RateCity
Low Rate Credit Cards
Low rate credit cards are a type of credit card that offers a lower interest rate than some other credit cards. Low rate credit cards generally do not have a rewards program attached and typically charge annual fees, however this depends on the financial institution.
Low rate credit cards may suit the following types of spenders:
- Habitual Spenders: This type of spender may struggle to pay off their credit card each month and continue a debt. They should look for low rate credit cards with a very low or no annual fee.
- Impulse Spenders: This type of spender may only use their card for emergencies or impulsive spending (such as Christmas shopping or while they are on holidays). It may then take them a few months afterwards to pay off the balance. If this is you, try to find a low rate card with a very low or no annual fee.
- Try to pay off your balance each month to avoid paying interest.
- If you have a large debt that you are struggling to pay off, consider a low rate with low or no annual fees. For instance, RateCity's top balance transfer credit card with ANZ offers 0 percent for six months, allowing you to focus on paying off the balance during this time without being hit with interest charges. When choosing a balance transfer card look at what the revert rate will be once the low rate period ends as it is usually much more. Also look at the purchase rate, as this is usually much higher too.
- Compare credit cards online to find low rate credit cards that offers a lower interest rate, lower annual and account-servicing fees to save you more.
- Avoid making cash advances on your credit card as you are charged interest from the moment you take the money.
- Avoid using your credit card overseas for withdrawing cash at ATMs as not only are you sometimes charged a fee for using the ATM but you could be lumped with a conversion fee as well.
