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.