The Bank of Melbourne Vertigo MasterCard: Features
The Vertigo MasterCard is a low rate credit card designed specifically for customers who want to save money. As a result, it offers a highly competitive purchase rate of 13.24% p.a. per annum, which is one of the lowest rates offered by Bank of Melbourne. It also features a 55 day interest free period on purchases, which means that you can essentially use the bank’s money for free, especially if you are able to pay off your credit card bills in full at the end of every month.
If you find yourself in the less than pleasant situation in which you can only make the minimum repayment one month, then at least you will be saving quite a lot of money in interest costs thanks to the highly attractive rate. If it becomes a habit, though, you might want to take a step back and analyse your spending habits. For example, if you don’t have a budget, then you seriously need to consider putting one together and in the process analyse where you’re money is being spent. This will help you identify areas where you can cut back so that you don’t end up with a mountain of expensive credit card debt.
However, if you already have a significant amount of credit card debt, then the Vertigo MasterCard can be used to consolidate those debts under a single loan at a very low interest rate. The balance transfer deal is extremely attractive at only 0.99% p.a. for 6 months. Since this rate is only available for the first nine months, though, you should focus all your efforts to pay off your balance transfer in that timeframe so you can maximise your savings. Once the nine months are up, the rate reverts to the standard purchase rate and even if it is a low rate, it doesn’t compare to the promotional interest charged on balance transfers.
During the period when you are paying off your balance transfer, though, you might want to refrain from using your card for purchases, even if you still have available credit. This is because any repayments you make will first go towards paying off the lower interest debt, namely the balance transfer, leaving your purchases to accrue interest at 13.24% p.a.. Essentially, you will be negating any benefits you might have incurred by doing the balance transfer in the first place. Thus, until your balance transfer is paid in full, it’s probably a good idea to leave your Vertigo MasterCard at home.
Rates and Fees
As already mentioned, you will pay an interest rate of 13.24% p.a. per annum on purchases if you don’t pay your bill in fill at the end of the month. In terms of cash advances, the rate is 21.49% p.a. per annum, which is quite steep, especially when compared to the purchase rate. That’s why you should probably avoid cash advances unless there is an emergency. Keep in mind that both ATM withdrawals as well as transfers qualify as cash advances. There is also an additional fee of 2% of the total amount being withdrawn, making it even more important for you to avoid cash advances whenever possible.
In terms of fees, the annual fee is quite attractive at $55 but there are some other fees, including a $9 charge for late payments, going over your credit limit and dishonoured payments under the automatic payment system. So, if you want to minimise your costs, make sure you always have cash available to at least make the minimum payment every month to avoid paying late fees. Likewise, you should keep track of your expenses and your credit limit at all times to avoid going over that limit.
Keeping track of your transactions is extremely easy with Internet Banking because you can see the status of your account at any time. You can also make the repayments online, which will make things a lot easier.
Security at Its Best
The Vertigo MasterCard is a highly secure credit card, like all Bank of Melbourne cards, as all accounts are monitored via the Falcon Fraud system. The system looks for suspicious transactions and if any payment is considered to be unusual for your regular spending habits, you will receive a call to confirm whether or not the transaction is genuine. This reduces the likelihood of unauthorised transactions being processed to a minimum.
Is the Bank of Melbourne Vertigo MasterCard for Me?
The Bank of Melbourne Vertigo MasterCard is a basic credit card with none of the extras some of the other Bank of Melbourne cards feature, like rewards programs or insurance and so on. However, if you have trouble paying off your credit card bills in full every month, then you are probably better off opting for the Vertigo because of the better rate.
Likewise, a card with a rewards program might prove too much of a temptation for you, especially if you know you have poor spending habits. You will probably be tempted to spend more money just to accrue points but you will then pay for it in interest costs later on, which is why a basic card with a low rate like the Vertigo is a much better solution for you.
If you have a fair amount of outstanding credit card debt, then the Vertigo is definitely for you because the balance transfer deal is for nine months, which is the longest timeframe of any of the Bank of Melbourne cards. This way you will have plenty time to pay off your debt and save money in the process.
The Bank of Melbourne Vertigo MasterCard features great rates and fees as well as a highly attractive balance transfer deal, making it the perfect card for people who want to get their debt under control and save money.
Read the official terms and conditions
Related posts:
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- St.George Vertigo MasterCard
- Commonwealth Bank Low Rate Gold Card Review
- St.George Balance Transfer FAQs
- The Bankwest More MasterCard: The Card for Savvy Shoppers
Posted on Friday, September 16th, 2011 at 12:04 am
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