With credit card debt increasing, many are looking for a way to consolidate their personal debts. A product that has become increasingly popular to do this with is the low rate credit card. When it comes to a low rate credit card there are two types that offer different benefits to the consumer.
The first of these is the ongoing low rate credit card which has a fixed low interest rate on purchases for the entire life of the card. However, the disadvantages to this type of a card is that is has high additional costs such as cash advance, ATM withdrawal, additional cards, application and annual fees.
The second is the low introductory rate credit card which is now being offered with low or zero interest rates on balance transfers. These cards are either valid for the life of the transfer or for just a set period such as six months, after which time the interest rate on all your transferred funds will revert back to their original interest rate.
The are some low rate credit cards that have mixture of the above offers. Some even have member benefits and partner discounts that can add extra incentives. Many low rate credit cards have good interest rates on cash advances which you don’t typically get with traditional credit cards. However, with some low rate credit cards there are no interest free days on purchases.
Credit Card Comparison
The NAB Low-Rate Visa Card features 10.99% on purchases with a six month balance transfer rate of zero percent. Their cash advance rate is 17.24% with a $49 annual fee. There is a period of 55 days interest free and no cost for additional cards.
The St. George Vertigo Master Card features 8.99% interest rate with a six month balance transfer rate of zero percent. For cash advances the rate is 18.99% with a $45 annual fee. There is 55 days of no interest and a complimentary additional card is given along with partner discounts.
The Virgin Credit Card offers a low 12.65% on purchases and all cash advances. For a period of six months there is zero percent on balance transfers. There is no annual fee and there is 55 days of free interest. The card also offers partner discounts.
The Citibank Clear Visa Card offers 9.90% on all purchases and cash advances with a zero percent balance transfer for six months. There is a $65 annual fee and 55 days of free interest.
The HSBC low rate credit card offers 10.9% on purchases, 15.49% on cash advances and a zero percent balance transfer rate over six months. There is no annual fee for the first year and there is 55 days of free interest.
The ANZ low rate Master Card offers 12.24% on all purchases and cash advances. There is zero percent transfers for six months with a $58 annual fee and 55 days of free interest.