Introductory offers are promotions used to attract customers to a new credit card, and are usually available for a limited period of time.
Honeymoon offers are popular and useful as they come with attractive benefits like 0% interest for a period of time, competitive purchase rates, bonus Qantas Points and reduced annual fees. Here are some of the most competitive introductory credit card offers.
Balance Transfer Credit Card Offer
The HSBC Credit Card has a no annual fee for life1, as well as a very good balance transfer offer. Pay off your existing credit card by transferring your balance over to the new HSBC Credit Card.
- $0 annual fee1 for life
- 17.99% p.a. on purchases
- 0% p.a. balance transfer for 6 months on application from non-HSBC credit cards (reverting to the cash advance rate of 21.99% p.a. and subject to change)
- Cash advance rate of 21.99% p.a.
- Up to 55 days interest free on purchases3 when you pay the full balance (including any balance transfers, promotional purchases and the 0% p.a. balance transfer offer above)
- Minimum income requirement of $20,000 p.a.
Comparison of Introductory Balance Transfer Credit Cards
Comparison of Introductory Purchase Offer Credit Cards
Comparison of Frequent Flyer Credit Cards
Comparison of No Annual Fee Credit Cards
Introductory Offer Comparisons
Table of Contents: Guide to Introductory Rate Credit Cards
- What is an introductory offer credit card
- How to compare introductory rate credit cards
- Pros and cons of introductory offer credit cards
- Frequently Asked Questions:
What is an introductory offer credit card
Introductory rate credit cards are special deals offered from credit card providers as an incentive for new customers. Credit card companies may give you no or competitive interest rates 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.
What are the types of introductory offers are available?
- Balance transfer promotions. A balance transfer credit card will allow you to transfer all or a portion of your existing credit card balance and repay them at a much low rate, sometimes even 0% interest over a period. After this period it’s important to know which rate the remaining balance will revert to.
- Purchase rate promotions. These type of promotions let credit card holders enjoy a low interest rate for a period of time when they apply for the credit card. They are an appealing features and could let you spend without much consideration for repaying interest later.
- Introductory cash advance promotions. There should be a level caution when it comes to cash advances because it is a costly credit card transaction. If you have a credit card with a cash advance promotion, it’s essential that you read the terms and conditions to know what purchases are eligible and when the promotion ends.
- No annual fee for the first year. Most credit cards charge an annual account maintenance fee, but some introductory offers will waive this for the first year. However, the interest rate on purchases could be on a higher side which negates any savings. It’s important to compare what offers are on the table which best suits your financial situation.
- Discounted annual fee. These introductory offers usually rely on you combining your credit card with another products from the same provider, like a linked transaction account. Usually the fees are discounted for the first year only, or could be an ongoing deal depending on the package.
- Bonus Qantas Points. Bonus Qantas Points are offered on reward credit cards that are linked to a frequent flyer program. Usually you need to spend a certain amount on your new credit card to qualify for the bonus points within the first few months of applying.
- Bonus rewards points earn rate on purchases. These are one of the bonus points options available as an introductory offer where you can earn above and beyond the regular points for visiting certain bonus partners or using your card for the first few months. Pay attention to these offers because they’re a great way to collect rewards faster.
How do introductory offer credit cards work?
Some credit card providers offer 0% interest balance transfers as introductory offers within the first six months of a balance transfer. Other companies offer a waived annual fee in the first year, while some would offer competitive interest rates on purchases for the first few months. Other credit cards could offer extra reward points on purchases. A lot people get the introductory offers on credit cards to take advantage of the bonus offers and then cancel the credit card after they’ve reaped all the benefits and switch to another.
Introductory rate credit cards can be great deals but if you use them properly but you are borrowing credit to make a purchase. Typically, you’ll 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 without paying interest or even pay off another credit card without interest with a balance transfer. The rate is either competitive or zero percent and the time period of the honeymoon rates ranges from three months to one year.
