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ANZ Falcon® technology monitors millions of transactions every day to help keep you safe from fraud.
Falcon® is a registered trademark of Fair Isaac Corporation.
Fraud protection.
Now it’s personal.
ANZ Falcon® technology monitors millions of transactions every day to help keep you safe from fraud.
Falcon® is a registered trademark of Fair Isaac Corporation.
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Cyber Security
Awareness Month 2024
Cyber security is everyone’s business, explore easy ways to help protect yourself and your business.
Choosing a credit card should never be done on a whim. Make sure you compare fees and charges, interest rates and benefits so that your decision is an informed one. Below we outline some of the things to keep in mind.
Credit cards provide you with a line of credit when you need it, which means they can help you manage your finances if used responsibly. And given that they are accepted around the world, they can certainly be useful for international travel.
But here’s the thing. You need to choose a credit card that’s right for you and your spending habits.
Before choosing and applying for a credit card, it’s important to understand your spending habits and how disciplined you are with money.
If you’re someone who pays off their credit card balance in full each month, then you may want to consider a credit card that earns Reward Points or Frequent Flyer Points.
However, if you think there may be times when you can only make the minimum repayments, then you may want to consider a low interest rate credit card. Below we explain the different types of credit cards and more.
If you value earning Reward Points that can be redeemed for gift cards, electronics, shopping and more, then a Rewards card might be for you. Just be mindful that these cards usually attract a higher interest rate on purchases compared to low-rate cards and higher annual fees compared to some other cards. In other words, these types of cards are great if you intend to pay off the card balance in full every month.
If you value earning Frequent Flyer Points that can be redeemed for flights and upgrades, then a Frequent Flyer credit card might be right for you. These cards usually attract a higher interest rate on purchases compared to low-rate cards and higher annual fees compared to some other cards. Once again, these types of cards are great if you intend to pay off the card balance in full every month.
If you don’t think you’ll pay the Closing Balance (or Adjusted Closing Balance) on your card in full every month, resulting in a balance being carried over, then you may want to consider minimising the amount of interest you pay by choosing a low-rate card. Just be mindful that low-rate cards may have higher annual fees than some other cards.
Low fee cards are ideal for those who want the convenience of having a credit card whilst paying a low annual fee. A low fee card often attracts higher interest rates than say a low-rate card, which means you’ll need to be confident that you can pay the Closing Balance (or Adjusted Closing Balance) on your card in full every month.
Below are some of the things you should consider when comparing credit cards. Want to compare ANZ credit cards? We have a handy tool for that.
Some credit cards come with promotional interest rates for a set period of time – this is especially true for cards that are geared towards balance transfers
This is the interest that applies to all items classified as a 'Purchase', such as various goods and services
This is the interest that applies to certain transactions which are classified as a 'Cash Advance', such as the withdrawal of cash at an ATM
This is the interest you pay on 'Balance Transfers' when you consolidate credit card debts held with other financial institutions
This is the period-of-time in which you won't be charged interest on new eligible purchases. If interest-free periods apply, then you will need to ensure you pay your Closing Balance (or if applicable, your 'Adjusted Closing Balance') by the Due Date on your statement each month
Most credit cards have a minimum credit limit – this is the lowest amount of credit available for a specific card
This is the fee you may need to pay on an annual basis
Nowadays, a lot of credit cards come with interest-free periods, which usually run from the beginning of a statement period to the payment Due Date. If an interest-free period applies, it means you could avoid paying interest on your purchases balance during that period, so long as you pay the Closing Balance (or if applicable, the ‘Adjusted Closing Balance’) in full by the Due Date on your statement each month.
At ANZ, if you have an interest-free period on purchases and you don’t pay the full Closing Balance (or Adjusted Closing Balance) shown on your statement by the Due Date each month, then the interest-free period will not apply and the outstanding purchases balance on your account will attract interest.
That's why it's often a good idea to look for a credit card with a generous interest-free period. At ANZ, the interest-free period on purchases across all new credit cards (excluding business cards) varies depending on the credit card. Our cards offer up to 55 days' or up to 44 days' interest free. Remember, it’s "up to" 55 days or 44 days, not 55 days or 44 days for every purchase.
Given interest-free periods run from the beginning of a statement cycle until the payment Due Date, the number of interest-free days will depend on when you make the purchase within your statement cycle (and the type of purchase).
Bottom line? Always aim to pay the Closing Balance (or Adjusted Closing Balance) in full by the Due Date on your statement so that you can maintain your interest-free period. Learn more about interest-free periods and how they work.
When you apply for a credit card, the provider will offer you a credit limit for which you’re eligible and will be set out in your Letter of Offer.
Remember, you don’t have to accept the full amount offered. You can always ask to reduce your credit limit if you think it’ll suit you better, so long as it is not below the minimum credit limit that applies to your credit card type. Learn more about credit limits and how they work.
Credit cards with higher credit limits generally come with more features and benefits. This may include things like complimentary travel insurances, extended warranties on purchases, a personal concierge to help with hotel and restaurant bookings, and so on and so forth.
While it’s smart to maximise any features and benefits that come with your chosen credit card, it’s a good idea not to get too mesmerised by them. You’re better off sticking to some of the tips above to ensure that you choose a credit card that’s right for you.
Explore our range and compare features, trade-offs and fees to help you choose the card that suits you best.
Before you apply for a personal credit card, it's a great idea to have a think about how you may be likely to use the card. Would you use it to pay for essentials only, or other stuff too? Is a credit card the most appropriate option?
Right-sizing your credit limit to your budget could help you repay your credit card balance in full, every month. This could help you avoid paying interest on your credit card.
Promotional balance transfer offers can vary – so it's important to check the specific details (including terms and conditions) that apply to each offer.