Top tips for students to avoid credit card fees

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:

Fee free credit card comparison - rates updated daily

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    Mozo Experts Choice 2020
    American Express Qantas Discovery Card

    Receive up to 1.75 Qantas Points for every $1 spent on Card purchases (T&Cs apply). No annual fee for the life of the card. T&C’s apply. Mozo Experts Choice Qantas Frequent Flyer Credit Card Winner 2020.

    Annual fee
    Interest free days
    Purchase rate
    Balance transfer rate
    $0
    44
    20.74% p.a.
    No current offer
    Go to site
    Details
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    St.George No Annual Fee

    0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends September 28th 2021.

    Annual fee
    Interest free days
    Purchase rate
    Balance transfer rate
    $0
    55
    0% p.a. for 12 months then 20.74% p.a.
    6.99% p.a. for 12 months and then 21.49% p.a.
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    Details
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    ING Orange One Low Rate Credit Card

    With a low interest rate, no annual fee and, if per account, you meet the eligibility criteria, no ING International Transaction Fees when you shop overseas or online. Automatic repayments from eligible ING accounts.

    Annual fee
    Interest free days
    Purchase rate
    Balance transfer rate
    $0
    45
    11.99% p.a.
    No current offer
    Go to site
    Details
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    Bankwest Zero Mastercard

    No annual fee and up to 55 days interest free on purchases. Get a notification before your minimum payment is due by setting up Easy Alerts in the Bankwest app.

    Annual fee
    Interest free days
    Purchase rate
    Balance transfer rate
    $0
    55
    17.99% p.a.
    2.99% p.a. for 9 months and then 17.99% p.a.
    Go to site
    Details

1. Always pay the minimum amount due on time.

At the very, very least, you've got to remember to pay this one. Failure to do this may result in the following atrocities:

  • A fee (ranging from $10 to $40).
  • Losing your interest-free period.
  • A bad credit rating. (This one might sound obscure, but it'll come back to bite you.)

MOZO'S HANDY HINT: Arrange to have the minimum amount direct debited from your student bank account.

2. Give your annual fee the flick.

Cards with rewards programs often have higher annual fees than regular cards - and the value of benefits can be less than the fee! A free toaster might be more fun than sensible financial practice, but let's not give the banks the satisfaction of making off with our money.

MOZO'S HANDY HINT: Keep your student credit cards to a minimum. More cards mean more needless annual fees.

3. Resist the cash advance.

Most banks charge a fee for the pleasure of your easy money. Plus, cash advances attract interest immediately, even if your card offers a 55-day interest-free period on purchases.

MOZO'S HANDY HINT: Student credit cards are for purchases only.

4. Never, EVER exceed your credit limit.

Overlimit fees (usually $35) will apply once you exceed your credit limit. Bad credit ratings may swoop down upon you.purchases.

MOZO'S HANDY HINT: If you're spending up a storm, check your credit balance.

MOZO'S EVEN HANDIER HINT: If you're fast-approaching your credit limit, check out a balance transfer card pronto.

Okay okay, thank you for saving me all these heinous fees.

Now tell me how to manage my credit balance

^See information about the Mozo Experts Choice Credit Cards Awards

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