After my rant about how credit-cards-are-out-to-screw-you I thought I would write about how to pick the best credit card for you.
You might be just looking for your first credit card, a balance transfer or a better deal.
Since I still have a balance on my AMEX I decided I should transfer.
So I applied for a new credit card last Monday (and applied to transfer my AMEX balance onto the new card). About 10 days later I have received my new card and have transferred my balance to a interest rate over 10% lower for the next 6 months.
Doing your homework – Comparison Sites
The good news is – there are heaps of sites to compare credit cards (as financial institutions pay for signups).
Picking the best card for you
There are a number of factors to think about including: Annual Fee, Rewards, Balance Transfer conditions, etc.
I originally got a credit card with a nil annual fee. But then I went on the rewards program. The cashback I got from the rewards was more than the annual fee.
But an annual fees add to your costs – and can make the benefit of a lower interest rate be wiped out in a few years.
How much will it save me
I ran my calcs through a spreadsheet I made. Obviously if you make minimum repayments on your credit card you pay astronomical interest (and the.
But even If I managed to pay the debt off in a year – I would still save about $300.
Some Comparison Sites
http://www.creditcardfinder.com.au - Has a great compare list with different categories like low interest cards, best credit cards, balance transfer cards, no annual fee cards (my personal favorite), etc. View a few lists to see different cards to decide what you might want.
http://www.whistleout.com.au/CreditCards - Probably the best search function - once you answer the questions about what you want the left hand toolbar allows you to refine your search.
http://www.comparecreditcardsaustralia.com.au/ – The site looks pretty good although I picked up a few minor errors in their information. E.g. the Citibank card didn’t have an annual fee but on the Citibank site in the fine print showed $49 then $89 in the 2nd year.
http://mozo.com.au/ has credit cards and other comparisons