Credit card compare to set you on the path to finding a suitable credit option. Learn more about rates, rewards, fees and balance transfers with Monzi today. Looking for an alternative, apply for cash loans from $300 to $10,000. We could match you with a lender in 60 minutes. Let’s go.
Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.
What is a credit card?
A credit card allows a consumer to make purchases on credit up to a certain limit. With this, the consumer is then required to pay off the balance each month by a due date. Otherwise, they will incur interest charges. As a result, a credit card may provide an alternative to personal loans or other forms of credit.
Given this, a credit card can be a useful financial tool, if managed appropriately. You can use it for purchases that you may be unable to cover today. Then, once you have the funds available, you can pay off your outstanding balance. Moreover, some credit cards may come with a range of additional benefits and perks too.
While that covers the basics, we’re here to investigate comparing credit cards. Read on to find out more.
Credit card compare explained
In this guide, Monzi’s here to explain credit card comparisons. In other words, we’re going to break down all the information that you may need to know, so that you can begin to form a picture of the card that fits your needs. From there, you can get out and do your research to potentially find a bank or credit card provider who can offer what you need.
With this, it’s important not to underestimate the value of comparison. Sure, you could apply for the first card you find. However, you’d likely be doing yourself a disservice. After all, just like with comparing personal loans, cars, clothes and many other products, it pays to shop around. Not only can you potentially find a lower rate to save yourself money, but you may be able to access a range of features and benefits to make a credit card more manageable for you too.
Keen to know more? Let’s begin.
What should I compare with credit cards?
When it comes to credit card compare, a great place to start is to outline the key features that you must compare to decide which card may be right for you. Check out our quick guide below:
Compare credit card rates
Let’s begin with arguably the most important factor to compare when it comes to credit cards: the interest rate. In short, your rate determines how much you must repay on top of the credit that you use.
With this, lenders will usually outline the rate to you as an annual percentage (e.g. 15%). Although, it will compound daily, rather than monthly or annually. As a result, it will continually be added onto your next day’s average balance.
When it comes to credit card interest rates, lower is usually better. While a small saving here or there may not seem like much, paying less rather than more is always preferable. Shop around to see if you can find the best rate possible on a card that suits your needs.
Credit card fees
Credit card fees come in a range of different forms. As a result, before applying, you must ensure that you are aware of any additional charges you may encounter. Where possible, aim to keep fees to a minimum.
In any case, common credit card fees include:
- Annual account fees
- Cash advance fees
- Late payment fees
- Overdraw fees
- Replacement fees
However, there may be others. Read the terms and conditions associated with your credit card to ensure you’re aware of all the possible charges.
Credit card limits
A credit card limit, as you may expect, is the highest amount that your outstanding balance can be. However, cards vary in their limits. With this, it can be an important feature to compare.
Don’t fall into the trap of assuming that higher is better. While a high limit may be appropriate for some borrowers, in some circumstances, it may not be right for you. In other words, aim to select a limit that aligns with your needs. As a guide, some advice suggests that you should select a limit equal to 50% of your monthly income. In turn, other advice states that you should not allow your outstanding balance to exceed 30% of your limit.
Finally, note that if you exceed your limit, then your bank or credit card provider will usually charge a fee. Moreover, you may be unable to use your credit card until the balance drops below the limit.
All credit cards will come with an interest-free period. However, depending on your card and your bank, this period may vary in length. Comparing interest-free periods may allow you the best chance to minimise your interest payments on any purchases you make.
As a further explanation, an interest-free period is the length of time within which you will not be charged interest on your purchases. Usually, it will range from 20-55 days. However, keep in mind that it will only apply if you pay off the balance of your card in full, by the due date each month. Otherwise, you will incur interest.
Credit card rewards compare
Some credit cards allow you to earn points as you use the card to make purchases. Once you’ve accumulated enough points, you may cash them in to purchase goods or services and can potentially even get cash back.
With this, if a strong rewards program is something you value, then research the structure of each program to determine if it is realistic and can provide you with benefits. However, keep in mind that a rewards program likely won’t be as important as finding a good rate and low fees.
Compare credit card offers
Credit cards are an extremely competitive market. As a result, banks and other providers are always looking to offer incentives that will make you sign up with them. As a guide, these may include:
- Honeymoon or introductory rates
- Gift cards
- Extra rewards points
- 0% balance transfers
- Lower annual fees
- Cashback offers
In addition, keep in mind that there may be other introductory offers available. If two or more cards are similar in terms of their rates and fees, then comparing these offers may be one way to choose which card to apply for.
