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What to look for when shopping for a credit card

Whether you’re a first time cardholder or wanting to swap out an old card for a better model, learn what to look for in your new credit card.

With so many credit card features to choose from, the process of shopping for a new card can be quite dizzying. However, it’s important that you do shop around rather than settling for the first one you see. A suitable credit card can potentially be a real blessing, but getting the wrong card can also end up costing more than it benefits you. This guide looks at five key features to consider when shopping for a credit card, some other factors to think about, and how to apply when you’re ready.

What to consider when shopping for a credit card

While different credit card features will appeal to different people, there are five key elements to consider when shopping for a new card:

Standard interest rates

Credit card companies make their fortunes on interest rates, so you should pay close attention to them. Unless you don’t plan to carry a balance on the card and are committed to fully paying off your account balance each month, interest rates can be the major source of your credit card expenses. Consider carefully the purchase interest rate which will apply to most standard purchases, the cash advance interest rate which will apply to cash withdrawals and cash equivalent transactions (e.g. gambling, prepaid credit, travellers cheques) and the balance transfer interest rate which will apply to balance transfers if you’re planning to transfer any debts.

Promotional interest rates

Getting a new card can be exciting because of the numerous card promotions that exist. Introductory promotions can include bonus sign-up points, cashback, 0% purchase interest for a fixed term, 0% balance transfer interest for a period, or an attractive combination of any of these. While promotional interest rates may seem too good to be true, they can really help with managing credit card debt in some cases. The thing to be careful of is when the promotional period will end, and what standard rates will apply once that day comes.

Annual fee

There are many cards that offer no annual fee memberships. These are especially great if, again, you are not planning to carry a balance and will pay off your monthly balance in full, because the interest rates on these cards are usually higher. On the other hand, some cards, such as rewards credit cards, charge high annual fees because of the other perks that accompany them. When comparing cards, ensure that the benefits will outweigh the annual costs. If the card does come with a $0 or low annual fee, make sure you know whether it’s for life or a promotional period (such as the first year), so you’re not surprised with a full annual fee in the second or third year.

Rewards

Rewards credit cards and frequent flyer credit cards are all the rage, especially among seasoned travellers. They allow you to earn points (e.g. one point per $1 spent on your card), which you can then redeem for flights, flight upgrades, hotel stays, fuel vouchers, gift cards, shopping vouchers, cashback and a host of other products and services. These cards usually incur a higher annual fee, but there are some no annual fee rewards cards and no annual fee frequent flyer cards that you can also look out for.

Complimentary extras

Many rewards credit cards, frequent flyer credit cards and other premium credit cards offer a variety of complimentary extras to outweigh the cost of the card. These vary from card to card, but you can expect features included such as travel insurance, airport lounge passes, complimentary flights and hotel stays, concierge services and other free insurance covers like purchase protection and extended warranty. So long as you can afford the annual fee and you make regular use of these perks, they can be an easy way to get more value for your money from your card.

Other factors to consider when comparing credit cards

As well as those listed above, other features and fees to compare include:

  • Sign-up bonuses. Some frequent flyer and rewards credit cards offer bonus points on sign up as an extra incentive for new applicants. Depending on the card, these can be up to 150,000 bonus points and are a great way to kickstart your points balance. However, such offers often come with terms and conditions, and you might be asked to spend a certain amount within a set period (e.g. $3,000 on eligible purchases in the first three months) to activate the offer. Make sure the terms and conditions align with your spending plans, so you’re not spending for the sake of the bonus points and fall into debt when you’re unable to pay off the balance.
  • Interest-free days. A common feature of credit cards is offering a fixed number of interest-free days on purchases, e.g. 44 days or 55 days. This means you don’t pay interest on your purchases for that many days, but it’s important to note that you only enjoy interest-free days if you’ve paid your account balance in full the previous month. You won’t enjoy any interest-free days if you carry a balance, which can create a vicious cycle of interest accrual, because carrying a balance is when you most need interest-free days.
  • Foreign transaction fees. When you make a foreign transaction (whether overseas or online), you might be charged a currency conversion fee of around 3%. If you are looking for a card to use overseas, consider one that doesn’t charge foreign transaction fees.
  • Balance transfer fees. This is another fee that will apply if you’re thinking about a balance transfer credit card. Even when the card promises 0% interest balance transfer for 24 months, you may still need to pay a balance transfer fee which is generally between 1% and 3% of your balance transfer amount.
  • Overlimit fees. This is usually a flat fee that applies when you exceed your credit limit on the card. Depending on your card issuer, your card may simply be declined at the point of sale instead if there is no credit remaining on the card.
  • Late payment fees. This is another typically flat fee that applies if you fail to make your minimum repayment by the statement due date on your monthly bill.

