Credit Cards in Australia: Interest Rates, Fees & Features

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Which Credit Card is Right for You?

How Do You Repay Your Balance?

Whether you pay your statement balance in full by the due date or carry a balance from month to month can make a substantial difference to the cost of a credit card.

If you usually repay in full, compare annual fees, interest-free conditions and the value of any rewards. If you carry a balance, pay particular attention to the purchase interest rate and ongoing fees. A low interest credit card may cost less than a rewards card, depending on your balance and repayments.

Use your typical balance and repayment amount when reviewing examples provided by card issuers. Paying only the minimum repayment can extend the time needed to clear a balance and increase total interest costs. Consider a credit limit that fits your budget rather than treating the limit as a spending target.

Compare Interest Rates and Balance Transfers

A card can have different interest rates for purchases, cash advances and balance transfers. Compare each rate that is relevant to how you expect to use the card, and check how repayments are allocated.

For a promotional balance transfer offer, check the introductory period, any transfer fee and the rate that applies to an unpaid transferred balance after the offer ends. Work out whether your budget allows you to repay the transferred amount within that period.

Also check how a balance transfer affects interest-free days on new purchases. A promotional transfer rate does not necessarily apply to other spending.

Understand Interest-Free Periods

Interest-free days generally apply to eligible purchases only when the card's repayment conditions are met. Check the amount you must pay by the due date to qualify, particularly if you have a balance transfer or another promotional balance.

An advertised maximum interest-free period is not available on every purchase. The time available depends on when the purchase falls in the statement cycle. Check the statement date, payment due date and card terms rather than assuming you always have the maximum number of days to pay.

Look at the Fees

Compare annual fees, cash advance fees, balance transfer fees, late payment fees and international transaction fees where applicable. A no annual fee credit card can still have other charges, so consider the total cost for your expected use.

ATM cash withdrawals using a credit card are generally treated as cash advances. A cash advance fee may apply, and interest generally starts from the transaction date rather than after an interest-free period. Overseas withdrawals may involve additional charges.

Check the current fee schedule and how charges are calculated before making a withdrawal or using the card overseas.

Weigh Up Cashback and Rewards

Some credit cards offer cashback or reward points on eligible spending. Compare the value you could realistically use with annual fees and any interest costs, rather than focusing only on a sign-up offer.

Interest and fees can outweigh cashback or rewards, especially if you carry a balance. Check eligible purchases, spending thresholds, points caps, expiry rules and redemption conditions. Avoid spending more than planned just to earn rewards.

Compare published rates, fees and conditions against your spending habits and repayment budget. Read the terms and conditions and seek clarification about anything you do not understand.

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Please note that some of our calculators may use assumptions that are not necessarily applicable to your current specific circumstances and we therefore cannot always guarantee their accuracy.

We recommend that you seek professional financial advice from a licensed professional before proceeding with a loan.

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