How to Find the Cheapest Interest Rate Credit Card?

Best Low Interest Rate Card

The St.George Vertigo MasterCard offers a very low introductory rate on purchases for the first 6 months followed by an ongoing low interest rate. This makes this card ideal for shopping along with 55 days interest free and a low annual fee.

• $55 annual fee
• 12.49% p.a. on purchases
• 2.99% p.a. for 6 months on balance transfers
• Cash Advance Rate of 21.24%
• Instant discounts and added extras with St.George Instant Benefits

Click here to read the St George Vertigo terms and conditions

Finding the ‘cheapest credit card’ isn’t simply a matter of the lowest interest rate.

On a crusade for the lowest rates, consumers can get sucked in to picking the card they find with the lowest APR (annual percentage rate) regardless of its other features. The cheapest does not imply that it’s the most valuable.

So what are some of the features that should be taken into account and compared when hunting for the cheapest interest rate credit card?

The Annual Fee

Annual fees are arguably the most unappealing features of credit cards right after high interest rates. Unfortunately for us in Australia, annual fees are a way of life for credit cards, unlike the U.K and America where no annual fee is standard.

Annual fees for low interest rate credit cards can range anywhere between $30-$100. So what difference does it make how much annual fee you pay?

We compare the benefits and features of three different low interest cards:

• ANZ Low Rate MasterCard: 13.24% p.a., $58 annual fee. A standard competitive low interest rate credit card.

• GE Money Low Rate MasterCard: 14.99% p.a., $58.00 annual fee. A poor low interest rate credit card – you’re effectively paying the same annual fee as the ANZ Low Rate for 3.00% additional interest.

• Citibank Clear Platinum Visa Card: 11.49% p.a., $99 annual fee. A quality offer if you take advantage of the Platinum benefits such as 25% discounts at certain retailers and free international travel insurance.

Small Bank or Large Bank?

Low interest rate credit cards are fairly generic – it basically comes down to interest rate, annual fee and interest free days. The next step when taking into account the cheapest credit card is what bank to go with.

Generally, the smaller banks, such as Bendigo Bank, Member’s Equity and Suncorp offer credit cards with lower rates, but have less branch and ATM access than leading banks. While you may save a fraction more on the credit card itself, you may very likely end up paying more in ATM fees due to a lack of access.

The leading banks, such as NAB, Commonwealth Bank and St.George offer credit cards with marginally higher interest and fees, but tend to offer higher levels of customer service and access. Large banks have been known to offer easier approval for applicants than less competitive banks.

What about ‘0% p.a. credit cards’?

No credit card offers 0% p.a. as the standard rate on purchases. 0% APR either comes in the form of an introductory offer (e.g 0% p.a. for the first 3 months when you apply for a credit card) or a balance transfer.
A balance transfer allows you to shift your current credit card balance(s) over to a new credit card at a promotional rate of 0% p.a. for 6 months. Read more about balance transfers here.

Competitive Small and Large Bank Low Rate Offers

• Small Bank: Aussie Home Loans offer one credit card, the standard ‘Aussie MasterCard‘ which features 2.99% p.a. for 6 months on balance transfers, a $49 annual fee and up to 55 days interest free on purchases.
• See the official Aussie credit card offer here.

• Large Bank: St George offer their leading low interest card, ‘Vertigo MasterCard‘ which features 12.49% p.a. on purchases, a $55 annual fee and up to 55 days interest free.
• See the official Vertigo credit card offer here.

• Visit the low APR credit card comparison table for more quality Australian low interest offers.

• Comparison of Top 10 Credit Card Offers

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)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0