6 great credit card tips you can start today
Want to get a new credit card? Or have you got a credit card but you’re not sure if you’re using it to its full potential? Don’t worry, we’ve got you covered! The Credit Savvy team have compiled a list of six great credit card tips to help get you started.
1. Understand credit
First and foremost, it’s important to understand how credit works to see if it’s the right option for you and your financial circumstances. What’s your purpose of applying for a credit card? Can you afford the repayments? These are just some of the questions you should ask yourself before submitting for a credit card application. To help you start thinking, here are some questions you can ask yourself.
2. Know your credit score
There are lots to consider before applying for credit and checking your credit score and credit file information beforehand is one crucial step. Your credit score is a representation of your credit worthiness and lenders can use it along with the information on your credit report to assess the risk of lending you money. So, understanding the information and making sure your credit report is accurate and up to date before you apply for a credit card is something you don’t want to forget!
If you don’t know your credit score, you can check it and monitor it for free with Credit Savvy.
3. Choose the right card for you
Not sure if you want to go with a low rate, low fee, or rewards card? With many different credit card types and features, sometimes it can feel overwhelming to pick out the right card. While there’s no “perfect credit card”, the right card for you will depend on your financial circumstances and how you plan to use it. To help you understand the different cards out there in the market, we’ve broken them down in our article: How to choose a credit card that’s right for you.
4. Pay your credit card bill on time
Did you know that credit scores can drop by 22% following just one missed credit card repayment, 26% with two missed credit card repayments and a whopping 42% for those with three or more missed credit card repayments within three months*?
As part of Comprehensive Credit Reporting, your repayment history is now included in your credit report and it can have an impact your credit score. If you’re a bit forgetful, try setting up a reminder or a direct debit to make sure you never miss a payment.
5. Know your rates and fees
Are you paying interest on your credit card and don’t even know the interest rate? What’s your annual fee? Are you charged a fee for making purchases overseas? These are all very important facts that you should know about your card. You could be paying over 20% p.a. in interest or a $300 annual fee for a card you don’t use!
Do your research and see if you’re getting a good deal on your card. If you’re looking to switch or you just want to start comparing, check out our credit card comparison service for the latest offers.
6. Use the extras
Lots of credit cards come with complimentary extras that you may not know about or have simply forgotten. Extended warranty on purchases, complimentary overseas insurance cover, even access to special offers on shopping and travel, are some of the benefits you could be receiving. Remember to always check the terms and conditions so you know what you are entitled to and make sure you’re not caught out on the fine print.
Curious about what to look for in the fine print to see what other perks your credit card offers? Check out our article on the hidden perks of your credit card.
Want to learn more about credit cards? Head over to the Learning Hub and get started today.
*The Experian credit bureau research was based on a consumer research survey conducted in May 2019 using an online survey method. The survey was completed by 1,000 Australians representative of the nation as a whole aged 18 and over. Visit Experian for more information.