There is no rule about whether to apply for a new credit card with your existing or a different bank. It depends on what offers are available and what you want to get from a credit card.
Benefits of shopping around
Getting a credit card with a different bank may be more beneficial
It may be more beneficial to apply for a credit card with a different bank because banks compete to attract new customers with introductory offers that are much more competitive compared to what they offer existing customers.
That being said, whether it would be better to get a credit card from a new bank or not depends on what you want from your new credit card.
Consolidating debt from multiple cards with the same issuer
You can only transfer debt from credit cards not issued by your existing bank, i.e. you cannot balance transfer from one ANZ credit card to another ANZ credit card.
In this case, you’ll need to get a balance transfer credit card from a different bank and consolidate your existing cards.
Consolidating debt from multiple cards with different issuers
If you have credit cards with multiple issuers, e.g. one credit card with ANZ and another with NAB, you have two choices.
- Consolidate credit cards with a balance transfer offer for existing customers. Note that you will not be able to balance transfer cards within the same bank. Assuming both banks offer balance transfers for existing customers, you can choose whichever has the best offer at the time. The main problem with this option is that balance transfers for existing customers are much less competitive than what’s available for new customers.
- Apply for a new balance transfer credit card at a different bank. Make sure you are a new customer for whatever bank you choose to get the introductory balance transfer offer. Transfer both old credit cards to the new card.
Having a card for a rainy day
It may be easier to apply with your existing bank if you want a cheap credit card to keep for an emergency and don’t care for any benefits or rewards, and your existing bank has one that fits the bill.
Sign up bonuses
It’s highly unlikely you’ll be eligible for a sign up bonus if you apply for a credit card with your existing bank since credit card sign up bonuses are typically limited to new customers only.
Pros and cons
Applying for a credit card with your existing bank
- Convenience. Since your bank already has your details, the application form may be easier to complete.
- Familiarity. While comparing the market has its advantages, many people like to stick with what they know, even if that means missing out on a better offer.
- They need to pull your credit report. It doesn’t matter how long you’ve banked with them. Banks still have to check your creditworthiness.
- Less competitive offers. The best introductory rates and sign up bonuses are for new customers.
- Fewer options. Limiting yourself to your existing bank means less choice and possibly missing out on better offers from a different bank.
Pros and cons
Applying for a credit card with a different bank
- Strong introductory offers. New customers are eligible for introductory offers that existing customers cannot get.
- More choice. There are usually plenty of competitive offers being marketed by banks competing for new customers.
- They have to check your credit report. Applying for a credit card with any bank — existing or not — involves a credit check. It’s unavoidable.
- Less convenient application. As a new customer, you will have to complete the entire form without being able to pre-populate the application form with your saved details.
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FAQs
Can I get a credit card from a different bank?
Yes, you can get a credit card from a different bank. It may be more beneficial to get a new credit card with a different bank than to stick with your existing bank since banks run promotional introductory offers for new customers.
Can you have 2 credit cards from different banks?
Yes, you can have more than one credit card from different banks.
Are you more likely to get a credit card with your existing bank?
There's no guarantee that you'll be approved for a new credit card regardless of who you apply with.
It may be easier and quicker to apply with your existing bank, but just like a different bank, they will still have to carry out a hard credit check while assessing your application.
