Skye Mastercard offers up to 90 days interest-free

Skye Mastercard offers up to 90 days interest-free

FlexiGroup has launched a new credit card that comes with several innovative and stand-out features.

The FlexiGroup Skye Mastercard has an interest-free period of up to 90 days, and does not charge foreign transaction fees for online and overseas purchases.

The Skye Mastercard offers a maximum credit limit of $50,000. It charges an annual fee of $99, although this is waived in the first year.

Applicants must meet four criteria to qualify for the card:

  • Have a clear credit file
  • Be at least 18
  • Earn at least $25,000 per year
  • Be an Australian citizen or permanent resident

Security code changes every hour

The FlexiGroup Skye Mastercard also comes with ‘motion code’ technology, which automatically refreshes the CVV security code every hour to provide safer online transactions.

The battery for the CVV mini-screen is designed to last at least three years.

Another of the card’s features, called SkyePlan, allows users to convert purchases of $250 or more into three different instalment plans:

Plan length Interest rate Establishment fee
9 months 0% 3% of purchase price
12 months 0% 4% of purchase price
15 months 0% 5% of purchase price

SkyePlans can be established within 30 days of making an eligible purchase, although they can’t exceed 80 per cent of a user’s credit limit.

 

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How does credit card interest work?

Generally, when we talk about credit card interest, we mean the purchase interest rate, which is the interest charged on purchases you make with your credit card.

If you don’t pay your full balance each month (or even if you pay the minimum amount), you are charged interest on all the outstanding transactions and the remaining balance. However, interest is also charged on cash advances, balance transfers, special rate offers and, in some cases, even the fees charged by the company.

The interest rate can vary, depending on the credit card. Some have an interest-free period, otherwise you start paying interest from the day you make a purchase or from the day your monthly statement is issued. So avoid interest by paying the full amount promptly.

How is credit card interest charged?

Your credit card will be charged interest when you don’t pay off the balance on your credit card. Your card provider or bank charges you the individual interest rate that is associated with your card, which is usually between 10 and 20 per cent. 

The interest will be added onto your bill each month or billing period if you don’t pay off the balance, unless you are in an interest-free period.

You will be charged interest on anything that hasn’t been paid for inside the interest-free period. Usually you will receive a notice on your bill or statement saying you will be charged interest so you have some form of notice before you’re charged.

How do you apply for a credit card?

You can apply for a credit card online, over the phone or in person at the bank. Once you’ve compared the current credit card offers, the application process is quick and easy. Before you get your application started, you’ll need to gather your personal information like proof of ID, payslips and bank statements, proof of employment and details of your income, assets and liabilities. To be eligible for a credit card, you’ll need to be an Australian citizen over 18 and earn a minimum of $15,000 each year. Once you’ve applied for a credit card, you should get a response fairly instantly. If your credit card application has been approved, you should receive a welcome pack with your new credit card within 10-15 days.

How to apply for an HSBC credit card instalment plan?

HSBC provides a host of different features and benefits to its customers, including interest-free finance options for purchases made at select retailers.

Using this feature, you can make a purchase in-store or online through your credit card, and spread your repayments for up to 60 months. Opting for a credit card instalment plan may be an ideal option as you can make big purchases without worrying about making immediate payments. 

The interest-free instalment plan is valid for all HSBC credit cards, so you shouldn't need to fill out separate forms or apply for a particular plan. Rather, all you should need to do is use your HSBC credit card at any of the participating retailers and inform the vendor that you want to pay using HSBC interest-free. 

As HSBC has partnered with over 1,000 retailers for its interest-free credit card instalment plan, you get the flexibility to purchase a host of different products. Some of the popular retailers that HSBC allows instalments for are: 

  • Webjet 
  • King Furniture 
  • Betta Home Living
  • Stratco 
  • Video Pro 
  • Bing Lee

Once you have provided approval to the vendor, HSBC will send you an SMS asking you to confirm the purchase, following which the payment will go through, and you can select your preferred instalment plan. 

While you may be inclined to choose the most prolonged duration for repayment considering there are no interest charges, it’s important to know that minimum monthly repayments will still apply (3%, or $30, whichever is higher), making it important to choose the right HSBC credit card instalment plan that suits your requirements. 

What is a balance transfer credit card?

A balance transfer credit card lets you transfer your debt balance from one credit card to another. A balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. If your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card. 

How to calculate credit card interest

Credit card interest can quickly turn a manageable balance into unmovable debt. So being able to understand how interest rates translate into dollars is an important skill to acquire.

The common mistake people make is focusing on the credit card’s annual percentage rate (APR), which often sits between 15 and 20 per cent. While the APR does provide a rough idea of how much interest you’ll pay, it’s not entirely accurate.

