Debit Cards are the Credit Card Alternative

Many Australians are beginning to use debit cards instead of credit cards.

With the credit crunch, there has been a drop in the number of people being approved for credit cards. If you find yourself with poor credit, you may prefer to use the debit card advantage instead of credit cards.

Fee Free Debit Card Offer

Enjoy fee free banking with the NAB Classic Banking everyday account. This account was the winner of the 2010 CHOICE Award for Best Low-Fee Bank Account. If you are looking for an alternative to a credit card, giving you more control over your spending, this is a debit card that should strongly consider in your comparison.

Features:

• No minimum opening balance required
• No monthly account service fees for life!
• Unlimited access via NAB ATMs, branch, phone banking, internet and rediATMs.
• NAB Debit or Credit Card
• Overseas ATM access

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• Enhanced account security
• Cannex 5 star rated transaction account

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Credit rating and credit cards

Previously, it was very easy to get a new credit card. Banks would approve them almost on application and had more lenient procedures for card approval. However, with the credit crunch, banks have become more stringent in their lending criteria. In addition, many people have lost their jobs or are facing financial hardship, which means that their credit rating has gone down and they are finding it difficult to obtain a new credit card with their poor credit rating.

The advantages of debit cards

If you find yourself in a situation with poor credit, you may be interested in looking into debit cards. You can enjoy quite a few debit card advantages by using a debit card instead of a credit card.

Debit cards are issued by the same institutions who issue credit cards. This means that the same payment processor is used for processing debit cards, so debit cards are acceptable everywhere that credit cards are, including various retail outlets, entertainment venues. They can even be used for shopping online, through the phone or through mail order catalogues. Debit cards are very convenient since they make it possible to shop via various mediums that only accept credit cards.

Obtaining and using a debit card

It is very easy to obtain a debit card, even if you have poor credit. Debit cards are issued to anyone who has a current account at a bank and there is no credit check required to obtain a debit card.

Since the card is linked to your account, there are no balances that can accumulate. Instead, the card uses funds that are already in the account. So a debit card is like a prepaid credit card in that the money is already paid upfront. Because there are no accumulating balances, it is not possible to accrue interest expenses – this is another debit card advantage that many people enjoy.

Some accounts do have overdraft facilities, and if your card is linked to such an account, it is possible to spend more than the money you already have in your account. In this case, you may find yourself paying overdraft fees and other fines, so you should be careful not to exceed your existing balance when using a debit card.

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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%