What’s the best credit card for my situation?

[brad1549]

Hi all,

I am 23 years of age and am looking to get my first credit card. I am male, am both a Qantas member and Virgin Australia member (frequent flyer points) and still live at home. My bank accounts are with the Commonwealth Bank of Australia – however I am happy to use a credit card from any institution (not even necessarily a bank).

I would like to get a credit card, as there are some things I want to buy and cannot pay off right now, but definitely would be able to pay off the following month (4 weeks or less away) – as I get paid monthly. Also, I am looking to move out of home in the near future, and need to start getting a good credit rating. I highly doubt I will ever be withdrawing cash from my credit card.

I am not on a huge salary (only $50k a year), however my job is secure.

With the above criteria, I assume the best credit card is one that has low rates and fees, has 0% interest for a minimum 30 days after a transaction, and possibly one that gives One World/Virgin frequent flyer points.

What is the best credit card, in your opinion, for my above criteria?

 

[exceladdict]

Hi all,

I am 23 years of age and am looking to get my first credit card. I am male, am both a Qantas member and Virgin Australia member (frequent flyer points) and still live at home. My bank accounts are with the Commonwealth Bank of Australia – however I am happy to use a credit card from any institution (not even necessarily a bank).

I would like to get a credit card, as there are some things I want to buy and cannot pay off right now, but definitely would be able to pay off the following month (4 weeks or less away) – as I get paid monthly. Also, I am looking to move out of home in the near future, and need to start getting a good credit rating. I highly doubt I will ever be withdrawing cash from my credit card.

I am not on a huge salary (only $50k a year), however my job is secure.

With the above criteria, I assume the best credit card is one that has low rates and fees, has 0% interest for a minimum 30 days after a transaction, and possibly one that gives One World/Virgin frequent flyer points.

What is the best credit card, in your opinion, for my above criteria?

Your income will probably be the determining factor, lots of premium cards need 60k+

It sounds like you want one with 55 interest free days, of which there are plenty.

Also, how long have you been in full time employment? If less than a year, bank may want more information, especially if you have not got a credit file yet from any past lending.

Most on this forum (I think I can generalise that reasonably fairly) frequently chase high sign on bonus cards, so check out some other threads for these.

But you will need to decide qantas vs virgin, what annual fees are reasonable to you, and whether the conditions like interest free days suit your needs.

 

[BillytheFIsh]

Take a look in this sub-forum and look for cards that have no annual fee for the first year. They're a good way to dip your toe in the water and see if the game might work for you.

 

[andye]

I'd avoid QF cards as you are unlikely to be generating enough points for premium awards and the higher co-pay will hit harder.

I would also avoid $0 first-year offers if they revert to a high fee in the second year

Some of the platinum/premium cards have base salaries of 40-50K so you may qualify. However you don't want to be knocked back.

The NAB Velocity cards have a reasonably juicy sign-on bonus at the moment and not too hefty fees (only 44 days interest-free period though) . Velocity Flyer is also an option (balance transfer option, and triple points for 3 monthsbut no sign-on bonus). No-fee options would be the Amex VA Discovery (though would not have universal acceptance), HSBC Platinum (only 0.5 VF points/$) and ANZRewards (1 VF on Amex, 0.75 VF on Visa/$, fee goes up to $89 after first year)

 

[psi999]

HSBC Platinum (only 0.5 VF points/$)

I came here to post this, petty decent card for $0

https://www.hsbc.com.au/1/2/personal/credit-cards/platinum

Minimum Credit Limit $6,000
Minimum Income $40,000
$0 annual fee for life (if you apply before 31st October, usually $129)
Free additional cardholder
55 day interest free
International Travel Insurance, Extended Warranty Insurance, Guaranteed Pricing Scheme, Transit Accident Insurance and Purchase Protection Insurance.

Rewards program:

1 HSBC point per $1 spent through the card
2 HSBC points = 1 velocity point (or 1.15 points during a 15% transfer special)

(essentially 0.575 velocity points per $1 spent (with 15% transfer special))

Looks like a pretty decent card with an OK earn on Visa for a totally free annual fee. Have had a flick through the insurances and at first glance look pretty decent as well.

 

[windchaser777]

I was in a similar situation to you last year. My advice is for your first credit card to apply for one with your bank if you have been with them a long time. I got declined for a Westpac Credit Card two years ago even though I was earning 20% more than when I applied for a credit card with HSBC (with a low credit limit) whom I've had accounts with for the last 6 years. Waited 3 months then applied and was accepted for the ANZ QFF cards with a much higher credit limit.

It may seem like a pain in the backside, but it's better than getting a notation on your report that you were declined for a card.

 

[Beta4Me]

It may seem like a pain in the backside, but it's better than getting a notation on your report that you were declined for a card.

Notation on what report? Your credit file doesn't show approvals or declines, just applications.

 

[andye]

Notation on what report? Your credit file doesn't show approvals or declines, just applications.

It will lower your score though and reduce the chances on a subsequent application. Nab velocity is good in that respect as if they reject you for the Platinum they are still quite likely to approve the standatd Velocity card instead. Plus you get a quick fix of bonus points which would take you ages to earn on a card with no sign-up

 

[Buzzard]

I don't know about now but HSBC were quite strict in their criteria for credit cards.

If building a credit record is more important than earning points then I would go with a Com Bank card to start with.
In another year you can then do some serious hunting.

I think all the replies to your question are quite good, you just need to weigh what is best for your situation.