This is because you actually accrue interest on your balance daily, not annually. So, you need to work out your daily periodic rate (DPR). To do this, divide your card’s APR by the number of days in a year (e.g. 16.9 per cent divided by 365, or 0.05 per cent). You can then apply this figure to the daily balance on your credit card.

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

How do you use a credit card?

Credit cards are a quick and convenient way to pay for items in store, online or over the phone. You can use a credit card as a cashless way to pay for goods or services, both locally and overseas. You can also use a credit card to make a cash advance, which gives you the flexibility to withdraw cash from your credit card account. Because a credit card uses the bank’s funds instead of your own, you will be charged interest on the money you spend – unless you pay off the entire debt within the interest-free period. If you pay the minimum monthly repayment, you will be charged interest. There are many different credit card options on the market, all offering different interest rates and reward options.

How to increase your Heritage credit card limit?

Heritage credit card holders can increase their card limits, and typically without any hassles. There are two limits applied to your credit card: your account transfer limit and your credit card limit, each of which has a separate limit.

To increase your Heritage credit card limit, you can contact Heritage on 13 14 22. Unfortunately, you cannot opt to increase your credit card limit online due to security reasons. 

You can, however, request to increase your daily account transfer limit and BPAY® to up to $40,000 per day easily through Heritage Online. To do this,  you'll need to first ensure that your credit card limit is more than $40,000. If it is lower, you’ll need to first ask Heritage for an increase in your credit card limit. 

  • It’s important to note that once you change your credit limit, the daily periodic rate and corresponding annual percentage rate will change as well. This is likely to come into effect on the first day of each billing cycle that begins in March, June, September, and December. The effect of an increase in the annual percentage rate and the daily periodic rate will lead to an increased amount of interest you will have to cover in your monthly payment. 

What should I do if my ANZ credit card has expired?

Your ANZ credit card is considered expired only after the last day of the month and year marked on your card. For instance, if your card’s expiry date reads 03/22, it is valid until 31 March 2022 and expires on 1 April 2022. Typically, you should have received a new credit card by that date, and you won’t have to request a new card. 

Once you get the new card, you should remember to switch any automatic payments you have - such as a utility or mobile phone bill - from your expired credit card to your new credit card. Equally, if you are using CardPay Direct to repay your ANZ credit card debt, you may need to update the credit card account details for that service as well. 

In case the new card doesn’t arrive by the expiry date of your current credit card, you can call ANZ on 13 22 73 to find out the reason and if you need to request an expedited card. Please note that if you were planning to close your credit card account or request a credit card upgrade, you may need to call ANZ at least before the 25th of the month your current credit card expires in, as that’s when they may send you the new credit card.

Does ING increase credit card limits?

You may want to increase your credit card limit for many reasons, such as having access to more spending money. However, if you are using the Orange One credit card issued by ING, you may not be able to do so. 

ING customers can choose a credit limit of their preference when applying for the Orange One credit card. Depending on your financial situation, this limit can be anywhere between $1,000 and $30,000. If you qualify for a Rewards Platinum card, the minimum credit card limit will likely be $6,000. 

Ideally, you should set your credit card limit knowing how much you can afford to repay each month and keep your expenses lower than this level. With most credit cards, you should have the option of requesting a credit card limit increase at a later time, although you will need to qualify for any increase. With an ING credit card, limit increases are out of the question (at the time this was published), which means you may want to apply for a higher credit card limit from the beginning. Remember that you have the option of decreasing your ING credit card limit at a later time.

Should I get a credit card?

Once you've compared credit card interest rates and deals and found the right card for you, the actual process of getting a credit card is quite straightforward. You can apply for a credit card online, over the phone or in person at a bank branch. 

How to get a free credit card

There's no such thing as a free lunch. All credit cards come with associated costs when used to make purchases, even if it’s simply the cost of making repayments.

However, many lenders offer incentives for customers such as a $0 annual fee or 0 per cent interest on purchases during an introductory period. Additionally, paying off your balance in full during an interest-free period means you could only have to pay back the cost of purchases without interest. You could also be eligible for additional rewards such as cashback during that time, saving you more money.

Do I qualify for Bank of Melbourne credit card insurance?

You may be eligible for transit accident insurance, purchase security insurance, and extended warranty no matter which type of Bank of Melbourne credit card you own. 

Some credit card customers may get coverage for international or domestic travel insurance, rental vehicle excess in Australia, and price guarantee as well. 

However, the exact terms of the insurance coverage can differ based on the specific credit card. For instance, if you buy any personal items with a Level 1 credit card, your purchase security insurance may be valid for up to four months from the purchase date. For someone with a Level 2 credit card, such coverage may only be available for three months.