How to Find the Cheapest Interest Rate Credit Card?
Posted June 13th, 2009
and last modified January 14th, 2010Finding 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: 12.49% p.a., $58 annual fee. A standard competitive low interest rate credit card.
- GE Money Low Rate MasterCard: 14.99% p.a., $58 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., $85 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. on purchase for the first 6 months (12.29% p.a. after), 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 11.74% 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.
Related posts:
- Interest Rate Repayment Explanation
- Cheap Visa Credit Cards – Compare the cheapest Visa low interest cards
- Bankwest Lite MasterCard – Australia’s Cheapest Credit Card
- A Fresh New Interest Rate for the New Financial Year
- Isn’t it time you Fixed your Interest rate?
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Editor's Choice: Our Top Credit Cards
Bankwest Lite MasterCard
Cheapest Credit Card
The lowest stress mastercard, with Australia's lowest MasterCard purchase rate of just 9.99% p.a.
St George Vertigo
Best Bank
Low 2.99% for 6 months (reverts to 11.74%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.
Citi Clear Platinum Visa
Low Interest
An excellent low interest credit card offer with 11.49%interest on purchases and 0.99% for 6 months on balance transfers .
ANZ Low Rate MasterCard
Balance Transfer
A very popular card choice with a low rate, annual fee and attractive 0% for 6 monthsbalance transfer offer.
Bankwest Zero Platinum MasterCard
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 12 months on balance transfers