Money matters: Who can you trust?

With such a proliferation of financial products on the market these days, how do you know what's right for you and who do you talk to for the good oil? Many of us who have a mortgage or credit card on our shopping list will ask friends, family and even neighbours for their advice. We listen intently as our chosen advisors regale the merits of their mortgage or the cost effectiveness of their credit card. But where do we go from there?

Before embarking on a copycat program and applying for the exact same financial product, stop and think about your own financial situation. Is it really exactly the same as that of your advisor? If it is, terrific, you've probably taken a successful shortcut to your desired mortgage or credit card. Chances are, though, your financial situation is unique and what's best for your neighbour may be far from ideal for you.

Australian financial services have evolved significantly in the past five years and many more specialized options are now available, driven largely by increased competition among financial institutions. In this highly-charged environment of multiple choice products, you stand to benefit big-time by enhancing your lifestyle with a cleverly matched financial product.

For example, credit cards now cater for two basic types of spending and repaying behaviours - revolver and transactor. A revolver is someone who can't pay off the balance each month and revolves the debt from month to month. A transactor, on the other hand, pays off the debt in full each month. If you are a revolver, you would look for the lowest interest rate and annual fee you can find. As a transactor, the interest rate won't bother you because you never pay interest. Features such as interest-free days, rewards and to a certain extent, annual fee will be on your most wanted list.

Mortgages are even more specialized. You can choose from any number of variable or fixed rate home loans, with or without redraw facilities, offset accounts, ongoing fees, early repayment penalties and many other features. The bottom line is that friends, family and neighbours will tell you what financial product they have found that's perfect for them but in the end, you have to find what's right for you. Shop around online and do your research to start building your knowledge of financial products currently on the market.

How do I compare credit cards and mortgages?

RateCity is the best website to shop around on for over 250 credit cards, 2000 home loans and most other financial products. At RateCity, you can use expert comparative data from CANNEX, Australia's leading financial research and ratings firm. CANNEX has analysed and evaluated hundreds of products to award five stars to only the very best. The CANNEX star ratings go much further than just looking at interest rates. They also take into account important features so you can be confident you are getting the best product.

Use our easy search tools to compare credit cards at RateCity.

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