Introductory Credit Card Offers for a Limited Time

Introductory offers are promotions which run on credit cards for a relatively short period of time after you receive your credit card.

They are popular and useful as they come with incredibly attractive benefits such as 0% interest, and no annual fee. Listed below are the best introductory credit cards in Australia.

Table of Contents: Guide to Introductory Rate Credit Cards

• Compare introductory offers
• Which is the best introductory credit card?
• How do introductory rate credit cards work?
• How to compare introductory rate credit cards
• How to use a introductory rate credit card

Note that although balance transfers are introductory offers, there are plenty of credit cards available with balance transfers and therefore they won't be present to clutter this page. See the balance transfer cards here.

Editor's Choice Introductory Credit Card Offer

Best Introductory Credit Card Offer*

The ANZ Low Rate Credit Card allows you to take control of your finances with a fantastic introductory offer on balance transfers for the first 6 months and a low ongoing purchase rate.

• $58 annual fee
• 13.24% p.a. on purchases
• 0% p.a. for 6 months on balance transfers
• Cash Advance Rate of 21.49%
• MasterCard promotions gives you access to special promotions

Click here to read the ANZ Low Rate MasterCard terms and conditions

Comparison of Introductory Credit Cards

Credit Card	Card Details	Interest Rate	Cash Advance Rate	Balance Transfer Rate	Annual fee	Interest free days
ANZ Low Rate MasterCard	A great balance transfer offer with a low interest purchase rate. A genuine no-frills credit card from ANZ.	13.24%	21.49%	0% for 6 months	$58	55
HSBC Credit Card	$0 annual fee for the life of the credit card and a solid balance transfer offer.	16.99%	20.75%	0% for 6 months	$0	55
Bankwest Lite MasterCard	Save with an amazingly low purchase rate and a low balance transfer offer for the first 9 months	10.75%	21.74%	1.99% for 9 months	$59	55
St George Vertigo	The credit card made for shoppers featuring an attractive introductory purchase rate offer for the first 6 months	12.49%	21.24%	2.99% for 6 months	$55	55
Suncorp Clear Options Standard Visa Card	A fantastic no frills credit card which offers a great low rate on purchases, low annual fee and generous credit limits.	12.24%	17.99%	1.9% for 12 months	$39	0
Citibank Gold Card	Featuring a low 1.9% p.a for 12 months balance transfer rate plus the opportunity to earn up to 4 Citi Rewards points per $1 spend	20.74%	21.24%	1.9% for 12 months	$149	55
Westpac Low Rate Card	A great card for those looking for a simple low fee, easy to manage credit card	13.24%	21.24%	1.99% for 9 months	$45	55
Westpac 55 Day Card	Save with an introductory 0% p.a on purchases for the first 5 months plus $0 annual fee for the first 12 months	0% for 5 months (reverts to 19.24%)	21.24%	1.99% for 9 months	$0 for the first year ($30 on-going)	55
Citibank Clear Platinum Visa Card	A quality and low-cost platinum card after the balance transfer expires.	11.49%	21.24%	0% for 7 months	$99	55
ANZ Frequent Flyer - Special Offer	Get two cards (Visa & AMEX) for the price of one with the ANZ Frequent Flyer and start earning Qantas Frequent Flyer points at a high earn rate of up to 1 point for every $1 spent	19.49%	20.74%	2.9% for 12 months	$95	44
Woolworths Everyday Money	Simply change the way you spend at Woolworths stores and be rewarded with money-back rewards every 4 months	19.49%	20.99%	0% for 6 months	$0 for the first year ($49 per year after that)	55
Aussie MasterCard	Choose between 4 very unique offers, such as low rate, balance transfer and no annual fee	2.99% for 6 months (reverts to 12.99%)	19.79%	2.99% for 6 months	$49	55

How Do Introductory Rate Credit Cards Work?

Introductory rate credit cards are special deals offered to get your business. Credit card companies may give you no or low interest on purchases or balance transfers for a limited time period to encourage you to open an account with them. While they can be a good way to save money, any consumer should understand how they work before accepting one of these offers.

Introductory rate credit cards can be great deals. As with all best credit cards when you use them you are actually borrowing money from the credit card company to make your purchase. Then you typically have a small window of time to repay that debt for free, after that you are charged interest on the money you borrowed.

Introductory rates usually minimise significantly or completely waive those interest charges. This gives you a chance to borrow money for free or even pay off another credit card for free with a balance transfer. The rate is either low or zero percent and the time period of the honeymoon rates ranges from three months to one year.

