Credit Card Questions & Answers

What transactions are included in the standard interest rate or APR?
The law says charges and interest must be clearly explained in credit product advertising. Comparing and choosing credit cards usually starts with looking at stated APR figures.

The APR is representation of the cost of credit for purchases only, and therefore does not include the cost – interest and fees – for transactions such as cash withdrawals, money transfers, cheques or balance transfers.

Russell Cavanagh explores the issues.

What fraud security will a credit card offer?
It’s worth taking time to find out what credit cards offer in terms of security against fraud. Chip and pin cards give good basic protection but there are extra measures you can take to stay secure - including some additional services offered by cards.

How much am I required to pay back each month on my credit card?
In this credit card faq we explore the different options available when deciding how much you need to pay back on your credit card each month.

While minimum monthly repayments are offered on all credit cards this is rarely a good option to take. The minimum amounts required are usually around 2% to 5% of the total balance outstanding, however, repaying just the minimum can dramatically lengthen the time it will take to pay back the debt due to the high accumulating interest charges.

Making just the minimum repayment required on your credit card can help for months when money is tight and financial priorities lie elsewhere. However, it is not a recommended option for long-term repayment of a credit card balance.