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Credit Cards: Do You Still Need One Nowadays?

Do we still need credit cards? There are so many other payment options available these days that tying ourselves up in credit card debt, particularly as we approach retirement, may not be the wisest option. Furthermore, if we have a healthy bank account and disposable income, and don’t need the credit line part of the product, how is having a credit card an advantage?

In this post we look at the advantages of credit cards – do they still have any? – and what value they can still offer.

Understanding Credit Cards vs Debit Cards

Before we get into that though, a quick refresh on the differences between credit and debit cards…

Credit Cards:

  • Credit Line: The first thing credit cards offer is of course access to a credit line. This could come in handy for paying large bills, or buying that RV to go grey nomading around Australia. Or perhaps you like to have something handy for unexpected emergencies. Either way, having access to extra cash via a credit card can be handy.
  • Rewards and Perks: Most major credit cards have some type of rewards system (cash back, points, travel miles). They also often come with additional perks like travel insurance, extended warranties, and purchase protection.
  • Building Credit: Using a credit card responsibly is a good way to improve or maintain a good credit score. Just in case you need a mortgage or a loan…

Debit Cards:

  • Direct Access to Funds: These cards are linked to your bank account so you’re spending your own money. That helps avoid debt.
  • No Interest: As it’s your own money, you don’t have to worry about interest charges.
  • Security: Debit cards now offer a lot of the same security features are regular credit cards (fraud protection, transaction dispute facilities and so on)
  • Rewards Debit Cards: These types of cards offer cashback or transaction points programmes.

The Case for Keeping a Credit Card

If debit cards are as good as credits cards for the purposes of paying for things, and come with fewer liabilities, are there really any valid reasons to consider keeping, or getting, a credit card? Particularly if you don’t really need one, or, more specifically, don’t need the line of credit?

As it turns out, yes, having a credit card can be handy for a few reasons:

Emergency Backup Funds:

Even if you don’t need the money now, you never really know what’s around the corner. Having a credit card sitting in a drawer can be a good emergency backup fund. It can provide peace of mind that you have an additional financial safety net should you need it.

Maintaining A Credit Score:

This is probably one of the biggest reasons for keeping, and using a credit card, even if only sporadically. If you need to build up your credit score, or keep a good one, a credit card is a good way to do it.

Of course, this presupposes you will be paying off the balance in a timely manner, making repayments on time, not maxing it out all the time, and keeping your debt to credit utilisation ratio low! Because – just as they can help you build a good credit score, credit cards can just as easily damage it.

Rewards and Benefits:

If you are keen on rewards programmes, most of the major credit cards offer substantial benefits for using their product. Collect points towards your next holiday or save money on regular purchases.

Fraud Protection:

Credit cards usually have stronger fraud protection against unauthorised charges. You are usually not liable for the charges should you be affected by fraud, and because it’s a credit card, your bank account isn’t at risk.

Alternatives to Consider

Even with these benefits, credit cards are not for everyone. They are only a good option if you can pay them off in full regularly, and make the repayments on time. If you can’t, you will end up trapped in a cycle of just paying the minimum amount each month.

The good news though is that if you want the benefits of a credit card, but not the liabilities, there are other alternatives:

Debit Cards:

We covered these earlier but they provide many of the same functions as a credit card without the worry of going into debt. Because the major credit card companies – MasterCard, Visa etc – provide them, they are just as widely accepted as credit cards.

If you like rewards programmes, consider getting a rewards debit card.

Reloadable Prepaid Cards:

Reloadable prepaid cards work like most prepaid things. You load it up with money first and then you use it! They’re also accepted most places credit and debit cards are. You also don’t require a bank account for a prepaid card so long as you have some way of loading it.

Prepaid cards offer the convenience of both a debit card and a credit card. You’re using your own money so avoiding credit card debt. At the same time, the card is not linked to your bank account, protecting that from fraudulent transactions. In fact, if you regularly shop online, these can be a good option because you can only lose whatever you’ve put on the card.

They also make it easy to budget – only put what you can afford to spend on the card, and when that’s gone, it’s gone.

However, they do come with some cons that may include a purchase fee; an activation fee; recharge fees; monthly maintenance fees; transaction fees; a cash-out/closing fee; spending limits; recharge limits; and even inactivity fees in some cases. So, shop around if you’re considering getting a pre-paid card.

Digital Wallets:

Apple Pay, Google Pay, Samsung Pay et al now make it easy to securely pay for things with your smartphone. Just tap and go. The wallets can be linked to bank accounts, debit, or credit cards. Because they are mobile, they generally have added layers of security built into them.

BNPL Services:

Buy Now, Pay Later services – Afterpay, ZipPay, PayPal Pay in 4 etc – are useful if you need to spread the cost of a purchase or payment out over a few instalments. Some of these services charge a fee for using the service but don’t generally charge interest. They do however charge heavily for late payments and defaults!

Final Thoughts

Should you have a credit card, or not?

