Uncommon Tricks on How to Make the Most of Your Credit Card
- Pay the full balance by due date. In such a way you will never pay any interest. However, as simple as it sounds be sure to set up reminders on your mobile or arrange direct debit. Be mindful though about direct debit thing so your bank account does not go overdraft.
- No cash withdrawals. Unlike purchases, interest is charged immediately when you withdraw cash so you could end up paying a lot of money for the cash. You should have debit card for such needs. Cash withdrawals from credit card attract not only interest from day one but often cash withdrawal fees. Some other transactions like some BPAY payments, buying travelers’ cheques, payments to debt collection agencies may be classified as cash withdrawals so be careful with what those.
- Have separate card for overseas trips and purchases. Some cards like 28 degrees offer no foreign currency transaction fees and (if you maintain positive balance) no charges on cash withdrawals!
- Be careful with balance transfers. Once you have arranged one, stop using the card as interest on purchases starts getting accrued immediately. It’s better to continue using the old card for purchases and slowly pay off transferred balance on the new card.
- Get no fees rewards card. Such offers come up from time to time. Use Ozbargain to stay informed.
- Do not be afraid of calling the credit card company and asking to get your credit card annual fee reduced or waived. You will never get if you do not ask.