The Most Clever Credit Card Capabilities

How useful is a credit card? Opting for credit balance transfers, a safe and hassle-free way to spend abroad, and an irresistible rewards program are just some of the clever ways to use that plastic.

When it comes to credit cards, some Australians can’t wrap their heads around them. Frequent questions and quarrels when it comes to the usage of plastic include:

• I only spend money I actually have. I never get into debt because I don’t own a credit card. What’s the point?
• They’re too expensive. I don’t want to pay interest on my purchases, let alone an annual fee.
• I never make purchases online anyway. I don’t trust using my credit card on the internet even if I did.

#1 – Purchase Cover & Security

On the contrary to common misconception, using a credit card for purchases can be more secure than risky. If an item/service paid for is not received, or there is some form of transactional trouble, the majority of Australian credit card providers have implemented some form of purchase security.

If reported A.S.A.P, even an authorised transaction can be reversed if there are valid means of justification.

The beauty of paying with credit cards is all your transactions are automatically tracked and archived. You may track all your purchases made in cash, but your records don’t carry as much weight in evidence as an official bank statement.

#2 - Convenience and Safety whilst Travelling Internationally

If your foreign cash becomes misplaced or stolen, that’s that. If you make a cash purchase while overseas and don’t get what you paid for, that’s that.

Travelling overseas is the prime time for you to become susceptible to emergency of financial disaster. Not only do credit cards provide that form of emergency backup funds, but should anything happen to that, your credit card company in most cases will reimburse or cover you.

If you own a gold or platinum credit card, your card is likely to feature free international travel insurance.

Depending on the prestige and cost of your card, the extent of cover can range from restricting to comprehensive. It’s standard for credit card insurance not to cover skiing accidents for instance, so always remember to confirm with your provider what aspects of your trip will be covered.

#3 – Keep Track of your Budget

As mentioned previously, credit cards automatically keep a record of your purchases in monthly statements.

You can create a budget with free tools such us as an interest repayment calculator, then manage your spending carefully.

It gives you the chance to gauge your spending in different categories, i.e groceries or petrol, and adjust accordingly.

#4 – Reward Programs: Best for Few, Waste for Most

Assuming you always pay your balance in full and never pay any sort of fees with your plastic, it can take up to $10,000 of spending a year to let alone earn back the cost of your annual fee in dollar-value of your rewards.

For example:

• A credit card has an annual fee of $100. You earn 1 reward point for every $1 you spend on your card.
• To redeem a $100 voucher from your card’s reward program, you need 10,000 reward points.
• Therefore, until you’ve spend $10,000 each year on your card, you’re actually losing money.

In reality however, you can take advantage of bonus partner offers, which allow you to accumulate a higher ratio of reward points for your dollar at special partnered retail stores.

#5 – Credit Balance Transfers

If you’re unfamiliar with the concept of a balance transfer, familiarise yourself now with our balance transfer guide.

While there are a few balance transfer loopholes which can extend your debt and put yourself in a worse position than you begin with, this is only the extreme end of the spectrum.

When used appropriately and responsibly, balance transfers give consumers access to the ‘too good to be true’ world of 0%, 2.9%, 4.9% debt repayment rates.

Credit cards can be handy godsends or the ball-and-chain tieing you down to monthly debt repayments.

It’s ultimately up to the individual: Some will take advantage of 0% APR offers, purchase security and free rewards to their benefit.

Others will be chained down to the wrong credit card, paying for features they don’t use, and living off an expensive revolving balance.

Image source: Nina Matthews

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%