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.
Australian Finance News
Treasury Secretary Says Australian Financial Services Highly Competitive
The Federal Treasury believes that the financial services industry in Australia remains highly competitive, despite the capturing of a large proportion of market share in the aftermath of the financial crisis.
Super Fund Reform Two Decades Too Late Says Industry
Kevin Rudd’s government says it full intends to follow through with controversial new regulations for the superannuation industry despite vehement opposition from the sector.
Australian Central Bank Remains Reluctant Regulator Of Electronic Payments System
The Australian central bank, The Reserve bank of Australia (RBA) says it remains a "reluctant regulator" of competition in the electronic card payments system space.
The RBA says it prefers competition as the mechanism used to contain fees, and would prefer to take a step back instead, however RBA assistant governor Malcolm Edey says it is not quite ready to do so.
NAB Optimistic Over AXA APH Acquisition
Steve Tucker, chief executive of MLC, the wealth management unit of Australian banking major National Australia Bank (NAB) says he is confident that the lenders $13.2 billion bid for AXA Asia Pacific Holdings (APH) will ultimately be successful, despite the fact that the ACCC on Friday deferred its ruling on the deal.
RBA Says Major Australian Banks Profiting At Expense Of Customers
The Reserve Bank of Australia says that Australia’s major lenders are using higher funding costs as an excuse to profit at the expense of mortgage borrowers and businesses.
The RBA found that the tendency by the majors to increase their interest rates beyond that of official interest rates has meant that they have managed to offset [...]