Choose the right Credit Card

There are lots of credit card deals around in Australia these days; what with Internet website promotions and application forms plastered across every newspaper and periodical you browse through, there's definitely no shortage of credit card issuers trying to tempt you to sign-up. But let's be clear - all of this competition for your custom is just the best news for the Australian consumer. The arrival in Australia of the big American card issuers (like American Express) has stirred-up the Australian market to come up with some really innovative deals. Whilst on the face of it, you may well start off believing that all credit cards are just the same but you'll quickly learn that choosing the right one for you can bring all sorts of rewards - financial and otherwise.

Interest-Free-Charges (IFC) on balance transfers

If you already carry an outstanding balance, card issuers will just love you! Because, guess what - they make some their profits from the interest you pay them on your outstanding balances. But turn this to your advantage - there's never been a better time for you to 'shuffle-the-deck' and 'pick-a-card' (not just any card) that makes sure that you pay as little as possible for your credit. Why not switch between issuers to take maximum advantage of IFC balance transfers? Typically, the 'holiday-period' for IFC balance transfers can last for up to 6 months from the date of transfer. Make sure that with whatever new card you end up choosing - it also has a competitive annual percentage rate (APR) for ongoing purchases. And after you've done all that - make sure that you close down the OLD account immediately and destroy the old card permanently, so's you won't be tempted to put the kibosh on your new found financial stability.

Interest-free periods

If you're in the habit of always paying off your balance completely every month - then one way to make your money work even harder for you is to opt for a credit card with a really long interest-free period. With most credit cards deals, if you go out shopping on the day after you receive your latest statement, then those purchases will not be billed until the same time the next month - and payment will not be due until maybe 3 to 4 weeks after that. Typically, this can amount to an interest-free period of up to around 55 days with most card issuers - not bad, eh? So, the rule of thumb if you're going to clear your balance off each month is - the longer the interest-free period, the better FOR YOU!

'Not-so-hidden' benefit packages

As an integral part of many marketing product launches, some credit card issuers have come up with some really innovative package deals that are focused around the 'loyalty theme'. You know the kind of thing - "spend your money with us and you can have this, this and this...as well as the credit." Some of the current credit card deals on offer to the Australian market have benefits like:

• the ability to earn Frequent Flyer points
• free travel insurance
• membership or access to rewards programmes
• preferential booking for 'events'

But in every case - do read the small print and don't be seduced by a seemingly attractive benefit package if in reality, the credit card has ruinously high interest charges.