FAQ: Top 10 Questions About Credit Cards

Credit card information can be found like sand on the beach, but rarely can we get an answer to the most pressing credit card questions. Therefore we have collated some of the most commonly asked questions on this site and laid the answers out for you.

Important credit card information:

1. Should I act as a guarantor for a family member or friend in need of urgent money?

Before you consider loaning your good name to a friend or family member to act as their guarantor you need to be absolute certain that you can repay their debt if push comes to shove.

Many guarantors have thought this to be an easy solution and then found themselves with a damaged credit file or even worse in debt. I would strongly advise you not to do this unless you trust the person 120% and are certain they can cough up the money to repay the money spent on the card.

2. What is the Consumer Credit Code?

The Consumer Credit Code is an Australian wide code of law. It is an enforced legislation protecting non-business related transactions. This means that all credit issuers; banks, finance companies, building societies, credit unions and businesses are obliged to tell you about the obligations and rights you have if you choose one of their credit cards.

3. Will the Consumer Credit Code protect me if my bank account has gone into debit?

No. This situation is excluded from the code.

4. I was loaned money from a relative and pay interest for the term of the loan. Is the CCC covering this?

Since personal loans don’t fall under the Consumer Credit Code it isn’t covered.

5. I am a guarantor but want to pull out from my responsibilities. Can I do this legally?

There are situations where a guarantor can pull out of a contract depending on the circumstances. It is advised to seek legal advice if you find yourself in such a situation.

6. Can my card company change the interest rate stated in my contract?

This depends entirely how your contract reads. Most card issuers probably state that the standard variable rate (APR) applies which allows them to change the rates at will once the Reserve Bank changes their base points.

7. If I swindle credit card information on my application can I be made liable?

Heck yeah! If you find yourself at the mercy of a credit card company because of false claims you made you need to seek legal counsel fast.

8. I used my credit card to buy a car and therefore it is regulated by the Consumer Credit Code. But since then I’ve lost my job, and failed to make my repayments on time. Is there something I can do before the company repossesses my car?

If the notice period expires, then repossession can take place under the Consumer Credit Code.

One thing you can do is to get your car valued and take proof of its condition with the help of video and photo.

9. My child was conned into a credit card contract regulated by the CCC. Is there something that can be done?

Some States in Australia offer free advice from a Consumer Credit Legal Service. In some instances it is possible to revert the status of the contract if the means by which it came about is deemed unlawful by a court.

10. I suck at reading small print before signing contracts. Are they really that important?

In fact they are! You are after all entering into a legal contract that will hold you responsible for any debt and damages incurred on your card. It pays (in your favour) to read the terms and conditions BEFORE you sign on the dotted line.

With the above credit card information you are now armed and able to confidently apply for a credit card online!

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