If you are planning to use introductory rate credit cards you can expect to save money, but its incredibly important that you read the fine print or pay attention to rates and when they end. Be smart about how you use your credit card, practice your due diligence and understand how credit cards work – it could help your introductory period be a cash saver rather than a financial mistake.
How to compare introductory rate credit cards
Anyone considering opening a credit card account should carefully examine introductory rate credit cards and what the introductory offer is. These cards offer great rates and promotions, but only for a limited period of time. There are several things to consider so that you save the most amount of money possible on an introductory rate card.
- Introductory purchase rate. It’s important to take note of the interest rate as well as the time period. If you’re happy with the interest rate, it doesn’t necessarily mean you have enough time to pay it off. If these credit cards are used effectively, they can save a significant amount of cash. 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.
- Bonus Qantas Points. Have a look at the number of bonus points that will be awarded and what it’s worth in rewards. Some credit cards can offer up to 50,000 bonus points which you can redeem for a Myer gift card within months of applying. However, there are many terms and conditions to what purchases are applicable.
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 affect 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 competitive introductory rate, but after six months or a year that rate jumps higher than your current card, then 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 competitive or no interest on balance transfers. This gives one the opportunity to repay their debt at a competitive 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 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.
Pros and cons of introductory offer credit cards
- If you regularly compare and switch credit cards, introductory offers can provide real perks that can save you money or earn you more rewards points.
Comparing Credit Cards offers to earn rewards points
Joe is a regular user on Creditcardfinder.com.au and always compares and switches credit cards to make sure he’s getting the best deal for his financial situation. since he travels a lot, he decided that the Qantas frequent flyer program is best for him. Joe always reads the terms and conditions before applying for any financial product and regularly switches after the introductory offer ot balance transfer promotion finishes. Four credit cards later, his bonus points add up to a sum of 130,000 which is equivalent to a Fisher and Paykel Dishwasher.
|Credit Card||Bonus Qantas Points|
|HSBC Platinum Qantas Credit Card||20,000|
|Westpac Earth Platinum Card||20,000|
|American Express Qantas Ultimate Card||50,000|
|Total number of points||130,000|
|Equivalent to||Fisher & Paykel Stainless Steel finish Dishwasher|
- However, some banks may only offer introductory periods on their more expensive cards that could have high annual fees and interest rates. This means that consumers need to be mindful of the revert rates and the terms and conditions to avoid any nasty shocks on their credit card statement.
- Introductory offers require a complete understanding of the terms and conditions around it before applying.
- The biggest mistake of introductory offers is keeping a credit card that you don’t want after an introductory period expires, or you’ve already extracted all the benefits of the introductory offer.
Frequently Asked Questions:
Is an introductory offer credit card worth it?
If managed correctly they can for you, it always depend on your financial situation and your spending habits. Please note that the information on this page is general advice only and does not take into account your personal situation.
Are the offers featured on this page the current promotions available from the bank?
The banks provide us with credit card offer updates. We try to the best of our ability to keep the rates up to date – but if you’ve noticed a discrepancy then please tell us by posting a query on the bottom of this page. It is important to understand how interest free days work. You should receive a key facts sheet from your bank since the 2012 credit card reforms.
I called the bank and they said the offer on this website is not available. Why?
Sometimes comparison websites like creditcardfinder.com.au receive exclusive offers and deals which are not available through the bank’s website. In saying that, there are some offers at times which are not available on our website so it’s worth double checking before applying.
Where can I find all the introductory offers credit cards in Australia?
While we do not feature all possible introductory offers in Australia, we are Australia’s leading credit card comparison website. You can use our product table on this page to compare our featured introductory offers.
Do low interest credit cards with introductory offers exist?
To compare low interest credit cards, please refer to this page. If there is an introductory offer attached to it, it is usually mentioned in the product table. It’s important to note that these types of cards are quite rare because of their low interest.
Where can I find more information about Frequent Flyer credit cards?
Please refer to this page.