The Australian financial services system is very well developed and highly competitive. This is especially the case when it comes to credit card availability with a wide range of providers and offers.
Most cards use the worldwide MasterCard or Visa clearing systems meaning that they have global acceptance for payment in a wide range of outlets. There are a number of players that use these systems to brand cards for use.
All of the major banks provide cards and it is not necessary to be an existing customer to apply for one. As with any financial service, it is wise to research the market to look for the one that offers the optimal combination of fees and terms to suit your need.
Many cards offer a balance transfer incentive to attract new customers. The Citibank Clear Visa Platinum Visa card offers a full six months interest free on transferred balances alongside a 10.99% rate on new purchases. As is common with all card providers in Australia, there is an annual fee payable of AU$85. The ANZ Low Rate MasterCard also has a 6 month balance transfer free period but charges 11.74% on new purchases but has a lower annual fee of AU$58.
There is such a wide variety of offers that you need to be clear as to the main feature that appeals most. For example, the Emirates Citi Platinum Credit Card offers a 4.9% interest rate on balance transfers for life but charges a whopping 19.99% interest on new purchases not paid off in the month.
If you have no balance to transfer from another card then you can start to look for which offers the lowest annual fee and interest rate on new purchases. Of course, if you plan to repay the full balance every month then you need only look for the lowest fee and any other perks. If this is the case, there are two loyalty type cards available – the Quantas Frequent Flyer And the Woolworths Everyday Money cards.
As the name implies, the Quantas Frequent Flyer card is an easy way to earn miles to be redeemed on the national carrier for flights. It offers no facility for free balance transfers and charges a high 19.99% rate on balance. The annual fee is an eye watering AU$249 and it uses the American Express system that is not as widely welcomed as the two major clearing systems. Airmiles are earned at 1.5 for every dollar spent with an introductory 7,500 miles credited. The Woolworths Everyday Card is based on the MasterCard system so is more widely accepted. Points are earned at 3 per dollar and can be redeemed every four months, provided you have earned enough, for a shopping card that can be spent in a wide range of stores.
Selecting a card can be a daunting challenge given the many permutations available. Using a comparison website can prove helpful in working out which features you would gain the most benefit from. We like to think that at cheaperoption.com.au is one of the easiest and most comprehensive. As well as the main terms and conditions you will also get advice on the editor’s best picks per category.
