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Aussie credit card bonuses compared

Published: (Updated: ) in Australian News by .

Australians have cut up almost two million credit cards in the past two years and providers have now ramped up their sign-up bonuses to curb the exodus to buy now pay later schemes.

Australians have cut up almost two million credit cards in the past two years and providers have now ramped up their sign-up bonuses to curb the exodus to buy now pay later schemes.

There are more than 70 credit cards offering sign up bonuses, mostly in the form of rewards points but some offers include cash back, gift cards and no annual fee for the first year.

But thousands or even hundreds of thousands of rewards points doesn't necessarily translate to hundreds of dollars back in your pocket once you factor in the everyday costs of these cards, RateCity research director Sally Tindall said.

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Afterpay customers are racking up millions in debt due to easy access to the pay later option.

"Offers of 200,000 points and 180,000 points can look awesome on the surface but read the fine print and if you are determined to get them and cut the card up, stick to that promise," Ms Tyndall told 9News.

ANZ is now offering up to 180,000 points and no annual fee in the first year if you sign up to its 'Black' credit card, while CBA has upped its offer from 100,000 to 120,000 points for its Diamond and Ultimate rewards credit cards.

Citi is offering 200,000 points, valued at $957 worth of grocery vouchers, but once you've shelled out for the $700 annual fee, that's only $257 worth of points.

Another trick some card providers use is to only pay out the full points after you've had the card for more than 12 months, forcing you to shell out for a second annual fee which can eat further into your perks.

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CBA's Diamond Awards card is offering new customers up to 120,000 points – 90,000 within the first three months of signing up but customers have to wait until they've had the card for a full year before they get the remaining 30,000 points and pay another annual fee worth $349.

While the 120,000 points is equivalent to $581 in vouchers, customers have to pay $698 in annual fees before they can get the lot.

"It all comes down to reading the fine print, working out exactly what you need to do to get those sign-up bonus points, how much you have to shell out for them," Ms Tyndall said.

"Be careful of things like high annual fees, be careful of high interest rates but also be careful about terms and conditions of how much you need to spend."

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Credit Card

Sign-up bonuses can be lucrative if you cut the card up at the end of 12 months before paying an annual fee but card-hopping to take advantage of the incentives can damage your credit rating and ability to borrow down the track.

Psychologist Lauren, 30, just signed up to an ANZ Rewards Platinum card to get the 120,000 rewards points and has put the date in her diary to get rid of it within the year so she doesn't have to pay the annual fee.

"I'll get the points and I'll cancel it before the new annual fee comes in," she said.

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"I'll probably convert it to grocery vouchers. Coles or Woolies will do me just fine."

Some of the largest rewards points offers:

Value is based on redeeming $100 grocery gift cards:

View or print the whole table here.

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

Source: 9News https://www.9news.com.au/national/australia-credit-card-sign-up-bonuses-analysed/55ffbaae-3535-4dff-b7f7-62613f626d09

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