A honeymoon rate is often such a money saver that it seems like too good a deal to pass up. This is exactly how the credit card companies market them, big savings of which you would be foolish not to take advantage. There are some tricks and tips though that you should pay attention to in order to avoid falling into a credit card debt trap.

Introductory rate credit card tips:

• Know your needs. Will you need your card for a balance transfer, for purchases, or both? Not all cards carry the same rate on different types of expenses, some only offer it on purchases or balance transfers. Others might offer zero percent on both but not for the same period of time. Choose the card that gives you the best rate for the longest period of time for your personal financial situation.
• Understand allocation of payments. This is a perfectly legal but tricky thing that credit card companies use to make money. Your payments will always go to the debt that carries the lowest interest rate first. This means that if you have a balance transfer rate of zero percent and a purchase rate of 18% all of your payments will go towards paying down the balance transfer until it is completely paid off. Even if you only make a ten dollar purchase and then add an extra ten dollars to your monthly payment, it will not make a difference. That ten dollar purchase will sit, collecting interest at 18% until the balance transfer is paid. Tricky yes, but avoidable. Just decide what you will use a particular card for and then use it for nothing else until that previous balance is paid. This gives you the full benefit of your honeymoon rate.
• Find out what other fees you will be charged. Not many cards are completely free. There is usually a fee for the balance transfer that is somewhere around three percent of the amount transferred. There might also be account maintenance fees applied to your account. Usually these fees are far less then you would spend on interest, but you should sit down and do the math to be certain that you are saving money by getting a introductory rate card.
• Know exactly when the introductory rate expires. If you are using a zero percent interest rate for a balance transfer, aim to have that debt paid off before the introductory rate runs out. Similarly if you have racked up purchase debt you should try to have it paid down as much as possible before the honeymoon expiration. Your rates will jump immediately on the expiration date and the new interest will be applied to any remaining balance.
• Beware of cash advances. Almost always introductory rates do not apply to cash advances. These often include gambling purchases and any ATM transactions. The rates for anything deemed a cash advance is usually more then 20%. Again, your payments will be applied to your introductory rate charges first so those cash advances wind up being very expensive.

If you are planning to use introductory rate credit cards you expect to save money. Too often people get into these deals and do not read the fine print or pay attention to rates and timetables. They wind up spending more then they anticipated in interest and fees. Try to remember that credit card companies are in business to make money from your financial needs or missteps. Being smart about how you use your credit card and understanding how credit cards work will help your introductory period a cash saver rather then a big mistake.

How To Compare Introductory Rate Credit Cards

Anyone considering opening a credit card account should carefully examine introductory rate credit cards. These cards offer great rates, but only for a limited period of time to earn your business. There are several things to consider so that you save the most amount of money possible on an introductory rate card.

Introductory rate credit cards are a tactic used by credit card companies to lure you into doing business with them. They make it sound like they are offering you the chance to spend freely with zero percent interest on purchases card or to pay of another credit card debt cheaply with a no interest balance transfer. Used effectively you can save a significant amount of cash with one of these schemes. But, used carelessly you can wind up in a financial mess. The goal for a credit card owner is to be as smart about spending as their credit card company is about marketing.

When you look into getting a credit card, whether it is your first or just a new one, there are a lot of things to consider that will effect you long term. Remember that introductory rates are short term but you must consider both the short term and the long term benefit to switching cards or using one particular card over another. In addition, there are a variety of benefits and costs associated with all credit cards, so you must be sure that your introductory rate stacks up with those other benefits. If you switch to a card that offers a low introductory rate, but after six months or a year that rate jumps higher then your current card you will no longer be saving money. You will either have to look for another card and switch again or stay with your current card in order to save money in the long run. This is why introductory rate cards are not for every credit card owner.

Who should use an introductory rate credit card?

• Someone who needs to do a balance transfer. A balance transfer is when you move the balance from one credit card to another credit card. Most people do this so they can save money on interest. Introductory rate credit cards usually offer very low or no interest on balance transfers. This gives one the opportunity to repay their debt at a low cost. These cards are not a good choice if you need a long period of time to pay off your balance transfer. You should look into a life of balance transfer card which will give you a long time period to pay off your debt.
• Someone who will be making a large purchase or purchases that they will need some time to pay off. These people can use a no interest introductory rate instead of a traditional interest bearing loan to make these purchases. Some expenses may include emergency medical expenses, auto repair expenses, or even home remodeling expenses. You can spend on your card and have the introductory period, which is anywhere from three months a a full year to repay those expenses interest free.
• If you need to do both of the above mentioned transactions there are some cards that offer introductory rates on both balance transfers and purchases. You should try to get a card that offers the same rate for the same length of time in order to avoid falling into the negative payment hierarchy or allotment of payments trap.

