Store Credit Cards - As seen on Extra

Store Credit Cards

Woolworths Everyday Money Card

• No annual fee in first year (then $49 which is very low for a credit card offering rewards).
• 0% on purchases until 1st Feb 2009 - currently only credit card with this type of offer and great for Christmas period.
  
• Earn rewards points on every dollar spent, bonus points on Woolworths purchases. Earn gift cards for Woolworths, Big W and number of other retailers.
• Woolworths credit card is probably the most competitive 'store credit card' on the market and one that is suited to everyday use.

• No cons presently due to launch offer but consumers need to be aware that interest rate will go to 18.99% on purchases after 1 Feb 2009. 18.99% is actually very competitive for a rewards credit card - however, those that can't pay amount due in full each month would need to be careful once intro offer ends.

2. Coles Group Source Card

• No annual fee
• Up to 62 days interest free on purchases (normal length on most bank cards is up to 55 days)
• Earn Flybuy points and fuel discount vouchers

• Interest rate of 20.25% is high. Card would be suitable for regular use for those who pay bill in full each month or occasional use but would not be advisable for those who do not pay their balance in full every month.

3. Myer Visa Card

• Earn Myer one shopping points on all purchases
• Access to special discounts and interest free offers at Myer (from time to time)
• Up to 62 days interest free on purchases
• No annual fee in year one, then $39 (which is low by Australian bank standards)

• Interest rate of 19.99% is slightly above average although fairly typically for a 'rewards credit card'. Again, not advised to those who don't pay bills in full each month.

4. David Jones Card

• Access to instant discounts in store and invites to special events
• Interest free offers on large items over $500 - helps spread repayments for large items over several years
• Complimentary gift wrapping service - handy over Christmas period
• Rewards cards - introductory offer provides $50 gift card after first use of card
  

• $99 annual fee
  
• Interest rate on purchases is 20.49%. Those not making repayments in full will be hit with high interest charges.
• 'Interest free' offers can be a debt trap for consumers. Can tempt consumers to purchase large items they can't really afford and then may struggle to make repayments. Also, card charges a establishment and monthly fees on 'interest free' offers for major purchases.

5. Go Mastercard - By Harvey Norman, Domayne and more.

Pros:

• No annual fee
• Up to 62 days interest free on purchases
• Extra interest free offers on large purchases in Harvey Norman, Domayne and participating retailers.
• Points earned to be redeemed through rewards catalogue.

• So called 'interest free offers' in stores such as Harvey Norman attract a establishment fee of $25 plus a $3.95 monthly account fee. Over a four year period this could add $214.60 in fees to a purchase.
  
• In addition with the 'interest free' offers, if you fail to pay the amounts due in full or still have money owing after the interest free offer remains you will pay 29.49% interest p.a. - far higher than any rate offered by a bank. You may be better off to get a low interest credit card from a bank and then purchase the items with that instead.
• Accessing 'interest free' finance offers may mean you have less power to negotiate on major electrical or furniture purchases.

• Low Interest Credit Cards - If you don't pay your bill in full each month then a low interest credit card could save you hundreds of dollars in interest each year. The average interest rate for credit cards in Australia is now close to 20%. Some low interest cards have interest rates close to 12% per year (p.a.).
• Reward Credit Cards - If you pay your bill in full each month then you don't need to worry about interest and can look for a card that will reward you
  

For additional information on credit cards or related topics please visit our library of credit card articles.