Why a low interest credit card can be better than ‘Buy Now, Pay Later’

It’s the latest payment trend – but are ‘Buy Now, Pay Later’ (BNPL) services the best way to pay for purchases? Here are five reasons you shouldn’t ditch your credit card just yet.

You can use them in more places

Not all businesses offer BNPL services or they may not partner with your BNPL provider. But you can use your credit card almost anywhere.

You only need to manage one account

Since there’s a range of BNPL services, you may have to sign up with multiple providers to shop at your favourite places. But your credit card is a single account, making it time and cost-effective. And you can easily keep track of what you owe with who, so you can better manage your finances and not get in over your head.

You have longer to pay them off

BNPL services usually have a limited time period to pay off your purchases before you’re charged a late fee. Your credit card offers a flexible approach to managing your expenses, allowing more time to make repayments (interest charges will apply after any interest-free period).

Many credit cards have an interest-free period of up to 55 days – giving you time to pay off your purchases without running up an interest bill. In contrast, BNPL services generally require you to pay off a portion of your purchase each week or fortnight – and if you don’t, you’ll get hit with late fees.

You could pay less in fees

Fees for BNPL can stack up, particularlwhen using a few providers. Commonfees include monthly account keepingfees, payment processing fees and initial setup fees.

Whereas, with a low interest credit card, you can still enjoy an interest-free period as well as greater flexibility in your payments. And choosing a card with no annual fee like the Teachers Mutual Bank credit card can make an even bigger difference.

You can improve your credit rating

Credit cards can help you build yourcredit rating – which can impact your interest rate when you apply for othercredit products such as a home or car loan. You can read more about keeping a good credit score here.

When you’re working hard to take care of your students, it’s good to know there’s a bank dedicated to looking after you. So, if you need a low interest, no annual fee credit card, why not consider the Teachers Mutual Bank Credit Card?

The material provided is for information only and is of a general nature. The material should not be construed as providing advice on any of the topics discussed. Your individual needs and financial circumstances have not been taken into account. Teachers Mutual Bank is a division of Teachers Mutual Bank Limited ABN 30 087 650 459 AFSL/Australian Credit Licence No 238981. Membership eligibility applies to join the Bank. All applications for credit are subject to our responsible lending criteria. Fees and charges apply. Please refer to our Credit Card terms and conditions online for more information.