Low Interest Credit Cards

A low interest credit card can be vital for those facing an emergency. Having credit to fall back on for unexpected medical expenses or to fix a vehicle can bring peace of mind. Others use credit cards to satisfy their longing for clothes or furniture. Either way, having a low rate of interest charged on all purchases is imperative to avoid building debt.

Before beginning to fill out applications for low interest credit cards, examine all of your options and factor in the benefits and drawbacks of each low interest credit card offer. Not every credit card company operates in the same manner, and there could be hidden costs or fees that make one offer less attractive than another. Understanding how to compare one deal to another can help you make the best decision.

Benefits and Drawbacks of Low Interest Rate Credit Card Offers

Before you select a low interest rate credit card, carefully weigh the pros and cons of each card offered, and determine which one best fits your specific needs. Some cards will be ideal for short term use only, while others will be a better fit if you have to carry a balance for an extended period of time.
Benefits of low interest rate credit cards:

• Low interest rates mean that emergency purchases you are forced to make due to lack of funds will accrue only a small amount of interest per month while you are working to pay down the balance. Unlike credit cards with a high interest rate, your monthly payment will be low enough that you can afford to gradually pay down the principal until the debt is paid off.
• Low interest means you can rollover your balance on a regular basis. If you insist on shopping when you see a sale, or work a job with a variable income, you may have trouble balancing everything at the end of the month. Being able to pay the minimum payment on your credit account and not worry about high interest piling up can ease your mind while you get through the lean times.
• Holiday shopping typically puts a dent in every one’s budget come January and February. Low interest rate credit cards can keep you from having a heart attack when you open your statements. You can stay on top of your spending and pay down your outstanding balance more quickly, without having to resort to a balance transfer like so many Australians. Balance transfer credit cards often offer zero interest for a short time only, and any additional purchases made incur a very high rate of interest, so sticking with a low interest credit card is your best option.

Drawbacks of low interest rate credit cards:

• These cards typically do not have rewards programs (air miles, % back on purchases, etc). Your spending does not earn you special points – but you do gain a reward in the form of a low rate that allows you to keep a handle on your spending.
• Low interest credit cards also will not have a ‘no interest’ grace period.  However, compared to cards that offer a free interest period followed by a high rate of interest, you still come out ahead with a low interest rate card.
• Careful! Low interest rates can still cause debt to pile up if interest is calculated daily and compounded monthly. Letting a high balance ride on a low interest rate credit card can still leave you with a mountain of debt to be paid off if you delay in paying down the principal.  A low interest doesn’t mean you should be complacent about credit card debt.

Comparing Low Interest Rate Cards
If the advantages of a low interest credit card appears to outweigh the disadvantages in your case, the next step is to do a comparison study of the top low interest cards to find the right card for your situation.

• To be considered a ‘low rate card’, the interest rate shouldn’t be any higher than 14-15% at the very outside. There are plenty of offers for low interest rate credit cards at 11%.
• Check for interest free grace periods for balanced transfers – typically these are not offered on low rate cards, but they do pop up now and again. Even if there is not a ‘no interest’ period, many cards offer a balance transfer option with a very low interest rate for six months to a year – say, 3-5%. You can apply extra payments directly to the balance during the promotional period, and after it is over you still have a competitive interest rate.
• You should also consider the other features of each credit card deal. Ease of use, ATM access for cash advances (careful, a higher interest rate may apply or a surcharge), ability to link to a savings or checking account, etc. Ask if you can make BPAY payments from your credit card, and if there are any perks such as savings on car rentals or cashback on purchases (again, not typical with low interest rate credit cards, but there are always exceptions.

Our comparison tables can give you more information to help you compare one low interest rate credit card with another over a broad spectrum of features. When you find the one you want, simply follow the link to fill out a secure application for a low rate card with a top Australian provider instantly. You’ll be enjoying the benefits of your low interest rate in no time!