Credit Cards and their Role in Australia and the 21st Century

According to the Reserve Bank of Australia the total number of credit cards in use is over 14.5 million, and showing an increasing trend in average balance and usage statistics

While some would argue that these figures indicate a worrying tendency of Australians to rely on credit cards to solve their debt issues, there is no denying their usefulness in daily life. The following is a summary of the top reasons to use one yourself.

Commercial Transactions over the Internet

More and more Australians are shopping online for everything from electronics and gadgets to daily groceries. Credit cards are the perfect medium to conduct these monetary transactions online. Most banks employ the maximum level of security and fraud checks when it comes to credit card transactions, therefore they are a safer way of paying for goods and services over the Internet as compared to any other method. Sometimes they are the only possible way of buying things online, as many sites and vendors would only accept credit card payments and nothing else for their products.

Shopping Convenience

If you wanted to purchase a big ticket item such as a fridge or washing machine, your only options, if you do not use a card to pay for the goods, is to write a check or pay in cash. Carrying around such large sums of money is both inconvenient and risky, and many stores would not accept payment in checks or you’d at least have to wait for the check to clear before the transaction goes through. Instead of having to wait the 3 to 4 business days for the check to clear and your products delivered, you can always pay for the items using your credit card.

Credit cards are also useful for small items like that bottle of milk you may have forgotten to pick up on your way home. Most, if not all, convenience stores accept payment through cards and you do not have to worry about having the required loose change on you when visiting the store.

Rewards Programs

All the major banks offer a range of reward programs on their credit cards, and you can collect some nice reward points simply by using the card to make your regular purchases. As long as you are responsible about paying the due amount on time and not accruing too much interest, the benefits of these rewards outweigh the costs. It can be a bonus shopping gift card, cash back rewards, or some frequent flyer points that you gain for free.

Emergency Funds

Credit cards offer a line of credit that you can draw upon at times of emergency. Be it an accident or some unforeseen costs, you can match your cash flow better by drawing on that extra pool of money in times of need. As long as you do not abuse that power, credit cards are a critical life line waiting in the wings.

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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%