Credit Card Tips for Dummies

Featured Introductory Offer Credit Card

Stay out of credit card debt and avoid becoming another credit card statistic with the St.George Vertigo MasterCard which will get you off to a good start with a low rate on both purchases and balance transfers for the first 6 months plus a low annual fee. You will also benefit from a low ongoing rate on purchases.

• $55 annual fee
• 13.24% p.a. on purchases
• 0.99% p.a. for 12 months on balance transfers
• Cash Advance Rate of 21.49% p.a.
• 55 days interest free
• Minimum Income Requirement of $15,000 p.a.
• Up to 55 days interest free on purchases

Read the St George Vertigo terms and conditions.

Discover common sense methods for staying out of credit trouble. Find out how to organize your use of credit to avoid misuse. Get information for establishing a good credit history.

Avoid Becoming a Credit Card Statistic

It isn’t at all uncommon to hear or read tales of woe when it comes to people who have financially drown themselves in credit card debt. However, it is possible to avoid joining their sad ranks, as long as you familiarize yourself with the details of credit cards and learn how to make credit work for you, rather than the other way ’round. The truly clever customer will learn the details about how credit cards work in advance, before starting to use them. The old adage about “an ounce of prevention” definitely applies to financial decisions and credit cards, so pay close attention to these twelve credit card tips for dummies suggestions:

1. Pay close attention to the credit card limit, and do not exceed it! The fees for this type of overage are terribly high.
2. Make certain that you understand the interest rate on your credit card, as well as all of the fees and the schedule for payments.
3. Watch out for zero percent teaser rate offers, which tempt customers with a low initial rate while trying to get them to spend more than the budget can bear. Remember that these low rates are introductory, and many of them will go to higher levels later!
4. Understand the exact period of time during which an introductory interest rate is in effect.
5. Have a well-defined monthly budget for your credit card spending, which will help you to avoid interest charges every month.
6. Create an excellent credit history by making all of your payments on time – or even early! This is important even if you are unable to pay in full during a difficult month.
7. Be careful about co-signing on a credit card for any friend or relative. If they get in any sort of financial difficulty, or behave irresponsibly with their credit, you will be held accountable for the results!
8. Know the specific rates and fees for any late payments and exceeding the credit limit.
9. Unless there are significant extenuating circumstances, pay the card off in full each month. In the event there are difficulties which will not allow you to pay in full, try to at least send more than the minimum monthly payment. Then pay it off as soon as possible. Interest charges are not in your best interest!
10. Carefully review credit card statements each month to make sure that the terms have not changed without your knowledge. This is also a good way to tell whether criminals have been using your credit card accounts!
11. Make a complete list of your debts before using any credit card, just to remain mindful of your present finances.
12. Take a look at secured credit cards, which can be a safer option for many people than traditional credit cards.

Here’s hoping these credit card tips for dummies can keep you out of credit card hot water!

Four Basic Profiles – Which One is yours?

Habitual Spender

If you cannot control your spending habits, then most likely you will struggle with your monthly credit repayments. If this is the case with you and you operate with a revolving debt, then try to get a low interest rate card with a zero annual fee.

Impulse Spender

Same strategy as of the habitual spender will work here; get a low rate card with a low or no annual fee. Using your card on “˜Christmas style’ occasions, then spending the next few months after your huge shopping spree just trying to pay off the balance with a regular card doesn’t make much sense.

Everyday Spender

If your credit card accompanies you with your everyday shopping, like gas and groceries, and you are punctual in paying off the credit balance each month, then you don’t need to worry much about interest rates. So try to get a card that offers features that match your needs at lowest possible cost.

Big Spender

If you are a big shopping machine and always pay your due balance on time, then you should probably go for that card which offers exclusive perks. Additional benefits that you might seek are travel insurance, rewards points and concierge service.

Other Points to Consider

There are other features of credit cards that are not displayed with neon signs. For these, you need to read the details of the card offer. Let’s have a look at a few:

• Understand the terms and guidelines of balance transfers, introductory rates and their periods.
• Reward programs are the “˜icing on the cake’, but beware, they cost a lot. Only opt for this baby if your benefits outweigh your total annual spending.
• Completely comprehend the terms and features of currency conversion fees, minimum repayment criteria and penalties for skipping and late submission of due charges.
• Be aware that your card may charge interest rates on new purchases when you don’t pay your previous due balance.
• Beware! Some cards consider and treat BPAY transactions as cash advances, meaning really high interest rates.
• Know that reward cards usually charge an additional annual fee. Some rewards programs waive it, if you have spent a great deal with your card. (Usually there is a threshold for this)
• Some cards also offer you to earn rewards points through BPAY and cash advances.
• Try to pay off your due balance each month in full. At least pay double the minimum requirement (this will help you far and wide).
• Get rid of many cards. Try to combine them into one (if possible at your bank). This will lower and even eliminate certain charges, like the ongoing fees.
• Try to avoid store credit cards. They usually have high interest rates.
• Do not consider increasing your credit limit unless it is absolutely necessary.
• Certain banks offer “package deals” on their cards. They offer lower interest rates and some other benefits (you need to qualify according to your bank’s criteria to be able to use them).

Balance Transfer Offers

This is a life-saving technique. If you are struggling with your many debt payments, try to combine all your different card payments (with different rates and payment dates) into just one card. This debt consolidation will enable you to only make one payment in a month to take care of all those payments. This is called a balance transfer.

The great thing is, when you do the balance transfer, the final amount that you need to pay is put at a lower interest rate. This way you get double benefits; low rate and just one payment. So whenever you start struggling with your debt payments, do consider the balance transfer offer.

You can also go for this feature just for the ease of making one single payment instead of keeping track of all the monthly payment dates and rates.

Credit Card Security

Immediately report your stolen or lost credit/debit card to your bank. The sooner they know the better it is for you. Remember, credit cards hold your money, you are responsible for it. Even after a proven case of unauthorized use of your card, you will still have to pay for some of the amount that the thief had used.

Keep a keen eye on your card while you’re making purchases. Never let it out of sight. Card swiping should be done right in front of your eyes.

When you plan to travel abroad, notify your lender of your intention to travel. This will alert them and they will not mark your card transactions from overseas as suspicious. It will prevent your card from getting deactivated while you are in some other country enjoying your holiday. This can save you from some serious unwanted nightmares whilst on holiday.

Be very careful when you shop online. Only enter your card information in well reputed sites.

You can read the help menu of your Internet browser for more information on this. Many smart Internet browsers are available that offer better Internet security measures.

Knowledge of credit cards can save you money and make your spending much smoother. Its a simple matter of information and its application, that you can have the most affordable and most useful credit card.

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%