It’s no secret that Australian’s love to shop on credit cards, with almost $32 billion in debt owing across the nation. Add the Christmas shopping rush on top of that and it’s highly likely that many of us will be giving our plastic a serious workout over the coming months.
The key to escaping this period with your credit score in tact can sometimes be the card you’re using. Depending on what type of credit card user you are, different cards will be able to fulfil your needs best.
Here is a rundown of some of the best cards on the market for different types of spenders.
If you pay off your balance every month
If you’re the kind of user who pays off your credit card balance in full every month, then you don’t need to pay too much attention to the interest rate. Instead look for a card with no annual fees that will help you keep costs down.
If you need extra time to pay off the card each month
If you always struggle to get your payments in by the standard 55-day interest free period, you may benefit from switching to a card that has an extended interest free period. There are cards on the market that offer up to 62 days without charging interest which may be more appropriate for your spending style.
If you need to move your debt before the Christmas season
If you’re already in a bit of a debt cycle and you need to relieve some stress before the Christmas period, you may want to consider switching to a balance transfer card. These cards allow you to move your debt to a new card that won’t charge interest for a period of time. You can use this period to pay down the debt interest free.
If you want to be rewarded for spending
If you love the rewards side of credit cards, and don’t mind paying the extra fees to get them, then there are a range of cards that could be suitable for your needs. Especially if you are always able to pay off the balance on time, and therefore aren’t concerned by the interest rate.