5 credit card tips everyone should know
For a lot of us, our credit cards play an important part in our everyday spending. But like any other form of credit there are a few things to keep an eye on, including fees and interest.
So whether you’ve decided to pick up your first credit card or are in need of a quick refresher, here are five tips to ensure managing your plastic is fuss-free.
Tip #1 - Automate your repayments
If there’s one thing you don’t want to do with a credit card it’s forget the bill’s due date. Not only will you be slapped with an annoying late payment fee, but if you frequently miss repayments your credit score could also take a hit.
One simple way to always make your repayments on time and pay off your balance is to set up a direct debit. The good news is you can do this with all of your other bills as well, taking the stress out of remembering multiple due dates.
Tip #2 - Be smart about your purchases
Our next tip is for card holder’s who are serious about avoiding interest. As you might already know, credit cards typically come with either 44 or 55 interest-free days. This means that any purchases made within these days won’t incur any interest, so long as you pay your balance off in full by the due date.
So if you’ve got a large purchase coming up, it’s a good idea to try to make it at the start of your statement period rather than toward the end. By doing this, you’ll have sufficient time to pay the balance off without incurring any interest charges.
Tip #3 - Pay more than the minimum amount
Speaking of paying your balance off, try to pay more than the minimum amount each month to avoid mounting interest. This is especially important if you own or are thinking about picking up a rewards credit card, as the rates on these cards tend to be on the higher side.
Tip #4 - Don’t max out your credit card
Although this might seem like an obvious tip, it’s still worth remembering that just because you have access to a whole heap of credit it doesn’t mean you should use all of it. According to credit reporting company, Experian, you should only be using up to 30% of your card’s credit limit.
Keep in mind that while there’s no way to say if that is the perfect percentage, it’s not a bad idea to keep your spending to a minimum.
Tip # 5 - So no to ATM withdrawals
Aside from missing your bill’s due date, another big credit card no-no is using it to withdraw cash. This is because cash advance rates on credit cards are significantly higher than purchase rates and can soar as high as 29%. Plus once you make a withdrawal, you automatically lose your interest-free days and will start to be charged interest immediately.
Want to get a birds eye view of some of the current credit card deals in the market? Head on over to our credit card comparison tool or get started with the low rate offers below.
Compare low rate credit cards - last updated February 27, 2021
- Apply By May 31, 2021
Bendigo Bank Low Rate Credit Card
0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.
Purchase rate
Balance transfer rate
Annual fee
11.99% p.a.0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)$45CompareCompareLow Rate Credit Card
0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.
- Purchase rate
- 11.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)
- Cash advance
- 13.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $45
- Late payment fee
- $15.00
- Cash advance fee
- 0.50%, Min $3.25
Read our Mozo Review to learn more about the Low Rate Credit Card
Defence Bank Foundation Credit Card
Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.
Purchase rate
Balance transfer rate
Annual fee
3.99% p.a. for 6 months then 8.99% p.a.3.99% p.a. for 6 months and then 8.99% p.a.$45CompareCompareFoundation Credit Card
Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.
- Purchase rate
- 3.99% p.a. for 6 months then 8.99% p.a.
- Intro purchase rate
- 3.99% p.a. for 6 months
- Balance transfer rate
- 3.99% p.a. for 6 months and then 8.99% p.a.
- Cash advance
- 8.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $45
- Late payment fee
- $20.00
- Cash advance fee
- 4.1
Read our Mozo Review to learn more about the Foundation Credit Card
St.George Vertigo
0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
Purchase rate
Balance transfer rate
Annual fee
13.99% p.a.0% p.a. for 24 months and then 21.49% p.a.$55 $0 in the first yearCompareCompareVertigo
0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 24 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 2%, Min $2.50
Read our Mozo Review to learn more about the Vertigo
ME frank Credit Card
Meet Frank, a low rate credit card with up to 55 interest free days and no annual fee. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven.
Purchase rate
Balance transfer rate
Annual fee
11.99% p.a.No current offer$0CompareComparefrank Credit Card
Meet Frank, a low rate credit card with up to 55 interest free days and no annual fee. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven.
- Purchase rate
- 11.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- 11.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 2.30%
- Annual card fee
- $0
- Late payment fee
- $10.00
- Cash advance fee
- 2%, Min $4.00
Read our Mozo Review to learn more about the frank Credit Card
NAB StraightUp Card
$10/month - $1,000 Credit Limit
Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.
Purchase rate
Balance transfer rate
Annual fee
0% p.a.No current offer$120 $10/month - waived if no spend & no balance owingCompareCompareStraightUp Card
Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.
- Purchase rate
- 0% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 0
- Intro fee
- -
- Foreign exchange margin
- 0%
- Annual card fee
- $120 $10/month - waived if no spend & no balance owing
- Late payment fee
- $0.00
- Cash advance fee
- n/a
Read our Mozo Review to learn more about the StraightUp Card
^See information about the Mozo Experts Choice Credit Cards Awards
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