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A credit card with NOTHING to hide

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  • low ongoing rate for both purchases and cash advances

  • 8% p.a. for 8 months introductory offer*

  • low annual fee of $45

  • up to 55 days interest free

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Credit card truths

There is no shortage of credit cards on the market. But when you are considering a credit card for you, you should be aware of the truths when it comes to the key features and what signing a new credit card contract could lock you into. 

  Annual fees

Annual fees attached to credit cards can vary significantly. A quick review of comparison website Canstar reveals card annual fees can range from $0 through to $700!

  Balance transfer offers

If you are struggling to pay off a credit card balance, a balance transfer offer which will essentially transfer the balance to a new card under more favourable terms initially, can seem appealing but there are fees and charges that may be applicable.

For instance, many balance transfer offers have an upfront fee (some as high as 3% of the balance you're transferring). This means if you're transferring a $5,000 balance, there will be a $150 upfront fee in order to do this.

In addition, you should be aware of the interest rate that will apply after an introductory rate period on the balance transfer. In order to offer a 0% balance transfer offer for a limited time, some card issuers will charge over 20% interest p.a. once the 0% period ends. Before signing up to this, you should be asking yourself how likely it is you will have paid off this balance over the 0% timeframe. 

  Purchase rate vs cash advance rate

Many credit card options have separate interest rates for new purchases and cash advances. While a purchase rate may seem competitive, it's not unusual for a cash advance rate to be more than double than the purchase rate. Be aware of all rates that are applicable to your credit card.

  Reverting interest rates

Think of the saying 'all good things must come to an end'. So whether you are signing up to a card with an introductory, or honeymoon offer (or even a balance transfer), what interest rate will apply when this initial offer expires? Don't be surprised to find out it can be a substantial difference. For instance, a card can go from a 0% p.a. introductory purchase rate offer for the first 12 or 18 months, but then revert to over 20% p.a. interest.

  Rewards programs

It can be easy to get caught up in the idea of a rewards program and the sense of 'getting something for nothing' but generally, cards that have a rewards program attached to them charge higher interest and fees. At the end of the day, how much do you need to spend to be able to redeem a tangible reward? Many cards offer a 1 point for every $1 spent so if you review the rewards program catalogue and see a high end toaster with 80,000 points next to it, that's $80,000 you need to spend on the card before you can get this. AND if you tend to carry a balance and be charged interest, how much extra will you be paying on a rewards credit card at a higher interest rate than if you went with a low rate card? You may be better off transferring a small amount every week into a separate savings account to save for what you really want. Is there ever such a thing as 'something for nothing'?

If you're after a no frills low rate, low fee credit card option, the SERVICE ONE Alliance Bank credit card has NOTHING to hide. 


Credit card calculator

MoneySmart's calculator helps you work out how long it will take you to pay off your credit card.



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Terms and conditions apply and fees and charges are payable. Lending criteria apply. Full details available on application. All information is correct as at 19 November 2018 and is subject to change. Rates and fees are subject to change.

*After the introductory period, the interest rate will revert to the standard ongoing purchase rate (currently 12.24% p.a.). The introductory rate is not available to pay off existing SERVICE ONE Alliance Bank credit facilities.

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