This might mean you are losing out. The interest you currently pay on your credit card could be much higher than the industry average. You might be paying a huge amount in fees compared to what is on the market at the moment. Even if you are a great customer and you pay all your bills on time, don’t assume your credit card provider will call you up to offer you a better deal.

It’s up to you make your credit card work for you.

If you have been a loyal customer and you have a good credit history, then you can be in a great position to negotiate. Some people wouldn’t even think of trying to negotiate with their credit card provider. Just as it would be unthinkable to go into the local supermarket and haggle over the price of a can of baked beans. But it is possible (to negotiate with your card provider, perhaps not with the supermarket assistant over the beans).

First make sure you have all the information you will need. This will include current offers on similar credit cards from other providers, how much other cards charge in fees, what features and benefits they offer, and how much is charged in interest.

When you speak to your current credit card provider, make it clear that you are thinking of taking your business elsewhere. Most card companies will be willing to negotiate if you are a good customer and your demands are fair.

If they are not willing to give you what you are asking for, then it might be time to switch providers. Find the best credit card to suit your needs, and don’t forget to think about the short-term and the long-term. Once you have been approved for the new card, you can choose whether you want to cancel your old credit card or keep it as a back-up.

Always try to keep on top of your finances. Regularly take stock of what you are currently paying on your credit cards, and what options are available to you. Don’t be afraid to ask for more if you are a good customer – you might be surprised at what you can get!

With credit debt becoming a bigger issue many Australian cardholders, there are more and more cards on the market that now feature low rates for balance transfers, with some introductory offers lasting up to 15 months.

One of the biggest advantages to these offers is that people can switch to a different card and still get whatever additional and ongoing features they might be interested in.

Whether you are looking for an ongoing low rate card, a platinum or a rewards card, there is bound to be a competitive balance transfer option available and here we look at three of the best.

Low Rate Balance Transfers

The Bankwest Breeze Classic credit card has a 12-month balance transfer rate of 5.99% p.a. and one of the lowest ongoing purchase rates at just 10.99%.

This card also has a number of additional benefits, including:

• 5% cashback on everyday spending on groceries, petrol and utility bills for 12 months
• Best price guarantee if you find goods you buy with your card cheaper within 21 days
• Up to 12 months extra warranty on eligible purchases; and
• Three months complimentary purchase protection against loss, theft or accidental damage

All of these features make this card one the best low rate balance transfer options to help keep interest down and convenience up.

Platinum Balance Transfers

Not many platinum credit cards also come with a low ongoing purchase rate or annual fee under $100, but the Citibank Clear Platinum card is one that goes against these standards.

With an ongoing purchase rate of 11.99% p.a., a balance transfer rate of 0% p.a. for six months and benefits like a dining program and complimentary insurance, this platinum option is well worth considering.

Rewards Balance Transfers

Whether you are interested in earing frequent flyer points or want more lifestyle-based rewards, the Virgin Flyer credit card should be included in card comparisons for a balance transfer.

This card comes with a 0% p.a. balance transfer offer and earns cardholders one Velocity point per $1 on most purchases, which can be redeemed for domestic and international Virgin flights, food and wine, electronics and more.

For people who fly Virgin, the earning potential for this card is sure to outweigh the annual fee of $99 – already quite low for this kind of card.

No matter what kind of card you want, or what the state of your current balance is, chances are there will be a balance transfer option that fits the bill.

With a better idea of the different kinds of cards offering balance transfer deals you should be able to compare a range of offers to find one that is ideal.

Whether it is 30 or 55 days interest free, chances are there will be a range of conditions that need to be met before cardholders can take advantage of the offer.

So for people who have only skimmed the fine print, this may mean a nasty surprise when a statement comes with interest charges that do not seem like they belong.

To avoid this kind of situation, be sure to check for the following conditions before assuming anything charged to the card will automatically benefit from an interest free timeframe.

The Amount Of Interest Free Days

While it is common for credit cards to offer a certain amount of interest free days for new purchases, the actual amount will be based on when the statement period starts.

A purchase made 10 days before a statement is due on a card with up to 55 days interest free, for example, will start accumulating interest after those 10 days even if the lowest interest rate option has been chosen.

Carrying A Balance

Balance transfers are a great way to clear credit card debt, but these offers may not be so great for new purchases.

Credit cards offering a balance transfer deal might still be advertised with a number of interest free days but generally if a balance is carried there will be no interest free period.

Some cards even specify that there must be no balance on a card for the interest free days to be applicable, which is another reason to check the fine print before making any assumptions.

