What Type Of Credit Card Is Best For Me?

If you are currently in the market for a new credit card you probably wonder what type of credit card is right for you.

You can’t be blamed for feeling like this because the Australian market is saturated with all types of credit cards and finding the right one can be touch if you don’t know where to look.

This article will guide you to a card that is right for you and your financial needs.

What type of credit cards are there?

The short answer is many. In a detailed overview let’s look at the various credit card types in Australia and what they can offer you as a consumer:

1. Balance transfer card: A balance transfer card allows you to transfer your existing credit card balance (your debt) to this new card. Many balance transfer cards offer a 0% interest rate p.a. as a special introductory period for six months.

The idea is for you to pay off your debt within that time frame before the interest reverts back to a higher rate, usually the standards variable rate or the cash advance rate which is higher yet.

2. 0% credit card: This type of credit card is in fact a balance transfer card as explained above.

3. No annual fee card: Credit cards with no annual fees are great if you pay off your balance every month and further want to save money. If the card offers you a 55 day free interest free rate on purchases then you can effectively use your card absolutely free.

4. Low interest rate credit card: These card types usually offer you a very competitive interest rate per annum. They could either be balance transfer cards or simply a card with a low rate for life.

5. Debit card: A debit card isn’t technically speaking a credit card because you can only spend the money you already have saved in your account. However, MasterCard and Visa offer debit cards to extend the card’s feature when you travel. Since a debit card can’t be used in some restaurants and shops because of the missing EFTPOS terminal you can use it like a credit card if that is the case, only the money will be taken from your account instantly.

6. Rewards credit card: This type of credit card is offering you free rewards points for using the card to shop. You can get free flights, entertainment options, vouchers, gifts, cashback and more with a reward program card.

By looking at each of these type of credit cards and analysing their features you will eventually find the card for you.

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