Best Credit Cards¹

Tips for Comparing the Best Credit Cards¹ for you

The Australian credit card landscape is very competitive and diverse, offering all sorts of cards for all sorts of customers. Finding the best credit card¹ for you depends on many factors such as what you want to use the card for, how you spend your money and the general circumstances of your finances. Our comparison tables feature cards aimed at every type of Australian, allowing you to balance up all the rates and fees, features and benefits. Once you know what type of card you are looking for there are several components that determine which card is the most suitable. In this article we outline the main types of card and the key features to look out for when finding the very best deal to suit your needs.

Balance Transfers

You can save a lot of money if you select the right balance transfer credit card, taking advantage of the chance to repay your balance at a low interest rate during the introductory period. The features to take into consideration are the length of the introductory period and the interest rate both during the introductory period and after it expires.

If you are sure that you can repay the balance within the introductory period then a credit card with a 0% interest rate during the promotional period could be the best choice for you. If you need a little more time to repay the balance, then a credit card with a slightly higher balance transfer rate and longer introductory period could be more suitable.

When looking for the best credit cards¹ for balance transfers it is also essential to consider what interest rates applies when the introductory period ends so you know exactly what charges any outstanding balance attracts.

Small to Large Businesses

Good credit cards are essential tools for businesses and selecting the best one for your situation can help boost your business’ overall financial health. Business credit cards typically have a higher credit limit than personal cards. When comparing deals look for a card that has a credit limit that’s high enough to cover your expenses, and one that offers good interest rates. The annual fee is an important consideration too, as are any other charges such as penalties for late payments.

Many business credit cards offer a variety of reward programs, insurance benefits and other perks. When comparing business credit cards with a rewards program, make sure that the rewards and other benefits suit you and your business operation. This could include frequent flyer programs to save money on business trips, rewards to cover business expenses and insurance policies that cover purchases and travel.

You should also look for a business credit card that provides access to excellent customer services and other features such as online banking. Keeping your finances in good order is crucial for any business, so make sure the card you choose is Business Activity Statement friendly so GST can be easily calculated, all taxes paid correctly and all your essential records kept up to date.

The best credit card¹ for a business would have low interest rates on purchases (so that it isn’t too expensive if you balance rolls over), is linked with a rewards program such as Qantas Frequent Flyer or Virgin Frequent Flyer, has a range of additional insurance including purchase protection and has a 24/7 concierge service.

Cash Back

Cash back credit cards can offer very beneficial rewards for the right type of spender, paying money back into your account when you make purchases. An important feature to consider is what payments are eligible for cash back. Generally, there are three types of cash back deals: flat rate, tiered and those linked with selected retailer programs. Flat rate cash back cards offer a fixed cash reward on all purchases, so you earn money every time you use the card. Tiered cash back programs reward different percentages on different size payments, so if selecting one of these cards choose one that suits the type of payments that you most regularly make.

Store-linked cash back programs offer rewards for making purchases with specific retailers. This type of card can offer high cash back when shopping with participating retailers, so can be useful if you already shop regularly at these outlets. When comparing cash back cards with this type of reward make sure the program suits your spending habits.

Apart from restrictions on what payments qualify for cash back, there are other features to compare when finding the best card¹. Look for a card with high percentages on cash back and one with a low interest rate. Cash back can be capped, so compare the terms and conditions to make sure you find the best deal with as high a cap as possible. As with other rewards programs, you may lose your cash back if you fail to make monthly repayments on your balance, so make sure you are aware of all restrictions when finding a card suitable for you.

Debit Cards

When comparing and researching for the best debit card¹ for you should look for a card that is linked to transactional account, so you have the peace of mind that you are only spending your own money and not running up debts you can ill afford. Other features to compare are any fees and the accessibility of card transactions and ATM withdrawals. Some cards attract a monthly fee, but this type of card will typically allow unlimited ATM and branch access with no extra charge. Other features you should take into consideration include the availability of online and telephone transactions, payment protection or any other available benefits.