Compare credit card balance transfer
If you are currently dealing with credit card debt and are looking for an accessible debt consolidation option, then a balance transfer is a common strategy. In short, some credit cards may offer a 0% balance transfer. As a result, you may take advantage of an interest-free period on purchases that may last 12 months or longer, allowing you to potentially regain control of your debt.
How do I get the best credit card for me?
So, now that you know what to compare, you have to consider how to get the best card for you. With this, it comes down to your financial situation and finding the right balance.
Given this, it’s important to have a clear understanding of your objectives. In other words, are you going to be using the card as a safety net that you can use if you need cash or are you planning to use it frequently? In the first scenario, you’d probably look for a lower rate and a longer interest-free period. However, in the second, you may favour a card with a better rewards program.
At the end of the day, finding the best card depends on you. As a result, you must consider the costs, benefits, drawbacks and your financial situation to find a suitable option for your circumstances. In some cases, you may even find that a credit card is not the right choice at this time.
What are the benefits of using a credit card?
Before you even think about credit card compare, it’s important to assess the pros and cons. Realistically, that’s the first step you must take to determine if a card would suit your needs.
With this, the first key benefit is that a credit card may provide a safety net. In other words, if you don’t have the cash to pay a bill or make a purchase today, you can use your credit card and then pay off the balance once your income is deposited.
In addition to this, credit cards are quick and easy to use. You can tap and go or add your card to your mobile wallet. As a result, it’s often much more convenient than dealing with the hassle of paying with cash and waiting for change.
Finally, depending on your card, you may be rewarded for using it. You can accumulate points as you make purchases, which you may then eventually use to buy experiences, products or even get cash back. Typically, these benefits won’t be offered on debit cards.
What are the drawbacks?
The first and most significant downside is that purchasing on credit can lead to significant debt if managed poorly. In other words, if you fail to pay off your monthly balance, then interest can accumulate quickly. As a result, your costs may become unaffordable before you know it.
In addition to this, consider the costs involved with buying on credit too. In many cases, credit cards will come with annual rates that exceed 15%. As a result, while a credit card may help you smooth out a short-term cash flow issue, if you do not stay on top of your monthly repayments, the costs are often high. Moreover, ensure that you are aware of any fees that your bank or provider may charge too.
Credit card compare for your first credit card
If you’re seeking your first credit card, then your goals and objectives will usually be much different from a person who has applied before. In many cases, you will often be younger and may earn a lower income too. As a result, you’ll have to find a card that fits with this.
The good news is that there are a host of credit card products on offer. Moreover, many may be perfectly suited to first-time applicants. For instance, some providers may offer student credit cards or low-income cards with lower rates, thereby making them more affordable for you. However, the trade-off with this may be that they come with lower limits and fewer perks.
Who is eligible to apply?
Each bank and lender may apply different criteria. However, as a guide, you typically must be at least 18 years old and meet a minimum threshold related to your credit score and income.
With this, exact earning and credit score requirements will vary. For instance, a card with an excellent rewards program and a high limit will often have more stringent criteria than an introductory-level card. In other words, you may need to earn a higher income and have a higher credit score.
To apply for a credit card, simply contact a bank or credit card provider who can offer a card that suits your needs. In most cases, you can apply online. However, you may also apply in-person, at a branch, too. Moreover, ensure that you can provide identifying documents as well as details regarding your employment, living situation and any other relevant financial information.
Compare credit cards: how do I manage my card effectively?
Credit cards may be an effective financial tool that can help you manage your money. Moreover, with the number of offers and rewards programs available, they can provide you with other benefits too.
That said, there are risks involved with credit cards, given the significant interest rates. So, you must institute effective habits to ensure you keep the costs under control. As a guide, these habits may include:
- Set a budget: just because a credit card has a limit, doesn’t mean you should spend up to that limit. The bill will come due at some point. So, only spend what you can afford to repay.
- Make your repayments: avoid late fees and interest. Pay off your outstanding balance each month.
- Keep it for emergencies: whenever possible, it’s usually a good idea to avoid relying on credit. As a result, if you’ve got the cash-on-hand to cover the cost of whatever item you’re buying, it’s usually the best option. That said, you’ll always have your credit card there if you need it.
What mistakes must I avoid?
