Switching To A Rewards Card

While sticking to the same credit card for years can be a great way to build up your credit rating, at some stage it might be time to consider a rewards credit card option to get even more out of credit card use.

With almost every single credit card provide in Australia offering a rewards program option, it is clear this kind of credit card is not going anywhere. What is more, switching credit cards is usually an easy process involved the following steps:

• Comparing credit card offers
• Looking at the credit card features after the introductory period
• Selecting a credit card with a good balance of features; and
• Filling in an application online or in person

Unfortunately there are times when switching can end up being a compromise for other features and the incentive to spend more with rewards cards can even lead to bad credit card habits. To help make a smart switch, try to consider all of the following factors before filling out that application form.

Credit Card Reward Options

There are many different reward options to consider but what one person may call “the best credit card” is not necessarily right for the next person.

For example, someone who is a frequent flyer may like to consider a Virgin credit card or one of the many Qantas aligned credit cards, while someone who wants to get everyday savings might like the practicality of the Citibank BP credit card.

The important thing with rewards is to find something that is going to complement your current lifestyle and credit card use so that the card works for you, not the other way around.

Credit Card Rewards And Interest

Unfortunately not all credit cards are created equal, and many reward credit cards will not offer the lowest interest rates around.

To still have a lot of flexibility in repayments, consider a lower rate rewards card, like the Commonwealth Bank Low Rate Gold card, which has a standard purchase rate of 13.49% p.a. and features complimentary travel insurance, preferential bank pricing and access to the MasterCard Applause and Moments rewards programs.

For people who want even more bonuses, try to get a credit card that has up to 55 days interest free. It may not be as ideal as a low interest rate, but with so many different reward options it could save you a lot of money and build up better payment habits as well.

Reward Credit Card Fees

All the added extras of rewards credit cards usually mean a higher annual fee as well. Although some options may offer no fee for the first year, make sure you check what the fee will be after that so there is no nasty surprise after making the switch.

With these things in mind switching credit cards can be a quick process with endless benefits. That will make any credit card even more useful than before.