The Best Credit Cards in Australia - 2009
The best credit card for you, all depends on what you want to use your credit card for. Below are the best credit cards in Australia for 2009, based on what you might be looking for:
1. The Lowest Interest Rate - Purchases
The first winner for 2009 is the National Australia Banks 'Low Rate' visa card. This currently has a low interest rate of 11.75% on purchases, with an interest free period of 55 days. Although, great for purchases, if you have a need for cash advances this is not the card for you, as the rate is currently 19.99%.
The annual fee is a reasonable $49, and there is a honeymoon period of 6 months with no interest on balance transfers. However, be careful as this balance will be classified as a cash advance once the honeymoon period is over and you will be charged the 19.99% rather then the low rate for purchases.
2. The Lowest Interest Rate Cash Advances
The 'Start Low Stay Low' credit card with St George, has the lowest interest rate for both cash advances and purchases, both at 12.24%. The annual fee is a little higher being $69, but if your have the need for cash advances, this is certainly the card for you.
It has the usual 55 days interest free, but there are no rewards associated with this card, so you really need to weight up if your really need to make cash advances on your credit card for this one.
3. The Best Honeymoon Period
Again, St George is the front runner for this category, with their 'Vertigo' mastercard. For balance transfers there is a honeymoon period of 6 months with no interest. This is great, if you already have high credit card debt and are looking to save some interest.
In addition the 'Vertigo' credit card has a low interest rate on purchases being 11.89%, however I would still recommend the 'Start Low Stay Low'card if your looking at making cash advances as the interest rate on this card is 20.49%.
The annual fee is only $55, and has the usual 55 days interest free period on new purchases.
When researching for credit cards with a good honeymoon period, always read the fine print, particularly the rate that the balance transfer will revert to once the honeymoon if over. In the case of the 'Vertigo' card, the balance reverts to the purchases interest rate of 11.89%. However, the National Australia Bank has the same special offer for there Low Rate Visa card, however the balance transfer changes to a cash advance and the interest rate is 19.99%.
4. The Best Rewards, and Lowest Annual Fee
So if your not looking at being in debt for long, or paying off your balance before the usual 55 days interest free period, then you should look at the rewards and the lowest annual fee, rather then the lowest interest rate.
I currently use my credit card, as a means of managing my cash flow better, by putting all my purchases on my credit card, and paying the balance off at the end of the month. If you have rewards attached to your card, you can essentially get free stuff for the pleasure of using the credit card that does cost you anything other then the annual fee.
The new Woolworths credit card has to be one of the best rewards cards around at the moment. At the time of writing there is a special offer of $50 credit if spent before April 09 and the annual fee of $49 is wavied for the first year. In terms of rewards you can earn a minium of 1 point for every dollar, but depending on the store a maxium of 3 points.
Rewards earned go to Shopping Cards rather then to items, so after four months depending on the number of rewards you have you will be eligible for a certain shopping card value that can be spent at participating stores. Lets face it we all have to eat, and Woolworths is one of those stores these rewards can be spent.
5. The Best Overall Card
If your looking for a mix of a good rate, reward, annual fee and honeymoon period, you should check out the 'ANZ Balance' visa card. The standard interest rate on purchases is 12.99%, and 19.99% on cash advances. The is currently a honeymoon period of no interest for 6 months for balance transfers at the time of application, with balance transferring to the purchases interest rate once expired.
You also have the usual interest free period of 55 days, and you receive 1 reward point for every dollar spent, which do not expire for as long as the account is open. The annual fee is $79, which is a little pricer then other cards, however if your not certain on how your going to be using your credit once approved this could be the way to hedge your bets.
These are the best credit cards around in 2009, however you should always check the interest rates and conditions of all bank accounts including your credit cards you are looking at applying for. Terms and conditions are always changing and if you are unsure, don't be afraid to ask.