How does a Credit Card work?

Understanding how Credit Cards work is the first step towards financial health. This section provides information about Credit Cards and Charge Cards, from interest rates, fees, and application process – to help you make an informed decision and use them wisely.

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What is a Credit Card?

A Credit Card is a line of credit that allows you to pay the balance back later.

You need to repay at least the minimum amount due each month to avoid late payment fees and prevent a negative mark on your credit score, but interest will be applied to any balance outstanding. If you pay off your bill in full monthly, you won’t pay interest on anything you’ve borrowed.

As well as providing a convenient way to make purchases, some American Express Credit Cards allow you to earn rewards as you spend.

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How do I apply for a Credit Card?

Apply for an American Express Credit Card online. You’ll get a response within 60 seconds.

How to apply

How do Credit Card limits work?

A credit limit is the maximum balance that you can have on your Credit Card at any time, including your purchases, interest charges, and fees.

Credit limits explained

What fees do I pay?

Some American Express Credit Cards charge an annual fee in return for rewards, features and benefits. The amount varies from Card to Card.

Learn about other fees

How do Credit Cards differ to Charge Cards?

A Credit Card will have a set Credit limit. A Charge Card comes with no pre-set spending limit1, which means your spending limit can vary depending on a variety of factors. With a Charge Card, you’ll also need to pay off the full balance each month.

Learn the differences

What is surcharging?

A surcharge is a fee passed on from a business to a customer for using a Card to make a purchase. American Express opposes surcharging.

Learn about surcharging

What’s the difference between a Credit Card and a Debit Card?

While both offer an easy and convenient way to pay for purchases, there’s a big difference between Debit and Credit Cards. One works with the money you already have, whereas the other uses borrowed funds which you then pay back later.

Learn the differences

Credit Card Benefits

Card Members could enjoy purchase protection, boosted buying power and more. Whether you’re set on building your credit score, extending your cashflow or want to get more out of your spending, there may be a Card to suit your lifestyle.

Discover the benefits (and disadvantages) of owning a Credit Card and how to enjoy purchase protection and boosted buying power.

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What is a Credit Score?

In Australia, there isn’t one unique, fixed credit score that’s available to consumers or credit providers, however, a good credit history will impact your credit score in a positive way and help to show that you’re a reliable borrower.

Learn about credit scores

Useful Credit Cards terms

Statement period: The period in which the transactions reported on your statement relate to. Generally, your statement period will be every 30 days, the actual dates can vary slightly from month to month.
Interest: When you use your Credit Card, you will be charged interest unless you repay the full closing balance by the Payment Due Date shown on your statement. Interest will be expressed as an annual percentage rate.
Interest free days: Interest free days are the time from when you buy something using your Credit Card to when interest is applied to that purchase.
Repayments: When your statement arrives, you’ll need to choose how you want to make repayments. You can choose to repay the entire closing balance on or before the Payment Due Date shown on your statement, in which case you’ll avoid paying interest. You also have the option of paying the minimum payment, however you will be charged interest on the unpaid balance.
Closing balance: The amount you owe at the end of a statement period.
Credit Card limit: A Credit Card limit is set when you’re approved for a Credit Card and is the maximum amount of credit you can use on your Card. All Credit Cards have a maximum and a minimum Credit limit.
Annual fee: An annual Credit Card fee is a fee paid once per year to a financial services provider, in return for access to benefits and services on the Credit Card product you hold. Not all Credit Cards have an annual fee and American Express offers a range of no annual fee Cards. An annual fee is however charged on some Cards in return for richer rewards, features and benefits.
Balance transfer: A balance transfer is when you move an existing Credit Card balance onto another Credit Card. If you have a high interest Credit Card balance you’d like to pay off, a balance transfer to another Credit Card with a lower interest rate can help you keep on top of your payments.
Membership Rewards: If you choose a Membership Rewards points earning Card, you’ll earn Membership Rewards points every time you use your Card through the American Express Membership Rewards loyalty program. Membership Rewards points that can be redeemed for your next travel adventure, a new outfit, concert tickets and more of the things you love.

More Credit Card Information

Where can I use my American Express Card?

American Express is accepted at hundreds of thousands of places around Australia, including various shops, restaurants, hotels and more. Use it for your purchases to enjoy membership benefits and rewards more often.

Find out where

What Credit Card is right for me?

Explore and compare our range of Cards and their benefits to find the one that best suits your needs.

Rewards

Earn Membership
Rewards points from
everyday spending

Frequent Flyer

Maximise rewards
for every trip

Platinum

Enjoy premium
benefits and service

No Annual Fee

Save more with no
annual fee

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HELLO POSSIBLE

From money-saving ideas to travel inspiration and daily life tips, get inspired to do great things and make your life more rewarding.

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Shop with confidence

At American Express, we take your security seriously. That’s why we have measures in place to ensure you can shop with confidence.

Learn more about security

Protection against fraud

Get more peace of mind through our Intelligent Security Systems, Secure Payment Process, and Fraud Protection Guarantee².

Learn more

Protection on purchases

Damaged a purchase or having trouble getting a refund? With eligible Cards, you can rely on us to put things right with 90 days’ Card Purchase and Refund Cover³.

Learn more

Protection against phishing

We’re continually updating our online security features, but there are also some simple steps you can take to protect yourself.

Learn more

Make payments with a swish of your mobile

Leave your wallet at home and enjoy the convenience of mobile payments. You can now make payments through contactless technology with your American Express^® Card using Apple, Samsung and Android^TM devices. To get started, all you have to do is scan your Card into the app and follow the prompts.

Find out how

Managing your Account is simple

Whether you’re just getting started, looking to pay a bill, use Membership Rewards points, or keep track of your spending, here’s how to get the most out of your Credit Card.

Manage your Account

Live life to the fullest with American Express Membership

As an American Express Card Member, you get to enjoy travel benefits that take you further, points that are more rewarding, and services that open more doors around the world.

Explore here

Apple, the Apple logo, iPhone and iPad are trademarks of Apple Inc., registered in the US and other countries. Apple Pay and Touch ID are trademarks of Apple Inc.

Google Pay and the Google Logo are trademarks of Google LLC.

Samsung, Samsung Pay, Galaxy S (and other device names) and Samsung Knox are trademarks or registered trademarks of Samsung Electronics Co., Ltd. Samsung Pay is available on select Samsung devices.

1. No pre-set spending limit. No pre-set spending limit does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit records, and financial resources known to us.

2. Fraud Protection. Provided that you don’t contribute to, or unreasonably delay, reporting any misuse of your Account, and you have complied with your Card Conditions, you won’t be held liable for any unauthorised charges.

3. Card Purchase and Refund Cover. American Express Card Insurances are underwritten by Chubb Insurance Australia Limited (ABN 23 001 642 020, AFSL No. 239687) under a group policy of insurance held by American Express Australia Limited (ABN 92 108 952 085, AFSL No. 291313). Access to this insurance is provided solely by reason of the statutory operation of section 48 of the Insurance Contracts Act 1984 (Cth). Card Members are not a party to the group policy, do not have an agreement with Chubb and cannot vary or cancel the cover. American Express is not the insurer, does not guarantee or hold the rights under the group policy on trust for Card Members and does not act on behalf of Chubb or as its agent. American Express is not an Authorised Representative (under the Corporations Act 2001 (Cth)) of Chubb.