If you:

  • Don’t need the line of credit,
  • Have enough of a financial cushion to meet most unexpected contingencies,
  • Don’t need it to maintain or build a good credit score (you can accomplish the same thing by paying your bills on time!)

then there are probably better alternatives. Ones that still offer similar convenience minus the credit card debt!

However, having a credit card can still offer some valuable benefits, notably added security and protection against fraud, and comprehensive rewards programmes.

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Privacy Policy

Privacy Policy

1. Introduction

1.1 Count Limited and its related bodies corporate (collectively ‘Count’, ‘we’, ‘us’, ‘our’) respect your privacy and are committed to protecting your privacy. We understand the importance you attach to information that identifies you (your ‘personal information’) and we want to help you protect it.

1.2 We are bound by, and committed to supporting, applicable privacy legislation including the Privacy Act 1988 (Cth) and the Australian Privacy Principles (APPs). This Privacy Policy (‘Policy’) explains how we collect, hold, use, and disclose your personal information that we may obtain when you submit information to us in person, by mail or email, or by visiting our website.


2. How do we collect and hold personal information about you?

2.1 We collect personal information from you in a variety of methods. Examples of how we collect personal information include: 

  • Through communications between you and our representatives or your adviser or accountant;
  • Your use of our website;
  • Completing application forms in relation to products and services;
  • Other avenues, where required to meet regulatory requirements and comply with the law;
  • When you apply for employment with us;
  • Through marketing activities which request information from you, such as surveys.

2.2 Because our products and services are often offered by intermediaries such as financial planners, solicitors, or accountants, we may collect personal information about you from these third parties.

2.3 You can deal with us anonymously or by pseudonym unless it is impractical for us to deal with you where you have not identified yourself or have used a pseudonym. We require certain personal information to provide you with services and information. If you do not provide us with certain personal information, we may not be able to provide you with access to those services or respond to your request for information.

2.4 We will only collect personal information from you where it is reasonably necessary for us to provide our services to you or to perform our functions or activities.

2.5 We will only collect sensitive information from you with your consent, except in permitted general situations which include:

  • The collection of the information is required or authorised by or under an Australian law or a court/tribunal order;
  • The collection is necessary to address a threat to an individual’s life, health, or safety; and
  • Permitted health situations.

2.6 We may hold your information electronically or physically and have in place appropriate data and physical security measures and protocols to protect that information from loss or from disclosure not contemplated by this Policy.


3. What type of personal information do we collect?

3.1 The type of personal information we may collect from you includes (but is not limited to):

  • Names, address, email, phone numbers, and job titles;
  • Information in identification documents such as your passport or driver’s licence;
  • Tax file numbers (TFNs) and other identification numbers such as Medicare number;
  • Date of birth and gender;
  • Financial information;
  • Details of superannuation and insurance arrangements;
  • Sensitive information (with your consent), such as health information or membership details of professional or trade associations or political parties;
  • Bank account details, shareholdings, and details of investments;
  • Educational qualifications, employment history, and salary;
  • Visa or work permit status;
  • Personal information about your spouse and dependants.


4. How do we use your personal information?

4.1 We will use the information you supply for the purpose of providing you with the service(s) agreed under our engagement and related services, such as accounting or business advisory services, or to meet obligations we may have at law, including in relation to health and safety.

4.2 We may also use the information we collect for our internal business and management processes (for example, accounting or auditing purposes), monitoring and improving our website, keeping you informed about our services and company news, and for any other purposes that would be reasonably expected by you and to allow us to comply with our obligations under the law.

4.3 We may also use personal information we have collected from you for the purpose of marketing our services. If you do not want to receive marketing material from us, you can unsubscribe by contacting us as detailed below:

  • For electronic communications, you can click on the unsubscribe function in the communication;
  • For hard copy communications, you can email us using the details in the ‘How to contact us’ section of our website informing us that you wish to unsubscribe http://www.count.au/Contact-Us.


5. How do we disclose your personal information?

5.1 Your personal information will only be disclosed:

  • To our employees, contractors, consultants, dealers, agents, or advisors as required to provide our services to you or for related purposes;
  • To suppliers and service providers (for example, accounting or auditing service providers or our website hosting service providers) in connection with our provision of services to you;
  • Where you have consented to the disclosure;
  • Where required or authorised to do so under an Australian law, court or tribunal order, or other governmental or regulatory body or agency;
  • In permitted health situations;
  • If we believe that the use or disclosure of the information is reasonably necessary for enforcement-related activities conducted by, or on behalf of, an enforcement body; or
  • In connection with an actual or proposed sale, reorganisation, or transfer of all or part of our business, including as set out in clause 16.1.

5.2 We may use, store, process, or back-up your personal information on servers that are located overseas (including through third-party service providers). The privacy laws in other countries might not be the same as in Australia. However, where we provide your personal information to third parties overseas, we will take such steps as are reasonable to ensure that your information is handled and stored in accordance with Australian privacy laws and this Policy. Currently, we use outsourced service providers in the Philippines, India, and Serbia.


