What is a credit card introductory rate?
An introductory rate on a credit card is a promotional rate: a lower than usual interest rate that is like a reward for signing up. Rates on credit card introductory offers can be enticing – as low as 0% for a year.
Credit card introductory offers are certainly not for everyone, no matter how attractive they may seem. You may be signing yourself up for an annual fee and you may be signing up for a card that, once the introductory rate expires, has a really high ongoing interest rate (the “revert rate”). You may also be signing up for a credit card that you just don’t need in the first place! So make sure you really think about the pros and cons as they relate to your personal spending habits before you do anything.
Are credit card introductory offers worth it?
It depends. Are you sure you can repay your credit card debit within the introductory period on the lower interest rate? Otherwise, it’s not worth it, because the revert rate that applies after the introductory period is such a high interest rate. A credit card introductory offer is not worth it if it could land you further in debt.
It’s a bit like the honeymoon introductory rate on a home loan – it’s only worth it if the ongoing interest rate is equally attractive.
You also need to justify whether you really need a credit card with an introductory offer. If you repay your card in full every month and never pay interest because you don’t carry a balance on your card, obviously the interest rate on the card is going to make zero difference – you won’t be paying it.
What are the lowest introductory credit card offers in June 2016?
This table shows the lowest introductory rates on credit cards available on CANSTAR’s database (as at 1 June 2016). We’ve sorted these cards by the introductory rate, followed by the introductory period.
We’ve chosen to show just one card from each financial institution. Where an institution has the same introductory rate offer on multiple cards at once, we have shown the card from each institution that has the lowest annual fee.
Check the star ratings and updated details for these cards here.
| Company | Product | Annual Fee ($) | Ongoing purchase rate (p.a.) | Introductory purchase rate (p.a.) | Introductory period (months) |
|---|---|---|---|---|---|
| NAB | Low Fee Visa Card | 30 | 19.74% | 0.00% | 15 |
| Virgin Money | Virgin Aust Velocity Flyer Card | 129 | 20.74% | 0.00% | 12 |
| First Option Credit Union | Cash Rewards Visa Credit Card | 36 | 15.99% | 0.00% | 6 |
| Coastline Credit Union | Visa Rewarder | 75 | 17.00% | 0.00% | 6 |
| BOQ | Blue Visa | 60 | 20.74% | 0.00% | 6 |
| Westpac | Low Rate Visa Card | 59 | 13.49% | 0.99% | 4 |
| St.George/BankSA/Bank of Melbourne | No Annual Fee Visa | 0 | 20.49% | 0.99% | 4 |
| Defence Bank | True Blue Credit Card | 45 | 11.74% | 3.99% | 6 |
| Qudos Bank | Lifestyle | 0 | 12.34% | 4.99% | 5 |
| Horizon Credit Union | Visa Credit Card | 0 | 12.95% | 4.99% | 5 |
| People’s Choice Credit Union | Visa Credit Card | 59 | 12.95% | 6.99% | 6 |
| Bendigo Bank | RSPCA Rescue Visa | 24 | 15.49% | 7.89% | 6 |
| Teachers Mutual Bank | Teachers Credit Card | 0 | 11.50% | 7.90% | 6 |
| UniBank | Visa Credit Card | 0 | 11.50% | 7.90% | 6 |
| Heritage Bank | Classic | 55 | 16.75% | 8.95% | 13 |
| Northern Inland CU | Visa Credit Card | 40 | 14.00% | 8.99% | 6 |
| Citi | Simplicity | 0 | 19.99% | 11.99% | 24 |
Source: CANSTAR. Correct as at 1 June 2016.
What are the longest introductory rate offers in June 2016?
This table shows the longest introductory rates on credit cards available on CANSTAR’s database (as at 1 June 2016). We’ve sorted by the introductory period, followed by the introductory rate. As above, we have shown one card from each institution.
Check the star ratings and updated details for these cards here.
| Company | Product | Annual Fee ($) | Ongoing purchase rate (p.a.) | Introductory purchase rate (p.a.) | Introductory period (months) |
|---|---|---|---|---|---|
| Citi | Simplicity | 0 | 19.99% | 11.99% | 24 |
| NAB | Low Fee Visa Card | 30 | 19.74% | 0.00% | 15 |
| Heritage Bank | Classic | 55 | 16.75% | 8.95% | 13 |
| Virgin Money | Virgin Aust Velocity Flyer Card | 129 | 20.74% | 0.00% | 12 |
| BOQ | Blue Visa | 60 | 20.74% | 0.00% | 6 |
| Coastline Credit Union | Visa Rewarder | 75 | 17.00% | 0.00% | 6 |
| First Option Credit Union | Cash Rewards Visa Credit Card | 36 | 15.99% | 0.00% | 6 |
| Defence Bank | True Blue Credit Card | 45 | 11.74% | 3.99% | 6 |
| People’s Choice Credit Union | Visa Credit Card | 59 | 12.95% | 6.99% | 6 |
| Bendigo Bank | RSPCA Rescue Visa | 24 | 15.49% | 7.89% | 6 |
| Teachers Mutual Bank | Teachers Credit Card | 0 | 11.50% | 7.90% | 6 |
| UniBank | Visa Credit Card | 0 | 11.50% | 7.90% | 6 |
| Northern Inland CU | Visa Credit Card | 40 | 14.00% | 8.99% | 6 |
| Horizon Credit Union | Visa Credit Card | 0 | 12.95% | 4.99% | 5 |
| Qudos Bank | Lifestyle | 0 | 12.34% | 4.99% | 5 |
| St.George/BankSA/Bank of Melbourne | No Annual Fee Visa | 0 | 20.49% | 0.99% | 4 |
| Westpac | Low Rate Visa Card | 59 | 13.49% | 0.99% | 4 |
Source: CANSTAR. Correct as at 1 June 2016.
If you’re looking for low interest credit card offers specifically for the purpose of doing a balance transfer, we’ve written more about that here or compare balance transfers on our website.
Learn more about Credit Cards
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