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.
As someone in the market for a new piece of plastic, are you leaning towards one with minimal overheads? Read our guide for the lowdown on what this card type is all about.
You’ve probably heard the term “spending personality” before. It’s easy to see why the concept was coined. Everybody has different financial circumstances and their own lifestyle preferences.
If you answered yes to most of these q’s, you’re likely the budget minded spender and potentially suitable for a low fee rewards card.
Low purchase rate: As we suggested above, rewards credit cards are really designed for those who pay their bills on time and in full each month. But slip ups happen every now and again, so choosing a credit card with a low purchase rate, on top of a low annual fee can help cushion the fall.
Fact: The highest interest rate among rewards cards listed on our database is a steep 22.74%!
High number of interest free days: No matter how diligent you are at staying true to your billing cycle, the more interest free days you have the better. Providers generally offer between 44 and 55, so going for something at the higher end will bide you time before that interest kicks in.
Appealing introductory offer: There are plenty of low annual fee cards offering incentives for new customers like gift vouchers and bonus rewards points. Just read the fine print to ensure you can fulfil the spending criteria, such as purchasing a certain amount by a set date (usually three months after the card is issued) to trigger the offer.
Your preferred points program: Do you like flying with the white kangaroo or budget-friendly airline Virgin? Perhaps you rarely travel and would rather your rewards points go towards feeding your family in the form of grocery vouchers. With the abundance of rewards programs to choose from (like Qantas Frequent Flyer, Virgin Velocity and Woolworths Everyday Rewards to name a few), ensure you pick a card affiliated with a program that suits you best.
High (or low) credit limit: The maximum amount you’re allowed to spend on your card comes down to how much money you want access to and what your card provider will approve you for. Some consumers are easily tempted to splurge so they opt for low credit limits, while others prefer the flexibility that comes with higher spend thresholds. If you need high credit leeway, keep in mind that some rewards cards with minimal or zero yearly fees keep limits down compared to premium cards.
Taking out a low annual fee rewards card in your name is easy. Once you’ve chosen your favourite, you’re halfway there. Land on the application page link from our site (or visit the website directly), then follow the instructions. Here’s a checklist of key requirements and details you’ll be providing on most online forms:
Ready for an introduction into the world of rewards cards? Take that first step and pay a visit to our virtual hub!