Credit card offers & deals

Credit cards are as diverse as the individuals who use them, and some Australian providers try to entice new customers or encourage switches by offering competitive deals, features, and incentives. 

A credit card deal is essentially a special promotion or offer rolled out by credit card companies. Because there are many credit card options available, companies often feel the need to be creative and unique to stand out in the competitive market. The rationale behind these offerings aligns with strategies employed by businesses across various industries: to draw in more customers and boost overall revenue. 

Now, let's look at the possible benefits that credit card providers might offer, and delve into what makes for the best credit card deals. 

Low introductory rates

Some card providers may offer new customers reduced interest rates for a limited period. While such offers may seem tempting, remember to check the revert rate on the card that kicks in after the introductory period ends. Reviewing the revert rate can help ensure that you’re not just attracted by the initial low rate but also getting a good deal in the long run. 

Lengthy balance transfer interest-free periods

A 0% balance transfer credit card can be beneficial if you're currently paying off a credit card. It provides an interest-free introductory period ranging from six to 36 months, allowing you to repay your balance without paying any interest on it. However, keep in mind that a higher interest rate will apply after the introductory period, and some cards may also charge you a one-time balance transfer fee. Additionally, you may be charged interest at a higher rate on new purchases during the balance transfer period, and the usual interest-free days on purchases may not apply. 

No annual fee or reduced annual fee

Certain credit card promotions waive the annual fee entirely or reduce it for the first year. This can result in significant savings, allowing you to try out the card before committing to the ongoing annual costs it may carry.

Interest-free purchases

For high-value purchases, a credit card offering 0% interest on purchases enables you to buy items and pay no interest for a specified introductory period. Depending on the card, this period may range from three months to a couple of years. However, it's important to note that higher interest rates may apply once the introductory period ends.

Rewards, frequent flyer points and bonus offers

Some rewards-based credit cards and frequent flyer credit cards may provide attractive bonus points to new cardholders. However, you may need to meet some spending requirements within the first few months of card membership to earn these points. 

These cards often attract higher fees and charges than non-rewards cards. Remember to take these additional charges into consideration to make sure you’re not spending more than what you expect to gain in rewards or bonus points from the card. Additionally, some promotions may require you to retain the card for at least 12 months to receive full bonus points. 

So, if you’re thinking of grabbing the points and cancelling the card to dodge the high annual fee, such rules might not let you do that. Be sure to understand these conditions to make smart choices with your credit card. 

Cashback offers

Credit cards that include cashback offers provide a monetary benefit to new cardholders. Upon meeting a specific spending requirement, you may receive a gift card or a cashback amount on your card.

Some credit card issuers may cap the dollar value of cashbacks a cardholder may earn over a specific period.

Other features and incentives 

Credit card companies may occasionally introduce special deals for new cardholders, such as membership tier upgrades, credit-back offers, bonus points on sign-up, waived annual fees for the card's lifetime, or a combination of different sweeteners.

You can use RateCity’s comparison tables to search, filter and compare the latest credit card deals on offer. However, don’t just sign up for a credit card solely based on attractive deals. It’s important to select a credit card that aligns with your spending habits and financial goals.

When choosing a credit card, consider looking for one that offers rewards and benefits that match your needs but don’t add to your expenses. Also, make sure to read the fine print and compare the fees, interest rates, and rewards to find the best option for your needs.

Big rewards aren’t just reserved for those who apply for credit cards with the biggest banks. There are a range of card providers offering attractive deals for new customers. 

