Credit card offers & deals

No two credit cards are the same, and some Australian credit card providers try to encourage new customers to sign up or switch by offering competitive deals, features and incentives.

A credit card deal refers to a special promotion or offer provided by credit card companies to attract new customers or provide additional perks to existing cardholders. The reason credit card providers offer special deals is the same reason businesses in other industries do it: to attract more customers and generate greater revenue.

The credit card market is very competitive, so sometimes credit issuers feel like they need to do something different to stand out. Let’s examine the potential enticements credit card providers may offer:

Low introductory rates 

Some card providers may offer new customers reduced interest rates for a limited period. However, remember to check the revert rate on the card, which is the interest rate that will apply after the introductory period is over, to make sure you’re getting a good deal beyond the inaugural low rate.

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.

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. Additionally, some promotions may require you to retain the card for at least 12 months to receive full bonus points.

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 the biggest banks. There are a range of card providers offering deals for new customers.

You may find deals from 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 credit card types, from Visa to Mastercard and American Express (AMEX), and various card options including:

• Low rate credit cards
• Low fee credit cards
• Balance transfer credit cards
• Rewards credit cards
• Frequent flyer credit cards
• Travel credit cards
• Platinum credit cards
• Premium credit cards

There’s no such thing as a free lunch, and for some credit card deals, there may be certain eligibility criteria you need to meet to reap the rewards. While some credit card offers, such as waived annual fees and low rates, are simple and straightforward, others often require you to meet some conditions.

It may seem obvious, but there are a few benefits to nabbing a credit card deal outside of getting something for “free”.

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.

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.