Things you didn't know about credit cards [Infographic]
We use credit a lot.
There are more than 12.2m active credit card accounts in Australia, that’s an average of 1.21 per household.1
Credit card interest is costing Australians a lot of money.
Australia has a national credit card debt accruing interest of around $44.14 billion.1
Many of us are not as good at managing credit card debt as we think we are.
13% of credit card holders have missed a repayment by 30 days or more in the past three months, with 2% missing a repayment by more than 60 days. 2
Weighing up points vs cashback. One size doesn’t fit all.
A rewards or cashback credit card is only worth it if what you earn outweighs the annual fee. If it doesn’t, you may be better off with a low‑fee or no‑fee option.3
Rewards and points cards can suit people who use their card regularly, pay it off in full each month, and actually use the benefits, such as travel rewards. If you carry a balance, interest charges can quickly undo any value from rewards.
We’re here to help
It’s a good idea to look at all the options on the market and pick the option that feels suitable for your current financial goals.
If you're good at managing your money, and can pay the balance off each month - then a credit card could be a good option for you. But if you struggle to manage multiple credit card repayments, a personal loan for debt consolidation could help you manage repayments by consolidating repayments into a single one.
To get you started, find out how much your repayments might be, or get your individual rate before applying, in just a few minutes (it won't affect your credit score).
Got a question? Call on 1300 108 794. We're here to help.
Contributor | Vasè Marcevska, Head of Direct Sales – Mortgages and Personal Loans
Vasè has over 16 years of experience in the Banking and Finance sector, specifically within the Third Party and Consumer lending industry. Her expertise now focuses on enhancing our Customer program through a deep understanding of mortgage origination and service excellence across our Financial products.
Published by Pepper Money. Read our Editorial Policy to learn how we create and review content.
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Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
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Loan repayment terms range from 18 to 84 months for secured loans. Repayment terms range from 18 to 36 months for unsecured loans between $5000 and $7,999, and 18 to 84 months for unsecured loans from $8,000 to $40,000.
EXAMPLE: An unsecured personal loan of $30,000 borrowed over a term of 5 years with the minimum interest rate of 7.95% p.a. (9.56% p.a. comparison rate), would equate to an estimated minimum total amount payable of $38,610 via the weekly payment option (including a $495 establishment fee and $13 per month administration fee). Rates are subject to change.
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