Purchase rate credit cards let you buy now and pay later with an interest-free period.
Purchase rate credit cards provide you with an exceptionally low purchase rate for a specified promotional period. This allows you to make purchases now and pay less interest, to manage your finances whilst meeting your spending commitments.
What is the credit card purchase rate?
The purchase rate is the interest rate charged on your purchase transactions. Low purchase rates range from 9.99% to 14.99% p.a. and can even provide 0% interest for a period of time.
Sounds great, but what’s the catch?
Purchasing now with a lower rate of interest and not having to repay your full balance can be extremely enticing. It’s important to set out a repayment plan to ensure you can repay your balance before the promotional period ends.
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 be charged at the revert standard interest rate on purchases. The revert rate is considerably higher ranging from 17.99 – 20.99% p.a. which could result in a high amount of debt in the short term. If you are experiencing difficulty in repaying the outstanding amount accumulated from your purchase rate offer, you may like to consider balance transferring this amount to a new credit card.