Australian Credit Card Terms and Conditions set to Change

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"When credit card companies send out information booklets be sure to compare the changed terms and conditions," Credit Cards Australia founder Ray Ethell declared today.

"When credit card companies send out information booklets be sure to compare the changed terms and conditions," Credit Cards Australia founder Ray Ethell declared today.

"Slumping earnings, in these 'subprime' times are driving companies to find ever more insidious ways to boost earnings from card users," Mr Ethell said.

Most credit cards will have changes to their terms and conditions such as increase ATM fees for cash advances while many reward cards have capped reward points and will no longer offer Qantas Frequent Flyer points from 1st March 2009. Some credit card issuers may limit Qantas Frequent Flyer Points to their Platinum Credit Cards only.

"The purchase interest rate on credit cards can vary by 10% p.a with the interest rate for cash advances remaining at high levels of up to 21% p.a.," said Ray Ethell.

"There are three good reasons for doing a regular credit card comparison and switching to a different card," Mr Ethell added.

(1) Encourage competition and keep the credit card providers on their toes. Credit card providers at this time of economic dire straits are continuously adjusting their terms and condition in order to squeeze every dollar of earnings from their cardholders. Always bear in mind that credit card companies aim to make money from their cardholders and take business from one another. The best way to do this is to compare credit cards on a regular basis.

(2) Get the lowest possible rate just in case. Always pay up credit card balance each month. Know the interest rate payable on your credit card. There are basic credit cards on the market that guarantee single digit interest rates for several months? It's time to get online and find the credit card with the lowest interest rates and get rid of that old standby just in case.

(3) Get other benefits by matching a credit card to lifestyle. If a credit card user never gets into debt and always pays the balance in full there are credit cards with loyalty schemes, such as cash back, reward points, or AirMiles.

"Credit card comparison sites will give you guidance when comparing the credit card market," said Ray Ethell.

For Credit Card Comparisons, visit http://www.creditcardsaustralia.com.au.

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Ray Ethell
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