Aussie Credit Cards – This guide has been written to inform you about getting the right Australian credit card to meet your personal needs.
There are hundreds of types of cards, it is imperative to select the right card.
Selecting the right card could save you hundreds of dollars in the long run or give you rewards such as free travel, appliances and other perks.
Best use of a Credit Cards
It is a card with a magnetic strip, issued by a bank or financial institution to a customer to buy goods and / or services on credit. Credit cards are a type of loan in Australia. Also called a payment card. Credit is money given to a customer for borrowing over a long period. Banks and financial institutions make money by charging interest on the money loaned to the customer. Typically, credit cards charge a high interest rate because a credit card is designed for small purchases for short periods.
Main Aussie Banks
Australia has four major banks with triple A (AAA) credit ratings. This is the highest level of solvency a bank or financial institution can reach.
The 4 main Australian banks are;
- Commonwealth Bank
- St. George Bank
- Westpac Bank
- ANZ Bank
These banks are still recommended for borrowing money as they are the safest and most regulated. However, they don’t always offer the cheapest available line of credit. Sometimes small banks and financial institution cards offer cheaper credit and a better deal with better customer service. Don’t forget to search for all the small banks and financial institutions, read the fine print on their contacts.
Which Aussie Credit Cards are Right For Me?
There are many types of credit cards on the market today, the shear amount of credit cards can make it difficult to choose your Aussie Credit Cards.
5 Categories of Aussie Credit Cards
- Balance Transfer – A balance transfer credit card is ideal when you currently have a debit on another credit card (usually over 5000 loan AUD) and want to exchange it on your new credit card with a new bank or institution financial for a lower interest rate. You will have the option depending on the credit card for 6 months 12 months or the lifetime interest rate, the lower the time, the better the savings. Essentially, you can switch from one card to another using the lowest interest rate over 6 months.
- Debit Card (Prepaid) – A debit card is essentially a prepaid credit card. This type of card is ideal for customers who wish not to have access to credit. Most customers who use this card usually buy items online, because this card works just like a credit card bar, the fact that you have to put some money into the card before you can buy your property or service.
- Frequent traveler – A loyalty card is intended for customers who wish to obtain points for purchases and transfer these points into rewards such as free air flights to destinations depending on the number of points you receive will translate to where you can go. To earn points, you must purchase items. The average points per dollar is 3 points to 1 dollar.
- Little Interest – Low interest cards are for customers who want to keep credit cards on their cards for extended periods of time, for example, if you don’t want to pay off your debit and just pay the interest, it’s This is the credit card you would use.
- Awards – Reward cards are for customers who use their card frequently for all or most purchases. For frequent use of your card, your bank will reward you with points, at the end of the year or within a specified time, you can exchange your points for goods and sometimes services. The catch on these cards is that if you don’t use your point within the time limit, you will lose your points.
Legal Requirements to Get a Credit Card?
- You must be 18 years of age or older.
- You must be meet your bank’s credit rating requirements
- Must be an Australian citizen, permanent resident or have an active Australian visitor visa
- Have to prove your gross annual income on paper
- Contact details of your employer (name and address)
- Details of your accommodation if you have one (estimated value, amount due on the property)
- Details of all existing loans (investment home loans, personal loans, leasing, credit and store cards)
- All savings, investments and chequing account details (account numbers and balances)
- Asset or investment information (property, stock, car, furniture and other asset values)
New Bank Customer
If you are a new customer of the Bank, you will need to go to your bank branch and provide personal identification, as well as the two most recent original payslips for the principal applicant. Personal identification documents include one of the following documents containing your photo: passport
- Australian driver’s license / firearms
- Proof of age card
- Or two different documents from this list: Birth certificate
- Citizenship documents
- Pension card
How to Increase Your Chances of Approval?
To increase your chances approve for an Aussie Credit Cards, run a credit history check on yourself. Visit the Veda Advantage, Dun and Bradstreet and Tasmanian Collection Service, these websites will give you a detailed credit report, these websites can take up to 10 business days to provide you with your report.
- Read your credit report well and check it for inaccuracies and other incorrect data. Send him back.
- Your credit history is only one factor that a credit provider can take into account when evaluating your loan request. Other factors can include your job, income, savings and any existing liabilities.
- It is recommended that when you apply for a credit card, you have been working for at least 12 months in the same company.
- Make sure your bank account indicates that you have money in it and that you keep (save) money. This will show the bank or financial institution that you have the option to repay your credit.
- Bankruptcy in most cases will hamper your efforts to find credit. If you have gone bankrupt, you may need to consult a professional to settle your credit.
- Other liabilities such as personal mortgage loans and car loans can be a factor when banks consider your credit card application. Make sure you can comfortably repay all of your commitments.
If banks reject for an Aussie Credit Cards application, you can always resubmit your application in 6 months (or less in some cases), contact your select bank and explain why you being refuse. Once you know why you are not approve, you can seek to correct your situation and then resubmit.