These tips for credit card shopping start with the assumption that you are looking at the three cards offered in Australia – Visa, American Express and MasterCard. You should consider all the features offered, such as rewards programmes, interest rates, insurance and whether you must pay off the card monthly in full or if you can leave a bit of the balance each month.

Amex cards for instance demand that you pay the balance off each month while the other two are a little more flexible. They let you leave a part of the balance to be paid later.

Credit card interest rates

Knowing that, one of the best tips for credit card shopping is to take a hard look at the interest rates being charged. It may be convenient not to have to pay everything each month, but if you make a habit of not paying off the card then you’ll soon find that your debt will mount rapidly depending on the interest rate for that card. There are other advantages to choosing the right card for you. A card with a good rewards programme gives you the chance to travel, to get household goods and to take advantage of special offers for scarce merchandise. One of the most helpful tips for credit card shopping is to see if you like the idea of insurance protection. Some cards offer international travel insurance, extended warranty insurance and purchase protection cover.

Insurance tips for credit card shopping

Some people may find they are already burdened with credit card debt, affecting their credit rating, and they want to get rid of it. For those people, a balance transfer card may suit their needs. These cards generally offer a low initial rate of interest if all the debt is transferred to one card and then a serious effort is made to pay it off.

But note those words ‘initial rate of interest’. Make sure you know how long the low rate of interest lasts because generally a higher rate of interest kicks in after a few months. You should also check to see if the card carries an annual fee. There’s nothing more irritating to feel you have virtuously avoided running up charges on your credit card, only to get a bill for an annual fee.

Summarising the best tips for credit card shopping

In short then, the best tips for credit card shopping can be summarised as:

  • check the annual fee
  • check the interest rate
  • check the rules for paying off the balance, monthly or longer
  • decide if insurance suits you
  • make a realistic decision about the rewards programmes being offered.