powering smart financial decisions

Low rate credit cards

Low interest rate credit cards

Ears prick whenever anyone mentions low interest rates but are low rate credit cards really going to be beneficial for you? You may be surprised to know that they certainly don’t suit all Australian credit card holders. For all you big spenders – these cards may not cut-it. On the other hand, if you don’t use your credit card often and tend to pay off your debts over a long period of time, a low rate card might be the perfect financial companion. 

Low rate credit cards offer a lower interest rate than some other credit cards and 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.

To save you even more money, reduce the amount of interest charged and the fees you may need to pay.

Here are some tips to save you money on interest and fees:

  • 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 card with low or no annual fees. 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 offer 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. Not only are you sometimes charged a fee for using the ATM but you could be lumped with a conversion fee as well.

Ratecity can help you find some of the best low rate credit cards in the market, to get started check out our low rate credit card comparison tool.

Did you find this helpful? Why not share this article?



More credit cards articles

More articles? Read more here

Learn more about credit cards