Credit Card Costs: How Much Do Credit Cards Cost?

Information verified correct on October 20th, 2016

If you have been considering getting a new card in the near future, you will need to find out what kind of credit card costs will be associated with it. Take a look at this article to learn more information about the costs involved when you own a credit card.

When you are shopping for a card, you have to look at the different credit card costs that are charged by each individual company. Interest rates, penalties and other associated fees can heavily influence your credit rating. This can have a very negative impact, especially if you want to keep marginally low interest rates and be able to keep your credit card for many years to come.

Bankwest Zero Platinum MasterCard

No Annual Fee Card

The Bankwest Zero Platinum MasterCard is one of the cheapest credit cards to maintain. It features a $0 annual fee, a great balance transfer offer, and up to 55 days interest free. Automatic purchase protection.

  • $0 p.a. annual fee
  • 17.99% p.a. on purchases
  • 2.99% p.a. for 9 months on balance transfers
  • Cash Advance Rate of 21.99% p.a.
  • Up to 55 days interest free

Lowering credit card costs

  • Make the payment on time every month

    A certain way to avoid poor credit and keep credit card costs at a minimum is to make sure that you can make the payment on time every month. If you can do this, then you will not encounter as many fees and penalties. A good way to make sure this happens is by calculating all of your finances before making any purchases on credit. In other words, if you are not sure that you will be able to come up with the money in a specific amount of time, then don’t make the purchase.

  • Make payments earlier than the due date

    Late payment fees are usually about $35 depending on which company you are with. In order to avoid this fee, make sure that you send in your payment early so that you don’t miss the due date. Another fee that comes with credit card use is a bounced check fee. Usually this is around $30 and happens when you send out a cheque with insufficient funds in your account. A cash advance fee will appear on your monthly statement if you withdraw money from an ATM. There is usually a flat fee charged in addition to a percentage of the amount withdrawn. Avoid making a cash advance if at all possible.

  • Always check the credit available in your card

    When you make a purchase, one thing to consider is whether or not you have the credit available on your credit card. If you go over your limit, you will receive an over limit fee. This is about $30. When you choose a credit company a very important thing to consider is the credit card costs that are associated with owning one. Interest rates vary from card to card, but there is a default rate that is put into effect when you miss payments. When you make a purchase just be certain that you can pay it back in full at the end of the month. This will mean that you will probably not have to pay any interest at all.

You will have to pay a lot of credit card costs if you are the type of person that makes late payments, uses the card for cash advances or cannot pay off the balance in full every month. If you are the kind of consumer that follows a budget and knows what can reasonably be put on the card every month so that it can be repaid by the due date, then your costs will be very minimal. Also, transactions incurring a high interest rate, such as cash advances, should be avoided.

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Reduce your credit card costs with online comparison

If at the end of the month you find you are unable to pay off your credit card balance, the most effective thing you can do is to use your own money as much as possible instead of the card. It is also important to consider if you have the right credit card, and if not, do an online comparison to find a better card to switch to, and reduce your credit card costs.

What is the point in paying a high amount of interest, and credit card costs to use somebody else’s money, when you can use your own debit card in the same convenient way you use your credit card.

If you find you only use your credit card now and again for nights out, filling up your car with petrol, or the occasional shopping trip, then if you do not need the benefits that reward cards offer, you are better off leaving these higher fee cards alone, and instead go for a no fee, low interest card.

If you spend on your card regularly and enjoy benefits such as free travel and reward programs, and are able to pay off your balance in full at the end of every month, then it may be worth taking on a card with a higher interest rate, and annual fee that offers these benefits.

Excellent ways to keep credit card costs down

  • Pay the full balance

    The most obvious way to keep your credit card costs down, whichever type of card you are holding is to pay off the full balance at the end of every month. That way whatever rate you are on, you will never have to accrue any interest on your purchases, thus keeping down your monthly credit card costs.

  • Use two cards

    The other way you can use credit cards effectively (but only if you have self discipline), is to use two cards. Use a card offering many interest free days and reward points for all your purchases, and then at the end of the month pay off the balance by using a cash advance on a low fee, low interest card.

    This way you gain the benefits of the reward points, and interest free days on one card, whilst being able to pay it off with the lower interest rate card. This trick of only works effectively if you pay off the cash advance on the low rate credit card at the end of the said time frame. Otherwise you start paying interest which defies the point of the exercise.

If used correctly, credit cards can be a very effective means of paying for things whilst not needing to find the real money straight away. At the same time you can earn yourself some nice cash or reward benefits. You must however be very strict with yourself, as overspending and underpaying can very quickly set you on the road to debts-ville.

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Credit Cards Comparison

Rates last updated October 20th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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