A low-interest credit card can be a good way to reduce your credit card debt while allowing you to use your credit card for everyday purchases.
reverts to 10.99% p.a.
2% balance transfer fee applies
reverts to $49 p.a.
reverts to 10.99% p.a.
2% balance transfer fee applies
reverts to $69 p.a.
reverts to 20.24% p.a.
1.5% balance transfer fee applies
reverts to $58 p.a.
reverts to 21.74% p.a.
2% balance transfer fee applies
Interest rates are charged by bank or lenders to cover the cost of lending you credit. The longer you take to pay this debt, the more interest you’ll pay. A low-interest card means you’ll pay less each month on interest payments.
While some features will not be available with low-interest credit cards, many still offer interest-free periods of up to 55 days. Any amount owing after this agreed time will be charged interest, albeit at a lower interest rate compared to other cards in the market.
Minimum repayments will vary between cards and lenders, but are typically around 2 or 2.5% of the entire balance. That said, you should try to make smaller repayments throughout the month. This way, you can spread out the cost of your bill over a few pay cycles, instead of putting pressure on yourself to do so all at once.
Most low-interest cards apply a different interest rate if you use the card to:
There are a few different options when it comes to choosing your low rate interest card.
Many Australian financial experts believe a typical low-interest rate card is often below 15%, with an affordable annual fee.
This is a credit card offering a low-interest rate in addition to rewards commonly included with platinum cards. It may showcase benefits like complimentary travel insurance, for example.
The features on this card are kept to a minimum. Interest-free days may or may not be included, and a small annual fee may be charged to maintain the low-interest rate.
This card will offer a low-interest rate on purchases for an introductory period. Make sure you understand how long the introductory period lasts and what the interest rate reverts to after this time, as most of the spending on your card may likely be for purchases.
A low-interest rate on a balance transfer will only be offered when taking out the card. Anything you owe after this time will be charged at either a standard purchase rate or a cash advance rate (e.g. after 12 months).
We understand that making an informed decision is important to ensure you getting the best card to suit your needs. Below are some considerations to take into account when comparing low-interest rate credit cards.