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?

 

[mooingchicken]

You need to decide which airline you want to gain points with.

Rewards cards generally don't have low interest rates, but if you pay the bill off each month in full you never pay interest anyway.
If you cant pay off in full each month I would suggest getting a bank visa/mastercard with low interest rate (these are often free yearly or $50) and chase points in a few years when you can pay it off each month.

There are very limited no yearly fee cards which earn points without a promotion (see the promos on this forum) but there are either a velocity red or qantas which are direct from amex and these are no fees and 1 point per $1. Otherwise look at the options around baanks etc. but if you are earning 50k a year you aren't going to be putting a high spend through the card, so i wouldn't pay a yearly fee of more than $100 or so

 

[trippin_the_rift]

Welcome to AFF, Brad.
In all honesty frequent flyer cards that earn points will come with associated fees and these can be hefty if your balance is not paid in full each month.
If your job doesn't require any flying I would look at a low rate credit card with no/low annual fees and even lower interest rates.
Frequent flyer points can be great if you can afford them and play the game properly but if you cannot pay the full balance off each month - the points are not even close to being worth the interest charges you will incur.
Remember, cash is king. Keep the money in your pocket rather than the banks.

 

[brad1549]

Welcome to AFF, Brad.
In all honesty frequent flyer cards that earn points will come with associated fees and these can be hefty if your balance is not paid in full each month.
If your job doesn't require any flying I would look at a low rate credit card with no/low annual fees and even lower interest rates.
Frequent flyer points can be great if you can afford them and play the game properly but if you cannot pay the full balance off each month - the points are not even close to being worth the interest charges you will incur.
Remember, cash is king. Keep the money in your pocket rather than the banks.

Ahh I see.

Well, what are the best (lowest fees/rates) credit cards at the moment? Like I said, I will be able to pay off all debts within a month. I am very cough when it comes to debt - absolutely hate it. I like to think I'm an intelligent person and would never overspend on something I couldn't pay back. And, I would never even let myself get close to an interest debt spiral.

What is the minimum spend on most of these frequent flyer cards?

I spend approximately $1,500 to $2,000 a month.

Thanks

 

[mooingchicken]

Ahh I see.

What is the minimum spend on most of these frequent flyer cards?

Thanks

There is no minimum spends at all but more of you must earn X amount a year to apply for them, and of the bank upto gold levels should be fine with 50k, some platinum, others are around 65-70k per year. The amex ones I mentioned should be fine for the 50k aswell
Low rate cards arent all to much difference if that's the route you want to go, most are the 11-12% and charge $50 a month but sounds like you will pay them off before the bill due date each month, so go for a low annual fee points earn card if this is the case. If you can get a sign up bonus one even better.

 

[Dr Ralph]

Welcoem to AFF brad1549 . I would have thought there's little chance of getting a credit card with a decent sign on bonus with all of the other criteria you want.

 

[Cynicor]

You don't need a low rate card if you never pay interest. These cards don't factor into the thinking of most on here because we are after the points and generally always pay the card off in full by the due date.

First question- do you understand how credit cards work? Without meaning to belittle you, many people do not. It's worth looking up how interest works, what the interest free days means etc.
As an example, an item purchased 1 day after the statement issue date will have almost a full month longer interest free than an item purchased the day prior to statement issue. If that makes no sense, do more research.

Next- are you buying from oseas a lot, or travelling? If so, get a low FX fee card. You would qualify for the 28 degrees.

Otherwise, maybe the Woolworths base QF card is for you. You wouldn't hit the cap and it has an ok earn rate for the first 2500. Not sure on the income limits.