Low Rate Credit Cards: Compare and Apply For A Low Rate Credit Card

A low rate credit card can offer several very different things, and so it is important to verify what sort of low rate offer is on the table, and whether that matches your personal requirements.

The low rate credit card offers:

The ongoing low interest rate

There are credit cards on the market now offering an ongoing rate of 11%. For anyone whose spending fluctuates, and who finds themselves going through a pattern of having a clear balance, then one they cannot pay off for a few months, this is an ideal credit card.

The introductory low rate on purchases

This low rate credit card offers a low rate on purchases made within a certain period following the credit card account being opened. That may be six months or more, or it could be less if it is combined with a balance transfer offer.

The low rate balance transfer

This is a low rate credit card deal that might range from 0% to around 9%, depending on the length of time that the special rate lasts for. Six-month deals are usually at 0%; twelve-month deals are usually at 3% to 5%; and life-of-the-debt deals are normally at 5% to 9%. Although the 0% deal obviously sounds best, this will all depend on your personal circumstances, and how quickly you believe you can pay the debt off in full.

Which low rate credit card is best?

Only you can answer that. It is your personal financial situation that will determine which of these credit cards suits you best. What you need to be careful about is that you don’t choose a credit card that appears to meet your needs only to ignore all the other factors that play a part. Although it is possible to find a credit card that combines these low rate deals, or a couple of them at least, that does not mean you’re getting twice the deal.

The combination of a 0% balance transfer and 0% purchases deal may only work if the offer period is concurrent. If there is any discrepancy – like the purchases deal lasting less time than the transfer deal – then you could suffer from the adverse order of payments rule, where your cheapest debt is paid off first, leaving your most expensive debt to accumulate interest unimpeded. Low rate credit card balance transfer deals on their own should never be used for new purchases.

Always check the annual fee for the credit card, and what other perks may be available. All these should factor into your final decision. Whatever you do, make sure you make a thorough comparison before you make any application.

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Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
St George Vertigo	Editor's Choice: Low Interest Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.	2.99% for 6 months (reverts to 11.99%)	20.74%	2.99% for 6 months	$55	55
Coles Group Source MasterCard	The Coles Group Source MasterCard has no annual fee, a 0% p.a. balance transfer offer for 6 months, with a rewards program including savings on fuel and FlyBuys Points	19.74%	21.99%	0% for 6 months	$0	62
Bankwest Zero Platinum MasterCard	Editor's Choice: No Annual Fee Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers	16.99%	16.99%	1.99% for 9 months	$0	55