Aussies urged to compare credit cards and avoid fees

The annual fee paid on a credit card should be a key consideration when Australians come to weigh up the alternatives, it has been argued.

An article on notes that while it isn’t impossible to survive without a credit card, having one undoubtedly makes it easier to shop online. It also referred to the various benefits cards offer such as frequent flyer points.

"The key trick is to pay off the balance each month, and statistics suggest that Australians do that pretty efficiently," added Lifehacker.

However, the article noted that even users who routinely pay off what they owe are likely to "get slugged" with an annual fee for the credit card.

It said that while there are no-fee cards on the market, they often have some other form of trade-off such as a lack of no-interest periods, meaning that Aussies should carefully compare credit cards in search of the best options.

Earlier this week, MyBudget director Tammy May told News Limited that the majority of Australians do not know the exact costs and rates they are paying on their credit cards.

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