Top Credit Card Tips for 2009

With the new year just around the corner, it’s a prime time to make a change on key factors of your life – finance and credit is no exception.

Whether it’s cutting out the amount you use your credit card or simply clearing your Christmas debt as soon as possible, there are several new bank pitfalls to watch out for, and methods to utilize.

The Prevailing Economic Condition

‘Everyday people’ aren’t the only people suffering. Some banks are teetering on the edge of bankruptcy, while others have already narrowly avoided it. One universal solution to increase revenue for banks are increased charges and fees for their credit card consumers.

However, Prime Minister Rudd’s new stance on credit card regulation coupled with the National Credit Union Administration’s new strategy to cut ‘deceptive and un-fair’ practices may even see a reverse in excessive ancillary credit card fees. Nevertheless, be on the lookout for them if you’re informed of any changes in your terms and conditions.

The Pinnacle of Credit Card Consolidation

Balance Transfers – transferring all your high interest credit card balance to another card with an introductory lower interest rate.

If you didn’t take advantage or weren’t interested in the Aussie MasterCard’s 0% on purchases for the first 6 months’ offer (available till January 10th 2009), there are plenty of balance transfer offers to take advantage of in the new year. To give an impression of the potential savings:

• You’ve financed buying gifts and your summer holiday in December 2008 on your credit card – a total of $3833 with a 13.99% rate.
• You’ve budgeted that paying $710 monthly off your balance will result in you clearing your balance after 6 months, with $149.94 in interest to repay.
• Instead, you have the opportunity to pay 0% for 6 months with a balance short term balance transfer. The catch? You’ll need to pay the annual fee upfront on the new credit card you plan to transfer the balance to. This will generally range from $45-70 on a 0% offer card. For the sake of this example, we will use the St.George Vertigo which has a $55 annual fee.
• Therefore, by undertaking the 0% offer, you’ve saved a potential ($149.94-$55) $94.94.
• Don’t forget – it’s imperative not to spend on the credit card which has a transferred balance on to it. Read here for more balance transfer pitfalls and tips.
• These calculations were used on our easy and free to use online credit card calculator.

0% balance transfer offers aren’t the only ones available. See here for the balance transfer credit cards on offer in Australia.

Reward Programs: You can even take advantage of a balance transfer to earn reward points, and not worry about rushing to repay before interest accumulates. However, this technique only works in one direction:

• Incorrect: You can’t earn reward points by paying off a transferred balance. For instance, if you have transferred $5000 onto your rewards card, you can’t earn reward points on any of it until the whole $5000 has been repaid.
• Correct: You can spend $5000 on your credit card that has a rewards program on it, then transfer that amount over to a new card with a balance transfer on it. This way you’ve earnt the $5000 worth of reward points by spending on your rewards card, and you can safely pay it off on the low introductory rate.

Review your Credit Report & History

The last thing you want in a period where finance is risky is a poor credit report. Some negatives commonly associated with bad credit includes:

• A higher interest rate on finance products that standard.
• Less chance for application approval when applying for new finance.

In 2009, it’s as important as ever to maintain a quality credit report for the sake of emergency finance.

Find out here how to receive your credit report.

Check out today's featured offers:

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%