Is it worth considering credit cards from International Lenders?

Many Australians are relatively familiar with and loyal to the big four Australian lenders. Some consumers are also aware of the smaller lenders, such as building societies and credit unions which offer comparable products. Because these organisations are recognizable, consumers frequently look to them first when seeking financial products and services. Within the last 10 years, however, a number of international lenders have penetrated the Australian market, providing similar products to consumers.

As the world seems to get smaller due to globalisation, Australians should expect to see more international lenders making a presence in Australia. Australian consumers should welcome the competition, as this frequently results in better deals for them, such as lower rates, fees and better rewards.

Three international lenders currently have significant presence in the Australian credit card market. They are HSBC, Citibank and Virgin Money. HSBC is one of the world’s premier lenders; a bank which was founded in China by a Scots-man and is now based in London. Citibank is a company based in the United States of America and was the premier bank in the country until the financial crisis of 2008. Virgin Money is the financial division of the Virgin group, founded by British tycoon Richard Branson.

Each of these lenders offers a wide variety of competitive credit cards, from low rate to reward program cards. For example, if card user is paying a high interest on another credit card they can transfer their debt to the Citibank Clear credit card and only pay 1.9% interest for the first 6 months. The Citibank Clear card also comes with a low interest rate of 15.99%, a low annual fee and a maximum credit limit of $20,000.

Many of the financial products offered by international lenders surpass those offered by their Australian counterparts. The primary reason why international lenders supply the market with great deals is their desire to acquire new and potentially long term customers from Australian banks. International lenders know they must offer a special product for customers to switch from trustworthy brand to one that they are not familiar with. Furthermore, most international lenders have minimal overhead costs, as they provide so many services over the internet.

Card users can expect to find many great services, such as a 55 day interest free period, in addition to an extended rewards program with further benefits overseas. Because these lenders have extensive international operations they can offer greater discounts worldwide. The Home & Away program is another example, which provides dining, leisure, shopping and entertainment discounts and offers in over 40 countries.

Before Australians rush to sign up for a credit card from their local lender, they should remember to look into the selection of credit cards issued by international lenders.