Our Branch Manager at The Entrance, Vicki Briggs, asks why some banks aren’t cutting credit card rates and provides you with some tips on getting a better deal on your credit card and using it wisely.
Do you know the current interest rate of your credit card? Has it come down lately?
At a time when many credit card holders are still waiting for their bank to pass on any of the reductions other borrowers have received, The Greater has cut its credit card rate by 0.49%. From June 1, The Greater’s Visa Card rate will start from 10.25%.
This makes our card, which already has a five star rating from Canstar, even better value for people. As well as a low rate, the card provides up to 55 days interest free on purchases. The annual fee is waived if people spend a minimum of $10,000 each year.
While credit cards are a safe and convenient way to make purchases in store or online, here are my top five tips to make sure you don’t card into hot water when using the plastic.
My Top 5 credit card tips
- Limit the number of cards you own. Remember store charge cards are effectively credit cards.
- Pay your card off in full each month to avoid interest. If you can’t pay it all off, pay as much as you can and never pay just the minimum amount on your statement.
- If you get into trouble with cards, get help from your financial institution or a financial planner. Consider redrawing off your home loan or taking out a personal loan to pay off that debt (those rates should be lower than the credit card rate).
- Unless you spend at least $1,000 per month, credit card reward schemes, which often come with higher annual fees and rates, are not always worth it. You need to spend big money and avoid interest charges to get value from them.
- Cards that offer no interest balance transfers are good if you can repay your whole debt within the interest free period. If not, they’re only a short term fix.