A low interest rate credit card offers consumers the convenience of a credit card which has a low rate of interest in comparison to others cards available. Low interest rate credit cards typically range from 9.99 – 14.00% interest per annum.
Many credit cards offer introductory interest rates on balance transfers and new purchases in order to entice new customers while some credit cards offer low interest rates as standard feature of the card. These are often unimaginatively named “low rate credit card”. However low interest rate credit cards and those that offer introductory rates are not necessarily the same thing. This can quickly cost your more than you saved if you have not used the balance transfer period to your advantage.
Balance transfer cards, usually offer a very low or 0% interest rate for the first few months for any balances that are transferred. However these cards should not necessarily be considered low interest rate credit cards as the interest rate that applies to new purchases may or may not be “low interest” it is also really important to consider two other factors with balance transfer credit cards when considering which is the best for you.
Consumers considering a balance transfer credit card in order to secure a low interest rate for an existing balance should take into account the term, or length of the offer ( eg. 6months, 9months, 12months or life) and choose a term that they can realistically pay out the balance during that term and if not especially consider the rate that the balance transfer credit card will revert to. Many times an unwary consumer will find their “low rate balance transfer” converts to a high rate cash advance purchase the day after the introductory period expires.
One instant approval credit card that offers a low rate and reverts to a standard purchases rate is the ANZ balance
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Low insterest rate credit card considerations
If you have decided that you would like to obtain a low interest rate credit card, you can do so by undertaking a thorough credit card comparison .
Most banks, building societies and credit unions do offer low interest rate credit cards, however they will not be the well known frequently advertised credit cards at least when it comes to the major banks. Many credit unions and building societies provide the lowest rate credit cards as their structure and foundation is geared more toward their members than shareholders so that profits are not there primary concern.
