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.
