Low Interest Credit Cards

There are many low interest rate credit cards on the Australian market offered by the big four banks and many other financial companies.

Low rate credit cards are very popular amongst Australian consumers as they enable people to use their card for ongoing purchases and not have to accumulate the amount of debt that they could from a high interest credit card such as a platinum credit card.

The benefits of low rate credit cards are as their title explains a low interest rate on purchases after the interest free days. Interest rates for such cards are generally between 11 to 14% per annum for purchases on the card and around 18 to 22% interest for cash advanced from the card.

As for all credit cards it is recommended to not use your card for cash advances as the interest occurred begins from the time the cash advance was made on the card. In most cases the cash advanced interest rate is a lot higher than the regular interest rate.

For the average person who does not use their credit card often a low rate interest rate card is a great choice. There perhaps may not be any great rewards program or incentive to spend more on the card each month; this is not a real problem though. Many banks offer reward programs to customers as a reason to spend more each month, which is a great idea as long as you are able to pay the outstanding balance on your card.

With a low rate credit card having a large credit card balance is not as bad as having an outstanding balance on a high interest card, where an accumulation of debt is incurred each month due to the much higher interest rate.

Key features of low rate credit cards may include:

•    A low interest rate or even a 0% interest rate for balance transfers from other cards
•    An ongoing low rate for the life of the credit card.
•    A complimentary additional card for family members of for people close to you.
•    Emergency card replacement service
•    Online access to view purchases to keep an eye on spending.