Understanding Low Interest Credit Cards

Believe it or don’t, but not all credit card consumers are suited to low interest credit cards. Whether you are a good candidate for low interest credit cards or not, pretty much depends on your spending and your paying habits.

According to the Cannex Star Ratings Report  released in May of this year, credit card consumers are broadly classified into four groups: Habitual-, Impulse-, Everyday- and Big spenders.  Everyday and Big spenders tend to pay their full balances before their grace periods expire, resulting in their not being impacted by interest rates at all and making it feasible for them to head towards those high interest bearing credit cards that come with top drawer rewards. Habitual and Impulse spenders, on the other hand, tend to make down payments on their balances and are likely candidates for no frills, no fuss low interest credit cards.

Nowadays, consumers falling in the habitual and impulse spending end of the spectrum, are spoiled for choice when it comes to low interest credit cards. Most of the banks and other financial institutions issue a variety of low interest credit cards, and their offers are rather compelling.

There is always more than meets the eye when comparing low interest credit cards. Whilst identifying the best credit card rate will naturally be your point of departure, the evaluation of low interest credit cards should never be limited purely to selecting on a best credit card rate basis.  For the simple reason that more Australian consumers fall in the habitual and impulse spending groups than in the everyday and big spending groups, it is here where the banks are placing an ever increasing focus. A couple of years ago, low interest credit cards simply competed on the basis of who has the best credit card rate. It is this landscape that has changed.

It has become quite usual to find that, in addition to striving towards offering the best credit card rate, many of the banks now offer 0% balance transfers, low or no annual fees, and special introductory offers on their low interest credit cards. Some issuers even offer rewards.

An example of one the best credit card rates available is the St George Vertigo Credit Card.  The St George Vertigo card has an interest rate of just 8.99% on purchases which is lower than most unsecured personal loans, plus offers 0% balance transfers for 6 months.

Click4Credit allows you to compare credit cards by card type and issuer.  This will allow you to search for the best credit card rate offers. From there you can shortlist the low interest credit cards on the basis of grace period, introductory offers, balance transfer interest and rewards. Chances are that you will find the ideal credit card package, with the best credit card rate, quite easily.

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