Eligible Purchases

Just like some charges put on a credit card will not earn you rewards points, they may not be eligible for interest free days.

Everyday purchases are the most likely to have an interest free period option, while recurring transactions or bill payments may not receive the same advantage.

It is particularly good to check the details when a card advertises up to a certain number of days interest free “on new purchases”, because that usually suggests only charges considered purchases will be eligible.

Credit Scores

Most cards now say there are “up to” a certain number of interest free days available but there is a reason for this particular phrase.

As well as being conditional on the statement period and balance, some credit card issuers may decide not to offer interest free periods to people with a low credit score.

The terms and conditions usually have a section outlining how and when card conditions may change depending on the cardholder’s situation, so be aware that “up to” does not always mean you will be getting away interest free.

With so many cards now offering an interest free period, understanding the conditions around this feature will help you save money on your card as often as possible.

While not everyone will have to deal with interest rate payments or other card fees, most cards will have an annual cost that cannot be avoided, so the few that do not offer immediate value that deserves anyone’s consideration.

Cards like Citibank’s Ready Credit and Virgin’s No Annual Fee have actually made a name for themselves by ditching these regular costs so that cardholders can save a bit of money without giving up credit cards completely.

No annual fee cards are also a great option for people who would like to keep a second credit card for emergencies because they can be put aside for as long as necessary without any costs building up if the balance is clear.

The American Express Gold Ascent card, on the other hand, is a little bit different because it offers an exclusive rewards program and extras without the high annual fee most premium cards charge.

But, unlike the two above, this card has a lot more criteria that need to be met before an application is approved.

Sometimes cards without an annual fee will also compensate with higher interest rates or less interest free days, so make sure that you check out all the features before deciding one of these cards is right for you.

Credit Cards That Waive The Annual Fee

There are also credit card issuers that will waive the annual fees on credit cards if certain conditions are met.

The Commonwealth Bank, for example, will waive the annual fees for the Gold and standard Low Fee credit cards if the cardholder already has a qualifying account.

Other Commonwealth Bank cards can receive discounted annual fees when the same criteria are met, which helps make them a more affordable option and offers an edge over other card issuers if you already bank with them.

Another way to avoid annual fees is to look for issuers that waive the fee for the first year, like Westpac’s 55 Day card, which is why it is always good to check what kind of offers are available elsewhere to make sure you save as much on card fees as possible.

There are already enough expenses when it comes to credit cards, so finding a way to save money on annual fees will help you keep your balance in order and make sure the card you choose is worth it.

Despite the number of low interest rate options available, putting purchases on a credit card can still easily lead to debts and additional costs through repayments, annual fees and additional charges.

According to the latest Financial Fitness report from Bankwest, 38% of all Australians are not financially fit and the trend seems to be rising despite almost half of all households becoming more conservative with their spending.

The Financial Fitness Index is created by Bankwest regularly to track how ‘fiscally fit’ Australians are in the current economic climate. It assesses financial fitness for individuals by measuring 14 different factors, including:

• Housing costs
• Debt
• Savings
• Insurance; and
• Financial assets

The most recent data shows that only 17% of all people are deemed definitely financially fit, while 52% are on the border of fit and unfit.

So how do credit cards really factor into our financial fitness? There are actually two sides to credit that can work for or against financial fitness.

The first thing to consider is that if you have a credit card it shows that your financial standing is good enough for a provider to grant you this convenient tool.

Just like approval for a credit card will improve your credit score, it can indicate a good level of financial fitness and the more exclusive the card, the better the potential for strong financial standing.

That means people with good rewards or platinum cards already have the potential to be financially fit.

The second thing to consider, however, it the way a credit card is used and how much debt results from it. If a balance is carried from month to month, then that will work against other factors and lower your financial standing.

Similarly, applying for a balance transfer could indicate money is not as available as you would like.

The important thing to remember is that financial fitness can change. Taking out that balance transfer, for example, could lead to better financial fitness in the long run due to a focus on paying off debts.

It is clear that credit cards are not the only thing that will affect our money management, but being aware of how they can work for or against us will help make it easier to work on overall financial fitness.

Credit cards tend to be based on a variable rate of interest, but there are also different rates for different cards that should be considered when comparing different offers.

Here we look at the three kinds of interest rates that will affect your balance in different ways.

Introductory Rates

Introductory rates usually apply to balance transfers so that cardholders can reduce their card debt without paying a fortune in interest. The length of these offers tends to range from 6-15 months with rates often being around 0-6% p.a. or more.

