What you should have before you apply for a credit card in Australia.The Easy way of payment.

When applying for a credit card there are few things you should know such as how to qualify for one and how to choose a good one. First to see would be if you can qualify for one as you don't want to fill in a long application form only to be not approved for something you could have known before applying such as: do you meet the minimum income requirements, have you been employed long enough (normally at least 3 months), are you at least 18 years old. These are just the basic requirements and if you meet them you will have a good chance of getting approved. The next step is to make a decision on which credit card you want and this can be difficult if you don't know how to compare them, it can be dangerous also as you may get eaten up by fees with the wrong card. Here we will show you how to compare credit cards.

Check the interest rate.

It might sound obvious but some people just sign up to the first deal they think looks good. Be aware of low interest introductory periods to lure you in, after a few months the interest rate could almost double, so read the fine print. Look for a credit card with a low interest rate that is not only for the introductory period and suddenly jumps by a lot later, interest rates on credit cards do change but only slightly and usually all providers do it at the same time due to external economic factors.

Check the fees.

Most credit card providers charge an annual fee however there are few that don't so if you pay your closing balance every month (next section) then you will not pay the bank any money at all (zero fees). There could be heavy penalties for late payments and if you have a high interest rate but do not pay back anything for the month you spent then you could also be paying a lot in interest. The PDS (product disclosure statement) will be available for you to read before you apply so read that to find out the possible penalties and fees that could happen. If you are the forgetful type then make sure you don't choose a credit card that has a hefty penalty for late monthly payments.

Pay your closing balance every month.

When you pay your closing balance every month you cannot be charged a single cent of interest so essentially you are using the card fee free. The closing balance is the amount you have spent for the previous month it is not the total you have spent on your card, so you do not have to pay back the total just the closing balance which is great. The amount you need to pay for your closing balance can be found on your credit card statement or in your online banking if you use it so make sure you pay it on the date it's due.

Hopefully this advice will give you a head start when you first starting applying for and using your credit card so you can keep your hard earned money in your account and not the banks.