Special Credit Card Offers

When you choose a card with an introductory offer, you usually have to perform something of a balancing act, weighing up what the card has to offer against what the offer provides. But is there one that is more important than the other? That depends on you.

Putting the offer on top.

You are only interested in the offer. If you are focused on paying down debt, you may only be interested in the card’s balance transfer offer. If this is the case, you may not even use the card as a credit card, and simply use it as a tool for paying off your transferred balance. Similarly, you may only want to use a card for its purchase offer, buying what you need now, to take advantage of zero interest as you pay off your spending.

You don’t plan to keep the card. Some cardholders only apply for a card to make use of its introductory offer. After the offer has served its purpose, the cardholder closes the account. You may choose to apply for a card to get your hands on a nice chunk of bonus points, but in the long term the card does not offer value, so you close the account. You may also choose to do this on a card with a reduced annual fee, where you make use of its features at a lower cost for the first year, then cancel it before the standard annual fee kicks in.

Putting the card on top.

You think of the offer as an extra. For many cardholders, an introductory offer is just an added extra. Something that’s nice to have, but not really a deal-breaker. If this is you, the most important thing is what the card can offer over the longer term, while the intro offer is something handy you can make use of.

You’re not interested in the offer. In some cases, new cards can provide a number of introductory offers as a package deal. While you may be interested in one part of that offer, the other parts of the offer are of no interest. This may be the case if you want to take up a card’s bonus points offer, but you are not interested in transferring a balance to make use of its balance transfer offer.

If you want to choose the right card – with the right offer – you need to know how to compare your options. Whether you put precedence on the offer, or on the card itself, here’s what you should look for as you assess all the important criteria.

Comparing Offers

• Bonus Points: While it’s always important to look at how many bonus points are on offer, you should also check how much you need to spend on the card to be eligible for those points. Make sure the spend is do-able, and that you can afford to pay it all back before it accrues any interest.
• Annual Fees: Think about how much the offer will save you, while also taking into consideration what those savings give you access to. On classic cards, you are likely paying no annual fee for a year to access credit and limited features. On a platinum or black card, you could enjoy much more. This could give you the chance to earn rewards for ‘free’, while trying out fancy features, such as airport lounge access and hotel stays. Just make sure you can afford the regular annual fee and that you meet the eligibility criteria.
• Balance Transfers: With this type of offer, you typically want to look for the lowest balance transfer rate offered over the longest period of time. Be sure to take into account other factors such as balance transfer fees and what rate the transferred balance reverts to at the end of the introductory period.
• 0% Purchases: Again, getting the best deal on this type of offer means finding the one that offers the lowest rate over the longest period of time. While it’s best to pay off your purchases before the end of the introductory period, it’s still a good idea to check the standard purchase rate on the card.

Comparing Cards

Introductory offers are designed to entice. But, no matter how appealing an introductory offer is, it’s still important to check over what else the card has to offer – and to always read the small print.

• Annual Fee: Your credit card should always provide value. One of the easiest ways to check whether a new card will offer you value, is to compare the dollar value of everything it has to offer against how much it charges in annual fees.
• Interest: If you carry a balance, the interest charged on your new card is of the utmost importance. In your case, a low rate card is likely your best bet. On the other hand, if you know you will always pay off your balance each month, your card’s interest rate needn’t be a priority.
• Fees: Check the small print to find out how much your new card charges in fees that might apply to you. An example of this may be foreign transaction fees, especially if you travel overseas regularly, or if you shop online at international retailers.
• Features: Looking at the various features on offer will help you work out how much value the card offers you, and whether the annual fee is worth paying. Be sure to think about whether you will actually use the features, as features that are never used don’t offer any value.
• Rewards: Work out how many points you are likely to earn each year, then weigh the dollar value of those points against the card’s annual fee. Also make sure the rewards on offer are of interest to you, and that the type of spending you do most will be rewarded accordingly.

Comparing fees and charges on credit cards with exclusive online offers is really no different to the process of checking out costs on standard credit cards.

As a cardholder, you will need to think about how you will use the card and what features you will need, to then think about how much you are willing to pay. Here are some factors you may want to keep in mind when comparing the cost of credit cards with exclusive online offers.

• Purchase Rate: If you tend to carry a balance month-to-month, the purchase rate will be very important. Choosing a low rate credit card or a credit card that has a 0% purchase offer may be a good idea.
• Annual Fee: Unless you opt for a no annual fee credit card or a card with a $0 annual fee offer, you will pay an annual fee each year to keep the card in your wallet. The key to making that annual fee work for you is to choose a card that provides more value in features than you pay out in fees.
• Balance Transfer Rate: If you choose a card with an exclusive balance transfer offer, you should pay attention to the balance transfer rate and the length of the offer, to see how much you could save. Also take note of the rate unpaid balances revert to at the end of the intro period.
• Small Print: If you want to make the most of an exclusive offer, you need to check the small print. To be credited with bonus introductory points for example, you may need to spend a specific amount on your card within a given period of time. Make sure the specifications are attainable, and that you’re not spending simply to get back something of lower value in return.

Just as there are many different types of credit cards, there are also many different types of credit card offers. To find the right offer, think about what you would benefit from most, and check this page to find the best deal!

Exclusive Purchase Offers: This type of offer allows cardholders to make purchases on their card at a lower rate of interest over a given period of time. For example, with a 0% p.a. purchase offer over 12 months, you would pay 0% p.a. on purchases for the first 12 months from card approval.

Exclusive $0 Annual Fee Offers: This type of offer waives the annual fee on the credit card for the first year, or for the life of the card. This could save you a substantial sum of money, but be sure you are willing to pay the standard annual fee, or cancel the card before the annual fee is charged.

Exclusive Bonus Rewards Points Offers: This type of offer provides bonus rewards points on a rewards credit card. These can be redeemed within the rewards program, but may involve a certain credit card spend to be eligible.

Exclusive Balance Transfer Offers: This type of offer allows cardholders to transfer a balance from an existing credit card to enjoy a lower rate of interest. To take advantage of this offer, cardholders should choose the offer with the lowest balance transfer rate offered over the longest period.

Still wondering whether a credit card with an exclusive online offer is for you? Here are some pros and cons to help make up your mind.

Pros

• You can easily find exclusive online credit card offers here at Creditcard.com.au.
• Credit cards with exclusive online offers are usually easy to apply for.
• You can compare fees and charges side-by-side.
• You can compare features and rewards side-by-side.
• You can save money or simply get more from your credit card.

Cons

• None that we can think of