How to identify good and bad credit cards

Can you spot a bad credit card? Credit cards have become the latest fashion accessory. The little piece of plastic, in all its array of colours and platinum statuses, gets tossed about with pride. Credit card companies have a tonne of marketing ploys to win your business, so spotting the good from the bad isn’t an easy task. 

Identifying the right credit card comes down to doing your research and understanding your spending and repayment habits.

What is a bad credit card?

A bad credit card could simply be one that doesn’t suit your needs. Even the most popular ones with the lowest rates could give you a headache if you keep exceeding your limit, and the ones with the world’s best rewards programs could cost you hundreds if you’re a light spender.

Bad credit cards can come in many disguises. Watch out for companies offering uncommonly low rates. Some of these are only introductory, slamming you with high rates after a few months, while others could triple the rate after a single late payment.

What is a good credit card?

Good credit cards understand borrowers, and give you reasonable features that suit different types of spenders.

It is possible to find a credit card with reasonable interest rates and good rewards but you will have to shop around. It might be a case of finding a credit card with an average interest rate but great rewards. Depending on your spending and repayment habits the rewards might be more valuable to you than having the lowest interest rate or vice versa.

Use RateCity’s credit card comparison tool to view some of the best credit cards, all with some of the lowest rates in Australia, so you know you’re getting the gems.  

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