If you're paying 20% interest on credit card purchases, you're probably getting ripped off. A new breed of smaller lenders are shaking up the banking sector with low-rate credit cards - and the big banks are starting to follow suit. Here are ten cards you can get right now with interest rates under 10%.
According to the ABS, credit card debt has decreased by 1.7 billion in the past year, which could imply that Aussies are paying off their credit card balances faster than they previously were. That's great news for card holders, as paying off your balance in full every month means you get the rewards of a credit card without the overhanging debt.
Buy now, pay later services like Afterpay might be "interest free", but if you're a disciplined spender who pays off your balance every month, a low-rate credit card could be a better option. Unlike buy now pay later services, credit cards give you access to additional benefits - from frequent flyer points and free travel insurance to rewards programs that may include movie ticket pre-sales and charity donations.
In fact, the classic 20% standard interest rate that used to be associated with credit cards has been challenged by newer smaller lenders, with a collection of lenders offering 'low rate' credit cards with less than 10% interest.
Credit Cards with Interest Rates under 10%
RateCity analysis of Australian lenders has found the following ten credit cards boasting an interest rate on purchases less than 10 per cent.
|Product Name||Lender||Interest on Purchases||Card Type||Annual Fee||Interest Free Days|
|Low Rate Visa Credit Card||G&C Mutual Bank||7.49||Visa||50||50|
|Low Rate Visa Card||Auswide Bank||8.95||Visa||50||55|
|Low Rate Credit Card||MOVE Bank||8.99||Visa||59||45|
|Easy Low Rate Visa Credit Card||Easy Street Financial Services||8.99||Visa||40||55|
|McGrath Pink Visa Card||Community First Credit Union||8.99||Visa||36||55|
|Low Rate Visa Credit Card||Northern Inland CU||8.99||Visa||0||0|
|Low Rate Credit Card||Community First Credit Union||8.99||Visa||40||55|
|Low Rate Visa Credit Card||Bank Australia||9.39||Visa||59||0|
|Visa Platinum Credit Card||Bank First||9.84||Visa||99||55|
|Essentials||Commonwealth Bank of Australia||9.9||MasterCard||60||55|
Data accurate as at 10 September 2019.
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