What is a credit card?

A credit card is a continuing line of credit from us you can use to make everyday purchases. Repayments can be made weekly, fortnightly or monthly. They come with interest free periods which is a great way to take advantage of buying now and paying later.

What is an interest-free period?

The interest-free period is the number of days from the day of purchase to the payment due date. This period will vary depending on the date of purchase and the number of days in the months applicable. An example is provided below.  Our credit card offers up to 55 days interest free on all purchases made. Interest only applies if payment isn’t made in full.

credit card cycle

Why would I use a credit card?

Credit cards can be used for every day purchases such as groceries and petrol or for larger purchases like a new TV.

What types of credit cards are there?

There are many different types of credit cards available for customers. When looking for a credit card, consider the following:

  •  Introductory rates

  •  Standard interest rate

  •  Annual fee

  •  Card fees

Some credit cards come with reward points which can be an effective way to benefit from regularly using your card. Used the right way, credit card rewards can earn you points to go towards your groceries, gift cards or even flights and a holiday.

However, these credit cards generally carry a higher annual fee and/or purchase interest rate. Before signing up to one, it’s important to understand how they work and whether the ability to earn rewards points will make any extra costs worthwhile.

If you’re not interested in earning reward points, a low rate credit card may better suit your needs.

What documents are required for a credit card application?

Payslips and other sources of income are usually required, plus any evidence of debts and liabilities.
When you apply for a credit card, your lender will discuss with you what is required for your application.

Talk to a Horizon Bank lending specialist about applying for a credit card today. Or you can check out our budget planner calculator to see how credit card repayments will fit in with your expenses.

The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.