Some cards will also offer a lower introductory purchase rate, like Bank of Queensland’s Low Rate card, which has a purchase rate of 8.9% p.a. for the first 12 months.

After that period, interest for the balance will be calculated at a different rate, usually one of the ongoing rates of the card, so it is good to check the terms and conditions of different balance transfer deals to make sure they are really worth it.

Purchase Rates

Both balance transfer rates and purchase rates are the most commonly advertised for credit cards because they have such a big impact on the value of the card.

The purchase rate will be applied to all purchases made on the card and could be anywhere from around 10% for a low rate card and 22% for more premium options like rewards or platinum cards.

Most cards will also offer an interest free period for purchases of up to 55 days, but this is often conditional on other factors like whether a balance is carried from month to month so it is good to not assume this will be applied.

Cash Advance Rates

Cash advance rates are often much higher than purchase rates and will be charged when cash is withdrawn from an ATM using the credit card.

This rate will usually be calculated on a daily basis, which means you will pay the maximum amount of interest possible when you use this feature.

Interest rates will affect your credit card no matter how it is used but by being aware of different rates and when they are applied will help make sure your card is worth it.

Whether you are using credit to finance a major purchase or find that you need a bit of extra time to pay off the card, checking how a balance will affect new cards is an important part of the process.

Here we look at different card features and considerations that can help you find a card that is perfect for all your needs.

Interest Free Days

Many credit cards offer an interest free period of up to 44 or 55 days from the start of a statement. Unfortunately, a lot of them will only be available to people who do not carry a balance from month-to-month.

This condition is very common with credit cards because it encourages cardholders to pay off the balance or deal with the costs of holding a debt.

But always make sure you know what the terms for interest free days are when comparing different card options to make sure you really do get the best deal.

Balance Transfer Rates

Calculating interest savings based on balance transfer rates is one of the most common ways to compare a current and new card and many credit card issuers will have calculators available on their websites.

But there are always two different balance transfer rates to consider: the introductory offer and the standard rate, which is usually either a purchase rate or higher cash rate.

You could end up paying a lot more in interest if only the introductory rate is considered, so doing two calculations may be a good idea when factoring a balance into a credit card switch.

Credit Card Balance Calculations

Looking at changes to the balance both before and after the introductory period will help show the value of different credit card offers.

For example, someone with a $5000 debt might consider taking advantage of a card like the Citibank Emirates Platinum, which offers a rate of 0% p.a. for the first seven months.

If they were paying $200 per month, at the end of the introductory period they would have an outstanding balance of $3600 to be paid off at the cash advance rate of 21.24% p.a. It would take one year and 11 months to pay off the debt and cost $773 in interest.

In contrast, switching to a card with a longer balance transfer offer, like the ANZ Low Rate’s 2.9% p.a, for 12 months then a rate of 13.49% p.a., it would take two years and four months to pay off the total and cost $362 in interest, saving the cardholder two months and $411.

Credit card balances will vary for every individual, and some may find a shorter introductory offer ideal but doing the calculations first will make sure you get the best value from credit card offers.

While many people may never notice their credit limit, focusing more on interest rates or rewards, others will find their limit leading to more fees or expenses that can be hard to pay off.

In general people will be more inclined to request an increase in their credit limit than they will be to request a decrease in the limit but both of these options are tools that can help you save money on your credit card use.

There are a number of different situations that can be used as indications of a bad credit limit, but to give you an idea of how it may be affecting your finances, here is a look at some of the most common.

Paying Over Limit Fees

Most people will already pay an annual fee for their credit card, but additional charges like a fee for going over the credit limit can be a pricey addition to someone’s credit card statement, especially if it happens more than once in a year.

If you do find that you are often getting charged for maxing out your card then it may be time to consider a credit limit increase. Just make sure the amount requested will be manageable if you do reach it later on.

Spending As Much As Possible On Credit

The biggest disadvantage to a higher credit limit is that it can lead to credit card debt. If you find that you are spending as much as you can on your card, then struggling to meet repayments, then considering a credit limit decrease may be valuable.

The request can affect your credit score, but so will being in serious debt, so make sure both the pros and cons are weighed up. It may even be worthwhile to discuss it with the card issuer to try and find other solutions.

Changes In Your Financial Situation

Whether it is a pay rise or a rate increase on a mortgage, any financial changes in your life can have an impact on your credit card.

When the change is positive, it may be cause for a credit limit increase but be aware that there are risks to simply requesting an increase because you can.

On the other hand, if other debts are starting to weigh heavily on your mind, the temptation to use credit could lead to even more problems so a decrease in the limit might help some people keep their card debt under control.

Credit cards should not be a burden for your everyday spending or habits and having the right credit limit for you will help make it easier to use your card without worrying so much about expenses.

Taking control of different card features will help you keep finances manageable and credit a convenient asset to your lifestyle.

While the Big Banks in Australia – ANZ, Commonwealth Bank, NAB, Westpac and usually St George – are always questioned about interest rates when the official cash rate changes, it is not often credit card rates between banks are compared.

To give you an idea of how rates may vary from bank to bank, here is a look at what banks have to offer for a range of different credit card categories.

Low Interest Credit Card Rates

Whether it is for a balance transfer deal or just general peace of mind, low interest credit cards are an option currently dominated by the banks.

One of the lowest ongoing rates available comes with the Citibank Clear Platinum card, at 11.99% p.a., while the Commonwealth Bank’s Low Rate and Low Rate Gold cards both feature five-month introductory purchase rates of 1% p.a. before reverting to 13.49%.

For people looking to transfer a substantial balance, the 2.9% p.a. for 12 months on the ANZ Low Rate card is an offer definitely worth considering, but costs for smaller debts or current purchase plans may be cut down with the Bank of Queensland’s Low Rate card – offering a 2.9% p.a. balance transfer for six months and a 8.9% p.a. purchase rate for 12 months.

Reward Credit Card Bank Rates

While there are many more credit card issuers in the realm of rewards cards, and you can expect a higher interest rate for this kind of card, the banks still match or beat interest rates in a lot of cases.

In particular, Westpac has one of the lowest ongoing rates available for frequent flyer options with the Singapore Airlines Gold and Singapore Airlines Platinum cards featuring a purchase rate of 19.49%, in comparison to many which feature a 20.99% p.a. rate.

The Commonwealth Bank has also come up with a competitive introductory purchase rate of 1% p.a. for five months with the Awards, Awards Gold and Awards Platinum cards, before reverting to an ongoing rate of 20.74%.

Bank Rates For No Annual Fee Cards

Very few credit cards currently come without an annual fee, but the Citibank Ready Credit is a bank option that stands out for it’s low 9.9% p.a. purchase rate for the first 15 months.

After this time the card will revert to 18.99% p.a., which is on par with the Virgin No Annual Fee card and still lower than the 20.74% p.a. that comes with American Express’s Gold Ascent card.

These examples show that banks can often have slightly lower interest rates than other credit card providers, but it is always good to look at a range of features before making a decision so that you know you are getting everything you need from your credit card.

While balance transfers tend to be low interest options and do have the potential to help cardholders become debt-free, these kinds of credit cards can only do so much on their own and it will still be up to the cardholder to find a way to keep debt down.

To help get the most out of any balance transfer, consider using some of the following tips once you have made a switch.

Pay Off As Much As Possible During The Introductory Period

While some balance transfer offers last for the first 15 months, like the 2.9% p.a. deal with ANZ’s Low Rate card, others may be much shorter.

If you decide to get a shorter balance transfer offer, like the St George Amplify card’s 0.99% p.a. interest on balance transfers for six months, then it is important to try and pay off as much of the debt as possible before interest reverts to a higher ongoing rate.

Budget For Credit Card Repayments

This step could actually be done before the balance transfer is taken out, but regardless of when it is used, it is a great way to cut down the card balance.

You can start by calculating how much you think you can afford to pay off the card each month, then look at how interest will influence the balance and how long it would take to pay off at that rate.

The government’s Money Smart website has some useful budget tools that may also be useful for this process.

Plan Ahead

As well as creating a budget, it is a good idea to plan ahead so that you are aware of when you may need to put purchases on credit. Another thing to be aware of when planning to use the card is that interest free days may not be applicable if you are carrying a balance.

Factoring these considerations into your credit card management plan will help you to stay aware of the balance and work out ways to add to repayments if you do end up adding to it through card use.

Cut Down On Credit Card Spending

Making purchases with credit will not do you any good when you already have a balance to pay off.

If you are tempted to keep spending in the hopes of earning more points, you may want to look at the fine print because most rewards cards do not earn you points while you are carrying a balance.

Deciding to make use of a balance transfer offer is often the first step towards getting rid of credit card debt, but by taking further action you will be able to work towards a healthy credit card balance quickly and easily.