You will be surprised to find how easy it is to reach your credit limit with a single purchase. The general rule is to use no more than 30% of the credit that is available to you. However, not checking your statements along with your credit report can land you in hot water whereby you make one purchase that force you to carry over your credit cards balance. This can have a negative effect on your credit score. Here are five ways carrying over your balance can affect your credit score.
Supermarkets have come up with credit cards that work just like any other credit card. However, they differ in the sense that they boast of giving you back rewards that put extra cash back into your pocket. Recent credit and debit card statistics released by Finder shows that there are over 16,717,777 of credit cards in Australia already in circulation to help people with their 99 problems, a supermarket credit card won’t be one. Here are three reasons why:
With its low interest rates and low annual fees, a supermarket card comes in handy to help you during those tight squeezes in the moth. A good supermarket credit card can save you from 1% right up to 6% when it comes to your grocery bill. There are a variety of cards to choose from like the Australian Coles low rate Master card that has an interest rate of 12.99% on purchases with the first 62 days free of interest.
This could be every shoppers dream come true. Both Coles and Woolworths in Australia offer good value reward programs that will aid you in times of need. The type of reward schemes linked with your card can make you go further by redeeming points that you can later use at associate stores. For example, Coles No Annual fee Mastercard can let you earn flybuys points per $1 spent on everywhere you spend. The only catch is that these need to be eligible purchases and they expire after 36 months. Woolworths also offers rewards, but only on their platinum cards, but unlike Coles their rewards never expire.
You probably had your hopes raised at the vision of avoiding long queues at the shop. Perhaps this will become a reality soon, but the queues we are talking about are bank queues. Coles has smart bank cards that can be linked with smart phones to sort out your credit card bill on your phone.
It is important to read the fine print of these credit cards. There are some transactions that are ineligible transactions, which means you cannot gain points. Sometimes you will have to separately apply for reward programmes despite it being advertised as being under one card. Ask if your card automatically signs you up to all programs or not. The decision lies with you on whether you need a supermarket credit card or not depending on your needs and spending habits.