The Truth about Promotional Purchase Rate Credit Card Offers
Posted July 8th, 2009 and last modified December 29th, 2011The most popular recent credit card promotion is without a doubt the introductory purchase rate offer.
These allow credit card holders to enjoy an exceptionally low interest rate for a period of time after they first receive their new credit card.
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- $0 annual fee
- 0% p.a. for 5 months (reverts to 19.59% p.a.) on purchases
- 3.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- 55 days interest free
What exactly are these low purchase rate promotions?
Low rates are a super appealing feature for credit cards. They entice us to relax and spend freely without much consideration for repaying interest down the track.
People would be less inclined to impulse shop and rack up their credit card balances if they’re interest rate was 11% p.a. as opposed to 5%, for instance.
These promotions essentially allow new credit card applicants of credit cards which are running the offer to enjoy an artificially low rate over an extended period of time.
How do the introductory offers work?
Say the promotion offers ‘5.99% p.a. on purchases for the first 9 months for new applicants who apply before July 25th‘.
If you apply before this time frame and your application is approved, the first 9 months from the day your credit card was approved will have a 5.99% p.a. interest rate on purchases.
What if I don’t pay off my balance before the introductory offer expires?
If you have a remaining balance from purchases made during the introductory period, the remaining balance will revert to the standard interest rate on purchases (unless a different rate is specified).
Is there a catch?
Not essentially – The truth is, the only catch is you’ll have to have maintain the discipline not to overspend and spend credit on things you don’t actually need.
Ideally, These promotions can be taken advantage of in order to pay the minimal on your expenses and necessary purchases.
Not all providers are offering this promotion either. Banks including ANZ, NAB, Aussie, and Commonwealth Bank are currently all offering introductory rates on purchases for new applicants.
What are some of the Best Promotional interest rate credit card offers currently available?
The Aussie MasterCard is currently featuring 9.99% p.a. for 12 months (reverts to 13.29% p.a.) p.a. on purchases and 2.99% p.a. for 12 months on balance transfers offer for new applicants.
The standard interest rate on purchases is 9.99% p.a. for 12 months (reverts to 13.29% p.a.) p.a.
Apply online for the Aussie MasterCard 9.99% p.a. for 12 months (reverts to 13.29% p.a.) p.a. on purchases and 2.99% p.a. for 12 months on balance transfers.
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
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0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
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