Christmas credit card checklist: What’s on your wishlist for Christmas spending?
It’s the most wonderful time of the year - at least as far as retailers are concerned!
With an uptick in spending sure to hit soon, it’s important to make sure you’re using the right credit card for the job.
There’s the presents, sure, but even if you manage to pass up on passing out gifts, you’ve still got travel and parties to think about, with food and alcohol amongst many considerations. This all starts now, with pre-Christmas sales luring you into additional spend.
When spending starts to climb, so do credit card applications. But not all credit cards are created equal, so what makes the best Christmas credit card? That comes down to which point is number one on your Christmas credit card wishlist.
All I want for Christmas is… a credit card with a low interest rate
For the person who: might not make that credit card payment in full this month. Things got out of hand!
Why it’s wishlist-worthy: A low rate credit card means that any balance remaining on your credit card at the end of the month isn’t going to start accruing massive amounts of interest. Compare the average purchase rate of a credit card in the Mozo database (17.61% p.a.) with the lowest purchase rate of a credit card in the Mozo database (7.49% p.a.) - if you are going to end up paying interest, you might be best served by a lower rate that won’t snowball out of control. There are also interest free credit cards with 0% p.a. introductory purchase rates, but keep in mind that these will revert to higher purchase rates after the introductory period.
Low ongoing rate and up to 55 days interest free
NAB Low Rate Credit Card
- Low ongoing purchase rate of 13.49% p.a
- Up to 55 days interest free
- 0% p.a. on balance transfers for 28 months (3% BT fee)
The NAB Low Rate Credit Card has the key card basics covered: a low ongoing interest rate of 13.49% p.a., up to 55 days interest free days and a low annual fee of $59. If you’re looking to consolidate debt there is an enticing 0% p.a. balance transfer offer for 28 months but a 3% balance transfer fee applies (T&Cs apply). Any balance at the end of the balance transfer period will revert to the high cash advance rate of 21.74% p.a.
As part of the Visa network, you’ll be able to use the NAB Low Rate card at millions of locations around the world. Plus, there are no foreign transaction fees. The minimum credit limit with this card is $1000.
All I want for Christmas is… a credit card with some seriously good rewards points
For the person who: is planning on spending big, and using those points to pay for a gorgeous getaway next year.
Why it’s wishlist-worthy: Sometimes the best reward is an actual reward. With a rewards credit card, that increased Christmas spend is going to come back to you in the form of points you can use for vouchers, flights or other perks. Rewards cards do tend to come with higher fees and purchase rates than other cards, but if you’re strategic in picking the right card and take advantage of extra point promotions, you could find yourself racking up big rewards over the festive season. Just be careful that you aren’t paying for rewards you aren’t using, and that you choose a card that lines up with your needs: don’t go for a card that earns Velocity points if you prefer to fly Qantas, or vice versa.
Bonus rewards points to collect this Christmas
Citi Rewards
- 100,000 Bonus Citi Rewards Points
- Rewards your way: travel, shopping or cash back
- Up to 44 days interest-free on retail purchases.
If boosting your rewards point balance is more your thing, the Citi Rewards Card has an alternate offer of 100,000 bonus Citi Reward points when you spend $5,000 on eligible purchases within 3 months from approval. You’ll also earn 1 Citi reward points for every dollar you spend domestically (capped at 10,000 per statement period) on eligible transactions and 1 point for every dollar internationally on eligible transactions which you can then spend in a number of different ways from travel to shopping.
The card comes with up to 3 months complimentary travel insurance when you pay at least $500 of your upfront travel costs on the card, are under 81 years and have a return ticket before departing Australia. The annual fee is $99 in the first year ($199 ongoing) and you can have up to 4 additional cardholders ($90 per card, annually). The minimum credit limit on this card is $2000.
Amex Qantas Ultimate
- Earn 50,000 bonus Qantas points by spending $3000 on eligible purchases in the first three months
- Get 2.25 Qantas points for every $1 spent on Eligible Qantas products and services
- $450 Annual Qantas credit
As the name suggests, this is the ultimate card for Qantas enthusiasts. First up, if you apply and are approved before 14 January, 2025, and spend $3000 on the card in the first three months you’ll earn 50,000 Qantas bonus points. Each year you’ll also receive a $450 credit to use on Qantas flights when you book through American Express Travel, two complimentary entries to The Centurion Lounge, plus two Qantas Club Lounge invitations (after purchasing select Qantas products and services).
You will get 2.25 Qantas Points for every $1 spent on eligible Qantas products and services and 1.25 Qantas Points on everyday purchases (excluding government bodies in Australia in which you only earn 0.5 point per dollar) After a total of 100,000 Qantas Points are earned in a calendar year after the everyday earn rate will change to 1 Qantas Point per $1 spent. You can have up to 4 additional cards at no extra fee to help you earn rewards faster. The annual fee on this card is $450, there’s a 44 day interest free period and the purchase rate is 23.99% p.a. $3000 min credit limit applies. T&Cs apply.
All I want for Christmas is… a credit card that helps to spread out the cost of the festive season
For the person who: can’t resist the lure of a 0% purchase rate. For the big budgeters who want more bang for their buck with extra perks thrown in!
Why it’s wishlist-worthy: Silly season can leave us feeling like the goofs, pulling at our empty pockets. A 0% purchase rate can leave. While certain cards will earn you cashback on all of your spend, others might provide you with cashback on your grocery shopping, or bonus rewards points to spend. If you stay savvy, you might be able to score yourself a treat.
Enjoy 0% p.a. on purchases and balance transfers
Kogan Money Black Credit Card
- 0% p.a. on purchases for 9 months
- 0% p.a. on balance transfers for 9 months (1% balance transfer fee)
- $0 annual fees to pay
Earn 2 rewards points per dollar on your eligible purchases at Kogan.com and enjoy 0% p.a on purchases for 9 months (reverts to variable retail purchase rate, currently 21.99% p.a). If you want to consolidate debt there’s also a 0% p.a. balance transfer for 9 months with a 1% balance transfer fee (reverts to cash advance rate of 22.74% p.a.).
There are no annual fees on this card and for every dollar you spend you will earn 2 rewards points on eligible purchases at Kogan.com and 1 rewards point per dollar on eligible everyday purchases too. You’ll be able to add up to 4 additional cardholders at no cost and stay safe with security and fraud protection with Fraudsheild and Visa Zero Liability (T&Cs apply). $6000 minimum credit limit.
Citi Rewards
- 0% on purchase for 15 month
- 0% on balance transfers for 15 months (2% balance transfer fee)
- Rewards your way: travel, shopping or cash back
Right now, with the Citi Rewards credit card you can enjoy 0% p.a. on all purchases for 15 months (reverts to the standard purchase rate of 21.49% p.a.). You’ll earn 1 Citi reward points for every dollar you spend domestically (capped at 10,000 per statement period) on eligible transactions and 1 point for every dollar internationally on eligible transactions which you can then spend in a number of different ways from travel to shopping.
The card comes with up to 3 months complimentary travel insurance when you pay at least $500 of your upfront travel costs on the card, are under 81 years and have a return ticket before departing Australia. The annual fee is $199 and you can have up to 4 additional cardholders ($90 per card, annually). There is also a 0% p.a. balance transfer offer of 15 months available (which will revert to the cash advance rate of 22.99% p.a.) with a 2% balance transfer fee. The minimum credit limit on this card is $2000.
With the right credit card for you, you’ll be in the best position to take on the silly season. Just try not to go too far over budget - no credit card in the world can help with that!
^See information about the Mozo Experts Choice Credit Card Awards
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