Commonwealth Bank new Credit Card rates

Among the many advantages, probably the most important is having a backup card when something goes wrong. Whether your card has been lost or stolen, or your account has been suspended, it is a great convenience to have a second credit card to fallback on.

Another big advantage of having more than one credit card is for online transactions. Whilst online shopping is now commonplace, it still has some risk of fraudulant activity. Having one card dedicated to online purchases can minimise the risk of online identity theft.

Separating expenses easily is another benefit of having multiple cards. You may have a personal credit card and a separate credit card for business expenses.

The main disadvantage of having more than one credit card is that you have multiple bills and payments to make each month. Many people also find that more credit, means more temptation to spend.

Another disadvantage is that if you need a pin number attached to your credit cards, you have more to remember (or forget).

Finally, creditors see all available credit as a higher risk of going into debt. This can affect your ability to borrow money.

As you can see, there are good reasons for having more than one credit card. The average consumer has two or more credit cards. But there is no one answer to how many is right for you. This is an individual choice and should be based on your requirements.

With consumer spending down and people facing tough times, it’s an ideal time to look at ways to further minimise the financial stresses placed upon us. Credit card comparision is one easy way that consumers can make a difference.

By comparing credit cards we can get the best deals when applying for a new credit card. We can also compare our existing credit cards to make sure we are getting the most out of our credit card.

One of the most popular credit cards is the St. George Vertigo MasterCard. This card not only offers a great low interest rate, it also offer a 0% balance transfer offer for 6 months and a low annual fee.

Details of the St. George Vertigo Mastercard

St.George Vertigo MasterCard

The ideal credit card for shopping with a low rate on purchases.

St.George Vertigo MasterCard Features:

• A low rate on purchases of 11.89% p.a*
• 0%p.a. balance transfer rate for up to 6 months**
• Awarded Australia’s cheapest credit card – Money Magazine 2008.
• Up to 55 interest free days on purchases*
• Low $45 annual fee
• An additional card for a friend or family member, with all transactions on one statement
• Linked access to your other St.George accounts, for the ease of one card banking
• Instant discounts and added extras with St.George Instant Benefits

“Winner of Money Magazine’s Best of the Best Award for Cheapest Credit Card”

Disclaimer

* Interest rate is current as at 20/06/08 and is subject to change. 55 days interest free on purchases only on accounts paid in full by the due date. Interest free period does not apply to cash advances (cash advances are 20.49%p.a on Vertigo MasterCard), or any purchases while an amount that has been debited as a result of a balance transfer remains unpaid. All applications for credit are subject to the Bank’s prevailing credit criteria. Fees, charges, terms and conditions apply and full details are available upon request.

** If your application for credit is approved, the special balance transfer rate period commences on the date the account is opened. The special Balance Transfer interest rate period ends 6 months later, regardless of when any balance transfer request is processed by us. On the date the special balance transfer rate period ends the interest rate on the outstanding transferred balances reverts to the standard variable rate applying to purchases. Any interest free period for purchases does not apply while an amount that has been debited as a result of a balance transfer remains unpaid. Balance Transfers will not be accepted from personal loan, overdraft, business or St.George Group or international credit card accounts.

St.George Bank Limited ABN 92 055 513 070 AFS License No. 240997.

Interest Rate: 11.89%

Interest Free Days: up to 55 days

Annual Fee: 55.00

Balance Transfer Duration:

Balance Transfer %: 0%

This credit cards allows customers to earn points when shopping. When you earn enought points, you are then rewarded with shopping cards, which can be used to make purchases at the range of stores.

Details of the Woolworths Everyday Money Credit Card

Enjoy a fresh rewards program that can make a valuable difference to your everyday.

Earn reward points everywhere you use your Everyday Money Credit Card Every 4 months, if you have enough points, you’ll receive an Everyday Money Shopping Card. Whether you want new clothes, cosmetics, electronics or a whole lot more, our rewards are designed with you in mind.

Packed with fresh features and real value!

• Up to 3 reward points per dollar spent
• Up to 55 days interest free on purchases
• 5.99% p.a. for 6 months on balance transfers
• Your choice of four fresh card colours
• Free additional cardholder
• Worldwide acceptance wherever you see the MasterCard logo

Interest Rate: 0% until Feb 2009

Interest Free Days: up to 55 days

Annual Fee: 0 for first year then $49.00

Balance Transfer Duration:

Balance Transfer %: 5.99%

Credit card companies are constantly assessing the credit limits of their customers. If you have displayed a pattern of keeping up with regular payments with no serious defaults, then you will likely be offered a credit limit increase. These credit limits will likely continue to be offered at least annually, regardless of whether or not you can actually afford them.

So then, is it good to accept these credit limit increases?

Firstly, if you already have credit card debt and are struggling to pay off your balance, you should stay well away from any further credit limit increases.

Many credit card customers have far more available credit than they would ever need and most would be unable to pay off such a debt. Large credit card balances have become a major problem for consumers who are struggling with day to day expenses. Many will find it difficult to recover from such debt and will carry it into their retirement.

If you are not coping with your current debt and repayments, then a credit limit increase will only tempt you to get into even more debt. Your best plan is to try to clear your current debts as quickly as possible.

Secondly, having large credit card limits can affect your future financial situation.
Even credit card customers who consistently pay off their card balances each month, should think twice before accepting a credit limit increase.

All available credit limits are seen as potential debt. This means that if you are applying for a home loan or car loan, your credit card limits will be taken into account. This could affect your ability to qualify for the loan you need.

So, unless you can definitely afford it, accepting these credit limit increases is not a good idea.

With credit card fraud on the increase you would expect to be asked more often.

This may be the reason why! Apparently, the agreement which merchants hold with credit card companies (VISA and MasterCard) does not allow sales people to ask for the customers ID when using a credit card. Merchants are required to accept the credit card, no questions asked. However, there are a few situations when the merchant can request ID to be shown. When proof of age is required for the purchase of alcohol or cigarettes or when the signature appears suspicious. A merchant can also refuse to accept the credit card if it has not been signed.

During high school I knew many students, including myself who had their parents signatures mastered as a way to get out of certain activities and even have days off school without their parents knowing. It shows that if the desire to deceive is there, it is quite an easy task. It is therefore no stretch of the imagination to figure out why credit card fraud is now so prevalent.

A few Australian credit card providers have now gone a step further to protect their credit card holders from fraudulent use by implementing photo ID on their credit cards. This way the salesperson can instantly see whether you are the cardholder or not. This simple measure is one step in the right direction to help prevent credit card fraud.

Whilst balance transfers can be just the thing to help you get back on track, you should be aware that there are indeed some pitfalls that can put you into more debt than when you started. The key to making the most of these great offers is to be completely informed, and make sure that you completely understand the terms of the agreement.

You should be able to answer the following list of questions before accepting any balance transfer offers:

• What is the duration of the balance transfer offer ?
• What is the balance transfer % being offered?
• What will the interest rate revert to when the balance transfer offer ends?
• What will the rate be for new purchases and cash advances?
• Are there any fees to take out the balance transfer?

What is the duration of the balance transfer offer? Most balance transfer offers last for 6 months with a couple of providers offering 12 – 18 months. There are also a few providers offering balance transfers for the life of the balance. Usually you will find that the shorter the duration, the lower the interest rate will be and vice versa.

For these offers to be effective in reducing your current debt, you need to be certain that you can pay off all or most of the transferred debt within the specified time period. If much of the debt still remains at the end of the offer period, it usually reverts to the standard variable rate of the credit card which could in fact be more that you’re paying now. If you think that you’re unlikely to reduce the debt substantially, you would probably be better off looking into a good low rate credit card.

What is the balance transfer % being offered? You can’t beat a balance transfer offer of 0%. However, these offers are usually only for a duration of 6 months. If you are not certain that you can significantly reduce the transferred debt within this time period, then you would be better off considering a balance transfer offer with a little higher interest rate over a longer duration. This would give you a more realistic chance of clearing your debt whilst still enjoying a low rate.

What will the interest rate revert to when the balance transfer offer ends? This is impossible to know for certain. Although, you can probably get an idea by comparing the current interest rate for the particular credit card with other cards on the market. How does it compare?

What will the rate be for new purchases and cash advances? Most credit cards offering balance transfers usually have a higher interest rate for new purchases and cash advances. For this reason many people use the card solely for the balance transfer and don’t plan on using the card. You would be better off applying for a balance transfer card, coupled with a good low rate credit card for new purchases. Cash advances are usually a much higher rate again than the standard interest rate and should be avoided unless absolutely necessary.
Are there any fees to take out the balance transfer? Check to see whether there are any fees or charges for taking out the balance transfer offer. If there are, make sure that these fees do not negate any benefits that you will gain.