What is negative payment hierarchy?

• Also referred to as an allotment of payments clause, this is when credit card companies apply your payments to the cheapest debt first. All credit card companies do this and it is a perfectly legal but somewhat sneaky way they turn a profit. For a borrower though, it means they could be stuck paying higher interest on a small debt for a long period of time, waiting for their lower interest debt to be paid off. For example, let's say you get a new card and you have a zero percent balance transfer rate. You then transfer $1500 to your new card with the intention of paying down that debt interest free. You then make a purchase for $50 at an 18% purchase interest rate. That $50 purchase will not be paid until the original $1500 balance transfer is paid in full. Even if you pay $50 extra that same month toward your bill, all of your payment will go to the balance transfer only. If it takes you six months to pay off your balance transfer you will pay 18% interest each month on your purchase balance. Credit card interest is compounded so the first month you will pay on $50, but the second you will pay on the original $50 plus $9 in interest charges from the previous month. It will continue to add on each month with you paying interest on the increasingly higher balance. Even if you make a purchase first and then do the balance transfer your lower interest rate debt will be paid first. Payments are not applied in order of transfer instead they are applied in order of interest rate with the lowest always being paid off first.
• Introductory rate credit cards that offer a low rate on both balance transfers and purchases can save you from this trap, but only if they are for the same length of time. If the balance transfer rate is for one year but the purchase rate is only for six months your payments will be applied to the balance transfer until it is paid off, even within that six month grace period the only difference is the interest will not compound.

If you meet the criteria and understand the payment structure for an introductory rate credit cards there are still a few things you should consider before sending off your application. This is another way to read the fine print and make sure that actually wind up saving money on your new card. You might be surprised to find out how many people sign up for these introductory rate cards and wind up in debt or spending more money then they would have had they simple left things as they were. This almost always happens because they do not pay attention to the regulations of their new card or because they chose the wrong card to begin with. It is easy enough to avoid this just by knowing your own needs and understanding your credit card.

Tips for finding the best introductory rate credit cards:

1. Try to find one that offers a zero percent interest rate. If you need balance transfer or purchases or both, there are cards available that offer no interest at all. Why pay even a little bit of interest when you can pay none? If you are unable to qualify for or can not find a zero interest credit card then choose one with the lowest interest rate available. Keep in mind that this will require you to do a lot of comparison shopping. It is easy to find credit card rate comparisons online.
2. Look for the introductory rate credit cards that have the longest term. Some cards only offer three months of the introductory rate while others extend it for a full year, get the most bang for your buck by getting the longest term. This is especially helpful if you are doing a balance transfer because it gives you a longer time to pay off your debt. Again, remember to double check on the length of time for introductory rates on both purchases and balance transfers because they might not be the same.
3. Pay attention to fees. There are all sorts of fees charged by credit card companies. Annual fees, account maintenance fees, handling fees, and balance transfer fees just to name a few. Sometimes they are waived along with the introductory rate but often they are not. Make sure that whatever you spend on fees is worth the money you will save by switching cards or doing balance transfer. Balance transfer fees are usually 2% to 3% of the amount you will transfer. It may seem like a lot of money, but compared to how much you would spend on interest it is likely worth the investment.
4. Keep in mind that just because there is no interest does not mean you do not have to make payments. As a matter of fact, in most cases missing a payment or making a late payment is grounds for the credit card company to rescind its introductory offer. These offers are usually dependent upon your holding up your end of the deal, by not missing payments and not going over your limit. If you do this the credit card company will immediately charge you a fee and slap you with regular interest rates. It is best to set up a direct debit from your cheque account to the credit card each month to pay your bill. This way you will not have to worry about missed payments or a cheque getting lost in the mail.
5. Know when your introductory rate expires. In order to really save money on introductory rates your aim should be to have as much as the debt paid off before it expires. Especially with balance transfers, setting up a budget so that you can be clear of that debt is the best way to make it worthwhile. This may mean that you have to curb your spending or make double payments, but the reward of being free of credit card debt will be worth the sacrifice. Make no mistake, the moment the introductory rate expires the credit card company will tack on interest to whatever balance remains on your card.
6. Take into account the regular interest rates on the card. Once the introductory rate expires you will probably continue using that credit card. Ensure that the rates you will be charged are fair and reasonable for your financial situation. If they are going to jump too high you might choose not to use that card anymore, just be sure to pay off your balance. Bear in mind that constantly jumping from one low interest rate to another is not a good way to manage your debt. All of those applications and open lines of credit do not look good in your credit file. Eventually, you will stop being approved for them anyway, so try to find a card that has rates you can afford.
7. Examine the rewards program. While this is not the most important thing to consider when you are choosing a credit card it can be a deal breaker when picking between two similar cards. Some cards offer valuable rewards points that you can use toward purchases, others offer frequent flyer miles, some even give cash back. Once the honeymoon rates expire you should still have some incentive to stick with that credit card. If you do not plan to use rewards then find a card that offers you something instead, like a very low annual fee instead of a rewards programme.

