Low Interest Credit Cards
There are many benefits of using a credit card. However, there are drawbacks as well. One of the biggest concerns is a high rate of interest charged on purchases. With this, your balance can quickly grow out of control making it more difficult to escape your debt. Fortunately, there are many banks offering low interest credit cards. If you want to save money, you should consider applying for one of these and/or switching to this type of card. By taking advantage of a low interest credit card, you may be able to save yourself hundreds of dollars or more every year!
| credit card details | purchase rate (p.a.) | balance transfer (p.a.) | balance transfer period | annual fee | online application |
|---|
| credit card details | purchase rate (p.a.) | balance transfer (p.a.) | balance transfer period | annual fee | online application | |
|---|---|---|---|---|---|---|
|
Citibank Clear Platinum Credit Card Platinum rewards with 2.9% for 12 months on balance transfers. 1/2 price annual fee 1st year |
11.99% | 2.9% | 12 months | $49 | top choiceApplication |
|
Aussie MasterCard Very cheap balance transfer rate and purchase rate. Apply for approval within 60 seconds. |
9.99% for 12 months (reverts to 13.29%) |
2.99% | 12 months | $49 | editor's choiceApplication |
|
Westpac Low Rate Credit Card Balance transfer onto a low interest credit card. Fast 60 second approval. |
0% for 6 months (reverts to 13.49%) |
0% | 6 months | $45 | editor's choiceApplication |
|
Bankwest Zero MasterCard No frills credit card with no annual fee for life & reasonable interest rates. |
1% for 6 months (reverts to 17.99%) |
4.99% | 12 months | $0 | editor's choiceApplication |
|
Westpac 55 Day Credit Card Cheap credit card with low ongoing rates and fees. Fast 60 second approval. |
0% for 5 months (reverts to 19.59%) |
3.99% | 6 months | $0 | editor's choiceApplication |
|
American Express Platinum Edge Credit Card Receive 25,000 Membership Rewards points when you receive your credit card. |
0% for 6 months (reverts to 20.74%) |
- | - | $149 | |
|
Bank of Melbourne Vertigo MasterCard Special balance transfer rate available until 29 Feb 2012 and low ongoing interest rate on spending. |
13.24% | 0.99% | 12 months | $55 | |
|
BankSA Vertigo Credit Card Cheap low interest credit card for residents living in South Australia. |
13.24% | 0.99% | 12 months | $55 | |
|
Bankwest Breeze MasterCard No frills credit card with extremely low interest rate on purchases. |
10.99% | 4.99% | 12 months | $69 | |
|
BOQ Low Rate Visa Credit Card Save money with a cheap balance transfer & low interest on purchases. |
8.9% for 12 months (reverts to 13.49%) |
1.9% | 6 months | $55 | |
|
NAB Low Rate Visa Credit Card Low rates on purchases & balance transfers. Fast 60 second approval. |
2.99% for 12 months (reverts to 13.24%) |
4.99% | 6 months | $59 | |
|
St.George Gold Low Rate Card Gold credit card with complimentary insurance covers and low rates. |
15.99% | - | - | $79 | |
|
St.George Vertigo MasterCard Low interest rate spending, low balance transfer rate, cheap annual fee. |
13.24% | 0.99% | 12 months | $55 | |
|
Virgin Flyer Credit Card 4 Virgin Australia complimentary flights each year. Pay low interest on bal transfers for 9 months. |
20.99% | 1.9% | 12 months | $99 | |
|
Virgin Low Rate Card Low rate credit card from Virgin Money. |
12.99% | 2.9% | 9 months | $59 | |
How to Choose a Low Interest Credit Card
One of the biggest benefits of choosing a credit card with low interest rates is that you have many options. The card that is right for you may not be right for the next person, and vice versa. For this reason, your decision should be based on your financial situation and personal goals. Here are three tips to help you find the best low interest credit card.
- What is the interest rate? – Low interest means something different to every bank. Along with the purchase rate you need to become familiar with the balance transfer rate. Generally speaking, you should be searching for the lowest rate on both fronts if you want to save as much money as possible.
- Don’t stop at a low interest rate – Did you know that some of these cards have a rewards program and that many of them have no annual fee? While a low interest rate is important, you don’t want to overlook the many other important features.
- What is the balance transfer offer? – There is a good chance that you want to transfer your high interest debt to a card with more favourable terms. However, your balance transfer rate is only valid for a certain period of time – such as 6, 9, or 12 months. After this, the rate of interest charged will revert to the standard interest rate. Before you apply, you should check what the standard interest rate is, as they can vary a lot.
Pros
- Perfect for those who carry a balance – If you plan on carrying a balance you know that you are going to pay interest. With a low interest credit card you can at least keep this to a minimum.
- Easy to transfer a balance and save money – There are many low interest credit cards that offer a zero per cent balance transfer rate for a period of 6 months or longer. This allows you to transfer your high interest debt and in turn save a lot of money.
- Rewards programs are available – Just because you are saving on interest does not mean you cannot earn points with every dollar that you spend.
Cons
- Low interest rates do not last forever – This is particularly true with the balance transfer rate. You will have access to this lower rate for several months. After that, it will revert to its standard rate, which is often about 20% p.a. Make sure you read the fine print before applying so you know exactly what you’ll be charged before it’s too late!
- Require a good to excellent credit history and score – If you lack in this area, you may not qualify for a low interest credit card. Also, make sure you are aware of the income requirements before applying.