewards cards to meet different lifestyle and spending needs.

The best kind of reward credit card for you will depend on how you use your card. There seems to be rewards cards for every need and niche so your bound to find one meeting your needs and lifestyle. So, if you plan to use your card to make a lot of purchases, then the cashback option might be the one for you. A card with travel perks such as airline points or travel discounts might be best for you if you travel frequently. Put simply, choose a reward card that reflects you lifestyle and your shopping habits when you compare credit card offers.

Unless there is something very specific you want from a reward credit card, a cashback card is probably the best choice. These give money back on the amount you purchase, often in the region of 1%. So if you spend $1,000 on your card, you get $10 back. So if you use your credit card a lot, this could be a good option.

When choosing a reward credit card it is a good idea to look at the card as a whole, and not just the reward aspect. Make sure the credit card will be good value for money and reward you after you account for interest rates, annual fees and charges. For example, 1% cashback is of little value if you are being hit with very high interest rate charges each month.

Like most products in the world of personal finance reward credit cards come with their own terms and conditions, so be sure to read the small print. Find out if there are limits to the amount or value of rewards you can accumulate each month; check to see if you have to claim rewards within a certain timeframe; and investigate whether there are certain situations or circumstances where you are not entitled to claim rewards. If possible you should choose a card with flexible rewards with points or credits that are not capped and don’t expire.

Also, be sure to use your common sense when spending with a reward credit card. It can be tempting to make unnecessary purchases to get those few extra air miles or a little more cashback, but the rewards should not dictate your spending decisions. Try to follow the golden rules that apply to any credit card - pay off your balance each month; don’t exceed your credit limit; and spend wisely.

Used properly and chosen wisely, reward credit cards can offer great benefits so be sure to shop around to find the right one for you.

Article by Richard from click4credit.com.au which compares reward cards including the ANZ Balance card. Visit the site for more useful information or to apply online.

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If you want to make a credit card comparison to find the best one to suit your needs it is important that you have a clear understanding of the key features and terms.

While credit cards can be a quick and easy source of cheap or free credit if handled correctly, they can also be a very expensive luxury if you do not keep your discipline. Here we set out the key features and warn you of some of the potential pitfalls before you make your credit card application.

Types of credit cards

When you begin to research the credit card market you’ll find that there is a huge choice of products tailored to suit certain people and certain circumstances. You will find cards for students, people with bad credit ratings and business credit cards, to name a few. While these may have some features that appeal, it’s best to take a closer look before making any credit card application.

Annual Percentage Rate (APR)

APR is the rate of interest you pay on any outstanding balance and is a major factor in how much your credit card will cost you. When comparing credit cards you need to look at this first. Typical APR could be anywhere from ten to twenty percent interest per year so choosing a low interest card is essential if you can’t afford to repay bills in full each month. Potentially the savings could add up to hundreds of dollars. Also, when comparing credit cards watch out for deceiving introductory APRs. These low rates will only last a few months, it is the normal rate that you will be paying after that which you have to compare.

Grace period

Almost all credit cards allow a grace period between when your monthly bill is issued and when you have to make a payment to your credit card account. This grace period is usually 28 days, which means it is possible to have almost two months between a purchase and having to pay back anything on it. If you pay your credit card balance off in full by the due date on each invoice you can avoid interest charges. The grace period helps you manage cashflow and avoid interest fees so insist on at least the usual 28 days.

Interest Rates and Charges

If you intend to carry a running debt on your credit card you will want to familiarize yourself with how interest is charged on your card. Different cards use different finance charges and some will cost you more than others. They include: Adjusted balance, average daily balance, daily balance, ending balance, double billing and previous balance. The cheapest calculation method is the adjusted balance method but most issuers use the average daily balance method.

Fees and charges

When making a credit card comparison, fees and charges can make the difference between a great deal and a terrible deal. With the right choice of credit card and a bit of know how, you need never pay a cent. Some cards will sting you in other ways such as high annual feeds or excessive late payment or exceeding credit limit fees. Read the small print and be aware of all fees and charges before you fill out your credit card application.

