Should I get a credit card from my bank? Weighing up application to rates

hands holding a phone and a credit card from new bank

It might seem like the simplest option is to just defer to your current bank’s credit card offering. But it could cost you.

When considering a new credit card, you have to think about the costs, such as the purchase rate and annual fee, against the benefits, like a rewards program or membership perks. As there are over 200 cards from 60 providers compared in the Mozo database, your bank’s card may or may not be the one to meet your needs.

Before taking the plunge with the bank you currently have accounts with, you should compare with other options available.

Why should I get a credit card from another bank?

  • Variation in offering

Not all banks have all kinds of credit cards. If you’re looking for premium rewards credit cards or a balance transfer or cards with no annual fee, but your bank doesn’t offer these options, it’s probably time to expand your search.

  • More competitive rates

While approaching your bank for a credit card may seem like the easiest option, you could end up paying a lot more money. According to the Mozo database, credit card interest rates range from as low as 7.49% to 24.5%, so it's wise to shop around for the best rates.

  • Promotional offers

Approaching a new bank may qualify you for a selection of promotional deals. Some credit cards offer new customers 0% interest on purchases or a balance transfer for a set introductory period, while others may have hefty bonus reward points offers. These deals are usually only available for new credit card applicants and may not be available if you already bank with the provider.

Why should I go for my bank’s credit card offer?

  • Easy application

Nearly all credit card applications will require the same information and documentation, including credit history, personal details, proof of financial status and employment information. If you’re applying for a card with your current bank, they already have a large portion of this information through your debit and savings accounts. So, if you practice good finance hygiene, saving responsibly and not overdrawing your account, then that could work in your favour for the application process.

  • All in one place

There is an advantage to having all your daily banking in one institution. If you have had a debit card or savings account open for a while, then you’re familiar with the features of the bank, such as the customer care line or the services offered at their brick-and-mortar branches. Additionally, it can make things much more straightforward to manage your credit, debit and savings all on one app or website.

Looking for the best credit card options available?

No matter what you’re looking for, it’s a good idea to compare your options before selecting which credit card is best for you. Head to our best credit cards in Australia page to see our Mozo award winners and editor’s picks.

The money experts at Mozo also keep track of credit cards from all types of Australian banking and finance institutions, from the Big Four banks to smaller customer-owned and specialist card providers. Check out our credit card hub to do a full database search, read guides or more detailed product reviews.

Have a look at some of the top credit card offers below.

Low rate credit cards - last updated 21 May 2022

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • Apply By 31 Jul 2022
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases and 0% p.a. on balance transfers for up to 20 months from account opening (Reverts to 11.99% p.a). A balance transfer fee of 2% applies to the balance transferred. Low annual fee of $45.

    Purchase rate
    0% p.a. for 20 months then 11.99% p.a.
    Balance transfer rate
    0% p.a. for 20 months and then 11.99% p.a. (2.00% balance transfer fee)
    Annual fee
    $45
    Details
  • Mozo Expert Choice Badge
    American Express Low Rate Credit Card

    Competitive low rate with $0 Annual Fee. Offers Card Refund Cover and Card Purchase Cover. Customers need an annual income of $50,000 or more.

    Purchase rate
    8.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $0
    Details
  • Apply By 30 Jun 2022
    St.George Vertigo - Balance Transfer Offer

    0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.

    Purchase rate
    13.99% p.a.
    Balance transfer rate
    0% p.a. for 32 months and then 21.49% p.a.
    Annual fee
    $55 $0 in the first year
    Details
  • Apply By 30 Jun 2022
    BankSA Vertigo - Balance Transfer Offer

    0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.

    Purchase rate
    13.99% p.a.
    Balance transfer rate
    0% p.a. for 32 months and then 21.49% p.a.
    Annual fee
    $55 $0 in the first year
    Details
  • Great Southern Bank Low Rate Credit Card

    0% balance transfer rate for 25 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Credit Card Winner 2021^

    Purchase rate
    11.99% p.a.
    Balance transfer rate
    0% p.a. for 33 months and then 21.74% p.a.
    Annual fee
    $49 $0 in the first year
    Details

^See information about the Mozo Experts Choice Credit Card Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.