Prepaid Credit Cards

These are fantastic for people who have trouble managing their credit card spending as you are using your own money! Remember to watch out for any fees you are being charged for the privilege of having one of these cards. Chances are there will be a lot of competition in this area within the next year and you should be able to get a better deal with this increased competition.

How does it work
1. Order the card
2. Load money onto the card
3. Use the card

Easy!

Stop Credit Card Fraud

Tips to prevent Fraud (adapted from www.hints-n-tips.com)

• Sign new cards immediately and then destroy your old card.
• Shred old credit card statements. These have your name, address and often your card number. If you throw these out then shred them first. This prevents the common practice of criminals going through the trash to find receipts and stealing your identity\
• Never fax your credit card number. Anyone can pick this up at the other end and you may even accidentally send it to the wrong person. Avoid doing this if possible.
• Use caution when giving your credit card number out on the phone or on the Internet.Also never give any personal information to an unannounced caller. With your name, address and some documents from your rubbish people can steal your identity.
• When buying online look for an Internet address that begins https:\\. The “s” stands for a secure connection and a small padlock symbol should appear in the bottom right hand corner of your screen. This should mean that it is safe to use your card
• Call your credit card company instantly if you suspect trouble. All credit card companies have 24 hour lost and stolen help lines. Call as soon as you realise your card is missing or you find a wierd transaction on your statement! Your credit card company will block your cards from being used and should stop you from being responsible for any charges thieves incure.
• Take advantage of any security features your card offers. Many newer cards have the option of including your photograph on the card. This is excellent protection and is highly recommended.

Credit Card Tips - Use your card to save bank fees

This tip is only for the well disciplined with their finances

Instead of withdrawing money from your savings account to make purchases use your credit card with interest free days to make all your purchases. At the end of the month pay off your credit card in full. This will save money as you will not have to pay any bank fees for transactions. If your credit card is a rewards card using it this way also has the added bonus of giving you rewards points for all those dollars spent.

Credit Card Tips - Can low interest cards work

If you are one of the many people that does not pay off the full amount on your credit card each month then increased credit card competition can work for you. Today many low interest rate credit cards are hitting the market and the more competition the lower interest you will pay. There are also balance transfers avaliable on many of these cards at a low or no interest rate and transfering debt from your old card can be a great way to take control of the debt (as long as you pay it off before interest is charged again). As always be careful of any hidden fees and charges on these types of cards.

Credit Card Tips - Annual Fee Waiver?

There are some banks and financial institutions that offer to remove your annual fee if you spend over a certain amount or if you have a home loan or extra savings with the bank. This means that you can choose a card with a rewards program and all the benefits and features you need and not be forced to pay a huge annual fee just for the privilege of having it. Remember though don't spend extra money just to save the annual fee - only use the card as you usually would!

Credit Card Tips - Do you need those rewards

There is no doubt that annual fees for credit cards are increasing – and the highest fees are on the cards with a rewards program. Currently there has also been a trend to reduce the amount of rewards points that are being offered meaning that you are paying more to be part of a reward program. Make sure you are not paying for a reward program that you don't want and a card without reward program that does not have a annual fee might be a better option. If you do want the rewards always make sure that the awards points you earn each year are worth more than the annual fee you are paying for the card.

Credit Card Tips - Avoid Cash Advances!

I often have people asking me about cash advances. They explain that they are really handy when you need some cash and that they still have the 55 days interest free to pay them off. This is what I tell them:

The Interest-free period on your credit card accounts do NOT apply to cash advances. In almost every case, you will pay interest on that cash you took out right from the time you grab it from the ATM. Some banks even charge a fee of 1.5 per cent of the withdrawal. That's a $15 fee straight away on a $1000 credit card cash advance.

I often get promotional material from my financial institution telling me I can have so much cahs straight away. The best way not to get sucked in to this little ploy is to throw your credit card pin away (burn it or something) before you learn it - then you can't get a cash advance anyway!

Credit Card Tips - Help I have fallen behind in my payments

Even the most responsible of people can get into trouble at times. I know many lovely people that simply aren't good at managing their finances. If you have fallen behind in your credit card payments there are some steps to take that may help you in your situation

1. Don't hide it
Banks and other credit card companies hate it when people try to hide the fact that they can't make their payments. Instead of waiting for them to send a nasty letter or call you asking what is going on, give the credit card company a call and explain to them you can't make the payment on time. Some will give you an extension to pay the bill and others will lower the interest rate until you can pay it off.

2. Cutting Back
If you are in trouble then you need to consider cutting up those cards or using your credit card sparingly (if you have good self control). Making your own lunch or coffee can often save you more than you think!

3. Get Some Advice
Find someone who is registered to give out financial advice and get a plan drawn up to get you out of debt.

Good luck managing the beast!

Tips on avoiding credit card debt

Credit Card debt is at the highest levels it has ever been in this country. Some simple tips can help you avoid becoming another statistic:

1. Pay more than the minimum payment each month - The best solution is to pay the entire balance off your card each month. If your balance is very high still try to pay as much as possible.

2. Transfer the balance of your credit cards to low interest rate cards. Most credit cards will offer up to 6 months interest free on balance transfers when you sign up giving you longer to pay off the debt.

3. If you don't receive or care about rewards programs sign up to a credit card with no annual fee. This can save you over $100 in many cases.

4. If you can't control your spending use the new pre paid credit cards or cards that link directly to your bank account so you are using your own money.

5. If you are in serious debt there are a couple of options that might just help you out:

• Talk to the financial institution about lowering the interest rate while you try to pay it off (lets face it they would rather have their money back than have you declare bankruptcy)
• Talk to a financial adviser about taking out a loan to cover the whole debt at a lower interest rate than the credit cards. This is often called a consolidation loan, where all your debts are put together into one loan.

These simple tips may save you some money.

Good Luck
Tom

Welcome to my blog

Hi
My name is Tom and I am from the top end of Australia. I have started this blog to help people find information about financial products in Australia, because there are many sites dedicated to America, but not many to our great country.

This blog will contain genuinely written reviews of Australian finance products like credit cards, home loans, term deposits, managed funds, personal loans, insurance and many more.

Feel free to leave comments and check back soon.

Cheers
Tom