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

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.