If you’re wanting to learn more about low rate credit cards, how they work and how they can stack up against other kinds of credit cards, read on.
Low rate credit cards on Canstar
The table below displays a snapshot of low rate credit cards on Canstar’s database, sorted by purchase rate (lowest to highest). The results are based on a monthly spend of $1,000 ($12,000 annually). To see the full list of low rate credit cards on Canstar, click here.
Compare Credit Cards
What are low rate credit cards?
Low rate credit cards typically come with lower interest rates than other types of credit cards, with some on our database as low as 8.99%. Low rate credit cards can be suitable for customers who occasionally revolve their balance.
Using ASIC’s credit card calculator, a $2,000 credit card debt charged at 24.99% interest, while making the minimum monthly repayments, could cost you $8,253 over 23 years!
In contrast, an 8.99% purchase rate for that same debt means you’d only pay $2,849 over just under 10 years.
Pros and cons of low rate credit cards
Here are some of the pros and cons of low rate credit cards:
Low rate credit cards: pros and cons
5-Star low rate credit cards
The following low rate credit cards received a 5-Star rating in October 2017:
|Bank Australia||Low Rate Visa Credit Card|
|Bank First||Visa Platinum Credit Card|
|Bank of us||Visa Credit Card|
|Community First CU||Low Rate Black Visa|
|Community First CU||McGrath Pink Visa|
|Easy Street Fin Services||Easy Low Rate Visa|
|Endeavour Mutual Bank||Visa Credit Card|
|G&C Mutual Bank||Low Rate Visa Credit Card|
|Nexus Mutual||Low Rate Platinum Credit Card|
|Northern Inland CU||Low Rate Visa Credit Card|
|Police Bank||Visa Credit Card|
|SCU||Low Rate Visa Credit Card|
|Teachers Mutual Bank||Teachers Credit Card|
|UniBank||Visa Credit Card|
|Woolworths Employees CU||Low Rate Credit Card|
Source: Canstar Credit Cards Star Ratings, April 2018.
How to compare low rate credit cards
When searching for a low rate credit card, there a few factors to keep in mind:
- The purchase rate and revert rate (the rate your card reverts to after any introductory period) on the card
- The fees, such as annual fees, late payment fees, balance transfer fees etc
- The perks and bonuses, if any, the card has
- The promotional interest rate, and how long it lasts for
- The number of interest-free days – our database shows the maximum for credit cards is currently 62.
To compare these and more when choosing a new credit card, use Canstar’s comparison tables: