Credit card interest rates are NOT always high

Everyone knows that credit card interest rates are always high right? And the best thing to do with a credit card debt is try to avoid interest altogether and repay it as soon as possible, within the interest free period. Well, yes, that is a good strategy, particularly if you are the owner of one of the 90 credit cards in Australia in Australia that currently charge 19 per cent or more on purchases. Even average credit card interest rates are around 17 per cent. 

But not all credit cards have a high interest rate. Some credit cards have an ongoing purchase interest rate lower than most personal and car loans. Some credit cards offer zero interest rates or very low interest rates on purchases for an extended introductory period. So myth busted – credit card interest rates are not always high.

How to find a low rate credit card

InfoChoice lists 168 low rate credit cards now available in Australia. Ongoing purchase interest rates on these cards start at 8.99 per cent. For example:

The McGrath Foundation Pink Visa Credit Card, issued by Community First Credit Union, has an ongoing purchase interest rate of 8.99 per cent with up to 55 days interest free and an annual fee of $40. This card also offers an introductory rate of 3.99 per cent for the first six months.

The Coles Low Rate MasterCard Credit Card has an ongoing purchase interest rate of 12.99 per cent with up to 62 interest free days, an annual fee of $49 and a zero interest balance transfer rate for the first six months. Right now the Coles Low Rate MasterCard is offering $100 off a Coles shopping bill for new approved applicants before the 28 February 2017.

The Bank Australia Low Rate Visa Credit Card has an ongoing purchase interest rate of 9.39 per cent, with no interest free days and an annual fee of $59.

The Heritage Bank Gold Low Rate Visa Credit Card has an ongoing purchase interest rate of 11.80 per cent, with no interest free days and no annual fee.

How to find a zero rate credit card

InfoChoice lists 59 credit cards with introductory rate deals. For example:

National Australia Bank’s Low Rate Visa Credit Card has an introductory purchase interest rate and balance transfer rate of zero per cent for 15 months. The NAB Low Rate Visa Credit Card has an ongoing low purchase interest rate of 13.99 per cent with up to 55 days interest free and a $59 annual fee. 

Bank of Melbourne’s Vertigo Visa Credit Card has an introductory purchase interest rate of zero per cent for 6 months, a balance transfer rate of zero per cent for 18 months with an annual fee of $55, an ongoing purchase rate of 13.24 per cent and up to 55 days interest free. The Vertigo Visa Credit Card is also available from BankSA and St George Bank.

The ANZ Bank Low Rate MasterCard Credit Card has an introductory purchase interest rate of zero per cent for six months plus $100 cash back for new approved applicants. The ANZ Low Rate MasterCard has an ongoing purchase interest rate of 13.49 per cent with up to 55 days interest free and an annual fee of $58.

Bank of Queensland’s Low Rate Visa Credit Card has an introductory purchase interest rate and a balance transfer rate of zero per cent for six months. The BoQ Low Rate Visa Credit Card has a purchase rate of 13.49 per cent, 55 days interest free and an annual fee of $55.

Compare and research credit cards from all of Australia’s major banks, credit unions and building societies.

Source: InfoChoice.com.au

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