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Low Interest Rate Credit Cards
Low Interest Rate Credit Cards may provide a lower interest credit solution giving you the flexibility and convenience to spend wisely and make purchases on your credit card whilst taking advantage of low interest repayments that suit your individual circumstances!
When choosing a card to apply for, we have had some of the work done for you and they have reviewed the best low interest VISA and Mastercard credit cards.
All interest rates are updated daily.
| Provider | Credit Cards | Interest Rate(p.a.) | Annual Fee (p.a.) | Balance Transfer Rate (p.a.) | Cash Advance Rate (p.a.) | Apply Now |
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St.George Vertigo MasterCard | 13.24% | $55 | 0% for 8 months | 21.49% |  |
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Suncorp Clear | 12.74% | $27 in the 1st year, $55 thereafter | 21.99% | |
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Westpac Low Rate | 0% for first 6 months then 13.49% Purchase rate |
$45 |
1.99% for 12 months |
21.49% |
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Citibank Clear Platinum Credit Card | 11.99% p.a (12.99% p.a. from 1st October, 2013) | 1/2 annual fee in 1st year, $99 thereafter | 1.5% for 15 months | 21.74% p.a. |  |
Why you should not look past a Low Interest Credit Card:
Low interest cards provide the following key benefits:
- More affordable for making purchases on your card and repay them at a low interest rate, keeping down your credit card balance.
- Reduce your credit card balance and repayments especially if you are transferring from one card to another.
- Ideal if you have a revolving credit balance. If you don’t completely pay off your card balance each statement, then it is important to have a low interest rate to ensure you pay the least amount of interest to your bank, taking advantage of low interest rates and saving you money in the long run.
What is Credit Card Interest?
Credit card interest is basically the repayment credit card users make back to banks as the Bank has lent them the money i.e. lent on credit. For instance, a financial provider allows you access to $2000, and the longer you take to repay the sum, typically the more ‘interest’ you will have to pay.
Credit card interest rates are also known as ‘APRs’ (Annual Percentage Rates) and this means the longer it takes for you to repay a purchase cost or cash advance, the more interest the lender will accumulate against your account.
Rates are given in figures of ‘p.a.’ (Per Annum). For instance, 10% p.a.. implies that your credit card balance will gather 10% of the balance in interest per year.
However, your credit card’s interest won’t accumulate in yearly periods – it accumulates daily, as a ‘Daily Percentage Rate’.
Although interest rates are given as an ‘Annual Percentage Rate’ (APR), such as ’13.24% p.a..’ it is important to note that interest does not accumulate on a yearly basis. Your purchases will grow in interest every day on a ‘Daily Percentage Rate’ which can be calculated by dividing APR/365.
Low interest rate credit cards are typically most suited to people who can’t make the ‘55 day interest free period’ regularly. If you take advantage of the 55 day interest free period too often, the interest rate becomes obsolete and your credit card spend is going to waste when you could be accumulating reward points on a rewards card..
With 55 days interest free on purchases being available on practically all credit cards, you don’t necessarily have to pay any interest at all if you spend within you budget to repay whilst calculating the rewards available to you.
What types of interest are charged on a Low Interest Card?
- Purchase Interest - This is the interest charged on your purchases – whether it’s purchasing groceries at supermarkets, direct debits for bills (e.g. items such as memberships or paying regular bills by credit card). This page highlights the purchase interest rates for each credit card in the table above to make it easy for you to compare cards with the lowest purchase rate.
- Cash Advance Interest - When you withdraw money from your credit card it’s called a cash advance or cash transaction. Cash transactions include ATM withdrawals and transfer of funds from your low interest card to another bank account using telephone or internet banking
- Special Interest - Special interest refers to interest charged on ‘other’ amounts or transactions including balance transfers.
- Interest On Interest - This is interest that is charged on any outstanding balance on your card as a result of the above three types of interest above and is charged on your outstanding balance from your last statement period to the final balance of the currant statement balance.
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