Choosing a credit card is no easy task. When you are trying to decide between introductory rate credit cards it gets even more sticky because you have to compare special offers and weigh their short term and long term benefits, it can be enough to make your head spin. However, if you want to be financially stable it is in your best interest to take a good amount of time to research all offers and compare the costs and benefits of each one. It might be worth paying a little in interest to have a longer time to pay back your debt or you might not need to make purchases on a card so the balance transfer rate is the only number that really matters.

Whatever you choose, be diligent in reading everything the credit company sends to you before you sign off on it. There are few things more important then maintaining or regaining your financial stability. The right credit card can either help you on the path to financial health or it can be a debt that plagues you for years. Do not let yourself become one of the statistics of people who made poor choices and wound up drowning in credit card debt.

How To Use An Introductory Rate Credit Card

Understanding how to use introductory rate credit cards helps you save money. Paying attention to different interest rates and the way your payments are allocated are some of the important things any credit card owner should understand. Introductory rates can be great deals if you understand how to use them appropriately.

If you do not know how to use introductory rate credit cards to your advantage you might be missing out on big savings. An introductory rate card is a marketing scheme where credit card companies offer you very low rates for a limited period of time in order to tempt you into owning one of their cards. The deals can be outstanding, sometimes zero percent interest on certain transactions for up to one year. Depending on what your card offers you can save money on interest for large purchases, trips, or even balance transfers. As with all things though, there are some tricks to using these cards to their fullest advantage.

How to use introductory rate credit cards for maximum savings:

• Avoid cash advances or cash transactions. There are a few transactions that are deemed cash advances by credit card companies they include, getting cash at an ATM, buying foreign traveller's cheques or currency, even making a gambling transaction. These activities garner a significantly higher interest rate then purchases or balance transfers. Also, they will not be paid off until after your introductory rate debts are paid in full which means they could sit and gather loads of interest costing you far more then you anticipated.
• Those who know how to use introductory rate credit cards also know to take full advantage of the reduced rate period. If the rate applies to purchases use the full time period to make purchases without paying interest. You may be tempted to use another credit card or in store credit offers but, those do not save you actual cash. Nothing is more valuable then cash savings is it?
• If you plan to do a balance transfer make your application for it as soon as possible. Usually you can include the balance transfer in your application for the actual card. This will give you the most amount of time possible to pay down that credit card debt, again at zero interest.
• Set up a budget to pay off any debts within the interest free period. The money you save will quickly be lost if you let your debt sit and begin to gain interest for a long period of time. You may have to make double payments to do it, but by paying off your debt within the introductory period you maximise the money you save. It is important that you know the date when your introductory rate will expire so that you can meet this deadline.
• Pay attention to the terms of the offer and abide by them. In most cases, an introductory rate is dependent upon the owner of the card abiding by the fine print on his contract. This usually means you can not go over your credit limit, you can not miss payments, and you can not make late payments. If you do any of these things your credit company is likely to remove the introductory rate and slap you with fees and and regular interest rates on your remaining balance.
• Cards that offer the same introductory rate on both purchases and balance transfers for the same length of time are best, but not always easy to find. Pay close attention to the two different rates and lengths of the contract. You could wind up paying more in interest then you intended due to an allotment of payments clause. This gives credit companies the ability to apply your payments to the cheapest debt first, paying it in full before it is applied to a higher interest debt. So, if you have a balance transfer at zero percent it will have to be paid in full before your interest bearing purchase balance even begins to be repaid.

Now that you know how to use introductory rate credit cards shop around for the best possible deal. Look for cards that offer the lowest rates possible for the longest period of time. This will help you save the largest amount of money. Also, pay attention to any fees associated with a certain card to ensure that you do not wind up spending more in fees then you are saving in interest. Once you find the perfect card, read every single thing the credit card company sends you so that you understand the terms of your agreement before you sign on the dotted line.

What happens when the introductory period has finished?

Your features will simply revert back to the standard interest rates and fees.
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Editor's Choice: Our Top Credit Cards




Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0