Interest rates, fees and charges
It's okay to use credit, but the trick is to not think about it
as 'your' money. It's not. It's money you have borrowed that you
have to pay back with interest, fees and charges, which can add
Some cards offer an introductory honeymoon interest
rate but make sure you know what the normal interest rate is
and the fees and charges.
Credit providers charge interest on the credit you use.
Interest is an extra amount you have to pay as a cost for
borrowing. You pay interest on the amount of money you owe, so the
quicker you pay a loan off, the less interest you pay.
Check the interest rate before you sign up for a credit card or
loan. With a credit card you should also check the interest rate
charged for late repayments (called default interest) as it is
often higher than the normal interest rate.
Find out about home loan
Fees and charges are also often added to the cost of borrowing
money. Before you sign up for a loan or credit card you should
check the fees and charges as some credit providers have lower fees
and charges than others.
Fees can change at any time if the credit contract allows, so
make sure you read the updates you get from your credit provider.
Updated fees should also be on the company's websites.
If you're paying too much in fees and charges you should shop
around for the best credit deal.
If you want help comparing the features, fees and charges of
credit cards online see our webpage on
using comparison websites.
Some retailers may also charge a surcharge when you buy
something in their store or online using a credit card, so consider
whether other payment options might save you money.
Ban on excessive surcharge fees
From 1 September 2016 large businesses will be banned from
charging excessive payment surcharge fees on
debit, credit and prepaid card transactions. This
means a business cannot charge a customer more than what it
actually costs them to process a payment. These rules will apply
to other businesses from 1 September 2017. For more
information see credit, debt and prepaid card surcharges
on the ACCC's website.
Find out more about fees charged on
Last updated: 31 Aug 2016