Featured Credit Cards for May

St George Vertigo MasterCard

• Rate : 10.99 %
• Balance Transfer :
  0% (for first 6 months)

 

Citibank Clear

• Rate : 11.99 %
• Balance Transfer :
  0% (for first 6 months)

 

Aussie MasterCard

• Rate : 11.99 %
• Balance Transfer :
  0% (for first 6 months)

 

NAB Low Rate Visa Card

• Rate : 12.79 %
• Balance Transfer :
  0% (for up to 6 months limited time only)

 

St George Starts Low, Stays Low Credit Card

• Rate : 12.99 %
• Balance Transfer :
  12.99%

 

Rise and rise of zero-interest credit cards

With the amount being spent being spent by Australian consumers breaking records, credit card companies have been quick to seize an opportunity to allay fears of mounting debts.

A number of Australia's largest financial institutions have introduced zero-interest credit cards in an attempt to keep consumer confidence high.

Consumers have been quick to respond to the change and, as a result, the Cannex credit card report found that the number of such deals in the market place tripled during the last six months of 2007.

However, with the interest-free period only lasting for a matter of months, consumers have been advised to continue to look at rates of interest, rather than being lured in by the initial offer.

Cannex financial analyst Lauren Newlands told the Sydney Morning Herald: "At the end of the promotional period, some cards with low or no interest rate balance transfers add a much higher than normal interest rate to the unpaid portion of the debt.

"Consumers should be aware of what the revert rate is, particularly if there is a chance they won't pay off the outstanding balance before the promotional period expires."

While banks and loans companies have been fast to increase the number of zero-interest cards, the numbers of consumers taking up rewards cards have also increased.

With all Australian credit cards offering a 55-day interest-free period on purchases, a number offer cash back or offers with airlines. At St George, for example, a Platinum credit card offers free travel insurance on all overseas visits as well as discounts a number of retailers.

For those Australians who do not see an end to their spending, there are a wide range of cards to choose from.

Compare your current credit card rates with Australia's top providers.