Because a debit card is attached to a transaction account, you should also familiarise yourself with all the fees and charges, terms and conditions related to this account before applying.

Frequent Flyers

If you take plenty of flights, for business trips or simply because you enjoy travelling, a frequent flyer credit card could be a great choice. There are several points to consider when searching for the frequent flyer card that is best for you. The most important feature is that the airlines linked with the rewards program are the ones you prefer to travel with, taking you to the destinations you want or need to visit. Frequent flyer rewards schemes generally offer much more than just flights, so look into what else is on offer to find a program that suits your lifestyle.

The next aspect to examine is the small print relating to points earn rates, redeeming, capping and expiry dates. Look for a card that earns a high rate of points per dollar, and if you get bonus points for spending with reward scheme partners make sure they are places you like to shop at. Points capping, tiering and expiries can limit how much you can earn and when you can redeem your rewards. Some frequent flyer cards feature introductory incentives with special offers during an initial promotional period. Check what extra perks you can earn, and how the reward scheme changes when the promotion expires. Other benefits to look out for are features such as travel and purchase insurance, but you should be aware that these often attract a higher annual fee.

As with any credit card offer it is essential to consider the basics of frequent flyer credit cards to find the one best for you. These include interest rates, annual fees, interest free days and any charges. Select a card that suits your spending habits and lifestyle to ensure that you get the best benefits from the frequent flyer program.

Gold Level Rewards

Gold credit cards offer a range of extra benefits, rewards and premium services. This type of card generally attracts a higher annual fee than a standard card, and requires that cardholders have a higher income. The gold card that is best for you is one that suits your income with an annual fee that you are comfortable paying. The best gold cards¹ feature a high credit limit and low interest rate, since the holder has proven they have a high income and good credit history.

The loyalty schemes linked to gold cards usually offer a variety of rewards such as travel, concierge services, retail products, entertainment, leisure and much more. Gold cards also feature additional insurance packages covering travel and purchases. Choose a card that fits in with your spending habits and lifestyle so you get the most from the rewards and benefits.

Instant Decision/Approvals

Instant approval cards offer consumer the fastest way to get a decision on a credit card application and receive a new credit card. It used to be that banks would days or weeks to make a decision to approve or decline an application. Nowadays, some of the more progressive banks offer preliminary approval in about 60 seconds. The best¹ instant approval card for you will depend the bank’s lending criteria and approval process, your financial circumstances and credit rating. Make sure you meet all the requirements such the minimum income and credit rating to stand a chance of being approved. If you are a high earner you could qualify for a gold or platinum card; if you earn less or have a poor credit rating a more basic starter-level credit card may be better for you.

Like other type of credit cards, instant approval cards offer a mixture of low interest rates, annual fees, balance transfers and reward schemes. The best card¹ will match your lifestyle, spending habits and how you manage your money.

Low Interest Rates

The Australian credit card market is highly competitive, with many providers offering very low interest rates. The best¹ low interest rate credit cards feature minimal rates on purchases, cash advances and balance transfers. When looking for the best card¹ you should also take into consideration the annual fee, other fees and charges, along with any available rewards schemes and other perks.

Some deals on low interest rate credit cards feature an introductory period with a low, or even 0%, rate on purchases or balance transfers. These deals can provide a great way to save money on bigger purchases or the chance to clear debts, but the interest rate will increase at the end of the promotional period. The best cards¹ feature a low interest rate after the introductory offer. Other cards feature an ongoing low interest rate, meaning you can continue using your card with minimal extra expense on transactions. As such, the best¹ low interest rate credit card is the one that fits in with your financial circumstances and plans.

No Annual Fees

No annual fee credit cards are a great choice for people who want to reserve their card for emergencies; those who spend regularly but always pay their monthly balance in full; or cardholders who do not require the extra features associated with credit cards with annual fees.

