Review Your Spending To See If You Need To Get A Christmas Credit Card
Posted October 20th, 2009
and last modified January 15th, 2010Christmas is on the way and with it comes an enormous amount of spending, never mind the fact that we nearly always overspend!
At Christmas, credit cards get a thrashing. It is human nature that we want to have a good time and fortunately or unfortunately, credit cards allow us to do this with very little trouble at the time. It is the months afterwards that cause the problems.
Card providers have come up with some very good offers on credit cards and if you feel that you will need to spend on a credit card this Christmas, now is the time to have a look at your card situation and fix it so that you can take advantage of the best offer on the market.
Review the 0% balance transfer offers
Did you realise that at the moment there are companies offering 0% balance transfers? These are a great advantage, especially for someone who has a very high interest rate card. Some of the older cards on the market have over 20% interest rate on them and if you transfer the credit balance onto a card with a 0% interest balance transfer rate, you are saving a lot of interest. There is one aspect you need to watch though, and that is whether the company you are transferring to has a transfer fee. This can be a set value or a fee charged on a percentage basis.
It may be cheaper to take a low interest with no fee on transfer, so check it out and see which suits you best. If you are transferring say, $5,000 you would be better off with a capped transfer fee of $50 than an interest of 4.99%.
Also check what the interest rate is when the balance transfer reverts to the standard rate after the introductory period.
ANZ Low Rate MasterCard and ANZ Balance Visa Credit Card are offering 0% for 6 months.
Citibank BP MasterCard is offering 12 months at 2.90% whilst Citibank Silver Card is 2.90% for up to 12 months. So if you feel that it is going to take you a while to pay off the balance transfer, the fact that these cards have 12 months low interest, could be the best deal for you. St George Vertigo is offering 2.99% for 6 months.
Low interest cards
If you are not going to look for a balance transfer perhaps you should look at a low interest card. These cards are especially good if you are not going to be able to pay your credit card balance in full each month.
This could be a good option for a Christmas credit card and if you do want to go this way don’t leave it too late before you apply because the weeks are passing by very quickly.
Currently BankWest Lite MasterCard is charging 10.75% on its card with a $59 annual fee and 1.99% p.a. for 9 months on balance transfers This is a very good rate. St George Vertigo has a standard interest rate of 2.99% for 6 months (reverts to 11.99%) and a $55 annual fee with 2.99% p.a. for 6 months on balance transfers. Another Citibank card worth considering is the Citibank Clear Platinum Card at a standard interest rate of 11.49%, an annual fee of $85 as well as 0.99% p.a. for 6 months on balance transfers.
The cashback option
A cashback reward option could be beneficial and cashback offers are becoming very popular as a rewards incentive. They can offer a true value instead of vouchers and in most cases are easier to redeem.
Citibank BP MasterCard offers 5% off petrol and purchases made at BP petrol stations, and has a 2.90% balance transfer rate for 12 months. Commonwealth Bank Awards Card has a bank rewards program, but there must be a minimum of 4000 points. The Citibank card charges 19.89% interest and the Commonwealth card charge 18.99% standard interest rate. ANZ Balance Visa Credit Card gives 1 reward point for every $1 you repay to your balance and cashback amounts can be redeemed in $20, $50 or $100 lots and this card also has a low interest of 12.74% standard rate with 0% balance transfer rate for 6 months.
Fee-free
As for a fee free card it really does depend what you are going to use the card on. If you are travelling overseas it would pay to get a card that has specific benefits for overseas travel as regards fees on purchases, money exchange and insurances.
There are monthly cards like American Express credit cards and there are credit cards where you can roll a balance over.
With cards for use in Australia there are several but they all have different criteria. Some only have an introductory offer of 6 or 12 months and others are only on offer after a particular $ spend.
At anytime you are going to be applying for a card or are going to be using a card considerably more than usual know how you are going to use it then research the cards to make sure you find the best one for your particular use, such as a Christmas credit card.
Related posts:
- Keeping control of your Christmas credit card spending
- Guide To Christmas Spending
- We Are On The Countdown So Plan Your Christmas Spending
- Christmas Cash: Do you need a Christmas Credit Card?
- Reducing your Christmas Credit Card debt
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Editor's Choice: Our Top Credit Cards
Bankwest Lite MasterCard
Cheapest Credit Card
The lowest stress mastercard, with Australia's lowest MasterCard purchase rate of just 10.75% p.a.
St George Vertigo
Best Bank
Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.
Coles Group Source MasterCard
Citi Clear Platinum Visa
Low Interest
An excellent low interest credit card offer with 11.49%interest on purchases and 0.99% for 6 months on balance transfers .
Bankwest Zero Platinum MasterCard
No Annual Fee
Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers