Tips for choosing a credit card

To ensure you get the best card for you, you need to understand how you use it.

Tips for choosing a credit card

While not everyone has a credit card, it is a convenient way to spread costs. To ensure you get the best card for you, you need to understand how you use it.

Do you pay your card in full each month?

Without stating the obvious, by not paying your balance in full each month, you’re essentially throwing money down the drain on interest payments. That being said, not everyone is in a position to clear their monthly balance. If this is you, then you should consider a card that offers no, or low, interest to limit the how much is added to your balance.

Compare low- and no-interest cards at

Are the rewards worth the fee?

Fees on credit cards can vary between $30 and $450 per year, and while the rewards, such as frequent flyer points, free travel insurance or even concierge services, can seem appealing you should question whether you use them to their full value. If you use your card only for emergencies, rather than regular spending, then a no-fee card may suit you best.

Compare no fee cards at 

Are interest charges outweighing points collected?

Interest charges on cards that offer reward points are often higher than those with no loyalty scheme attached. However, if you’re truly maximising the rewards available, and this takes some skill to do, then the interest rate you pay may be less important than the points you earn. The associated reward program should also be aligned with other reward programs of which you are a member – e.g. Qantas Frequent Flyer.

Compare cards with reward programs at

Where can it be used and how much do you pay on transaction fees?

It’s worth thinking about where you use your card and how much retailers charge you for the privilege.  While American Express cards often offer greater rewards, they are not as widely accepted as others, and retailers often charge a much greater fee when they are accepted.


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    24th Apr 2015
    We have an interest bearing credit card with the NAB - good returns and money is taken from our account straight away, no waiting til the end of the month.
    24th Apr 2015
    I have not heard of that - a credit card with 'positive' interest! I was not able to locate it or one like it with any other mob? What is the name of it please?
    24th Apr 2015
    If you cannot pay out your credit card bill at the end of each month then you are overspending and should probably NOT have one.
    24th Apr 2015
    I do agree totally because the only financial advantage by using a credit card is if one is able to pay it in full at the end of the term. I always do and the reward I earn are above the annual fees. Banks do not profit with my system and tanks to those who don't know how to budget I do get the benefits...LOL!!!
    24th Apr 2015
    Probably, arguably, right in principle, but not really in concert with 'modern ways' and modern pressures. Just as 'we' are beckoned to eat more and generally consume more, so it is similar and correlates with spending. And CCs are then often the basis of that shift and the 'get it now' pressure. Without CCs, what would happen to the 'corporates' and the generally 'big end of town'?!
    24th Apr 2015
    Hi GeeDub - it is a NAB Visa debit, same as a credit card but money comes out as you use the card and you get a 3% interest on savings in the account, interest paid quarterly. So our savings as well as spending also grow.
    fish head
    25th Apr 2015
    The best credit card is no credit card. If I do not have the cash I do not buy.Yes, it takes a little longer but my books always balance.Credit cards are plastic temptation.

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