While we’ve covered the things you should do when using a credit card, there are many common mistakes that Aussies fall into every day. As a result, if you’ve just got your first credit card, make sure you avoid the following:
- Only paying the minimum: credit cards require a minimum monthly payment to avoid late fees. However, your bank or provider will still charge interest. So, aim to pay off your balance each month to avoid the additional costs.
- Missing the due date: late fees may not seem like a big deal, but they are an additional, unnecessary cost. So, ensure you set reminders to avoid paying anything extra.
- Reaching your limit: as a guide, you should always aim to only spend up to 30-40% of your credit card limit. In addition to this, not spending to your limit will mean you avoid the risk of overdraft fees.
Will applying hurt my credit score?
In short, it may. However, it will typically depend on the number of times you apply.
As a guide, if you apply for one credit card and are approved, then this may not significantly impact your credit score. On the other hand, if you submit multiple applications with several different banks or lenders in a short period, then these continued enquiries may result in your credit score dropping.
Given this, it’s important to have all your ducks in a row before applying. In other words, ensure that you are earning a consistent income and take steps, where possible, to improve your credit score. Moreover, make sure that you can provide all the information required (e.g. bank statements, identification, etc.). That way, you can increase the likelihood that a bank will approve your credit card application.
How can cancelling a credit card improve my credit score?
If you no longer use your credit card or would like to eliminate the temptation associated with it, then you are usually able to cancel your card at any time. However, before doing so, ensure that you have paid off the outstanding balance as well as any fees.
If you do cancel your card, then your credit score may improve for several reasons. Firstly, it lowers your amount of credit available. New lenders typically see this as a positive, given that it reduces the potential for you to fall further into debt. In addition to this, paying off your credit card and cancelling it, may be a sign to lenders that you have your budget and debt under control. As a result, your credit score may improve.
For more information, visit Moneysmart’s guide to cancelling a credit card. It will guide you through the steps to take when you decide to eliminate a card from your life.
Will cancelling a credit card hurt my credit score?
While we’ve touched on how cancelling credit cards may help your credit score, it may also have a negative impact too. Generally, though, this will only be the case if it was your only credit account. With this, having no open credit accounts limits the information on your credit report making it harder for lenders to assess your application. As a result, in some cases, it may be worth maintaining it, albeit at a low balance.
In addition to this, remember that your credit report contains more than just information regarding your credit cards. So, while you may be able to take steps to manage your credit card well, you must do that with all your other outstanding debts too. Closing a credit card will mean very little if you fail to stay on top of your other repayments.
Comparing credit cards for debt consolidation
As we’ve already mentioned, credit card debt consolidation via a balance transfer is quite common. In most cases, this involves transferring your current, outstanding debts onto a new card, often to take advantage of lower introductory rates. That way, you may reduce the amount of interest you must pay.
In addition to this, there are other benefits worth considering too. By moving your debt onto one card and cancelling your others, you may avoid some fees and charges. Moreover, a credit card balance transfer may simplify your debt, as you’ve only got one credit card to worry about.
Finally, if a credit card balance transfer is not an option, then you may be able to apply for debt consolidation personal loans. With Monzi, you may apply from $300 to $10,000. As a result, you can borrow money to pay off your other debts, meaning you’re left with one fixed-term loan to worry about. In other words, you’ll only have to keep track of one repayment, one interest rate and one lender.
However, before doing so, ensure that your costs will be lower after you consolidate your debt. Otherwise, it may not be worthwhile.
Should I use an online calculator?
If you’ve got an outstanding credit balance and you’re unsure how long it may take to repay, then credit card interest calculators may provide you with some guidance.
In a similar manner to personal loan calculators, these tools will ask you to provide a few details. Generally, this will include your current amount of debt, the minimum monthly payment and your interest rate. From there, it will determine an estimate of how long it will take for you to repay your debt, based on the minimum repayment.
In addition to this, some calculators may also be able to show how much you could save by switching. In other words, it will compare your current repayment terms to those that you may access with a new bank or provider.
Ultimately, credit card calculators can be a useful tool to help you get a handle on your debt and repayments. Do your research to determine if one could help you today.
Can I get a credit card with Monzi?
Here at Monzi, we’ve done our best to provide you with a detailed and insightful look at comparing credit cards. That said, we are not a credit card company. As a result, if you’re looking to apply, then you’ll need to find a bank that offers a card that fits your needs and objectives.
