Thursday, 3 December 2020

Compare credit cards – Tips from Peter Kell – MoneySmart

Compare credit cards – Tips from Peter Kell – MoneySmart
01 Aug

Hi my name is Peter Kell and I'm a Commissioner at ASIC And I've been working in the field of consumer protection for more than 15 years

I'm here today to talk about tips on the best way to choose and use a credit card <What kind of credit card is right for you?> It's based on one decision… Can you pay the whole balance each month? If you can, choose a card with interest-free days (which means you can save yourself interest charges if you pay off your purchases within the interest free period, about 55 days) On the other hand, if you think you'll keep rolling over your credit every month then choose a card with a lower interest rate and fees Try not to base your choice on reward points, no matter how aggressively they're marketed at you, and don't just sign on with the bank you use You can shop around online, it's easy these days, to find a good deal on interest rates, features, and fees <How can you compare cards?> An easy way is to ask the bank for a key facts sheet – it'll have 4 key pieces of information: The first is how minimum repayments are calculated, the second is your interest repayments, the third is if there's an interest-free period, and finally any fees

<Top tips on using a credit card?> The most important is to Pay off as much as you can every month Even before that, watch your spending so you can stay on top of your debt Make sure you Set your credit limit to an amount you'll be able to manage If you're using a card because you don't have the cash, ask yourself, do I really need this right now? If you're not in a rush, use lay-by: where you pay for your purchase over a period of time, interest free Try not to fall for the temptation of using cash advances – because they can be very expensive

Or you may be better off with a debit card or prepaid card – so that you can only spend money that you have Take a look at ASIC's MoneySmart website for more information on borrowing and credit <Want to sort out your credit card debt?> You can use MoneySmart's credit card calculator to see if you can pay off your card faster And if you do run into difficulties, get help as soon as possible: Contact your credit card issuer straight away if you are having difficulties with repayments Go to the MoneySmart website – there is a section on Managing debts, and information on financial counseling

There are always options available and people who can help you

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