Source
r/AusFinance•
Noturb

Can someone recommend me my first credit card

I pretty much never travel, buy fuel or shop at grocery stores so the rewards seem pretty much pointless for me although I might be doing some a domestic flight or two next year, I don't want to be paying fees. Amex sounds annoying because of surcharges and a lot of places don't accept it

I just want a credit card for when I'm low on my weekly budget, I'd always pay the credit card off in time.

I'm quite finance illiterate so finding the right one for me is really confusing

I earn a little under 50k

Posted Sep 28, 2017, 2:46 PM UTC

026
FutureSynth•

Credit card is not for you. Stick with debit card and budget harder.

16
nitefuzz•

I just want a credit card for when I'm low on my weekly budget

I'm quite finance illiterate

I earn a little under 50k

Those are three reasons why you shouldn't be getting a credit card.

11
NoturbOP•

Then what's the point of a credit card, if I pay it off in time what's the problem

0
tenmillionbucks•

They're not a problem if you're financially literate and have more than enough money to pay them back, but you aren't and if you're frequently short on cash you'll get yourself into shit with it.

11
Poncho_au•

They are a trap. It's a lot harder to pay off than you think. I make 80k a year and I have $2k owing on a credit card. I'm paying interest and fees on that when in reality I shouldn't have to borrow money for anything. Build an emergency fund of at least a few thousand, and you won't have a need for a credit card. The great thing with that is you'll be making a bit of money off those saving when you don't use them.

3
tenmillionbucks•

I just use them for my everyday spending and pay off in full every month, they're great if you're good with money and terrible if you're not.

5
Poncho_au•

Exactly. The important part is the paying it off, which is why banks love them because that happens a lot less than you'd think.

4
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1
jaseb•

The only way to make credit cards work for you is if you don't charge anything to them you don't already have the cash to back. i.e. you want to be able to pay it off in full at any moment. Anything else and your eventually going to have a bad time. In short, if you need a credit card, your the wrong person to be getting one.

I make the reward points work for me and churn cards for signup bonuses, but finance wise don't rely on the credit at all.

OP: stick with your debit card.

4
tenmillionbucks•

If you're financially illiterate and often run out of money I wouldn't recommend getting one in the first place, but if you're determined check out www.pointhacks.com.au to learn more about the pros and cons of different cards.

Edit- Why have you made 2 almost identical posts with 2 different accounts?

3
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1
ShibaHook•

You don't need a credit card. You need a budget.

3
NoturbOP•

Oh fuck off.

-5
osnonymous•

Go for a no annual fee for life one. Like ING orange one.
If you are constantly paying it off on time, you can then consider one with rewards. Credit cards with rewards have annual fees. So you have to spend a lot just to break even!

1
NoturbOP•

Everyone said that orange one was shit lol. Were they just referring to the rewards?

0
RyanJenkens•

that's not u/osnonymous point. I just got rid of my credit cards after about 15 years and I hope I never go back. the points aren't worth it. listen to the advice others have given

2
NoturbOP•

Gotchya, so if I'm not spending enough it's not even worth it? I'll stick to debit then

2
Poncho_au•

The rewards in a lot of cases are also a trap. Banks don't give away more than they make if they can avoid it.

0
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-1
yo_puedo•

If you must have one. Get a low annual fee card with a $500 limit max

1
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-6
NoturbOP•

Dude your entire account is to shill for your chase referral link lol

5
Poncho_au•

At least you're not seeing through this guys bullshit. You're not as illiterate as you say. The only way a credit card pays you is if you pay it more.

3
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2
Poncho_au•

I've work in the finance industry. Specifically with Visa card payment services. I know how it works.

1
jaseb•

Note to anyone else reading: ignore everything this guy says about building credit scores. It doesn't work like that here in Australia.

If you're smart you can make rewards work for you. But not by using a card how OP plans to.

1
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0
jaseb•

Awesome!!!!1

Where can I find my local Chase bank in Australia?

5
tenmillionbucks•

You'll find your closest one ONLY a short 13hrs away in Los Angeles.

1
jaseb•

I'm in Perth. Make that 18.

2
tenmillionbucks•

Bugger! haha

1