Assuming that you have disciplined yourself to minimise discretionary spending, you can use your credit card to your advantage.
If you repay your purchases for the period within the interest free period, you can use your card to maintain a record of your expenses.
It's also possible to repay your credit card debts out of your home loan or 100% offset account.
Setting up a direct debit out of your home loan is a simple process.
This means approaching your financial institute or lender and making an application to have the total full amount owing on your credit card paid out in full, automatically, at the end of the month, before the interest calculation kicks in.
This is only a viable option if your redraw on your home loan is sufficiently large enough to cover the payment of the full amount of your card expenditure for that month.
Your adviser can tell you if this is a good option for you.
Before going out and buying everything on your card, be aware that with new Reserve Bank changes to credit card fees effective from January 2003, the price of goods charged by retailers could be higher than for cash transactions.
Check first to find out if the price is the same.
Changes to interchange fees effective from July 2003, could result in higher card fees but provide a greater range of card and service fee options.
Money Magazine publishes a Best of the Best issue at the end of each year that provides information on the cheapest credit card, the best credit card with interest free days and rewards.
It's worth having a look at the most recent issue.