Guide to credit cards

There are several ways to apply for a credit card, Mozo helps you to weigh up the pros and cons of each. Apply for a credit card made easy!

Whether you’re new to the game, or you’ve been swiping your credit card for years, I think we can all agree that the whole ‘interest-free period’ thing can be totally discombobulating! Which is why we’ve put together this guide for you! So you can walk away knowing what credit card interest-free days are and how they work.

Last year rewards lovers around the country felt their hearts sink as American Express announced it would be decreasing earn rates across many of its rewards cards on April 15 2019.

When stepping up to pay at the checkout Australians have traditionally reached for one of two things - card or cash. According to RBA statistics from 2016, 52% of all payments in Australia were made with a debit or credit card and 37% were made using cash.

The world of banking and financial technology has come a long way in recent years, with card payments fast replacing cash as Australia’s prefered payment method, and emerging payment technologies such as mobile wallets and paywear becoming increasingly popular alternatives.

With credit cards quickly overtaking cash, having a reliable piece of plastic in your pocket is more important than ever. But, with hundreds of credit cards on the market in Australia, picking the right fit for your money is no easy task.

A few years ago, you may have never come across the term “interchange fees”. Instead it was reserved for those in the banking world to discuss the profit margins of banks. 

If predictions by the experts ring true, the days of paying with cash and coins could soon be a thing of the past. In fact, that could be as soon as 2022, according to a 2019 CommBank report. 

Age might just be a number, but your credit score isn’t. It tells the world a lot about you and can help people make decisions about who you are and how you handle your finances – particularly your bank, which will need to work out if you’re the right kind of person to approve for a credit card, or lend money to buy a home.

Looking for a rewards credit card from one of the big four banks? But don't know whether to choose Westpac, NAB, CommBank or ANZ? 

Thinking about getting a credit card? Or maybe you already have one, and you just want to brush up on the best ways to keep clear of debt?

Having trouble deciding which kind of plastic will be the best fit for your wallet? Well, there’s a really easy way to do it - you can use our handy decision tree to lead you to the right choice:

Do you use your credit card for everyday spending - like grabbing lunch, shopping for groceries or loading up your Opal card? The right piece of plastic can be a useful addition to your wallet when you’re out and about, running errands and paying for all life’s little expenses.

If you like to shop till you drop, a credit card may just be your new best friend. But make sure you choose wisely so this piece of plastic doesn’t become your worst nightmare instead!

So you’ve started uni, struck out on your own and embraced adulthood. Great! But how are you going to pay for all that newfound freedom? When you’ve got costs like rent, textbooks, travel to and from uni and study supplies to cover, your budget can stretch pretty thin pretty fast.

Want a simple, convenient piece of plastic that won’t cost an arm and a leg? Not really interested in complicated rewards schemes and counting points? Occasionally miss a monthly payment (or two)?

Spending on a credit card is convenient and can be cost-effective if you choose the right one - but why not get some freebies out of your spending as well? If you’re a fiend for bonuses, perks and anything you can get for nothing, then a rewards credit card might just be the piece of plastic for you.

A credit card is a super convenient way to spend - and opt for a rewards credit card and you’ll also get the opportunity to earn freebies and perks while you shop. But all that doesn’t come without a price tag attached.

Sick and tired of your boring old rewards credit card? Want a piece of plastic that can keep up with your life in the fast lane? Look no further than a black rewards card.

Ready to get rid of that nasty credit card debt hanging over your head? Sick and tired of worrying about repayments, late fees and the steadily growing balance on your statement each month?

What do we want? Rewards points! When do we want them? Now!

Hang on a second - a low interest rate and rewards power? That sounds too good to be true, right?

If you’ve racked up a considerable amount of debt on your credit card, there’s a moment you’re probably dreading - the opening of your next credit card statement. When you tear it open, three main options will probably come to mind:

Premium credit cards are the crème of the crop in the world of credit cards. These high end cards fit well in the wallets of those who live a lavish lifestyle, enjoy fine dining, fly business class, snap up front row VIP seats to concerts and in general just love to spend up big! The rewards of premium credit cards easily outweigh the costs associated with the cards. If you’re already a premium credit cardholder or are considering being a proud owner of one of these prestigious cards now it’s time to sit back, relax, sip on a glass of veuve and soak up all the benefits of these fancy pieces of plastic!

Your credit card has many benefits and features you may not even be aware of; some help you out when travelling, others will save you money while and you can even get a credit card that makes you feel like a celeb! So take a look at Mozo’s comprehensive list of plastic perks so you make the most of your credit card features.

According to the Moneysmart debt clock, the average Australian card holder is paying over $700 interest on their credit card annually so there is good reason, if you don’t already have a credit card to avoid one.

Isn’t it nice to know that banks care enough to offer a credit card that’s suitable to a pensioner’s income? It may be more of a no-frills option, but at least it‘s a card that can give you the financial freedom you need to get on with enjoying your life the way you want. 

You may be in Australia for an extended holiday or you’ve moved here to work, either reason you’re likely going to want to apply for a credit card. Let’s face it, the plastic is very convenient to have in your wallet!

Credit providers are very inventive with their fees, so you'll need to be crafty to avoid them. Here are Mozo's top 4 student credit card tips:

Is the annual fee of a rewards credit card worth it? The answer to this question will vary from one person to another as it depends on several factors which we will go through in this guide. So before you sign your life away to a flash rewards credit card take the time to learn if it’s the best piece of plastic for you.

Do you spend half your time on planes and running around airport terminals? Have you got packing an overnight bag down to a fine art and know how to say “how much is it?” in at least a dozen languages? Well then, you’re probably a frequent flyer.

The name says it all…get cash back, when you spend money on your credit card. Sounds like a pretty good deal or is it too good to be true?! We’ll let you decide as we investigate the ins and outs of cash back credit cards. Like all reward credit cards make sure you take the time and compare what’s on the market and find the card that best suits you, your lifestyle and spending habits.

Once upon a time gold credit cards were the ultimate financial status symbol representing wealth and supremacy. These days gold cards have fallen to the bottom of the premium credit card chain, overtaken by black and diamond cards. However don’t be shy if you are a gold credit cardholder or are thinking about getting one, they still come with some 24-carat rewards!

The best advice Mozo was given when it comes to credit card balance, is to never spend beyond your means. There’s more of where that came from, so come in a little closer to hear all the tips we collected over the years.

Gone are the days when banks had one or two different types of credit cards you could choose from! Now there are plenty of types of credit cards on offer in a very competitive market, all come in different shapes and sizes and with unique benefits. Work out what type of credit card user you are and then you can pick one that suits you and your needs.

If you’re one of the thousands of credit cardholders who are stuck with a dud deal or the card is costing you too much and you’re just not satisfied well it’s time to make a stress free switch to a more worthy and valuable piece of plastic. The good news, changing credit cards isn’t a complicated process and with over 200 cards in Australia, there’s bound to be one to suit you.

If you’re about to embark on an overseas trip, then it’ll be a good idea to brush up on a few money tips before you go. From travel insurance to travel money, Mozo’s got you covered. But when it comes travelling overseas with a credit card, you’ll read everything you need right here.

What’s a new credit card without awesome offers to entice you? Just a simple no frills credit card. Kinda boring and fruitless. But if you want something with a little more grunt, then opt for a credit card that offers a whole lot more. There’s so many credit cards with introductory offers to choose from, just take your pick!

Credit cards may not have the best reputation, as the media is often quick to portray the negative connotations associated with them. If you lack self-discipline, a credit card can run you into trouble with debt levels beyond your comfort. On the other hand, credit cards are a very useful financial tool and when used properly, there are many benefits to having the card available in your wallet.

You may look at your monthly statement and think that it’s in ‘google gog’ but don’t stress as we’ll demystify all things relating to credit card payments to have you understanding your bill in no time. We’ll even have you saving money by the end of this guide!

First it was the smart phone, now it's the smart credit card! Visa payWave and MasterCard PayPass are increasing in popularity, as merchants and customers desire faster transactions.

Credit cards definitely have their perks and place in our wallets. However, they do come hand in hand with that nasty, annoying and often expensive thing called fees! Credit card fees can quickly add up and cost you big bucks but the good news is, you can avoid them. It’s a good idea to familiarise yourself with the following credit card fees then read through our all-important tips to avoid them.

If you’ve racked up a bit of debt on your current plastic, don’t worry it happens to the best of us. According to Mozo estimates, the average Australian credit card holder with debt has a balance of about $4,200.*

It’s no secret that credit cards have a notorious reputation for being the fastest way to plunge into debt. No doubt you’ve heard plenty of credit card horror stories. You might even have a friend who’s on a debt payment plan to get back on track. But don’t let these things put you off, because if you play by the rules, credit cards can really help you out when you get stuck. Some cards also have perks like free insurances and rewards.

When it comes to premium credit cards, platinum cards have trumped gold cards on the market in terms of supreme status. And while platinum is an extremely rare metal the plastic credit card version is more commonly available! Most Australian banks and credit card providers offer platinum rewards credit cards. These cards work just like a standard credit card however they have a lot more features and benefits as well as better rates for earning reward points. 

Whoa. Who knew there was so much grunt behind one little card? The mother of all credit cards, this black piece of plastic is certainly a force to reckon with. If you’re lucky enough to possess one, then you probably already know the benefits. For those that are yet to become more acquainted, we’re about to give you the low down.

