Credit card news and advice

Planning to spread the cost of Christmas using Buy Now Pay Later (BNPL)? Well, just in time for the holiday spending season, credit card giant American Express has announced a new partnership with BNPL powerhouse Afterpay. According to Amex, customers can now use their credit cards to earn rewards points on Afterpay payments. All they need to do is set up their card as a payment option. The truth is, using your credit card for BNPL can be tricky business, so it’s important to know exactly how to manage your repayments and avoid further debt. 

When the RBA announces it will be reducing the official cash rate, many Aussies are left anxiously waiting for their home loan lender to make a move and follow suit. This is not surprising given that mortgages are usually the highest expense for any household.But what about the rates on our credit cards? New Mozo research has found that credit card providers have profited a whopping $6.4 billion by failing to pass on 4.40% in cash rate cuts over the past eight years. “The failure to provide rate relief to credit card customers after the RBA cuts the official cash rate has become a bad habit and a multi billion dollar business,” said Mozo Director, Kirsty Lamont. “At a time when credit card providers are faced with increasing competition from Buy Now, Pay Later services, something as simple as providing interest rate relief could be the difference between retaining customers or not.”Mozo’s data shows that the average credit card interest rate is also 164 times higher than the cash rate at 16.39%. However, while $20 billion dollars worth of balances are continuing to accrue interest across the country, Aussies have been making the effort to reduce their credit card debt, as balances have fallen by an impressive 46% since 2012.

December is fast approaching … wild, right?  Christmas will be here before we know it, so rather than be caught with a less-than-competitive credit card when shopping for gifts, now could be the time to snag a better deal. “Spreading the cost of Christmas is a must for many Aussies, especially given the year we’ve had,” Mozo Director, Kirsty Lamont says. “By opting for a credit card offering 0% interest on purchases, you can avoid paying interest on purchases for anywhere from 6 to 17 months depending on the card you select. This can give you a much needed breather and a chance to repay your festive season spending before being hit with expensive interest charges.”

With Christmas less than two months away, it won’t be long until the country starts buzzing with shopping. In fact, many Aussies might have already gotten a jump on their Christmas shopping, as new Citi research shows that the estimated credit card spend for October is 3% higher than September. The top three spend industries are supermarkets (10.3%), household goods retailing (8.85%) and business services (7.06%), Citi reports. Interestingly, hotels, spas and resorts have held a spot as the 11th highest spend category, which head of credit cards at Citi Australia, Choong Yu Lum says could show how many households are planning to spend at the end of the year.  “The credit card industry continues its path to recovery with ‘spend’ increasing month on month. Customer spend patterns reflect a trend towards leisure time and holiday seeking, with behaviour showing consumers are on board with the easing of isolation restrictions and are ready for a break,” he said.

Credit cards come in all shapes and sizes and if you’ve decided to pick one up for yourself, you might have already started comparing your options. If you like to keep your spending on the frugal side and have ruled out a rewards card, you could be tossing up between a low rate or no annual fee credit card.While both are budget-friendly choices, the type of spender you are can help determine which is the better pick for you. So if you’d like to find out the difference between a low rate and a no annual fee credit card, check out our explainer below.

If you’ve been looking for a sign to downgrade your high interest credit card, this is it. According to the latest Mozo research, if Aussies switched their high rate plastic to the market leading low rate card, we’d collectively have an annual saving of $2.1 billion or or an annual saving of $570* per cardholder! We found that the highest credit card interest rate in the Mozo database clocks in at a whopping 24.99%, 17.50% higher than the lowest credit card rate on the market. Mozo Director Kirsty Lamont believes now has never been a better time to make the switch, as many high rates come with rewards and perks that are out of the question until further notice. “At a time when travel linked rewards on high interest rate credit cards largely grounded due to the pandemic, getting value through this premium card category has become more challenging,” she said. 

From a warm bath to an hour long massage, we all deserve a little luxury every once in a while. But if you're keen to indulge in a bit of luxury with your shopping habits, you might be considering picking up a rewards credit card. Unlike a regular credit card, these flashy pieces of plastic are loaded with a range of features and rewards. So if you’d like to find out what extra perks you could get your hands on, check out our list below.

For many Aussies, Christmas has the tendency to sneak up. Before we know it, we’ll be dropping bundles of cash and draining our savings. But if you’re keen on getting a bit more financially savvy with your Christmas shopping this year, why not try picking up a 0% purchase rate credit card?As the name suggests, a 0% purchase rate credit card is a type of card that comes with no interest, but for a specific time length. After the 0% interest period is up, the card then reverts to a purchase rate that can range from anywhere between 11% - 14%. While the idea of interest-free spending might sound like a Christmas miracle, there are a few things to keep in mind before signing the dotted line.

Whether you love a low rate, minimal fees, rewards or need to clear your debt with a balance transfer, we’ve got you covered for this year’s best credit cards. 

No one likes credit card debt. But it’s not always easy to shake it … especially without the right financial tools to help you.