Rewards

Many credit cards offer rewards for using your credit card, such as cash-back, discounts and free air miles. Rewards and privileges should not be the only factors you use to select a credit card for your needs.

Editorial by Richard at creditcardapr.com.sg.com.au

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Credit cards can offer a great deal of convenience and easy access to credit. With a little know how and research you can find the best credit card for you, which will give you the access to the funds you need at little or no cost.

Even in today’s financial product market, there are hundreds of different types of credit cards available, each with their own interest rates, benefits and drawbacks. Card issuers own marketing can make it card to compare cards but researching the market via methods such as an online comparison site or seeking advice can help narrow down the right card for your needs. Considering that you can save hundreds or possibly thousands of dollars by choosing the best credit card, it is well worth the extra effort.

Where to begin? Before making a credit card comparison you will need to think about your requirements, your lifestyle and your spending patterns. Your income and your credit rating will also be a deciding factor in which one you choose.

A quick glance at the credit card market shows that there are already different types of credit card which are tailor-made for different situations. The types include low interest credit cards, no annual fee cards, rewards cards, premium Gold cards and more. However, it is best to understand and look at a credit card’s features in detail and match these to your own circumstances and preferences before making a final decision.

To pay or not to pay

One important factor is whether you plan to pay off your credit card balance in full each month. If you are confident that you will clear what you owe every month interest rates will not be a major issue. However, if you think you will owe money on your account regularly you should aim for the lowest interest rate you can find.

One thing to be aware of when choosing the best credit card for you are misleading introductory interest rates. Don’t get drawn in just by the intro rates, make sure you know what interest rates will revert to once the offer period ends.

Grace period

When used correctly credit cards can enhance cash-flow and offer access to interest free credit. However, it pays to understand how and when interest is charged. Most credit cards give a 28-day grace period at the end of each month before the balance must be paid. If you clear the balance within this timeframe you needn’t pay any interest at all, so the longer the grace period the better.

Credit limits and credit ratings

All credit cards have credit limits that can range from hundreds to tens of thousands of dollars. This is the upper limit of your credit card balance, so if you plan to use your credit card a lot and not pay the balance off each month you should push for a higher credit limit.

Whether or not you will be granted the credit limit you want will depend on your income and your credit rating. If you have a poor credit rating you may find it difficult to get approval on a card. However, there are some products aimed at people with poor credit ratings, though fees and interest rates can be very high.

Charges & Fees

Many card issues charge heavy fees in certain situations. These will be set out in the terms and conditions so it is important to understand how and when they are charged. The fees your most likely to get hit with are late payment fees for failure to make monthly payments on time, fees for exceeding your agreed credit limit, annual card fees and cash advance fees incurred when accessing cash via an ATM. Most of these can be easily avoided with a little care.

Rewards and features

Credit cards offer all kinds of different features. Among high income earners then Gold cards are popular as they not only offer higher credit limits but benefits to suit high income earners such as travel insurances and exlcusive privileges.

Reward cards offer benefits for regular use of your credit card or using your card at certain outlets. There’s a huge range of rewards cards on offer with rewards to suit different tastes and needs such as shopping vouchers, cashback or frequent flyer points.

These are the main factors to consider before filling out your credit card application. A good understanding of the features you need and a little research will help you find the best type of credit card for you.

These tips should help find which type of credit card for you such as a Gold credit card or something else. The best card comes down to your needs and how you will use it.

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Regardless of whether you are a member of a small business or large one, you should understand that having a credit card, as a business, has become a serious issue. As a small business owner, you may already know that the right business credit card can affect your companies continued functionality than if you were part of a large corporation. It is common for small businesses to use these types of credit cards to maintain their cash flow and pay operating expenses. With such variety of uses, knowing how to pick an appropriate business credit card can be useful.

