How to have a credit card and good financial wellbeing

Estimated reading time
 9 min

In this article

• Make use of interest free days
• Set up automated payments and reminders
• Check out the rewards
• Enjoy cashback when you shop
• Look at Complimentary Insurances
• Understand minimum monthly repayments

Credit cards can be a useful tool – they can assist your financial wellbeing and help you out in times of need.

But they’re only as good as their user – which is why it’s important to understand how best to use them, and how to get the most out of your credit card.

Keep reading for some ways you could get more from your credit card – including some tips you may not know about!

1. Make use of interest free days^disclaimer

What are interest free periods, you ask? Well, when it comes to personal credit cards, think of the Interest-free period on purchases on a personal credit card as a potential buffer. Put simply, if applicable, it’s a period during which you won’t be charged interest on new eligible purchases.^disclaimer

The interest-free period on purchases can vary depending on the provider and the credit card and not all cards have one. If you do have an interest-free period on purchases, it could be up to 44 days, up to 55 days, or something else.^disclaimer Given an interest-free period runs from the beginning of a statement cycle until the payment Due Date, the number of interest-free days will depend on when you make that purchase within your statement cycle (and the type of purchase). The type of purchase you make can impact the number and type of interest-free days. If you’re not sure, check your credit card contract or ask your provider.

At ANZ, if your account has interest-free periods on purchases, you can avoid paying interest on the purchases balance by always paying the full Closing Balance (or if applicable, your ‘Adjusted Closing Balance’) shown on each statement of account by the applicable due date. Your Adjusted Closing Balance is calculated as your closing balance less the sum of any relevant Promotional Plan balance that relate to an Instalment Plan, a Buy Now Pay Later plan, or a Promotional Balance Transfer Plan. If you miss this payment, you will generally be charged interest on your purchases balance from the day after the due date shown on that statement.

2. Set up automated payments and reminders

Did you know you can set up reminders and alerts to tell you when your credit card payments are due? Or that you can make those payments entirely automated?

These automated aides are a great way to keep your financial wellbeing on track and can help ensure your payments are always on time – or at least on your radar.

For example: When you set up automated payments, there’s a handful of different options including paying the minimum monthly amount or the entire balance – just choose what works for you to help plan your spend! And with the ANZ app, you can click into the statement tab and add a reminder to your calendar to help ensure you won’t miss a payment date.

3. Check out the rewards

Some credit cards come with rewards schemes – but it’s important to remember that responsible spending and use of your credit card is paramount if using them. For example, on select ANZ credit cards, you can earn reward points and redeem them for gift cards, ANZ Cashback or airline partner points.^disclaimer You may be able to use or accrue points when shopping at partner suppliers or find specific promotions. But always check if there’s a minimum spend, specified timeframe or other limitations.   

4. Enjoy cashback when you shop

Did you know you could earn cashback on eligible purchases when you shop through a cashback program? ANZ has teamed up with Australia's leading cashback program Cashrewards where you can join for free to access cashback deals from more than 2,000 retailers. Plus, if your credit card is connected to a rewards program, you could earn both points and cashback. Once the cashback is approved by the retailers, you can withdraw the Cashrewards balance into your bank or PayPal account to redeem it and use it however you like - save it, spend it or treat yourself.^disclaimer

5. Look at Complimentary Insurances

If you’re about to jet off on a holiday, and you have a credit card, it might be worth looking into whether you have any complimentary insurance, like travel insurance. Many people don’t realise credit cards often come with insurance coverage for things like travel, personal and household purchases.

But always check the policy information booklets to see if there are any specific requirements or exclusions before using it.

6. Understand minimum monthly repayments

Your minimum monthly repayment is the lowest amount you are required to pay back on your credit card each month (in addition to any overlimit or overdue amounts due).^disclaimer If you choose to pay the minimum monthly repayment, it’s important you understand that you might end up paying more interest than you would if you paid your Closing Balance on time and in full each month – and it might take longer to pay off some or all of your credit card balance.  If you want to pay less interest, you may want to consider paying more than the minimum amount each month.

Whatever your preference, it pays to have a plan!

At the end of the day, credit cards are only as good for your financial wellbeing as your ability to manage them.  But always talk to your bank or provider about your options before signing up and make sure your limit and the choice of card is right for you. And if you have concerns about your repayments, reach out to your provider as soon as you can.

If you haven’t got a credit card yet, but are considering one, check out our resources on how they work – including how to manage debt and how to pay off your credit card. Or check out our Creducation series, where you’ll find detailed articles and videos about how credit cards work.