You can often discover deals with the big four banks (CBA, Westpac, NAB and ANZ), smaller banks, credit unions and online providers. These deals may be found on a range of different types of credit cards, from Visa to Mastercard and American Express (AMEX), and various card options including:

• Low rate credit cards: These cards offer competitive interest rates, making them a cost-effective choice for those who carry a balance from month to month.
• Low fee credit cards: Designed to minimise annual fees and other charges, low fee credit cards are targeted at cost-conscious consumers looking to save on costs.
• Balance transfer credit cards: These allow you to transfer existing credit card balances to secure lower interest rates or promotional periods with no interest, helping to consolidate and manage debt more efficiently.
• Rewards credit cards: You earn points or cashback on your purchases, offering you a way to get value back from your spending, often with a range of redemption options.
• Frequent flyer credit cards: Ideal for regular travellers, these cards accrue airline miles or points that can be redeemed for flights, upgrades, and other travel perks.
• Travel credit cards: These are tailored for globetrotters and holidaymakers, offering features such as no foreign transaction fees and travel insurance.
• Platinum credit cards: Platinum cards provide premium benefits and services, such as higher credit limits, complimentary insurance, and exclusive access to airport lounges, targeting individuals seeking a more luxurious credit card experience.
• Premium credit cards: These top-tier cards offer a range of elite perks, such as concierge services, premium rewards, and enhanced travel privileges, making them a popular choice for individuals who value exclusive services and benefits. 

At the time of writing, some of the credit card deals listed in the RateCity database are offering significant bonus points for new sign-ups. However, it's crucial to carefully consider the associated fees to ensure the offer aligns with your financial situation. Additionally, understanding the specific conditions required to earn these bonus points is essential, as merely applying for the card might not automatically entitle you to the benefits. 

Updated by Vidhu Bajaj on 8 February 2024. 

When it comes to credit card bonus offers, don't forget to read the fine print. Ensure you can actually receive and utilise the promised rewards before committing. Reading the terms and conditions gives you clarity on aspects like the minimum spend for reaping rewards and the expiry of earned points. The card's interest rate and fees are crucial, too. If you tend to carry a balance, the interest costs could cancel out initial rewards. In such cases, signing up for a low-rate credit card, even without signup bonuses, might make more financial sense. 

It's important to note that the majority of credit card deals and offers are designed for new customers. If you currently hold a credit card and plan to apply for another to access these benefits, it's essential to weigh your options regarding the existing card. While maintaining both cards may increase the temptation to spend, cancelling an older card could result in the loss of the positive credit history associated with it. Therefore, it's advisable to carefully consider these factors before making a decision. 

Securing a credit card deal extends beyond the appeal of receiving something "free”. These deals often come with various benefits that can enhance your financial flexibility and lifestyle. Many credit card offers include rewards programs, cashback incentives, and exclusive discounts on purchases. Additionally, certain cards provide travel perks, such as airline miles or hotel discounts. Here’s how you may benefit from nabbing a credit card deal that aligns with your financial goals: 

Achieve a goal

When it comes to bonus rewards or frequent flyer points, the benefits depend on just how many rewards and perks your provider offers. Bonus points deals may be a handy way for point chasers to boost their balances and nab the items or experiences they’ve been daydreaming of.

You may be able to turn a signup bonus into a domestic or international flight. It may also make up the missing points you need for a flight upgrade for your entire family. You could also use your bonus rewards points for a new appliance or electronic within your rewards program. 

With the right credit card deal, you could make your holidays more rewarding, get cash back on everyday expenses, or receive gift cards for your regular shopping. Some cards also offer the option of statement credits, allowing you to directly reduce your credit card bill. Depending on your card provider, you may also have the option to contribute your reward points to charities or gain access to exclusive events. 

Pay off debt

Lengthy interest-free periods on balance transfer credit cards may be one way you can consider paying down your credit card debt. Balance transfer credit cards allow you to transfer the debt of one credit card to another that does not charge interest for a set period of time.

As interest is one of the biggest ongoing card costs and causes of debt, a generous balance transfer deal may offer a cardholder a greater window to pay down their debt. Balance transfer offers can be short term (under 12 months) or long term (12 or more months). And, thanks to their 0% interest windows, allow cardholders to try and get on top of their debt without accruing any more interest. However, it’s essential to remember that the 0% interest window will only last for a limited period.

