Saving money is a top priority for most consumers these days. With the economy around the globe in dire straits, it is important to do what you can to mitigate some of the effects. With low interest rate cards, you still have the convenience of using credit but are not saddled with high interest fees.
Transfer your balance now and start saving using the St George Vertigo. Its low rate on balance transfers lets you save whilst taking control of your finances. This card also gives you freedom to still make purchases with its low rate on retail purchases and up to 55 days interest free on purchases.
- 13.24% p.a. on purchases
- 0.99% p.a. for 12 months on balance transfers
- $55 annual fee
- 21.49% p.a. on cash advances
Low Interest Balance Transfer Credit Card Comparison:
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
 St George Vertigo |
A low rate shopping credit card offering a low ongoing rate on purchases plus a low balance transfer offer for intro period. | 13.24% | 0.99% for 12 months | $55 | 21.49% |   |
 Citibank Clear Platinum Card |
Great introductory offers on purchases and balance transfers plus gold benefits. | 11.99% | 2.9% for 12 months | $99 | 21.74% | |
 Westpac Low Rate Card |
Featuring one of Australia’s lowest ongoing rates on balance transfers and and purchases with a low annual fee | 0% for 6 months (reverts to 13.49%) | 0% for 6 months | $45 | 21.49% | |
 St George Gold Low Rate Card |
An introductory offer on balance transfers and purchases, Plus a low annual fee. | 15.99% | $79 | 20.24% | |
|
 NAB Low Rate Visa Card |
A credit card with a low 12 month introductory purchase rate offer, reverting to a low ongoing rate. | 2.99% for 12 months (reverts to 13.24%) | 4.99% for 6 months | $59 | 21.74% | |
 ANZ Platinum Credit Card |
No annual fee for the first year with a low rate on balance transfers and purchases. | 0% for 6 months (reverts to 19.24%) | 0% for 6 months | $0 annual fee for the first year( $87 thereafter) | 20.99% | |
 Bankwest Zero Platinum MasterCard |
An introductory low interest rate offer on balance transfers and purchases with $0 annual fee. | 1% for 6 months (reverts to 17.99%) | 4.99% for 12 months | $0 | 18.99% | |
 ANZ Low Rate MasterCard – Balance Transfer |
A low rate on balance transfers and purchases purchases with a low annual fee. Submit your application now and get a response in 60 seconds. | 0% for 3 months (reverts to 13.24%) | 0% for 3 months | $58 | 21.49% | |
 Virgin Flyer Credit Card |
A low interest rate on balance transfers plus earn1 Velocity Point per $1 spent. | 20.99% | 1.9% for 9 months | $99 | 20.99% | |
With so many choices out there, it may be difficult to land on one type of card for your needs. It is also hard to know what each card has to offer and which one is best for your situation. It is good to conduct thorough research before jumping into a card. Below is all the information you will need that will help you to make the most informed decision about finding the right card for you and your needs.
Everything You Want to Know About Low Interest Rate Credit Cards
Before you apply for a card, you should get all your ducks in a row and find out exactly how these low interest cards work and which one will be the most beneficial for you. Having the complete understanding and the right knowledge will be all you need to make the right choice.
- What exactly is credit card interest? In a nutshell, credit card interest is how credit card providers make their money. The credit card provider gives you access to money and for the privilege of using that money there is a fee attached. That is the interest. Interest is calculated over the period of time that you still carry a balance with the credit card issuer. The longer you take to pay back the borrowed money, the more interest you will pay as a result.
- How am I assigned a credit card interest rate? Most people are assigned a credit card rate based on information regarding the credit risk of the borrower. This information used to make these decisions is primarily provided by credit bureau reports that gather information about borrowers and their borrowing history. The credit bureau will provide an assessment of how much of a credit risk they believe the borrower to be.
- How is credit card interest calculated? Credit card interest is calculated by taking the aggregated balance you currently have and then multiplying it by the daily rate of interest. The daily rate of interest is the annual rate divided by 365 (for the days of the year). The resulting number is your calculated credit card interest.
- What does APR mean? APR means Annual Percentage Rate. This is the the annual rate that is charged to the borrower for borrowing money from the credit card provider. It is shown as a single percentage number that represents the yearly cost of the funds over the term of the loan. It is also referred to as PA or Per Annum. Your interest does not accumulate, however, on a yearly basis. Your interest is charged on a daily basis. When you make a purchases, the daily interest rate goes into affect.
- What about the Interest Free Period? If you take advantage of the interest free period which most cards are offering these days, you may not end up paying any interest at all if you clear your balance each time you make purchases for the month.
The Types of Interest Charged on Low Interest Cards
Below you will get an explanation of the different types of interest that are charged on low interest credit cards.
- Purchase Interest – Purchase interest is the interest that is charged on any and all of your purchases. This applies to purchases whether it is at the supermarket or at a high-end retail store.
- Cash Advance Interest – This is the interest that is applied to your account when you take out cash advances. These cash transactions have happen in a couple of different ways. You may take cash directly out of an ATM machine or you can have cash transferred to your bank account via the telephone or through online banking.
- Special Interest - This is the interest that is charged on amounts other than the previously mentioned transactions. This can include balance transfers.
- Interest On Interest - This is interest that is charged on top of the interest that is already assessed. This is above and beyond the interest that is already charged from the previously mentioned types of interest.
Saving Money With Your Low Interest Card
One reason to apply for a low rate or low interest credit card is for the first and most obvious benefit. You will not have to pay high interest fees on your purchases. In fact, if you decide to not pay the balance in full during the interest free period, you are not losing as much money because the interest rate is already low. Another way to save money with these low rate cards is by applying for one that also includes a 0% balance transfer offer for 6 months. You will not have to pay any interest on any balance transfer for 6 months and after the end of 6 months, the interest rate will go back to the regular interest rate.
How Much Money Am I Actually Spending on Interest?
With a low interest rate card, your interest payments will depend on how you use your card and your spending habits. One way to calculate exactly what you will save and spend is through online credit card calculators. Here is an example below:
Sally buys a bike for $1000 with her credit card. If she took one year to repay then she would pay $1100. the $100 would be the interest that accrues on the $1000 as 10% of $1000 is $100. The daily interest that would be calculated on the balance is 10/365 which equals 0.028%. The purchase will take her 50 days to repay it. The interest repayment would then be 0.027% of ($1000 x 50 days) and this equals out to $13.70 of interest paid on the purchase after 50 days.
Where Can I Find And Apply For Low Rate or Low Interest Cards?
There are many places online that have great offers available. They also have secure websites that provide the convenience of applying directly on the website. There us usually also no fee for applying and results are often given within minutes of applying. You can search many websites that provide comparison tables of the different offers so you can compare apples to apples and find out which card will be the best choice for you.
Knowledge is power. Understanding all of the intricacies and ins and outs of low interest credit cards will make it easier for you to find the one that will provide you with the maximum benefit. Credit cards are here to stay so if you are armed with the right knowledge and information, you can make the best decisions that will have the most positive results for you and your personal finances. Using credit cards to your advantage is the smartest way to use credit. Credit cards are not evil or bad and when used wisely they can be an enormous benefit. You do not have to be at the whim of credit card companies. You can sit in the driver’s seat and take charge.
Posted on Saturday, June 5th, 2010 at 8:10 pm
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