6 simple questions to ask about your credit card

Credit cards are convenient but come at a price if you don’t choose the right one. Research shows people often spend more when they use a credit card than they would if they were using cash – it’s so easy to feel like it’s free money.

If you’re thinking about getting a credit card, here’s six simple questions to ask before you commit.

1. Am I ready?

A credit card won’t pay itself off. Before you apply, think about why you want it, how you’ll use it and how you’ll pay for it.

Try and avoid applying for a credit card to pay off other debts – it may start a vicious circle of debt. A personal loan to consolidate your debt may be a better choice with a lower interest rate and less temptation to spend outside your means.

2. What’s the interest rate and the interest-free period?

Interest rates differ depending on the type of card, features, benefits and annual fees.

If you pay off your credit card each month a card with an interest-free period may work for you. This means you can make a purchase and not pay any interest for a certain number of days The Bluey credit card offer up to 55 days interest-free. 

QBANK tip: Get into a payday habit of clearing your credit card debt.

3. Does the card offer benefits and do I need them?

Some credit cards offer benefits like cash back, frequent flyer points or reward schemes.

These features may come at a cost. Check the options available to you, and weigh them up against annual fees, interest rates and any other charges.

The best reward? Cash you can spend however you choose.

4. Are balance transfers worth it?

A balance transfer lets you transfer an outstanding balance from one credit card to another – generally with a lower interest rate, a payment break or other benefit.

For example, a balance transfer to QBANK means you pay no interest on your balance for the first twelve  months. It's a great way to buy some time to pay off your credit card balance without interest making you feel you’re getting nowhere.

Before you decide to use a balance transfer:

  • check the interest rate after the balance transfer period ends is competitive
  • make a plan not to use the new card during the interest-free period – the standard interest rate is likely to apply, and you won't be eating away at your main balance
  • commit to getting rid of the card you're transferring the balance from. Otherwise, you may find yourself with two debts to pay.

5. What fees will I have to pay?

Check the fees when choosing the right credit card for you. These can add more to the cost of your card, and include:

  • annual account fees
  • fees for reward programs
  • late payment fees
  • cash advance fees (charged on top of your interest on cash advances)
  • fees for exceeding your credit limit
  • international transaction fees.

No one likes paying extra money for things they don’t need. If you don’t need extras but want the convenience of a credit card, look for no or low annual fee credit cards.

QBANK tip: Businesses aren’t allowed to charge excessive payment surcharge fees on credit, debit and prepaid cards. They can’t charge you more than what it costs them to process a payment.

6. How do I compare?

Canstar is Australia’s largest financial comparison site and lets you search for a suitable card based on your needs.

QBANK tip: We’re proud to say our Bluey credit card has a 5-star rating from Canstar.

Get QBANK peace of mind

Ready to keep your finances flexible with a credit card? Check out the Bluey or call QBANK on 13 77 28.

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Credit Cards

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