5 credit card tips everyone should know

cc-tips

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 - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By 30 June 2021
    placeholder
    Bendigo Bank Low Rate Credit Card

    0% p.a. balance transfer for 24 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 24 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    Go to site
    Details
  • Apply By 31 May 2021
    placeholder
    Citi Simplicity

    There is no annual fee ever, you'll get up to 55 days interest free, free wine when you dine with the Citi Dining Program and the convenience of worldwide acceptance with Visa and Visa payWave. Plus for the first 6 months you'll enjoy 0% on balance transfers.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 6 months then 21.49% p.a.
    0% p.a. for 6 months and then 22.24% p.a.
    $0
    Go to site
    Details
  • placeholder
    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.
    $45
    Go to site
    Details
  • placeholder
    St.George Vertigo

    0% p.a. for 28 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends September 28th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    0% p.a. for 28 months and then 21.49% p.a.
    $55
    Go to site
    Details
  • Apply By 7 September 2021
    placeholder
    Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.74% p.a.
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59 $0 in the first year
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.