If you are looking for a new credit card for your personal use to go shopping with, you should compare some great credit cards offers from many different lenders. Getting a new credit card can be exciting, you may already have one which doesn’t suit your needs and want to change for one with better features. Or you could be looking for your first credit card and not really be sure what you need. All credit cards spending needs to handled responsibility so to help you find a new credit card, you should consider what sort of credit card you might need?

Lower interest rates save you money

If you choosing a new credit card, select one with interest charges can afford. Use a credit card interest calculator to see the difference between what interest charges really cost you each month or year. Its the best way to know what a credit card is likely to cost you.

Using a balance transfer

If you want to switch credit cards and get a break on interest fees, balance transfers offer low to no interest charges on your loan for a period of months. But to benefit from balance transfers you need to use this time to get ahead on your repayments. You should not use your credit card until the debt is repaid otherwise the interest rates will be applied to your balance when the time is up.

Pay more than the minimum repayments

Just paying the minimum amount off your credit card each month will not reduce your debt at all, you will be just paying off interest if you are not careful and never get ahead. You could transfer the debt to a low interest rate personal loan if you’re having trouble meeting you financial obligations. It’s best to repay your credit card balance in full every month if at all possible.

Choose credit cards that suit you’re repayment habits

Knowing what your spending and repayment habit is, you can compare credit card features and calculate how much it will cost you. If you don’t repay your credit card debt in full every month p then low interest rate credit cards are probably right for you. If you do repay the full amount off your credit card every month, you can benefit from rewards, frequent flyer or premium service credit card features which have higher interest rates.

Avoid late payments penalties

If you don’t meet the minimum credit card repayments you could be charged a dishonesty fee for the lateness of payment. If you having trouble meeting credit card repayments, you should consider stop using your credit card until you can meet repayment or seek financial advice and find some bad debt solutions.

Non banks offer great credit card deals too

Smaller banks, building societies and credit unions offer some great credit card deals that are just as good as the major Australian banks. They increased competition in the Australian credit card market brings downward pressure on credit card fees, charges and interest rates. You could benefit more from a smaller institution on a new credit card.

If you own a credit card your probably know how all too easy it is to build up a debt. Here are some great tips about reducing your credit card debt that can really help reduce debt.

Make regular repayments
Stop Spending on your card for a while
Use a debit card instead
Use your savings
Consider Switching Cards

Make Regular Repayments
Do you know when you should repay your credit card? as soon as you can? That’s why you should always make a budget to make regular repayments on your credit card. Yes credit cards are useful for buying anything without cash but you should avoid the interest charges you get for any debt, it’s too easy build the debt up and harder to get it down.

On your credit card statement you will see a minimum repayment amount; this is the amount your credit card lender wants you to repay. If you repayed your credit card at that minimum rate you probably never get rid of your card debt. This is why you should always repay more that the minimum, and probably pay as much as you can regularly.

Stop Spending on your card for a while
If you can resist the temptation, stop using your credit card until you have reduced your cards balance. Debt can creep up on you slowly, especially with credit cards. So if you find yourself in debt difficulty you will want to manage your money better and try to stop spending on it. Which means you stop racking up the debt, start using cash for all purchases and chip away at your credit card debt until it’s gone.

Use a Debt Card instead
A debit card is like a credit card except it draws money directly from your own bank account. Think of it as like an eftpos card that can use credit card payment facilities. Debit cards give you the buying convenience of shopping online and not incurring any debt. This will help you if you have to use your credit card for payments like’s essentials avoiding a debt in the first place.

Use your Savings account?
If you do have money sitting in a savings account, you should pay off your card debt and avoiding interest charges. The interest you earn from your savings account doesn’t offset the higher credit card interest charges. You can start saving again once you have reduced your credit card debt.

Consider a credit card switch
Does your current credit card give you a competitive interest rate? You can switch credit cards to get a better interest rate or annual fee. You should compare what your current credit card charges you and what other low rate credit cards could offer you. Even just a few percent interest reduction can save you a lot in the long run.

Most new credit card applications offer a balance transfer period where little to no interest is charged on all of your transferred debt. These interest free periods are there to help you switch credit cards and give you an opportunity to meet all your repayments.

Have you noticed when the Reserve Bank of Australia changes the cash rate, credit card interest rates don’t seem to move too much. That is because the interest rates charged on credit cards is generally so much higher that the rates the RBA sets.

The RBA uses what’s called the monetary policy to control financial markets in Australia, it is the cash rate the RBA changes that has the most influence.

“The cash rate is the rate charged on overnight loans between financial intermediaries. It has a powerful influence on other interest rates and forms the base on which the structure of interest rates in the economy is built.” (http://www.rba.gov.au/monetary-policy/about.html)

Yet the cash rate in relation to credit cards doesn’t move the credit card rates as much as Home Loans.

The cash rate is so much lower that the interest charged on credit cards that when the RBA do change the cash rate, credit card interest rates don’t move as much. An example would be the card lender borrows money for a lower rate (say 5%) and charges 4 times that for a credit card (20%).

Still the lenders usally increase their rates quickly when the cash rate does move up and more slowly when the cash rate heads south as we have just seen through the GFC.

If you are concerned about the interest rates on your card, you should consider balance transferring to a low interest credit card and minimise any interest you do have to pay.