How to get a credit card that can mould to every aspect of your life

Published on November 25th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Having a credit card that really does it all might sound like a cheesy marketing gimmick, but it is possible to find credit card deals that can work as an all-rounder in your spending life. It is possible to have a credit card that works for you instead of digging you into debt. Here are five handy tips that can help you succeed in effectively using your credit card without having to break your budget.

Get a low rate card

Before you move to any benefits of having a credit card the greatest thing you could do for yourself is to get a card that comes with a low rate. With 1 in 6 Australians falling into the debt trap because of their card, it will help you in the long run. You should look at the APR rate which is expressed as a slightly higher percentage next to the interest rate for a true comparison. Not only will a low rate card help you save on your monthly repayments with an affordable rate, but it will also help you effectively manage any debt.

Get acquainted with your rewards and points

One of the benefits that come with using a credit card is that it comes with rewards and points that you can use to minimise your spending on shopping or flights. Reward credit cards usually give you 1% to 2% back on your purchase which can then be redeemed for cash, travel, merchandise and more. However, not all rewards and points are created the same in the sense that some have higher values than others. Checking to see if your points have a strong value system can be beneficial.

Know your card benefits

The annual fee that you pay for your credit card helps you gain access to some useful benefits that can protect you. For example, most cards will include price protection, travel insurance, extended warranty protection, trip cancellation coverage and more. These benefits can help you save hundreds of dollars over the life of your card. You will have to check the benefits of your own card from your issuer which one take more than a few minutes to access benefits that will be useful to you.

Set a realistic limit

Your cards limit can also play a part in using it responsibly. Generally, most credit cards allow you to set a limit for your card. It will work in your favour to keep your limit as low as possible so that you will be able to meet the monthly repayments without getting into debt. You are more likely to get into debt if you push your credit card limit higher. If you have already asked to increase your limit it could be a good opportunity to re-evaluate what you use the card to spend on.

Create a perfect mix with your store cards

The general rule of thumb is that you should never use your credit card to pay off necessities such as your grocery. If you find yourself relying more and more on your credit card you will have to re-evaluate your spending habits. You could possibly look into store cards that will help you earn reward points or give you access to discounts. However, it is vital that you check for any fees and services attached that could possible erode any potential savings.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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