Goodbye ‘Frank’: These are the new top credit cards in town

Hi Nicole, need your help on something – just been notified ME Bank is cancelling all their credit cards as of July. I have one of their Frank cards and trying to work out who has the closest alternative to switch to? I have another legacy account with ME which I’ll be holding on to (in case I need a personal loan through them again) and 4x accounts with CBA.

ME are recommending 2x Virgin Money cards (assuming they’re somehow tied up with BOQ as well) and I’m a bit reluctant to switch to them, but by the same token I know CBA aren’t necessarily going to do me any favours to get my business. I’m not against getting a card from another institution, just very cautious of the big four. Adam

I reached out to Bank of Queensland for its response to this Adam – it now owns ME Bank and the Frank card has been closed to new business since October 2023.

And you’re right: Virgin Money is also part of the Bank of Queensland Group. A spokesperson for the group told me the closure is part of its “commitment to simplifying our product offerings”. You can read ‘simplifying’ as reducing the number of cards and maybe over time diminishing card conditions, too.

BOQ also said it is: “Offering a variety of comparable credit cards across our brands.” “These options include cards with lower interest rates or no annual fees, providing customers with the flexibility to choose what best suits their needs.”

These are the Virgin Money alternatives – however, and I’ll come back to how the low-rate one stacks up.

There’s also a 0 per cent deal for balances transferred, for 12 months. And I like that the site says right up top that it then: “reverts to the cash advance rate.​ Please note, you will be charged a 2 per cent balance transfer fee and interest on retail purchases while you have a balance transfer.”

These are the traps of balance transfer credit cards … easily avoided if you know about them. Kudos for that Bank of Queensland. However, if you are looking to transfer a balance, Adam, there are longer deals out there.

Mozo has analysed the offers for you and found the biggest terms are from CBA and Bank of Queensland; Westpac and ANZ are 26 months with balance transfer fees of 2 per cent and 3 per cent, and annual fees of $59 and $58, respectively.