How to apply for a credit card

Once you have compared cards and found the one that most closely suits your needs, lifestyle and spending habits, you can easily apply online. While eligibility requirements will differ with each card, these are some general application requirements:

Eligibility requirements

  • Age. Most credit cards require that you be at least 18 years of age.
  • Residency status. Most cards require that you be an Australian citizen, permanent resident or holder of certain visas permitting you to work and live here.
  • Income. Some credit cards require a minimum income amount, which it is important to satisfy before applying.
  • Credit history. Most credit cards dictate that you have a good or excellent credit rating.

Required documents

The following details will generally be asked for, along with possible supporting documentation:

  • Personal details. This includes your full name, date of birth, address, email address, phone number, driver’s licence number and passport number.
  • Employment details. This includes your current position, employer’s name and contact information, duration of employment, and usually your previous employment details as well. You’ll also be required to provide two to three recent payslips.
  • Financial information. This includes information on any assets owned (e.g. shares, investments and properties) as well as debts and liabilities (e.g. mortgages, rent payments, car loans and personal loans). You will also have to indicate your regular monthly expenses.
  • Credit card details. This includes your requested credit limit and the details of any balances you wish to transfer.

If you apply online, your application can sometimes be approved within 60 seconds. Otherwise you may get a conditional approval and be asked for more details or supporting documents. Once you have been approved, your card may take up to two weeks to reach you. When it does, follow the accompanying instructions to activate it and you’re good to go.

While there is no one “best” credit card on the market, there are some features, benefits and fees to consider to narrow your options. Comparing a variety of cards on the market with the above factors in mind will help you get one step closer to securing the right card for you.