What Monzi can offer, though, is a quick and easy lender-finder service. In short, if you need cash loans online but want to avoid the hassle of sifting through lenders, then just apply with Monzi from $300 to $10,000. From there, we’ll do our best to pair you with an available lender from our network who may be willing to assess your application.
If it all goes to plan, then your lender may be in touch before you know it. As a result, Monzi may be the organisation for you if you’re dealing with a cash shortfall today. Cover expenses ranging from car repairs through to travel expenses and everything in between. Apply now.
Cash loans vs a credit card: which option is right for me?
Unfortunately, Monzi cannot say. After all, it will be determined by your personal needs, objectives and financial situation. Moreover, both options will have pros and cons that make them preferable in certain circumstances.
On the one hand, instant cash loans may be an option if you’ve got a pressing expense. In short, you borrow cash when you need it and then your costs are divided into a series of even repayments over a fixed period. Given this, it’s a one-off way for you to borrow cash fast.
On the other hand, a credit card may be best if you’re good at managing your budget and can commit to paying off your balance each month. That way, you’ll avoid paying interest. In addition to this, credit card expenses can help you manage any short-term cash flow issues and you can even earn rewards on them too.
Given this, it’s your decision. Consider why you need credit and the pros and cons of each to determine which option you should apply for today. If you settle on a fast loan, then you can apply with Monzi today and we may pair you with a lender in 60 minutes.
Can I get a credit card with bad credit?
However, in a similar manner to personal loans, receiving approval on a credit card if you’ve got bad credit can often be difficult. Given this, if your credit isn’t the best, then you must demonstrate that you are in a suitable financial position to manage the costs. As a guide, aim to pay off your current outstanding debts and ensure you can show that you are earning a consistent income. This may increase the likelihood of approval.
If you’ve after an alternative, then Monzi knows a few lenders who may consider bad credit applicants. So, if you need a bad credit loan, then apply today. While we cannot guarantee if your application will be approved, the lenders we know may look at more than just your credit score when they determine your outcome.
Credit card compare: why are credit card interest rates so high?
If you’re new to credit cards and you’ve been comparing your options, then you may have noticed that interest rates tend to be much higher than on other forms of credit (e.g. variable rate home loans). This leads to the obvious question of why?
Well, in short, credit cards are a form of unsecured credit. In other words, you don’t have to provide an asset as security to guarantee the amount you borrow. It’s simply your responsibility to make the repayments on-time.
While this makes things easy for you, it is a risk for credit card providers. After all, if you fail to make your repayments, then they don’t necessarily have a direct avenue to recover their losses. As a result, they may charge higher interest rates to compensate for the additional risk.
How do I apply with Monzi?
If you decide that a quick cash loan is a more appropriate option than a credit card to cover a one-time cash shortfall, then you’re welcome to apply with Monzi. However, before we get to applying, first make sure that you meet our eligibility criteria:
- Australian citizen or permanent resident.
- At least 18 years of age.
- Have an email address and mobile number.
- Possess an online bank account, where your income is deposited, with at least three months of transaction history.
Tick every box? Great! You can apply by following these easy steps:
- Select a loan amount and repayment term.
- Complete Monzi’s online application.
- Wait, while we attempt to match you with an available lender from our network.
- Check your phone for an outcome. If we successfully pair you with a lender, then they will contact you to begin the next steps.
However, keep in mind that approval is not guaranteed.
As we are not a credit card company, we cannot answer questions regarding your credit card options and the rates you may be charged. However, if you’ve got any questions about our lender-finder service and how you may be matched with a lender today, then you’re welcome to reach out.
Email us today at firstname.lastname@example.org and one of our customer service team members will send you a response ASAP. However, we only monitor this account during business hours. So, if you’re after a fast response, then your best bet may be to get in touch between Monday and Friday. In any case, we’ll reply when we can.
Credit card compare: why not consider a personal loan instead?
At Monzi, we’ve done our best to outline how you may compare your credit card options. However, as we’ve mentioned, Monzi does not offer credit cards. Instead, we’re a lender-finder service that may make things easy for you when you need personal loans online.
When you’re ready to begin, just hit ‘Apply Now’ or scroll up to Monzi’s loan slider. You may borrow amounts from $300 to $10,000 today. All it takes is one application. Monzi’s ready and waiting to hear from you. Let’s go.
Finally, discover Monzi’s guide to virtual credit cards and how they might make online shopping more secure. Or, why not check out the world of PayWave and contactless payments? See how you can make your shopping trips breezy.