There are different types of no annual fee credit card, so make sure the one you apply for best¹ suited to your personal needs. ‘No annual fee for life’ cards have no annual fee for as long as the account is open. This may seem like the most attractive offer, but you should always check the terms and conditions to see if there are any other extra charges applied to the card. Other cards feature no annual fee for an introductory period such as the first year. The best¹ cards feature a low fee when the promotion expires. When searching for a card with no annual fee always compare how the lack of a fee is balanced with low interest rates on purchases, cash advances and balance transfers and other features to find the best¹ deal. It may work out cheaper for you to pay a small annual fee and lock in a low interest rate.

Platinum Level Rewards

The platinum credit card is designed for people on high incomes with really strong credit ratings, and offer benefits including high credit limits, low interest rates and attractive rewards programs. When looking for the best¹ platinum card for you, it is important to check you meet all the requirements before applying. These include a minimum income, minimum age and an impeccable credit history. If you can meet these requirements and successfully apply you can enjoy a range of prestigious benefits not available on any other type of card.

The best¹ platinum credit cards should provide access to exclusive rewards programs with the opportunity to earn more points than standard cards. Select a card with rewards that suit your spending habits to generate the most points. The rewards scheme should suit your lifestyle, with the chance to redeem points for products and services that you can use and enjoy.

Credit card providers offer their platinum customers high credit limits and lower interest rates, but this type of card can attract a high annual fee that sometimes negates other benefits. The best¹ platinum credit cards feature an annual fee that balances favourably with the card’s other interest rates and charges, so you can enjoy premium benefits and still save money.

Rewards Programs

Rewards credit cards can be a great choice for people who like to use their cards regularly, collect points and redeem them for rewards. When looking for a rewards card one of the most important considerations is whether the program offers rewards that you want to receive and will be able to use and enjoy. There is no point in collecting points if there are no rewards available that you want to use. Similarly, the best¹ card for you will have a program that suits your spending habits. Look at how points are collected; many rewards schemes offer bonus points when you use your card with partner companies. Consider whether you are likely to shop with these bonus partners.

The best¹ programs do not charge to sign-up (or waive the fee when signing up when applying for your new card) and have no ongoing membership fees. You should also examine the small print of the terms and conditions to see how points are capped, tiered and if they expire.

When you are comparing and searching for the best credit cards¹ with a rewards program, it is important to find a card that you can use as a normal credit card while still earning points. Watch out for higher interest rates and annual fees – they should not be so high that they negate the benefits of the rewards scheme. The best¹ rewards credit card will offer a beneficial scheme along with value for money on everyday card transactions.

Students

Studying at university can be one of the most exciting times of your life, but also one of the most financially challenging as you learn to manage your own money, often on a tight budget. A student credit card can be a useful tool in managing your finances and covering the expenses of studying such as books, field trips and the everyday costs of accommodation and food. Many Australian credit card providers offer cards aimed at students – finding the best¹ one for you is a case of comparing the cards’ key features.

Student credit cards should feature low interest rates and a low (or preferably no) annual fee. The application qualifications should have low criteria for minimum income since students are unlikely to be earning big salaries during their studies and typically haven’t had time to build up a credit history. The card should also have a low credit limit so monthly payments are more manageable and you can avoid getting into debt. If you are a student and are concerned about getting into debt, the best¹ choice for you could be a prepaid card or debit card, both of which give you the peace of mind that you only spending your own money.

Complimentary Travel Insurance

People who travel often for business and leisure can get some great benefits with credit cards that feature travel insurance as part of the overall deal. The best¹ travel insurance credit card for you is one that gives you the most cover for the type of travelling you do, so it is important to check the terms to make sure you are fully insured and not paying for unnecessary extras. Check exactly what you are covered for including flight cancellations, luggage loss or damage, delays, and medical. Some travel insurance also covers rental vehicles and purchases.

It is important to consider the timeframe of the cover – are you insured for a weekend city break or a year travelling around the world? The length generally depends on the status of your card and the size of the annual fee, so make sure you are paying a suitable amount for the period of travel. You should also ask how much cover is included, who is covered by the policy (just the cardholder, or you and your family) and any restrictions that may invalidate the insurance.