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Since Virgin and Aussie shook up the low interest credit card market in Australia we have seen low interest rate offers from the majority of Australian Banks and Credit Unions. We have a number of low interest credit cards within the comparison tables from Aussie, Citibank, St George, NAB, ANZ, and many more. .
At time of writing (June 2009) a low interest rate credit card is one where the purchase interest rate is below 14%. The average credit card interest rate in Australia is currently 17.5% for purchases and slightly higher for cash advances. Bankwest Lite MasterCard offers one of the lowest rates however the product does not offer a low balance transfer component and the cash advance rate on the card is around 20%, which we consider high. The Vertigo Card from St. George Bank has long been a strong offer in the low interest rate market with the balance transfer option being 0% for up to six months and a purchase interest rate currently at 10.99%.
When you compare credit cards it's important to look beyond the interest rate and other factors should taken into consideration. Such factors are; how you intend to use your credit card, repayment patterns, your expected outstanding balance and your annual spend. These factors will help you determine the type of credit card you're after, such as a low rate, low balance transfer, rewards, gold or platinum. Low interest credit cards are great for those who never seem to pay off their existing balance each month, but if you do then you might be better looking at a rewards type offer.
Compare the best low interest credit card offers within the Australian market. Review offers from Aussie, HSBC, Macquarie Bank, Citibank, Westpac, St.George, American Express, BankWest, ANZ and many more.
As Australian banks and financial institutions fight for market share in the AU card market these institutions use low interest rates as a way to attract new customers. As the credit squeeze starts to bit in Australia and the risk and cost of funds rise we have seen credit card interest rates in the low rate space rise some 3% over the past two years.
The main players over the past few years has been Aussie, with the Aussie MasterCard , Citibank with the Clear Visa, St.George Bank with Vertigo, HSBC’s Low Rate Visa, ANZ with their Low Rate MasterCard and BankWest with their Lite MasterCard. Virgin Money who really started to stir things up a few years ago has since exited the Market and sold the customer base the Westpac.
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