If you’re unable to clear your transferred balance within this limited period, you might face penalties and higher interest charges on the outstanding amount. Once the promotional period is over, the low introductory rate on your card will revert to the card issuer’s regular purchase rate. Be careful to check all the terms and conditions to ensure you’re getting a good deal beyond the initial promotional period.

Save money

Zero interest introductory offers, waived fees and low rates are just a few ways Aussies can keep costs low and save money on their credit card. These types of deals may be especially beneficial to those who struggle to pay their balance in full each month and incur high interest rates on their regular card purchases. A high number of interest-free days, or a 0% introductory period, also offers cardholders a greater window of time to not accrue interest on their card balances. 

For those who are good at staying on top of their debt, higher annual fees may be the biggest ongoing cost they face with their credit card. Opting for a card that waives its annual fee may be a more beneficial deal for these card users.

Just like with any financial products, there are some risks to keep in mind when comparing credit card offers and deals, including:

Interest rates 

Ensure you can afford the purchase rate of any credit card before you apply. Consider calculating your potential repayments if you were to max out the credit limit as a measurement of your ability to afford it in the worst-case scenario. Rewards cards, in particular, typically come with higher interest rates than more basic cards as they help the credit provider pay for the perks offered, such as complimentary insurances and airport lounge access.

When it comes to credit card offers with low introductory rates, it's important to consider the duration of the promotional period and what the interest rate would revert to at the end of this period. Additionally, it's advisable to carefully review the card provider's terms and conditions to uncover any hidden fees or penalties. While a low interest rate might be tempting, rushing into signing up for a card without considering these factors may lead to future regret.

Fees

Credit card fees can be some of the highest costs a cardholder faces, especially those that pay off their balances in full each statement period.  Rewards credit cards and premium credit cards typically charge high annual fees. You may even be charged a balance transfer fee if you opt for that type of deal. Ensure you can afford the ongoing costs of any financial product before applying. Additionally, your card provider might also charge you foreign transaction fees, cash advance fees, and late fees for missed or late repayments.

When comparing credit cards, carefully evaluate the different types of fees associated with different cards. Ensure that the potential benefits of using the card are not outweighed by the costs involved. It’s also worth considering whether you can afford the ongoing costs of any financial product before applying.

Eligibility criteria

Rewards points and frequent flyer points credit cards often come with eligibility criteria connected to the bonus points offered. Read the product disclosure statement (PDS) for a full breakdown of these conditions, such as meeting a spending minimum within the first 90 days of card approval.

There’s more to a credit card than a deal. One of the most important things to keep in mind when comparing credit card offers is that there are a number of different factors and features that you may want to consider before making an application. Researching and comparing cards and their different fees, features and limits can be incredibly helpful when deciding on a credit card that’s right for you.

The risk of getting stuck in a cycle of debt

Credit card offers and deals can be tempting, but they could also lead to overspending and debt if not used wisely. Credit card deals are often targeted at high spenders and may come with minimum spending requirements to access rewards, encouraging extra spending.

If you’re not careful about paying off your credit card bill regularly and clearing the balance within each statement period, you could potentially kick off a cycle of debt that might become increasingly challenging to escape over time.

Are credit card offers worth it?

Credit card offers may be enticing but whether they are worth the risk of accruing debt depends on your financial habits, needs, and the details of the specific offer. Many credit cards offer additional perks, such as cashback rewards, travel benefits, or introductory 0% interest rates for a predetermined period. However, before jumping into an offer, carefully review the terms and conditions. Pay attention to the interest rates, annual fees, and any potential penalties.

Further, think about whether the benefits and rewards align with your lifestyle or needs. For example, if you’re looking for a way to repay your debts, a balance transfer card may be useful. Or, if you’re a frequent traveller, a card offering travel rewards might be beneficial. Additionally, consider your spending habits. Some cards offer higher rewards in specific categories like groceries or gas. If these align with your regular expenses, the card may provide better value. 

Irrespective of the credit card you choose, remember to use it carefully. In fact, it’s advisable to apply for a credit card offer only if you are confident in your ability to manage credit responsibly and pay off the balance each month.