Views on credit cards tend to be divided between those that like them and those that loath them but very few arguments really consider whether or not it is good to have a credit card.

While the wrong kind of credit cards in the wrong hands will almost definitely lead to credit card debt in some shape or form, someone with a card that is right for them would never dream of parting with their plastic. So how can anyone really say whether or not having a credit card is a good thing?

On some level it comes down to what kind of card is involved and who is using it.

Basic, low rate and low or no annual fee cards, for example, tend to work for most people because they are designed to reduce credit card costs. These kinds of options will also be less likely to lead to card debt and other disadvantages that are often brought up around credit.

On the other hand, rewards cards are best suited to people who earn and spend enough to make the rewards outweigh any higher annual fees or interest rates.

The problems start to arise when people become tempted by credit card offers that sound too good to be true, prompting them to switch to a card that may not be ideal for them.

A great example is the many and frequent flyer cards on the market, which a lot of people sign up for as a way of saving points for a holiday.

Unfortunately these cards may not be worth it for people who rarely used credit and did not fly much in the past, so the actual card costs tend to outweigh potential benefits for these people.

To really decide whether or not you would ever benefit from a credit card, consider the following questions:

1. Do you currently have access to emergency funds?
2. Do you have enough savings to pay for any big purchases or investments?
3. Do you have enough credit history to support larger loan applications like a mortgage?

If “no” is the answer to any of these questions then it is probably a good idea to consider finding a credit card that will easily fit into your lifestyle.

While some credit cards may seem confusing and expensive payment options, others can be convenient tools for building up credit history or supplementing personal savings. No matter what your view on credit cards is, giving them full consideration makes all the difference.

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As one of the Big Four Banks in Australia, NAB has issued thousands of credit cards across the country that can be used almost anywhere in the world.

But it is still important to understand the costs and charges that may come from using credit overseas so that cardholders can try to save as much as possible.

To help you prepare for travelling abroad, here is a look at some of the best tips to have on hand for your NAB credit card.

Check Out Complimentary Insurance Options

All NAB gold and platinum cardholders get a range of complimentary insurance options when they use their cards to pay for at least $500 worth of upcoming travel expenses.

As well as standard international travel insurance that will cover trip cancellation, medical costs, lost or stolen luggage and some missed connections, there is also transit accident insurance should anything go wrong on a public vehicle overseas.

Taking advantage of this insurance could save you hundreds of dollars, if not more, so it is definitely worthwhile looking into the gold and platinum options available through NAB.

Keep Pens And PINs Handy

The choice between signing and entering a PIN to verify credit card purchases often comes down to personal preference but it definitely pays off to have both options overseas.

Some machines may not recognise Australian microchips in the same way and lead to cards being processed using the magnetic strip and a PIN, or even require both a PIN and signature for purchases made on your credit card so make sure you know both.

Register For NAB Internet Banking

For people who are not already set up with internet banking, it will have benefits for both savings and credit management overseas.

With an NAB credit card account included in your internet banking options you will be able to keep track of purchases and make repayments anywhere in the world so that you do not have to deal with additional fees once you come home.

Take Note Of Emergency Numbers

While most people are aware of fraud and theft while overseas, there are still times when you may need card assistance. All NAB cardholders have access to global assistance and it is a good idea to take note of any of the following, relevant numbers:

1. Visa Global Customer Assistance: +1 443 641 2004
2. MasterCard Global Assistance: +1 636 722 7111
3. American Express Global Assistance: +61 2 9273 2730

These services can help you deal with lost or stolen cards, fraud and more so they could save you a lot of stress while overseas.

Whether you have a low rate, rewards or more specific frequent flyer option from NAB, with these tips in mind you can keep your trip as convenient and as fun as possible.

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Credit Cards. At times, it seems like we can’t live with them and we can’t live without them. It is a classic case of a love-hate relationship. We need the credit cards to help build our all-important credit history and subsidize our expenses when we just don’t have the cash. But people deeply resent the high interest rates and the traps lurking in the fine print.

On that note, let’s start with the negatives. By setting aside our emotions, we can identify and possibly avoid those disadvantages that cause us to hate our credit cards.

1. “YOU WANT ME TO PAY HOW MUCH IN INTEREST?!?!”

I have friends who’ve received credit card offers in the mail that have a starting interest rate of 35%. Even Shylock, the ruthless moneylender from Shakespeare’s Merchant of Venice, would think that was excessive. Never forget that credit card companies are a business not a charity. They exist to make money and their business model is based entirely upon the interest rates they charge. It has been reported that some internal communications from credit card companies sarcastically call customers who pay off their principal in short order as “deadbeats.” The longer the customer takes to pay off their credit card debt, the more interest they pay, the more money the company makes.

2. “DID YOU NOT READ THE FINE PRINT?”

