Best Credit Card Interest Rates

June 11th, 2010

If you’re searching for the best credit card interest rate, there are several ways to compare your options.

0.99% p.a. for 12 months

Finding the Best Credit Card Interest Rate

There are plenty of comparison websites on the Internet, all showing how much interest you could be charged if you carry an outstanding balance from month to month.

Balance Transfer Interest Rates

There are plenty of great balance transfer offers available at the moment. The objective behind these low rates is to encourage customers to roll their credit card debts over to a lender charging much lower rates.

Customers can then benefit from paying far less interest, which can help them repay their credit card debt sooner.

While it’s possible to find interest rates as low as 0% for six months, this doesn’t necessarily mean it’s going to be the best credit card interest offer for your own balance transfer. This is because you may end up being penalised if you make any purchases on your card, as your purchases will attract a far higher interest rate.

If you know you’re going to continue to make purchases on your card even before you’ve repaid your balance transfer amount, then it may be wise to consider a credit card that offers a low rate on balance transfers as well as a low rate on purchases.

Purchase Interest Rates

In many cases, the really low balance transfer rates will attract a much higher purchase interest rate. While you might think you’re paying 0% for six months on your balance amount, you may be charged 10%-11% on the items you purchase using your card.

The St.George Vertigo MasterCard can offer a low rate of 0.99% p.a. for 12 months on balance transfers, as well as charging you only 13.24% p.a..

This way you won’t be penalised by higher interest rates for paying for items using your card before you’ve repaid your entire balance. At the end of the six month introductory period, your rate will revert to a low 12.24% purchase interest rate, which is still a very competitive rate.

Before you apply for what you think is the best credit card interest rate, always be sure you understand how your account will have interest applied and charged so you’ll know you’re really getting what you expect.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Westpac 55 Day Credit Card	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%