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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 June 27th, 2019
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee Product Description
Virgin Australia Velocity Flyer Card - Annual Fee Offer
20.74% p.a.
0% p.a. for 18 months
$50 p.a.
Ongoing Annual Fee Discount & Bonus Points
Earn 20,000 bonus points and save with an ongoing $50 annual fee. Plus, get a $129 Virgin Australia Gift Voucher each year. Ends 30 June 2019.
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 long-term balance transfer and $0 first year annual fee. Plus, insurance covers and Citibank Dining Program perks. Ends 30 June 2019.
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.
Westpac Low Rate Card
13.74% p.a.
0% p.a. for 18 months
$59 p.a.
0% p.a. Balance Transfer Offer*
A low rate card offering 0% p.a. on balance transfers for 18 months and a competitive purchase rate.
ME frank Credit Card
11.99% p.a.
$0 p.a.
Low Rate Credit Card with No Annual Fee*
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.
Commonwealth Bank Platinum Awards Credit Card
20.24% p.a.
5.99% p.a. for 5 months
$249 p.a.
Platinum Credit Card with Bonus Awards Points Offer
Get 100,000 bonus CommBank Awards points when you spend $4,000 on eligible purchases with your new card by 31 October 2019.
St.George Vertigo Platinum
12.99% p.a.
0% p.a. for 18 months
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
Low Rate Platinum Credit Card Offer
Features a long-term 0% balance transfer offer, $49 first year annual fee and access to a 24/7 personal concierge service.
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 75,000 bonus Velocity Points Offer*
Earn up to 75,000 bonus Velocity Points and save with a $64 first year annual fee. Plus, a long-term balance transfer offer. Ends 30 June 2019.
Commonwealth Bank Awards Credit Card
20.24% p.a.
5.99% p.a. for 5 months
$59 p.a.
Bonus Awards Points Offer
Get 30,000 bonus CommBank Awards points when you spend $2,000 on eligible purchases with your new card by 31 October 2019.
St.George Vertigo Classic - Online Offer
0% for 14 months, reverts to 13.99% p.a.
0% p.a. for 6 months
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Introductory Purchase Rate and $0 Annual Fee Offer*
Online only: Low rate card offering 0% p.a. interest on purchases for the first 14 months. Plus, a $0 first year annual fee.
HSBC Platinum Credit Card
0% for 12 months, reverts to 19.99% p.a.
0% p.a. for 12 months
$129 p.a.
Annual Fee Refund & Balance Transfer Offer*
0% p.a. on purchases and balance transfers with no BT fee. Plus, a yearly annual fee refund when you spend $6,000 and 2 lounge passes per year.
Suncorp Clear Options Platinum Credit Card - Exclusive Offer
20.74% p.a.
0% p.a. for 18 months
$49 p.a. annual fee for the first year ($129 p.a. thereafter)
Discounted First Year Annual Fee & Balance Transfer Offer*
Finder Exclusive
Save with a 0% balance transfer offer and get up to 60,000 bonus points. Plus, a $49 first year annual fee when you apply online.
American Express Velocity Platinum Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$375 p.a.
100,000 Velocity Points Credit Card*
Get up to 100,000 bonus Velocity Points (25,000/m) when you spend $1,000/m for the first 4 months. Plus, luxury travel perks.
28 Degrees Platinum Mastercard
21.99% p.a.
$0 p.a.
International Shopping Credit Card
Save with 0% foreign transaction fees on purchases. Plus, complimentary flight delay passes, global wifi access and a concierge service.
Citi Rewards Platinum Credit Card
20.99% p.a.
0% p.a. for 15 months with 1% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Bonus Points & Balance Transfer Offer
Get 100,000 bonus reward Points when you spend $3,000 in the first 90 days. Plus, save with a $49 first year annual fee. Ends 30 June 2019.
Citi Simplicity Card
19.99% p.a.
0% p.a. for 6 months
$0 p.a.
Intro Balance Transfer Rate with No Annual Fee
Get 0% p.a. interest for up to 6 months on balance transfers with no balance transfer fee. Plus, a $0 annual fee for life. Ends 30 June 2019.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% for 14 months, reverts to 20.74% p.a.
0% p.a. for 6 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
0% for 14 months Purchase Offer with Virgin Australia Gift Voucher*
Enjoy 0% p.a. interest on purchases for 14 months, a reduced first year annual fee and Velocity Points per $1 spent. Ends 30 June 2019.
Citi Rewards Platinum Credit Card - Exclusive Offer
0% for 13 months, reverts to 20.99% p.a.
0% p.a. for 13 months
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
0% p.a. Purchase & Balance Transfer Offers*
Finder Exclusive:
Save with 0% interest on purchases and balance transfers for 13 months (with no BT fee). Plus, a discounted $49 annual fee for the first year.
Westpac Altitude Platinum Card - Qantas
20.49% p.a.
$200 p.a.
Platinum Credit Card with Bonus Qantas Points*
Earn 60,000 bonus Qantas Points when you spend $3,000 within 90 days of card approval. Plus, complimentary insurances and a personal concierge.
Latitude Low Rate Mastercard
11.99% p.a.
$69 p.a.
Low Rate Credit Card Offer*
Offers a competitively low interest rate and annual fee, plus up to 55 interest-free days on purchases.
St.George Amplify Signature - Qantas
19.74% p.a.
0% p.a. for 6 months
$179 p.a. annual fee for the first year ($279 p.a. thereafter)
Reduced First Year Annual Fee & Bonus Points Offer*
Get 90,000 bonus Qantas Points when you spend $4,000 in 90 days and 2 complimentary Qantas Club lounge invitations per year.
Bendigo Bank Low Rate Platinum Mastercard
0% for 12 months, reverts to 11.99% p.a.
$89 p.a.
Platinum Credit Card with Cashback offer*
Offers a 0% p.a. interest rate on purchases for 12 months, complimentary insurance covers and mobile payment compatibility. Ends 30 June 2019.
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.
NAB Low Rate Platinum Card
0% for 15 months, reverts to 13.99% p.a.
0% p.a. for 6 months with 2% balance transfer fee
$100 p.a.
Platinum Credit Card with an introductory Purchase Offer*
Enjoy a 0% p.a. interest rate offer on purchases for 15 months and the protection of 7 complimentary insurances including overseas travel insurance.
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*
Get a $49 annual fee, 10% cashback on purchases made in the first 3 months (capped at $100) and a 14-month balance transfer. Ends 30 June 2019.

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