Reducing credit card debt is no easy task. We’ve all been there and know the struggles in combating the ever-growing money monster. But with a little discipline and dedicated planning, you can ninja your way out of your credit card debt in no time.

Sounds like we’re talking about the same thing, doesn’t it? Well actually, there’s a difference - a credit history is sometimes referred to as a ‘credit report’. And a credit rating is sometimes referred to as ‘credit score’. Both credit history and rating go into what’s called your credit file. What on earth does all that mean?

Yep. It can happen to the most careful of us all. Credit card fraud is not new, and will never really end. As users who enjoy it’s many conveniences, we’ve just got to become more savvy about how we use them. And when we say savvy, we also mean clever and responsible.

Paying for your fruit and veg at the shops or a late night cab ride has never been easier than with Visa payWave and MasterCard PayPass “tap and go”. While it may be a convenient way to make purchases under $100, did you know you might be slapped an extra premium to simply use the service?

From swipe to tap…scribble to PIN, the way Aussie consumers pay for their goods is a-changin’. Most new credit and debit cards in Australia now come with the contactless (or tap) payment option and the decades-old credit card signature will soon be a thing of the past.

Most Aussies still see Australia Post as the handler of snail mail and parcels from nanna. But with its new Load & Go Visa Prepaid Card, our national postie embraces 21st century technology by launching its first Visa card. Funny thing is, Australia Post’s latest offering isn’t actually a credit card, or a debit card even. What’s more, the Load & Go charges no interest and there are no sign up restrictions. Has Australia Post unlocked the holy grail of Visa cards?

On Mozo Answers we’ve had a lot of questions about Visa payWave and MasterCard PayPass credit cards. As more and more providers are making “tap and go” a mandatory feature of credit cards, it’s important to know what it’s all about.

Does your lifestyle involve hitting the shops big time or boarding airplanes on a regular basis? You could be the perfect candidate for a premium rewards card. This page features all you need to know about premium plastic - from VIP services like airline lounge access and 24/7 concierge to complimentary insurance for purchases made on your card. Let’s get started!

Addicted to freebies? Chances are, you’ll love what bonus point rewards cards can offer you too.

Are you a frequent flyer who would jump at the chance to access swish airport lounges, flight upgrades, free airline tickets and more? Perhaps it’s time you carried a proper rewards card in your wallet and started collecting points on your everyday spending. Before you sign up or switch to a more rewarding program, take a moment to read all about them here, so your frequent flyer points really take off. Let’s get started!

Rewards card? Check. Stack of points built up from all your shopping trips? Check. A plan for how you’re going to redeem them and get the most bang for your rewards buck? Well, that’s where this guide comes in.

Have you considered signing up with a rewards credit card that will give you cold hard cash? Welcome to the world of cashback offers where becoming a new customer is often enough to earn you extra bucks! It’s worth flirting with the idea if your preferred credit card reward is financial in nature.

If you’re tossing up between a rewards card and a regular piece of plastic, then you might be wondering just what the benefits of having points earning power in your corner are.

You’re probably the kind of person who uses a credit card a lot and has managing your balance down to a fine art. The next question is, which rewards card will suit you best? To find a piece of plastic that matches up to your freebie dreams, head over to our rewards revealer tool.

Whether you’re planning a mega shopping trip along Rodeo Drive or a great exploration of Europe, there is one thing you’ll need to pack - a competitive travel credit card. But finding the right one is hard to do if you don’t know what you’re looking for. That’s where this guide comes in, giving you the lowdown so you can be your own expert. Let’s go!

Congrats on your decision to join the rewards credit card club (or at least, resolving to switch providers)! During your search for an ideal piece of plastic online, you’ve probably stumbled across the term “gold” credit cards.

Some rewards credit card customers pay hundreds of dollars every year just for the privilege of being a cardholder. While other borrowers opt for the more basic rewards card with a lower annual fee attached.

The battle of the supermarket rewards program is never ending, constantly splashed before us with endless marketing and advertising campaigns. Should I shop at Coles for flybuys points or is Woolworths a better option to earn Woolworth rewards? This is a fair enough question to ask yourself! As there are many questions and unknowns when it comes to supermarket rewards we’ve decided to decipher these loyalty programs in a one stop shop guide.    

Most major service stations are partnered with a rewards credit card and or programs. Just as you can earn reward points for everyday expenses such a paying bills and grocery shopping you won’t miss out when you need to buy fuel. Earning reward points is pretty easy!  All you have to do is swipe your rewards credit card and or rewards program membership card when you pay for the fuel for a chance to earn points. They key is to buy petrol at a service station that is partnered with the rewards program you are a member of. Here’s a list of the partnerships between reward programs and service stations. You want to make sure you pull into a fuel station that will earn you petrol rewards!

