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Credit Cards & Debit Cards

While settling into your new Australian life, a credit and/or debit card is a great tool if used wisely.

There are pros and cons with both credit cards and debit cards, your choice really depends on your circumstances and the way you live and access your money.

Credit Cards

In Australia, there are many advantages of owning a credit card, the most obvious benefit is that you can access the bank’s money to buy goods and services, and pay bills. If used sensibly, this can be a tremendous advantage.

However, if you use your card irresponsibly, and build up large debts that you are unable to pay, then this can cost you dearly.

The key is having a card that suits you, and avoiding paying unnecessary interest.

Interest & Monthly Payments

It is possible to pay no interest? Most credit cards offer an interest free period, usually 44 or 55 days. If, at every payment cycle, you pay your balance off ‘in full’ before your interest free days are over, then you pay NO interest.

This means that any savings you may have will continue to earn interest, while you use the credit card for everyday living.  This requires planning and discipline. However, if you do not pay the balance off in full you can be caught paying high interest rates (much higher than what’s offered in savings accounts), and you can get yourself in financial difficulty.

Rewards Programs

If you know you are always going to be able to pay the balance off in full and avoid interest, then your choice of cards is wide. You can choose a card with a rewards program (such as frequent flyer miles, cash rewards, discounted shopping, and/ and petrol/gas). However, if you are unlikely to pay your card off in full every period then its wise to choose the card with the lowest interest rate, even if this means not receiving any rewards.

Our partner ANZ provides a range of credit cards and services to help you choose the card which is right for your situation. Learn more about  ANZ’s credit cards: I am still overseas / I am in Australia

How to Get a Credit Card

You will have to prove your income and current financial situation, including savings and other debts. You will also have to prove your identity. This may be through a passport, birth certificate, driver’s license, and/or a household bill to fulfill the required identity check.

You can also apply for a credit card online. Do your homework before you sign up for anything! Be clear on the interest rate for the card, and all the rules (terms & conditions).

Here are links to the 3 major credit cards in Australia. Keep in mind, each bank has its own agreement with each of these cards, so shop around for the best interest rates and reward points programs!

Mastercard     
VISA     
American Express   

Debit Cards

One of the main advantages of credit cards is that they allow you to shop online, over the phone, and overseas, wherever the card is accepted. However, with the right debit card you no longer need a credit card to do this.

A debit card gives you the same access as a credit card. However, you are in fact using your own money as it is linked to your everyday (transaction) account.


For example, provided you have the available funds in your account, you can use an ANZ Visa Debit Card anywhere Visa is accepted. By doing so, you will not be borrowing money or paying interest. 

Learn more about  ANZ’s debit cards: I am still overseas / I am in Australia.