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Small Business CardsSummary: There are many reasons to be tempted by low interest credit cards. However, in order to make these cards work in your favour there are certain things you must do as you select the best card for your credit needs today and in the future. Be sure to keep these things in mind as you compare offers to find the one low interest rate credit card that is most likely to be a perfect match for your credit spending habits.
What to Watch Out for With Low Interest Credit Cards
Low interest credit cards can be great for consumers looking to take away the pressures of increased debt. These cards are probably best suited to you if you don't pay off your full credit card debt on a monthly basis. In that case your priority lies in reducing your additional debt, hence choosing a low interest card. Before you do, take a look at the following tips to analyse the offers at hand to your advantage.
Enjoy one of the lowest interest rates in Australia with Bankwest Breeze MasterCard
With 5.99% p.a. for the first 12 months on purchases, Bankwest Breeze MasterCard is probably the ultimate low rate credit card in Australia. Why do you think it is awarded the Cheapest Credit Card for 2010 by Money Magazine?
- 0% p.a. for 6 months (reverts to 10.99%p.a.) on purchases
- 4.99% p.a. for 9 months on balance transfers
- $49 annual fee
- 21.99% p.a. on cash advances
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
 Bankwest Breeze MasterCard | Looking for a low rate credit card? No one can beat Bankwest Breeze MasterCard. | 0% for 6 months (reverts to 10.99%) | 4.99% for 9 months | $49 | 21.99% |   |
 Bankwest Breeze Gold MasterCard | Enjoy the same low rate of Bankwest Breeze MasterCard plus complementary travel insurance, accident insurance protection and extended warranty. | 0% for 6 months (reverts to 10.99%) | 4.99% for 9 months | $89 | 21.99% | |
 Bankwest Breeze Platinum MasterCard | The Bankwest Breeze Platinum MasterCard is for those who wants all the benefits of Bankwest Breeze Gold but also wants 24/7 concierge service. | 0% for 6 months (reverts to 10.99%) | 4.99% for 9 months | $99 | 21.99% | |
 Westpac Low Rate Card | A simple low rate credit card by Westpac featuring a 13.49% p.a. interest rate. | 1.9% for 9 months (reverts to 13.49%) | 3.99% for 6 months | $0 annual fee for the first year ($45 thereafter) | 21.49% | |
- Duration of the low interest rates.
Some credit card companies offer a low interest rate as an introductory offer. Others offer it as a long-term rate, provided that you are not late on payments and that other red flags don't crop up on your credit report. Most credit card companies do reserve the right to raise the interest rate on the cards they issue. Having said this they are required to notify consumers in writing 15 days prior to doing so. Make sure you know the policy concerning raising interest rates with the lender you choose before you sign up. That way you can avoid a potentially nasty surprise at a future date. - Are balance transfers allowed?
You can save a great deal of money by transferring the existing balance on more expensive cards to a new low interest card. But only if the act is accepted by the new credit card company (and if the low interest rate you're allowed extends to balance transfers). Most companies do allow this, but it's always a good idea to make sure you can before you decide to go with a particular lender/card.
If you decide to run with a balance transfer card be sure you can afford to pay off the whole balance of the old card during the introductory or low interest rate period. If you don't you will be hit with a massive increase in interest, costing you more money in the end. - What other fees are involved?
Credit card companies are generally smart. They've discovered that fees can bring in an excellent source of revenue that may even rival interest fees typically charged. Watch out for annual fees, late fees, transaction fees, and other miscellaneous fees that can add up over the duration of your credit relationship with a particular company.
Why Go With Low Interest Credit Cards?
A low interest card is best suited to people who have trouble sticking to their financial budgets. If you consistently overspend because of your card then you might have to speak with a financial counselor. If you are struggling to reduce your credit card debt then a low interest card is your first weapon against your weak resolve - the second is to reduce your spending.
Interest rates tend to pile up over long periods of time with only the minimum balance (or something depressingly close to the minimum balance) being paid month after month. Little is being done to touch the principle and still the interest is piling up.
It is this tendency amongst the "credit happy" consumer crowd that makes cards with lower interest rates an attractive proposition. Most people are simply not disciplined enough to handle credit well.
The bottom line and perhaps most important thing to keep in mind when it comes to using lower interest rate cards is that they can save you a lot of money over the course of a year. When you multiply that by the many numbers of years most people hold onto and use credit cards, the savings can really add up.
Why is it Important to Compare Low Interest Credit Cards?
Sometimes you can find a great low interest credit card deal when you least expect it. For this reason it is important to take your time, compare offers, and choose the one that reflects your own spending habits best. Not all offers are created equally and some of them tack on expensive annual fees, terrible customer service, and a very small window of opportunity to enjoy the low interest rate savings. Make sure you read the fine print so you have the full picture of what is going on with each different card and offer before you decide to sign up.
You need to find a card that won't penalize you for your credit spending habits. Credit card companies make the bulk of their money on interest payments from consumers. Make no mistake, they aren't offering these low rates out of the goodness of their hearts. They are offering them in order to entice you to spend more money on your credit card so they can get more interest payments in the end from you.
It is up to you to make wise decisions about which of the many low interest credit cards is the best choice for you. This information can definitely help you make an informed decision that will bode well for your credit outlook today and in the future.
