You don’t need to get a credit card from the same bank you have your transaction and savings accounts with. There are actually some benefits in opting for a different one.
While getting a credit card with the same bank as your debit card provider might offer some convenience, there are some perks to switching to a different bank when applying for a new credit card. Use this guide to weigh up your options and decide whether or not you should get a credit card with your current bank or a different provider.
Getting a credit card with the same bank as your debit account vs with a different bank
There are perks to both staying with your existing bank and signing up to a new one when you’re on the market for a credit card. If you’re having trouble deciding, use the comparison below to determine which strategy is right for you.
Getting a credit card with your existing bank
- The familiarity of banking with the one institution. If you have banked with the same institution for a while, there are some benefits to staying loyal. If you have a savings account with a bank, for example, you’ll be familiar with the services that the bank offers. You’ll also know what to expect from the customer service team and hopefully there will be some branches nearby.
- Simple application process. When you apply for a credit card, the lender assesses your approval based on a number of factors including your income, repayment history and credit history. If you’re applying for a credit card with the same bank, they can access your debit card history and also assess your approval based on your ability to save and your spending behaviour. If you’re good at saving, spend responsibly and don’t overdraw your account, this could work in your favour. The fact that your bank already has your details could also mean that you won’t need to submit details such as your full name, contact details and residential address when you’re filling out your application.
Getting a credit card with a new bank
- Promotional offers. If you’re looking for a new credit card, applying for a card with a sign-up promotional offer could help sweeten the deal. For example, some credit cards offer 0% on purchases for a set period, interest-free days on balance transfers and bonus points with a rewards or frequent flyer program. These offers are usually only available for new applicants and may not be available if you already bank with the provider. If you do want to take advantage of a promotional offer like this, comparing credit cards with a different bank could provide you with more options.
- Getting a better deal. While sticking with the same bank might offer convenience, you could be missing out on more competitive deals if you fail to compare your options beyond your regular provider. If you’re unsure where to start, using the comparison tables on finder.com.au is a simple way to compare your options side-by-side. Pay attention to the annual fees, interest rates and features such as rewards, complimentary insurances and more to see how the cards with your usual provider compare to the other options on the market.
As you can see, there are a few options to consider when deciding if you should stay with your current bank or look for a credit card elsewhere. Whether or not you’re content to remain with your existing issuer, you should still compare your other options to make sure you’re making the right credit card decision for you.