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Going low with credit card interest

Going low with credit card interest

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Date Published : Monday, March 31, 2008

Many Australians find the credit card market to be something of a minefield. Deciding what card they want can be a long and sometimes confusing process.

However, consumers are advised to make sure they know what the main feature of the card is that they want before undergoing a credit card comparison.

According to news.com.au, those who choose to enter the world of low interest credit cards have a wide range to choose from, with all of Australia's major banks and financial institutions offering an array of credit cards which offer little, or no, interest.

If you don't pay your credit card off in full each month, or you make large purchases irregularly, a low-rate card might be good for you. People on low incomes may also be able to benefit from credit card offers which include low interest rates.

The website's John Synott said: "Students and low income earners, who do not pay off the card each month, should choose a budget card with low interest rates.

"Interest rates vary from seven per cent to 24 per cent, so if you don't pay off your credit card at the end of the month, shop around for a budget card."

By offering a lower rate, financial institutions are losing out on revenue and this lost money needs to be recouped somehow. Higher fees and charges are predominant in low-rate cards. Penalties such as annual fees, cash advance rates and late payment fees are common in these credit cards.

Compare credit card rates.ADNFCR-1411-ID-18529838-ADNFCR

 

 

 

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