If you are interested in keeping your business on solid footing, then you will want to find the best business credit cad you can. Better still, you may find that using the credit card statement is a great way to organize and record your business expenses. You will have a record off all expenditures and the identities of those parties or materials that were paid for. In addition, as mentioned before, the business credit card offers the credit access you may need to manage cash flow and other necessary expenses.

When you begin searching for the right business credit card, it can be a good idea to focus your efforts on those card issuers that advertise themselves as business credit card specialists. It is not uncommon to find some excellent special features that you can use to your advantage. These features could take the form of annual and quarterly account summaries or secondary cards that can be issued for use by employees.

As a business owner, employing one of these cards will allow you a way to divide your business expenses from you personal expenses, and keep them properly separate so you can make proper profit-to-loss reports.

You should understand that the amount available credit you may be eligible for might be determined by your business’ credit history. The reason that larger companies can get access to more credit via business credit cards is that they have more available cash. New businesses, especially small startups, will receive lower credit limits. Yet, they are also more apt to receive other incentives like cash back rewards or other features to help them save money.

Visit JSNet.org for credit card comparison of the latest deals including offers from business credit cards along with many great articles including ‘Rethink That Credit Card Purchase‘, visit today to read more of these great credit card articles!

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Do you still feel it worthwhile to pay for purchases with your rewards credit cards? It seems issuers of reward credit cards are taking great pains to offer rewards programs — but the rewards now come with many strings attached. For instance, rewards items seem to be priced higher and your ability to earn points is lower.

But although you may have to jump over more hurdles, there are still ways to profit from rewards credit cards. Below are a few ways to boost your return.

• Review your spending habits. To maximise the accumulation of rewards points, you need to calculate the amount you spend on your rewards credit cards each month. Your spending habits may not necessarily match with your rewards card. Recent consumer research has found that spending under $1,000 per month will provide little net reward.  To get the most out of rewards credit cards, you should charge at least $12,000 a year on your plastic. If the sums don’t add up for you then it may be that the best credit card deal for you is actually another card type.

• Choose rewards programs that suit your interests. When you compare credit card deals, you realise that there are four types of rewards credit cards: frequent flyer rewards, general rewards, cash-back rewards, and instant rewards. If you travel regularly, frequent flyer rewards credit cards may do the trick for you; but there would be no point having them if you don’t fly often. If you’re worried about maximising your budget, you might be better off having cash-back rewards credit cards or similar cards that reward you for purchasing goods you need to buy regularly.

• Get rid of less advantageous rewards cards. If you think you can earn more points by having several rewards credit cards, then think again. Chances are you are diffusing your capability to earn more rewards by spreading the spending over so many cards. Or, you may be charging more spending onto rewards credit cards whose advantages are inferior to others. If you do have many cards in your wallet, you may have to do credit card comparisons to decide which among them need to be dropped.  Cards with higher interest rates and expensive annual fees may have to go first.

• Understand the program rules. Make sure you read through the fine print for the rewards program to understand how it works, for example many schemes have expiry dates on the points earned so its a case of use them or lose them. While that used to be the rule, it is now common practice in the industry to set an expiry date on accumulated rewards points. Make sure to read the fine print when you do your credit card comparison.

• Avoid carrying a balance from month to month if possible. If your not paying you statement in full the high interest charges will quickly exceed any benefits gained from the rewards. This is particularly true if you want to earn points towards a frequent flyer program. If, however, you cannot pay off the entire balance each month but would still want rewards credit cards to be part of you, you may have to settle for rewards programs offering cash-back or instant rewards.

Rewards credit cards are now on offer from all issuers. When looking for a credit card it used to be as simple as deciding to get a rewards credit card or not but now it’s a bit more complex. It really comes down to the card that will fit your spending and lifestyle best in terms of the rewards on offer but also the costs involved from the interest, fees or any special conditions or restrictions. You can maximize your returns from rewards credit cards with a little planning and thought.

Article by Richard Greenwood Director of compareyourbank.com.au

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