AMP launches an Introductory Balance Transfer Credit Card – 4.95% per annum

AMP has launched a Balance Transfer Credit Card with a low interest rate of 4.95% per annum.

The following conditions apply to the new card:

  • The introductory rate of 4.95% is only available for four months.
  • It only applies to balances transferred from customers existing credit cards.
  • Only available for balances transferred before February 22.

    AMP Credit Cardholders who take up this offer will receive double the number of AMP Reward points on the amount of their first balance transfer (two points for every $1 transferred).

    No joining fees are charged to new AMP Credit Cardholders and there are no annual fees for the first year.

    The credit card price war appears to be hotting up. Last year Aussie Home Loans introduced a 6.35% introductory rate that was valid for six months for new customers and twelve months for those with an Aussie mortgage, before reverting to 13.85 per cent.

    Wizard Financial Services is also looking at introducing a cut-price credit card.

    Wizard chairman Mr Mark Bouris is of the view that the credit card market is ripe for the kind of competitive shakeout which Aussie and the other mortgage originators effected in home lending.

    Mr Bouris believes the battle will be fought over price, not on who has the best reward program – which has been the focus for the past few years.

    Most banks offer credit cards in the 14 to 16 per cent range, although some are already pushing lower. Adelaide Bank has a Visa Card at 13.75 per cent and ANZ has a Mastercard at 12.45 per cent. NRMA also recently launched a Visa Card with a low rate of 11.9 per cent depending on the number of interest free days a month.

    AMP’s lastest product offering may not be the cure for credit card holders suffering from the post Christmas period shopping Blues, but may help ease their interest payments.

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