Three credit card features to help you get the most from 2020
When it comes to your credit card, there are some features everyone knows about, like your interest rate or rewards program.
But did you know your card could also offer a number of other features that can help you get a head start in 2020? Here's what you need to know:
1. Select and Credit spending
Select and Credit spending is available on many credit cards provided by Australia's major financial institutions. This allows you to exchange reward points accrued on your card for statement credits back onto your balance.
Typically, this comes without any service fee, but there can be a cap on the number of purchases you are able to make at one time.
Select and Credit is usually only redeemable on certain purchases specified by your bank, and you also need to ensure you are enrolled in the program with a relevant credit card.
This option is very handy for those who pay with credit regularly, but just aren't sure how to use their reward points.
2. Balance transfers
A balance transfer allows card holders to move debt to a new credit account, usually with a lower interest rate.
This makes the outstanding figure easier to pay off in the short term, and helps you maintain your positive credit score long-term.
The lower interest rate is often advertised for a promotional period, meaning that you need to repay any outstanding balance prior to the expiry date, or risk incurring higher interest or late fees.
It's always best to do your research and understand the terms and conditions first, however a balance transfer can be an excellent way to pay off credit card debt quickly and avoid the sting of interest charges later in the year. At Bank of Queensland, our Blue Visa Credit Card was recently named Money magazine's Best Reward Credit Card for 2020, and offers 0% on balance transfers for six months.
3. Purchase insurance
The joy of the holidays can quickly evaporate if you find yourself in the unfortunate position where one of your new gifts is lost, damaged or stolen. That's where purchase insurance comes in handy.
Depending on your provider, some banks may offer a set period of coverage for items purchased using your credit card in case of theft or damage.
If you make a claim that meets the terms of the policy, you could be eligible for reimbursement up to the full purchase price of the item, helping keep you in the black.
These little known credit card perks can be found across most providers, so it's worth doing your research to understand what your card can really do for you - or if there are better ones on the market.
This article is for general information purposes only and is not intended as professional advice, and has not been prepared with the financial circumstances of any particular person in mind. You should seek your own independent financial, legal and taxation advice before making any decision in relation to the material in this article. Terms and conditions apply to the Blue Visa Credit Card features and offers.