When we talk about credit cards being cheap, or very cost effective what exactly are we talking about? We first need to look at exactly how the credit card companies make their money from customers.
In the first instance they will make their money from interest charges. The higher the rate of interest, the more money we have to pay them.
Featured Low Interest Credit Card
The St.George Vertigo Mastercard is the card for everyone! With this great balance transfer offer and a very low ongoing interest rate, it is worth trying out today.
- $55 annual fee
- 13.24% p.a. on purchases
- 0.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
The second way they make money from a customer is from an annual fee. This is like a yearly service charge, which can also be thought of as a membership fee of sorts. The last most common way they make money, is from enticing us to do a balance transfer. Even though during the promotional period of a credit card balance transfer the new lender will not be charging us any interest, in an instance where we do not manage to pay of the balance in full, they will then start earning interest from us.
What Makes The Lowest Credit Card?
The cheapest kind of credit card would be one that had a 0% balance transfer rate of interest, a very low standard interest rate, many interest free days, and no annual fee. Does such a credit card exist? We have looked at some of the most cost effective cards available below.
Bankwest Breeze MasterCard
- Balance Transfer Rate- 4.99% p.a. for 9 months
- Standard Interest Rate- 0% p.a. for 6 months (reverts to 10.99% p.a.)
- Cash Advance Rate- 21.99% p.a.
- Interest Free Days- Up to 55
- Annual Fee- $49
This card has a long period of 4.99% p.a. for 9 months for new balance transfers, which will save you a large sum of money in interest charges if you have an existing credit card debt elsewhere, where you pay a higher rate of interest.
The standard rate of 0% p.a. for 6 months (reverts to 10.99% p.a.) is one of the lowest credit card rates available, and with up to 55 interest free days available, you can pay for your purchases over the course of a month without paying any interest.
St.George Vertigo
- Balance Transfer Rate- 0.99% p.a. for 6 months
- Standard Interest Rate- 2.99 % for 6 months after which it reverts to 13.24% p.a.
- Cash Advance Rate- 21.49% p.a.
- Interest Free Days- Up to 55
- Annual Fee- $55
As well as a low balance transfer rate of 0.99% p.a. for 6 months, this card has the lowest credit card standard rate of 2.99% for 6 months. Beware that after this it will revert to 13.24% p.a. which is still fairly competitive.
Again you have the benefit of up to 55 interest free days, making it very cost effective for those who like to spend, and pay their balance in full each month.
Aussie MasterCard
- Balance Transfer Rate- 2.99% p.a. for 12 months
- Standard Interest Rate-2.99% for 6 months, after which it reverts to 9.99% p.a. for 12 months (reverts to 13.29% p.a.)
- Cash Advance Rate- 19.99% p.a.
- Interest Free Days- Up to 55
- Annual Fee- $49
This is Aussie’s most popular credit card, and the low rates are the biggest attraction. This card also offers a very cheap 2.99% p.a. for 12 months on balance transfers, and like St.George they also have a low standard rate for 6 months of just 9.99% p.a. for 12 months (reverts to 13.29% p.a.) which is only marginally higher than St.George’s offering.
These 3 deals are among the lowest credit card deals available at present, and could offer some great savings to those looking to do a balance transfer, or those looking to spend at a lower rate of interest.
