| This guide has been written to inform you about | | | | Rewards Cards are for customers who frequently |
| getting the right credit card to suite your personal | | | | use their card for all or most purchases, for frequently |
| needs. There are hundreds of types of cards it is | | | | using your card your bank will reward you with points, |
| imperative you select the correct card. Selecting the | | | | at the end of the year or specified time line you can |
| correct card could save you hundreds of dollars in the | | | | trade your points for goods and sometimes services. |
| long run or give you rewards such as free travel, | | | | The catch on these cards is that if you don't use your |
| appliances and other benefits. | | | | point within the allocated timeline you will lose your |
| What is a credit Card? | | | | points. |
| It is a plastic card with a magnetic strip, issued by a | | | | Information for Application? |
| bank or financial institution to a customer to buy goods | | | | What are does the law require you to be to get a |
| and or services on credit. Also called a charge card. | | | | credit card? |
| Credit is money given to a customer to borrow over | | | | |
| an extended period of time. Banks and financial | | | | 1. You must: Be 18 years of age or older. |
| institutions make money by charging an interest on | | | | 2. You must meet your banks credit rating |
| money lent to the customer. Generally credit cards | | | | requirements |
| charge a high interest rate this is because a credit | | | | 3. You must be an Australian citizen, permanent |
| card is designed for small purchase for short periods | | | | resident or have a current Australian visitors visa |
| of time. | | | | 4. You will need to prove your gross annual income on |
| What are the major banks in Australia? | | | | paper |
| Australia has four major banks with triple A (AAA) | | | | 5. Your employer's details (name and address) |
| credit rating. This is the highest level of credit rating a | | | | 6. Details of your own home if you have one |
| bank or financial institution can achieve. The 4 major | | | | (estimated value, amount owing on the property) |
| banks for Australia are: | | | | 7. Details of any existing loans (investment property |
| - Commonwealth Bank | | | | loans, personal loans, leasing, credit and store cards) |
| - St. George Bank | | | | 8. Any savings, investments and cheque account |
| - Westpac Bank | | | | details (account numbers and balances) |
| - ANZ Bank | | | | 9. Asset or investment details (value of property, |
| These banks are always recommend for borrowing | | | | shares, car, furniture and other assets) |
| money because they are most secure and regulated. | | | | Are you a new Bank customer? If you're a new Bank |
| However they don't always provide the cheapest line | | | | customer, you will need to go to your bank branch and |
| of credit available. Sometimes smaller banks and | | | | provide personal identification, along with the two most |
| financial institutions card offer cheaper credit and a | | | | recent original pay-slips for the primary applicant. |
| better deal with better customer service. Remember | | | | Personal Identification documents include one of the |
| to research all small banks and financial institutions, | | | | following documents containing your photo: Passport |
| read the fine print on there contacts. | | | | |
| What credit card suits me best? | | | | 1. Australian Drivers / Firearms licence |
| There are many types of credit cards on the market | | | | 2. Proof of Age card |
| today, the shear amount of credit cards can make | | | | 3. Or two different documents from this list: Birth |
| picking your credit card a difficult decision, and so we | | | | Certificate |
| have divided all the credit cards on the market into 6 | | | | 4. Citizenship Papers |
| categories. | | | | 5. Pension Card |
| Balance Transfer | | | | How to increase your chances of Approval |
| A balance transfer credit card is great for when you | | | | To help increase your chances of getting approval on |
| currently have a debit on another credit card (generally | | | | a credit card. Run a credit history check on your self. |
| over AUD $5000) and you would like to swap it onto | | | | Visit the Veda Advantage, Dun and Bradstreet, and |
| your new credit card with a new bank or financial | | | | Tasmanian Collection Service, these website will give |
| institution for a lower interest rate. You will be given the | | | | you a detailed report on your credit, these website can |
| option depending on the credit card for 6 months 12 | | | | take up to 10 working days to provide you your report. |
| months or lifetime interest rate, The lower the time the | | | | - Read though your credit report and check it for |
| better the savings. Essentially you can move from | | | | inaccuracies and other data which is incorrect. |
| card to card taking the lowest 6 month interest rate. | | | | Resubmit it. |
| Debit Card (pre-paid) | | | | - Your credit report is just one factor a credit provider |
| A debit card is essentially a pre-paid credit card. This | | | | may take into account when assessing your |
| kind of card is great for customers who wish not to | | | | application for a loan. Other factors may include your |
| have credit access. Most Customers who use this | | | | employment, your income, your savings and any |
| card generally purchase items online, because this card | | | | existing liabilities. |
| works exactly the same as a credit card bar the fact | | | | - It is recommended that when you apply for a credit |
| you must put money into the card before you can | | | | card that you have been working for a minimum of 12 |
| purchase your good or service. | | | | months at the same company. |
| Frequent Flyer | | | | - Make sure your bank account show that you have |
| A frequent flyers card is for customers who wish to | | | | money in it and that you keep money in it (save). This |
| get point for purchases and transfer these point into | | | | will show the bank or financial institution that you have |
| rewards such as free plane flights to locations | | | | the ability to repay your credit debit. |
| depending on how many points you receive will | | | | - Bankruptcy in most cases will hamper your efforts in |
| translate to how far you can go. To gain points you | | | | finding credit. If you have been bankrupt you may need |
| must purchase items. The average points per dollar is | | | | to see a professional about fixing your credit. |
| 3 points to 1 dollar. | | | | - Other liabilities such as mortgage personal loans and |
| Low Interest | | | | car loans can be a factor when the banks review |
| Low interest cards are for customers who whish to | | | | your credit card application. Be sure you can make |
| keep debit on there credit cards for extended periods | | | | repayments on all your liabilities comfortably. |
| of time, ergo if you wish not to pay off your debit and | | | | If you have been rejected for a credit card application |
| just paid the interest then this is the credit card you | | | | you can always resubmit your application in 6 months |
| would use. | | | | (or less in some cases), contact your selected bank |
| No Annual Fee | | | | and discuses why you were declined. Once you know |
| No annual fee cards are for customers who do not | | | | why you were not approved you can seek to correct |
| use there credit cards frequently. | | | | your situation and then resubmit. |
| Rewards | | | | |