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Ever notice that the bank’s credit card offers are in BIG BOLD letters. “GO ON VACATION,” “WRITE YOURSELF A CHECK,” “BUY A NEW WARDROBE,” and the like. You are so focused on the headlines that you don’t read the rest of the story. You may have to use an electron microscope to read it but at the bottom of the page are terms, conditions, restrictions and fees written in legal jargon that is all but incomprehensible to most people. Consumer advocate Elizabeth Warren colorfully refers to it as “word barf” and if you sign such an agreement, you may be giving the company license to raise your rate, charge you fees, sue you and perhaps take your first-born child.

3. “THIS ISN’T WHAT I PAID FOR”

You know those pre-approved credit offers you receive in the mail nearly everyday? Well, per reason # 2, the fine print often shows they are pre-approved in name only. The banks and credit card companies employ armies of lawyers and lobbyists to create loopholes that enable them to not give you the card you think you’re signing up for. The offer may say, “0% for six months, then 9.9% fixed, with no annual fee, and $5,000 credit limit.” Then you get the card and it’s “6.9% for 3 months, 29.99% variable, $50 annual fee and $400 credit limit.” Reading what you are signing and consulting reference materials to understand what you are agreeing to is the key to being “debt smart.”

4. “WHAT HAPPENED TO MY GREAT RATE?”

Credit cards and banks reserve the right to raise your rates for many reasons. One of my readers at DebtSmart.com told me that her bank raised her rate to 23% because she was late paying her bill. They are just waiting for any misstep and then, BAM, your best rate becomes your worst. After all, you agreed to it when you signed the contract with all that fine print.

5. “I CAN JUST DECLARE BANKRUPTCY AND SORT IT ALL OUT”

Here’s another good one. The banks have successfully lobbied Washington to change bankruptcy laws to make it more difficult to dissolve debts in bankruptcy. They want the consumer to be more responsible for repaying their debt! The banks want to have their cake and eat it, too. Who gave the consumer making $10,000 per year a $50,000 credit line? This is why the lobbyists pounce on even the most modest credit reform proposals.

5. “LIES AND DECEIT!”

You think you’ve done due diligence by reading the fine print and doing the math at your kitchen table. But months later, you get whacked with a penalty that you knew nothing about. You call the customer service line and the person at the call center pulls up your account and spits back jargon to imply that you’re an idiot with no common sense. Their company sends you credit offers that say, “you can use all your available credit” and when you do they charge you a penalty. Late fees, over limit fees, annual fees, service fees—they are always coming up with new ways to separate you from your money. And the fees always to seem to increase, never decrease.  A $35 flat late fee. It does not cost the bank $35 when you are late. You may not have been late at all. The bank may have just credited your account late and charged you anyway. Banks make 47% of their revenue from fees! Don’t ever let a fee go. Call the bank and make them waive that fee, and if they don’t, punish them by taking your business elsewhere.

6. “YOU CAN’T STOP ME FROM GETTING A JOB OR HOME”

Yes, they can. If you have a problem with your credit card bank, they automatically report it on your credit history. Everyone looks at your credit history. Landlords review it to determine if they will rent to you, insurance companies look at it to decide what policy you will get and, in some cases, prospective employers use it to determine whether you will get the job you want.

What happens when the creditors make a clerical mistake that adversely impacts your credit report? A mistake that makes you appear terrible to potential employers and landlords? Not their problem. It’s your responsibility to find and correct their error.

7. “LET ME SPEAK TO YOUR SUPERVISOR”

People are busy going to work, shuttling their kids to and from school and doing household chores. We don’t always have time check in on our account or call the company if we have a question or concern. When we do, it takes forever to speak to a human. You have to navigate through a menu and key in your account information. Numbers, letters, symbols—all so that you can talk to one of their drones who start by asking you for all that information again. I typically get around this by hitting “0″ then the “#” keys. I get a reply, “We cannot recognize your account number so please be tortured again by reentering it now.” I keep hitting the “0″ and “#” keys until the automated recording system gives up and says, “Please hold while we transfer you to one of our new hires who probably cannot help you anyway.” It almost seems like they would rather not talk to me. But I thought my call and business was important to them.

CONCLUSION

Credit card companies and banks are sharks. They care about one thing and one thing only—and that is attracting paying customers. The only way to fight back is to use the naturally existing competition amongst the banks to your advantage. They need our business so we need to reward the banks that are good to us and punish the ones that take advantage of us. Banks are a business like any other. Their job is to service you and me. If we don’t like the way they treat us, then it’s time to do business with another bank. This is not Coca-Cola. Don’t ever be “brand loyal” unless that bank has been “customer loyal”—meaning that they’ve always given you their best rates and service.

Image: RogueSun Media, via Flickr.com

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Comparing credit cards can be done in a number of ways but often it will come down to what providers offer the best features.

Both Bankwest and Westpac have ranges of credit cards that will appeal to people looking for low rate, low annual fee and reward options, leaving many people wondering which provider is better.

