Monday Moneyvators: Level up to a better credit card deal

From rewards cards to black cards to everyday spending cards, when it comes to credit cards, the options are endless. Which means it’s super important to find the right one for you that will get you the best value from your spending.

Having the right piece of plastic in your pocket could be the difference between paying hundreds of dollars extra in interest, or bagging some cool freebies and great savings.

So, if your credit card isn’t doing it for you anymore, use your Monday motivation to go out and get yourself a shiny new card that’ll get you some more bang for your buck!

First things first, set a budget

Unless you want to rack up a pile of credit card debt, it’s vital to be on time with your credit card repayments. So, before you pick out a new piece of plastic, you should first do a quick review of your finances to determine whether you can afford the repayments.

Go through and list out all your bills and regular expenses, then use our budget calculator tool to set yourself a clear budget.

Finding the right piece of plastic

Now that you’ve established a budget, use it to help you determine which card is right for you to maximise the value of your shopping. Here are some value-packed options:

Earn rewards freebies

You can earn tonnes of rewards points by using a rewards credit card to pay for your everyday spends and regular bills. With the right rewards card, you can earn up to 3 rewards points per $1 you spend and then redeem those points for cool perks or frequent flyer points.

Pro: The more you spend, the more rewards you’ll earn, so this might be a good option for you if you’ve got a big upcoming expense or even just for the regular weekly grocery shop.

The catch: You’ll need to be able to pay your credit card bill off in full each month, or else the cost of interest will cancel out the value of those hard-earned reward points.

Interest-free credit cards

Sound too good to be true? Well, it’s not! You could shop ‘til you drop with your credit card and not pay a cent in interest with a 0% purchase rate offer. Some interest-free credit cards offer an introductory period where you won’t pay any interest for up to 15 months, (so long as you meet the minimum monthly repayments.)

Pro: On a tight budget? With an interest-free credit card, you’ll be able to use your card to spend during the interest-free period, without being charged any interest.

The catch: You’ll need to be super disciplined and have a plan to pay off any debt you accrued in the interest-free period. 

Cash-back offer

After some cold hard cash? Well, a credit card with a killer cashback offer could be just the thing you’re after! Credit card cashback offers usually have a minimum spend, so the best time to snag one of these bad boys is when you’re about to do some serious spending.

Pro: The minimum spend usually ranges between $250 and $2,000, so if this fits within your budget and you were already planning to spend that much within the given time frame (which can be as short as 2 months), then why not reward yourself for doing it?

The catch: If you don’t meet the minimum spend, you won’t get the cashback, so it can be tempting to overspend. That’s why it’s essential to set a budget first and find a card to suit, not vice versa.