You don’t have to be a mathematician when it comes to calculating rewards points. While it can be confusing as no reward program is the same, there is a fairly simple equation you can follow that will calculate the rewards points currency. This guide will hopefully help you make sense, the process of calculating rewards points so you can earn your free ticket to Bali in no time.

Choosing a credit card is a challenge in itself then deciding on the best rewards program to attach to your card can be just as testing. You may just throw your hands in the air and declare it all too difficult! But don’t, stop there and take a breath, as Mozo has come to the rescue. This guide will help you through the process of choosing a rewards program that is the best fit for you and one that will having you reaping in the benefits.

It would be a little un-Australian if you weren’t familiar with the lyrics ‘I still call Australia home…’! It’s the tune to the Qantas campaign that started running in the late 1990’s, linking it to Australia’s most recognised and longest running airlines. The iconic Aussie airline has a Qantas Frequent Flyer loyalty program and the best news is, you don’t have to be a frequent flyer to enjoy the benefits of being a member. 

On the hunt for a credit card that’s going to reward you for spending? If so, you’re in the right spot! This guide will take you through all the different types of rewards credit cards you can choose from. With so many reward card options out there, find one that you will benefit from most, with perks to suit your lifestyle and needs.  

Velocity Frequent Flyer is the official rewards program for Virgin Australia. There are plenty of easy and quick ways to earn Velocity points, just by using your Velocity Frequent Flyer credit card when you make purchases. The loyalty program then has a huge range of rewards you can redeem your points on as well as offering unique benefits including family pooling and points for pets! 

As a credit card holder, you may think all the benefits lie with the money hungry banks and financial institutions. Wrong! As the owner of a rewards credit card you get to lap up some cool perks of your own. Each time you spend money on your credit card, you earn points from your bank, then YOU get to dictate how you want to be rewarded for your spending. Not a bad deal! However the reward program you choose will dictate how many points you accrue for your spending. But before you start planning on using those points for a trip to Bali or a new high definition flat screen TV, make sure your read this guide on the ins and outs of a reward program. 

Who doesn’t love something for nothing?! Well, welcome to the world of reward credit cards, your ticket to receiving freebies for spending money. There are so many types of reward programs from frequent flyer, cashback, travel and shopping rewards just to name a few. So each time you spend money on your rewards credit card you earn points. These points can be redeemed for a huge range of products from flights to toasters to a new pair of jeans. The rewards are endless! Now, is the taxman going to come after you for these rewards and benefits you receive? Or is there a positive spin on credit card rewards and tax? Read this guide to learn the ins and outs on tax and credit card rewards. 

Bit of a sucker for credit card bonus points? Well you’ve come to the right place. With Christmas around the corner, it’s likely your spending is going to increase, so now could be the perfect time to capitalise on a bonus points offer. And if Qantas Frequent Flyer is the program for you, there are plenty of options out there. At the moment, there are over 60 credit cards on the Mozo database that have bonus points offers attached. In most cases, these offers require a new cardholder to spend a certain amount in a selected period of time in order to receive a lump sum of rewards points. Of those credit cards, 28 have Qantas Frequent Flyer bonus offers: ranging from 15,000 points up to a generous 150,000. Check out some of these offers below!

For many Aussies, Christmas is the time of year to indulge, whether that’s having a festive drink or an extra slice of cake. But for some, it can often mean spending more than intended on gifts, groceries and more. And rather than just starting the new year with tighter jeans, you’re instead left with a large amount of credit card debt. So if you’re planning to put some or all of Christmas on your credit card this year, having a tight repayment plan in place for the new year is essential. To get you started the right way, we’re sharing two of our top plastic picks that can help keep costs low this Christmas.

CommBank has officially launched its brand new interest-free credit card Neo, just three months after its announcement. Customers who sign up for a Neo interest-free credit card will have their pick of three credit limits and are assigned a monthly fee based on the limit they have selected. The credit limits and fees are:

With Black Friday and Cyber Monday sales ramping up and Christmas not far off, the Australian Competition & Consumer Commission (ACCC) has urged online shoppers to be extra vigilant. According to the ACCC’s Scamwatch, online shopping scams have increased by a massive 42% in 2020. The platform revealed that it has received over 12,000 reports of scams this year, equaling nearly $7 million in losses so far. The ACCC’s deputy chair Delia Rickard says that due to COVID-19 restrictions, more people have turned to shopping online. She says that scammers are now narrowing in on people doing Christmas shopping, including those jumping on Black Friday and Cyber Monday sales. “Scammers create fake websites that look like genuine online stores, offering products at very low prices and victims will either receive a fake item or nothing at all,” Rickard said. “They also post fake ads on classified websites, often claiming they are travelling and someone else will deliver the goods, but the item never arrives and the victim can no longer contact the seller.”Similarly, the losses due to scams on popular second hand websites like Facebook Marketplace and Gumtree have skyrocketed to $4.5 million (an increase of 60%).