Credit Card Application Process and Choice

celiotte on 26/02/2018 - 17:20
Last edited 26/02/2018 - 19:44

Hi,

I am starting my first full-time job straight after graduation and am wondering how the credit card application process works. As far as I know, I have no credit score as I've never owned any credit cards/never been in debt.

After working through the credit card guide (stickied on this forum), I am still unsure of which credit cards I should apply for and am open to suggestions.

In terms of what I want from a credit card, I am mostly concerned about being more efficient with my spending as I use a debit card for all purchases at the moment and I could be earning points if I paid with my credit card instead (will be paying off my credit card on time from my debit card as the bill arrives). I am not worried about getting extra benefits such as purchase protection, lounge access etc. Therefore, I am not sure if it is worth applying for a credit card with annual fees.

From looking at the wiki, I am considering perhaps a

AMEX Essentials and Coles Mastercard (0 annual fee).

Any suggestions/advice will be much appreciated !

Thank you :)

Edit: 59-61k annual salary

Financial Credit Card

Comments

  • [Deactivated] on 26/02/2018 - 17:24
    -2

    If you need to know the process you probably don’t need one.

  • Stopback on 26/02/2018 - 17:58

    You should already have a free bank account from your student days. After some time they would offer you a credit card.

    At this point, just look for cards that have minimal fees. Unless your spending 20k+ on stuff the point cards don't work out as well as you think

  • djkelly69 on 26/02/2018 - 18:03

    The actual points you earn by putting purchases on a credit card are usually fairly minimal. Assuming you spend like most people at your life stage, you wouldn't be earning many that way at all, so you are not missing much.

    • celiotte on 26/02/2018 - 18:03

      But would it be useful to get a credit card to build up my credit rating?

      • chumlee on 26/02/2018 - 19:46
        -2

        No. Getting a credit card will do nothing to help your credit rating. It's just a myth perpetuated by banks

        • John Kimble on 26/02/2018 - 19:50

          It will give him some history though

        • chumlee on 26/02/2018 - 20:35

          @John Kimble: but even that is useless as your credit file just contains credit enquiries and defaults/judgements

      • FirstWizard on 27/02/2018 - 11:55
        +1

        In the US, credit score system works in a more logical manner (Some would strongly argue against this though ;) where the length you've had credit and how wise you were in utilising that credit is taken into account in the calculation.
        Credit reporting/score system here in AUS is much more primitive and does not take much into account.

        However, there are rumours of comprehensive credit reporting being introduced here soon. AMEX is already providing positive credit information (if you're utilising credit well and paying on time) to the reporting bodies (which didn't happen before) soon the other banks would do the same. I would assume having credit history might affect the score in the future.

  • stargalaxy on 26/02/2018 - 18:16
    +1

    Coles mastercard is good as you get $10 off from time to time for shopping with Coles. Make sure you have flybuys card to go together.

  • John Kimble on 26/02/2018 - 18:51
    +2

    Wait for bonus points/rewards sign up offers at least

    • celiotte on 26/02/2018 - 19:12

      I definitely intend to do so, but am wondering what card to sign up for in advance so I can jump on the offers as they arise !

      • John Kimble on 26/02/2018 - 22:45

        Yeah Amex and Coles are probably good starts.

        The only other ones I can think of are the 28 Degrees one, that is no annual fee and good for online non AUD purchases and the spend $1000 to get $300 cash back CBA card deal, but dunno if that is still on.

        I'm no expert though.

  • starburstyellow on 26/02/2018 - 19:24

    Without stating your salary, would be hard to advise you on which card to get. Also, are you interested in the points for flights/sell etc?

    • celiotte on 26/02/2018 - 19:44

      59-61k annual salary and I suppose the points could be used for anything whether it be flights (will be flying domestic flights regularly to visit family) or redeeming small goods but mainly something is better than nothing as I don't have a credit card at the moment.

  • bluesky on 26/02/2018 - 20:59
    +1

    Since you have not held a credit card before, the usual cautions apply – always pay the balance by due date. And not suitable for those with compulsive spending habits.

    The two you considered are pretty good cards, but a few points about them:

    Coles No Annual Fee Card

    • This card has special application offers every now and then, so if you wait, you might get some bonus. E.g. recent offers - Jan 2018 offer and Oct 2017 offer.

    • Having said that, as of 5th March 2018, it will be managed by Citigroup. So things could change in the future.

    Amex Essential

    • Since this card has no application bonus anymore, it is important to bear in mind that once you apply for the card, you become an existing cardholder. You will no longer be eligible for future Amex card offers that give big bonus points and involve a card fee. Many people find that the big bonus points offered to new cardholders are well worth the annual fee, when used for travel, flights, upgrades etc. And the strategy is to cancel the card after one year. So take this into consideration.

    • If after deliberations, you still like to proceed, feel free to have a look at my post; it has info on reward points' worth, redeemed as cashback or other uses (e.g. David Jones).

    • celiotte on 26/02/2018 - 22:34
      +2

      Thank you for the detailed response !

      Considering everything then, I might go for the Coles No Annual Fee (perhaps wait for a deal before signing up) Card and hold off on the AMEX Essential. In later years when I have specific plans regarding travel etc, I may sign up for a AMEX card with the annual fee to make use of the bonus.

      A single Coles Card with no annual fee could allow me to collect points on grocery purchases etc which would be more helpful than simply using a debit card (as I intend to pay the balance off immediately).

      • John Kimble on 26/02/2018 - 22:42

        Plus free delivery, if you ever use Coles Online…

        • celiotte on 27/02/2018 - 01:26

          Ooo, so as long as I use the Coles Mastercard to pay, I can always get groceries delivered to my place ? Sounds good already :)

        • John Kimble on 27/02/2018 - 01:56

          @kmzh: Over $100 per order though…

  • teacherer on 26/02/2018 - 21:51

    +1 Coles card
    Was a great decision for me
    Price protection, merchandise protection, triple flybuys
    Made $500 of gift cards in 8 months

  • JimmyF on 26/02/2018 - 21:59
    -5

    Why the great rush for a credit card and DEBT. Its not free money.

    • celiotte on 26/02/2018 - 22:35
      +1

      To collect points on purchases, not for the actual 'credit' feature.

      • JimmyF on 26/02/2018 - 22:36

        thanks for the neg!

        • celiotte on 26/02/2018 - 22:54
          +2

          wasn't me…

    • Ughhh on 26/02/2018 - 22:38

      Good thing you don't have a credit card, cause you don't seem to understand how it works.

  • Mad Max on 27/02/2018 - 14:00

    With the Coles master card if you spend more than $13,333 per year you are better off with the Rewards one as the value of the extra points offsets the $99 fee.
    PS. Has anyone succeeded in getting the $99 yearly fee waived?

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