| Today the credit card market has reached almost | | | | Annual fees are more like service charges which |
| saturation point in Australia. However this hasn't | | | | banks charge from customers in return for their |
| stopped credit card providers from offering lucrative | | | | offerings. These days, however, manyh banks issue |
| deals or promotional schemes, neither has it stopped | | | | credit cards with no annual fees, while some others |
| the average Australian consumer from procuring more | | | | issue cards which have a zero annual fee only for a |
| cards. If you are new to the market, here is a guide to | | | | specific duration such as for the first year. After that it |
| help you compare credit cards and pick the best one | | | | goes to the regular standard. Be sure to keep a tab on |
| for you. | | | | the duration. |
| The ultra competitive credit card market has practically | | | | Rewards programs |
| reached saturation point. However, it has now stopped | | | | In an effort to lure more customers by the day, many |
| credit card issuers offering attractive deals and | | | | financial institutions today issue credit cards which |
| promotions, nor has it stopped the average consumer | | | | provide cash back, frequent flyer miles and other |
| from applying for more cards. | | | | rewards points. Some may help you accumulate |
| If you are new to the market, here is a guide to help | | | | rewards points on purchases made on the card while |
| you compare credit cards and pick the best one for | | | | others may reward you when you use the card to |
| you. | | | | purchase airline tickets etc. Thus when you compare |
| Interest rates | | | | credit cards make sure to scrutinise this feature as |
| This should be one of the first things to look out for | | | | you can mostly extract a good deal owing to the |
| when shopping for credit cards. Credit card interest | | | | competitive industry. |
| rates can be unusually high and if you're not reading | | | | Fixed and variable interest |
| the fine print you could be taken for a ride. While many | | | | Other than just the rate of interest on the card, usually |
| card issuers offer 0% rates they are introductory | | | | you'll also need to check the kind of interest on it. |
| offers for a limited period only. Hence such credit card | | | | Credit card interest rates usually come in two types - |
| interest rates are more of promotional offers. In such | | | | fixed and variable. The fixed one, as the name |
| cases be sure to read the offer document carefully | | | | suggests involves paying a fixed amount every month. |
| and ask what the interest rate will be after the | | | | However, the variable one can be a little tricky as it |
| promotional period. | | | | fluctuates based on market conditions. So if the |
| The grace period | | | | market interest rates are low you are one of the lucky |
| The grace period is usually the number of extra days | | | | few. However if it is on the upside then you will be up |
| the bank gives you after the due date, to pay off your | | | | for a lump sum payment each month! |
| outstanding balances. During this time no interest gets | | | | Late fees |
| charged to your account. Usually the grace period is | | | | Depending on how much you default on your |
| from 30 to 55 days. However with the credit card | | | | payments, credit card companies will charge a late fee. |
| market being so competitive it would do you good to | | | | Be sure to check on this aspect as well when you |
| compare credit cards and look for the one with the | | | | compare credit cards as a steep late fee can mean |
| highest grace period. | | | | having to pay a large amount when you miss the |
| Annual fees | | | | payment! |