A good way to decide between a Bankwest and Westpac credit card is to look at each bank and their attitude towards credit to see whether it is similar to yours.

To help get you started, here is a run down of the philosophies and cards available through each of these credit card providers.

Bankwest Credit Cards

Bankwest places a lot of importance on value for money and is well known as having the lowest ongoing purchase rate of any MasterCard in Australia, at just 10.99% p.a. for the Bankwest Breeze card.

This card also offers a signup bonus of 10% cash back for the first three months and a balance transfer deal of 5.99% p.a. for the first year, which is also available on the Bankwest More and Zero cards.

With a More credit card people can earn either everyday rewards or Qantas Frequent Flyer points, while with a Zero card there is no annual fee.

With classic, gold and platinum options available for each of these cards, a Bankwest option could be very appealing to someone who wants all the extras without high rates or a huge annual fee.

Westpac Credit Cards

As one of the Big Banks in Australia it is not surprising that Westpac has more cards on offer, with the 55 Day Classic, Altitude, Low Rate and Earth credit cards covering the essentials and more.

While the Low Rate card has an ongoing purchase rate of 13.49%, which is higher than Bankwest’s Breeze, what really stands out with Westpac cards is the flexibility and variety offered through reward cards.

The Altitude and Earth credit cards both come with a MasterCard and American Express card, allowing people to maximise points earned but avoid the higher surcharges and slightly less acceptance that can sometimes come from having an American Express card.

The range of cards available through Westpac covers as many different card options as possible, so for people who like variety this provider may be one of the best out there.

Credit card providers can make a difference to how people view and use credit cards but in the end the ongoing features should be a bigger focus. By comparing different cards and providers you will be able to get the best card possible every time.

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Getting a credit card is now easier than ever with online application forms and easier approval conditions but that does not mean everyone should have one.

There are both pros and cons to using a credit card and the actual decision should be given a lot of thought before action is taken.

A lot of people are aware of the fact that credit cards can lead to debts as interest builds up on the card balance and high annual fees add even more to the cost of using credit.

But there are still many practical reasons for getting a credit card, like the three below, which prove that there is no right or wrong answer when wondering if you should get a credit card.

Better Access To Funds

Some people like to keep a credit card just in case there are times when they do not have instant access to money in their bank account.

When bills are due and pay has not gone into your account on time, for example, using a credit card could help you avoid late payment fees on the bills.

Most cards also come with a number of interest free days, so chances are you would not even need to deal with accumulated interest if you paid off the card once money was available.

Easier Management Of Major Purchases

Credit cards can be a useful tool for purchasing expensive items like fridges, washing machines, televisions and more because they allow you to get the item immediately and pay off the difference at a manageable rate.

A low interest card will also be less likely to lead to credit card debt, while some more premium gold, platinum and rewards cards also come with complimentary purchase protection and extended warranty options.

Less Stress In Emergencies

Whether it is going away on short notice, dealing with accidents or a lost wallet, there are times when having access to extra funds can relieve some stress.

Credit cards give people more financial flexibility in the moment, which means that they can deal with whatever comes along and think about paying it off when there are less pressing concerns.

Even if you do not want to get into the habit of using a credit card, it may be useful to keep one in a secure place just in case you ever do need it. Choosing a card with no annual fee will also mean the credit card costs you nothing but provides some peace of mind.

Whether you want to take advantage of credit card convenience all the time or just want to keep one for more financial flexibility, looking at different options will help make sure you get the right one for your needs.

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For consumers that have been working to repair credit and get finances back into a stable place will still find that applying for a new credit card will likely involve getting a high annual percentage rate despite improved credit.

Creditcards.com’s October 7^th survey showed that most new credit card offers come with record high APRs, averaging around 14.97%. This is the highest APR seen since tracking began in 2007.

Credit repair efforts are more important than ever since most lenders and credit card companies are looking for excellent or better consumer scores. Those that maintain decent to good credit scores may still find it difficult to get the best interest rates on personal loans, credit cards, and mortgages. Credit repair allows consumers to up their consumer credit scores in a reasonable period of time if the work is done to correct past credit mistakes.

These credit repair efforts for consumers involves paying all creditor bills on time and not applying for new lines of credit or overextending existing lines of credit. Regularly checking credit reports and scores will enable consumers to stay involved in credit repair tasks to improve scores where they need to be.

With high APRs on credit cards, consumers who are not able to make a monthly payment obligation in full to clear the balance could end up jeopardizing their credit score and falling in debt rather quickly. Tacking on such a high percentage rate to existing balances month after month is often the trigger to one’s debt spiraling out of control.

If consumers with existing bad credit anticipate applying for a new credit, it is highly recommended that repair efforts to boost credit scores be completed prior to the application. There are some lenders, including First Premier’s Gold MasterCard which will charge upwards of 49.90% APR for subprime credit holders.

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