6. Access to your personal information

6.1 You can request us to provide you with access to personal information we hold about you by sending us an email: privacy@count.au (no spam please) or writing to us at Level 1, 45 Clarence Street, Sydney NSW 2000.

6.2 We may allow an inspection of your personal information in person, or provide copies or a summary of relevant documents, depending on what is the most appropriate in the circumstances. Any charge we make for providing access will be reasonable and will not apply to lodging a request for access. Your request to access your personal information will be dealt with in a reasonable time.

6.3 Note that we need not provide access to personal information if a request is frivolous, or where to provide access would pose a threat to health or public safety, unreasonable interference with another person’s privacy, or be a breach of the law. If we refuse access, we will provide you with reasons for doing so.


7. Accuracy and correction

7.1 To enable us to keep our records properly, please notify us if you believe that any information we hold about you is inaccurate, incomplete, or out of date and we will take reasonable steps, in the circumstances, to ensure that it is corrected. You can notify us by sending us an email: privacy@count.au (no spam please) or writing to us at Level 1, 45 Clarence Street, Sydney NSW 2000.


8. Our security procedures

8.1 We take your privacy and the privacy of our associated entities and their clients very seriously. We will take reasonable steps in the circumstances to protect any personal information you provide to us from misuse, interference, or loss and unauthorised access, modification, and disclosure.

8.2 We will also deidentify and destroy the personal information we hold about you once our legal obligations cease. Our security procedures are reviewed from time to time and we update them when relevant.

8.3 Please be aware that the transmission of data over the internet is never guaranteed to be completely secure. It is possible that third parties not under our control may be able to access or intercept transmissions or private communications without our permission or knowledge. We take all reasonable steps, in the circumstances, to protect your personal information. However, we cannot ensure or warrant the security of any information you transmit to us. Such transmissions are done at your own risk.


9. Data breach notification

9.1 We are required to give notice to the Office of the Australian Information Commissioner (OAIC) and affected individuals of an “eligible data breach”. This means that if we hold personal information about you, and there is unauthorised access to or disclosure of your personal information, and if you, as the “affected individual” would be likely to suffer serious harm from this access or disclosure, we must notify both you and the OAIC.

9.2 “Serious harm” could include identity theft, threats to physical safety, economic and financial harm, harm to reputation, embarrassment, discrimination, or harassment. The test is whether a “reasonable person” would expect you to suffer serious harm.

9.3 If you are likely to suffer serious harm from a data breach, we will notify you of:

  • The nature of the eligible data breach (i.e., how the information was accessed or disclosed);
  • The type of information that was accessed or disclosed;
  • The steps that we have taken to control or reduce the harm, and those that we plan to take;
  • Any assistance we can offer you, such as arranging for credit monitoring;
  • Anything that we can suggest you can do to assist yourself or mitigate the harm;
  • Whether the breach has also been notified to the OAIC;
  • How you can contact us for information or to complain; and
  • How to make a complaint with the OAIC.

9.4 We will notify you using the same method that we usually use to communicate with you. If it is not practicable for us to notify you personally, we will publish the notification on our website.

9.5 There are some circumstances in which we do not have to notify you of a data breach. These include:

  • Where we have taken remedial action before any serious harm has been caused by the breach;
  • If you have been notified of the breach by another entity;
  • If notification would be inconsistent with Commonwealth secrecy laws; or
  • Where the OAIC declares that notification does not have to be given.

9.6 Depending on the nature of the breach and the harm, we may voluntarily inform other third parties such as the police or other regulators or professional bodies.


10. Identifiers

10.1 We will not adopt as our own any government identifiers you may provide to us such as TFNs and will not store these identifiers on any information.


11. Links to other sites

11.1 We may provide links to other sites for you to access. You should be aware that these other sites are not subject to this Policy or our privacy standards and procedures. You will need to contact them directly to ascertain their privacy standards.


12. Cookies

12.1 Our website may deposit “cookies” on a visitor’s computer. Cookies are pieces of information that a website transfers to an individual’s hard drive for record-keeping purposes. Cookies are only sent back to the website that deposited them when a visitor returns to that site.

12.2 Cookies make it easier for you by saving your preferences while you are at our site. We never save personal identifiable information in cookies. Most web browsers are initially set up to accept cookies. You can, however, reset your browser to refuse all cookies or to indicate when a cookie is being sent.


13. Changes to our Privacy Policy

13.1 From time to time, we may vary this Policy for any reason. We will publish any changes on this website.

13.2 By continuing to use our website and continuing to provide us with your information, you confirm your acceptance of these changes.


14. Complaints resolution

14.1 We are committed to providing a fair and responsible system for the handling of complaints from parties whose personal information we hold. If you have any concerns regarding the way we have handled your privacy, please send us an email at privacy@count.au or write to us at Level 1, 45 Clarence Street, Sydney NSW 2000. We will address any concerns you have through our complaints handling process and we will inform you of the outcome of your complaint within a reasonable timeframe.

14.2 If after receiving our response, you still consider that your privacy complaint has not been resolved, you may refer your concerns to the Office of the Australian Information Commissioner at www.oaic.gov.au.