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How to choose the right type of credit card for busy mums




Everybody loves the idea of a credit card, because it allows you to pay for things even when you don’t have the funds to do so.


However, a lot of people try to stay away from them because they don’t want to end up in debt. If you have never owned a credit card before, it can be hard to know which type of card will suit your needs.


Luckily, these days there are several types of credit cards available, so that you can choose the right one for our lifestyle.



Rewards credit cards

If you are someone who likes to spend a lot of money and be rewarded for it, you should think about applying for a rewards credit card. Some rewards cards offer you cashback, while others work on a points based system that allows you to earn rewards once you have a certain amount of points. There are different types of rewards cards available, depending on what you normally spend your money on as well.


For example, frequent flyer credit cards are quite common these days because they allow people to accrue points every time you fly, which can help you to pay for travel and accommodation further down the road thanks to the rewards that they give you.

However, although rewards cards sound great, you should only apply for one of these cards if you are a frequent spender, or if you are using the card to pay for big-ticket items, because they have higher annual fees than other credit cards.


Low annual fee credit cards

As the name suggests, a low annual fee credit card is a card that has a lower annual card keeping fee than other types of credit cards. These cards are great for people who only use their credit cards sporadically to pay for big ticket items, and pay their debts back quickly over the year. Some banks and financial institutions may even offer a no annual fee period on these types of credit cards to reel potential customers in. However, you will often find that because these cards have a low annual fee, they may have a higher interest rate than other cards, so it is important to look into this before you apply for this kind of card.


Balance transfer cards

For people who may not know what a balance transfer is, it is the process of transferring your debt from one credit card to another. A lot of people like to do this because they can transfer their balance from a card with higher interest rates to a card with lower interest rates, meaning that they can pay off their debt faster. And the benefit of getting a balance transfer card for this process is that these cards will often have a lower introductory rate for balance transfers than other types of credit cards. Balance transfer credit cards often appeal to a lot of people because they use good deals to encourage people to apply for them, but make sure you read through the whole deal before you commit to this type of card. It is also important to note that your credit score is very important when applying for these types of cards, so you will need to have a good score to be eligible for a balance transfer card.

Low rate credit cards

Low rate credit cards have a lower interest rate than most other credit cards, which is why a lot of people choose to apply for them over other credit cards. Even though these cards will likely have a fairly high annual fee, you can save a lot of money by using one of these cards because of their low repayment fees.


Cards with low interest rates are great for people who forget to pay off their credit card bills each month because you can pay it back at your leisure due to the low interest rate. Any card that charges an interest rate of 14% p.a. or less is classified as a low rate credit card, so they can be harder to find than most cards, but for most people these cards are worth shopping around for. If you are interested in applying for a low rate credit card click here for more information.

It can be difficult to choose the right type of credit card for yourself, especially if you haven’t had a credit card before. However, if you need some advice on choosing the right card, you should speak to a financial advisor, as they will find the best deal for you on your next credit card. So whether you are someone that likes to spend big and be rewarded for your purchases or you have a limited budget and need a bit of money to help with big purchases, you should be able to find the right credit card for you.






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