Credit card purchase rates average over 17 per cent, with many cards charging more than 20 per cent after the interest-free period ends.
Right now, the highest rate in the InfoChoice credit card database is 23.49 per cent from the Myer Visa Card with a very long interest-free period of up to 62 days. This card also gives Myer shoppers up to three shopping credit points per dollar spent and a low annual fee of $39.
The Gem Visa credit card charges 22.99 per cent with an annual fee of $99 but offers six months interest free on purchases over $250 and up to 55 days interest free on many purchases under $250.
Cards with high rates often offer rewards or other benefits for big spenders. However if you can’t repay that debt within the interest-free periods, you may need to consider a Low Rate Credit Card or a Balance Transfer Credit Card.
Balance transfer credit cards offer no interest or very low interest for a limited time on debt balances you transfer to the new card. Low rate credit cards offer you an ongoing low variable purchase rate.
Give yourself a rate cut with a low rate credit card
For people with a credit card debt or people who don’t make their repayments on time, low rate cards can limit the extra interest payable. You might be surprised just how low some credit cards rates are. The lowest credit card purchase interest rate in Australia is 8.99 per cent from:
Bankwest Breeze MasterCard with an annual fee of $89 and up to 55 days interest-free. There is also a platinum version of this card.
Community First Low Rate Visa Credit Card with a $40 annual fee and up to 55 days interest free. There is also a McGrath Foundation branded version of this card.
Other low rate cards now on offer in Australia include the:
Bank Australia Low Rate Visa credit card with a purchase rate of 9.39 per cent, no interest free days and an annual fee of $59.
CUA Visa credit card has a purchase rate of 11.99 per cent with an annual fee of $49.
Commonwealth Bank Low Rate Gold credit card has a purchase rate of 13.49 per cent and an annual fee of $89.
Currently there are 162 low rate credit cards on offer in Australia on the InfoChoice database. Check them all out here.