Credit Cards Australia

Use your credit cards wisely and they can be a great benefit. Let things out of control and you have big problems. These tips below are not professional financial advice, they are just hints we've picked up along the way that we find useful and think makes good sense.

Good Practice with Credit Cards

Try to pay off the full balance to take advantage of the interest-free period every month. If sometimes you can't, pay it off as quickly as possible.
If you can't pay off most months, consider whether a lower interest card with no interest-free period would be a better deal.
Shop around for the deal that suits you.
Awards points are not necessarily a bonus if they mean paying an annual fee.
Applying for a credit card when you don't really need it and put it somewhere safe to be taken out only in real emergency (not just when you want something nice) can be a good way to have an instant line of emergency credit. Treat it like a pay-day-loan, only safer and cheaper.
Never get a second card on your credit card account for someone you can't trust to be sensible.
Get a special credit card account with a low credit limit for online purchases if you are worried about security.
Leave them at home if you don't want to be tempted to use them.
Have your card put onto your online banking so you can keep an eye on purchases and the balance.
When banks offer to raise your credit limit, you don't have to accept.
If you can't handle credit cards, get rid of them and don't apply for a new one. At most, have one with a tiny credit limit.
If you have a low credit card limit but want to use it for a bigger purchase, you can transfer extra money into the account before you buy.

Information

Reserve Bank of Australia (RBA) - Australia's central bank. The RBA's main responsibility is monetary policy. Policy decisions are made by the Reserve Bank Board, with the objective of achieving low and stable inflation over the medium term. Other major roles are maintaining financial system stability and promoting the safety and efficiency of the payments system. The information provided by the Reserve Bank includes statistics - for example, on interest rates, exchange rates and money and credit growth - and a range of publications on its operations and research.
Fido's Financial Tips and Safety website and newsletter from ASIC with financial tips & safety checks for investors and consumers of financial products.
Understanding Money Government website with information and advice about managing money
Banking and Financial Services Ombudsman A dispute resolution service dealing with disputes that individuals and small business have with their financial service providers. See the website for bank and non-bank members.

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