Compare the latest credit card offers

Rates last updated October 19th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
NAB Low Fee Platinum Card - Exclusive Offer
19.74% p.a.
0% p.a. for 25 months
$90 p.a.
25 Month Balance Transfer Offer
finder Exclusive: Take advantage of 0% p.a. interest for 25 months on balance transfers with no balance transfer fee.
ANZ Low Rate
12.49% p.a.
0% p.a. for 15 months
$58 p.a.
Long-Term Balance Transfer Offer*
Save with a 0% p.a. introductory rate on balance transfers for 15 months with no BT fee. Plus a low 12.49% p.a. interest rate on purchases.
Citi Rewards Platinum Credit Card - Online Offer
20.99% p.a.
0% p.a. for 24 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
0% p.a. for 24 months Balance Transfer Offer*
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 24 month balance transfer offer, plus complimentary international travel insurance.
Qantas Premier Everyday
19.99% p.a.
4.9% p.a. for 24 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
$0 First Year Annual Fee & Bonus Points Offer
Take advantage of up to 40,000 bonus Qantas Points, a $0 first year annual fee plus complimentary overseas travel insurance.
Citi Clear Platinum Credit Card
12.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Platinum Credit Card with a Low Interest Rate *
Offers a 0% p.a. for 14 months balance transfer and $0 first year annual fee. Plus, insurance covers and Citibank Dining Program perks.
Westpac Low Rate Card
13.49% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
$0 First Year Annual Fee & Balance Transfer Offer*
Offers a 0% for 24 month balance transfer option, first year annual fee waiver and a competitive purchase rate.
ME frank Credit Card
11.99% p.a.
$0 p.a.
No Annual Fee Low Rate Credit Card*
Save money with an ongoing $0 annual fee, the same low 11.99% p.a. interest rate on purchases and cash advances, and up to 55 days interest-free.
St.George Vertigo Platinum
12.74% p.a.
0% p.a. for 26 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Low Rate Platinum Credit Card Offer
Offers a long-term balance transfer, $0 first year annual fee, complimentary travel insurance and access to a 24/7 personal concierge service.
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months with 2% balance transfer fee
$129 p.a.
Annual Fee Refund & Balance Transfer Offer*
Offers a 0% p.a. for 22 months balance transfer and an annual fee refund each year when you spend $6,000. Plus, 2 airport lounge passes every year.
NAB Qantas Rewards Signature Card
19.99% p.a.
0% p.a. for 6 months with 2% balance transfer fee
$295 p.a. annual fee for the first year ($395 p.a. thereafter)
Bonus Qantas Points Offer*
Collect 90,000 bonus Qantas Points when you spend $4,000 within 60 days of account opening. Plus, a $295 annual fee in the first year.
ANZ Frequent Flyer Black
19.99% p.a.
$425 p.a.
$150 back & 120,000 bonus Qantas Points*
Earn 120,000 bonus Qantas Points and $150 back when you spend $7,500 in the first 3 months. Plus, 75 Status Credits.
Qantas Premier Platinum
19.99% p.a.
0% p.a. for 15 months
$299 p.a.
60,000 bonus Qantas Points with Balance Transfer Offer
Get 60,000 bonus Qantas points and a $300 Qantas Flight Voucher when you spend $4,000 in 90 days. Plus, complimentary lounge passes.
Bankwest Breeze Platinum Mastercard
0% p.a. for 13 months (reverts to 12.99% p.a.)
0% p.a. for 13 months with 2% balance transfer fee
$99 p.a.
Low Rate Platinum Card with No Foreign Transaction Fees *
Receive a 0% p.a. interest rate on purchases and balance transfers for 13 months, complimentary travel insurance and 0% foreign transaction fees.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Up to 60,000 bonus Velocity Points Offer*
Earn up to 60,000 bonus points in the first 3 months with a $64 first year annual fee. Plus, the chance to win 1 million Velocity Points.
Citi Simplicity Card
19.99% p.a.
0% p.a. for 6 months
$0 p.a.
Low Intro Balance Transfer Interest Rate with No Annual Fee
Get 0% p.a. interest for up to 6 months on balance transfers with no BT fee. Plus, a $0 annual fee for life.
St.George Amplify
0% p.a. for 14 months (reverts to 19.49% p.a.)
$79 p.a.
0% for 14 months Purchase Offer*
Take advantage of 0% p.a. interest on purchases for the first 14 months. Plus, earn 1 Amplify Point per $1 spent on eligible purchases, uncapped.
Bankwest Breeze Classic Mastercard
0% p.a. for 13 months (reverts to 12.99% p.a.)
0% p.a. for 13 months with 2% balance transfer fee
$79 p.a.
0% p.a. for 13 months Balance Transfer Offer*
Receive purchase and balance transfer offers of 0% p.a. for 13 months, a low ongoing rate and up to 55 interest-free days on purchases.
American Express Velocity Platinum Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$375 p.a.
75,000 Velocity Points Credit Card*
Receive 75,000 bonus Velocity Points when you spend $3,000 within the first 3 months. Plus, Status Credits & lounge passes.
ANZ First Visa Credit Card
19.74% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$30 p.a.
Low Annual Fee and up to 44 days interest-free
Get up to 18 months interest-free on balance transfers and save with a low $30 annual fee. Plus, up to 44 days interest-free on purchases.
Bendigo Bank Low Rate Mastercard
11.99% p.a.
$45 p.a.
Low Rate Credit Card Offer*
A no-frills card with a competitive annual fee, a low variable purchase interest rate of 11.99% p.a. and up to 55 interest-free days on purchases.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
0% p.a. for 6 months
$129 p.a.
0% for 14 months Purchase Offer with Virgin Australia Gift Voucher*
Enjoy 0% p.a. interest on purchases for 14 months. Plus, the chance to earn 1 million Velocity Points. Ends 31 Oct 2018.
Bankwest Zero Platinum Mastercard
17.99% p.a.
2.99% p.a. for 9 months
$0 p.a.
$0 Annual Fee & 0% Foreign Transaction Fees
Offers a $0 annual fee, 0% foreign transaction fees, complimentary international travel insurance and a balance transfer offer.
St.George Vertigo Classic
13.74% p.a.
0% p.a. for 16 months
$55 p.a.
Low Annual Fee with Balance Transfer Offer*
Get 0% p.a. interest for up to 16 months on balance transfers with no BT fee. Plus, a competitively low annual fee and purchase rate.
Virgin Money Low Rate Credit Card
11.99% p.a.
0% p.a. for 14 months
$49 p.a.
Low Purchase Rate & Balance Transfer Offer*
Offers a $49 annual fee, 10% cashback on purchases made in the first 3 months (capped at $100) and 0% p.a. for 14 months on balance transfers.

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Credit Card Offers

Important Information*
Qantas Premier Everyday

Interest rate

19.99

Annual fee

0*

*$49 p.a. after first year

Westpac Low Rate Card

Interest rate

13.49

Annual fee

0*

*$59 p.a. after first year

ANZ Low Rate

Interest rate

12.49

Annual fee

58

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