Australian Low Interest Rate Credit Cards – What To Look Out For

By Author: Ndxmart
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People's eyes can light up when they see low interest rate credit cards being offered by Australian banks and credit providers. While they can be great for some people, they are not always quite as "pure gold" as they are cracked up to be and you need to check all the fine print before committing.

Low interest credit cards offer the obvious benefit of making purchases at low rates of interest, but this may be for only a short period of time. It may be an introductory or "honeymoon" rate like 0% APR and 0% balance transfer for 6 months – but you need to check what the interest rate changes to after the period ends. It can be quite a jump. Also check the fees and charges that apply to the card, because if there's one thing that's written in stone it's that the banks will make money somehow!

Of course if you are planning to make a large purchase imminently or to consolidate debt then it can be a great advantage to apply for one of these cards. You can make a large purchase, pay the amount borrowed off over the next 6 or 12 months (within the period of the low interest rate) and then move to another card deal down ...
... the track that suits your situation better. Similarly if you are in debt elsewhere it can be a great opportunity to consolidate those debts onto a low interest rate credit cards and thereby reduce the mounting interest payments, allowing you more chance to clear the debt. This is being smart about your finances.

Nowadays the credit card business is very competitive and, providing you don't present too much of a risk for them and have a really bad credit rating, you should find no shortage of credit providers wanting your business later – so, again, once the low interest rate deal expires you can move on.

It's important to be knowledgeable and responsible about it – people who don't read their statements or take note of when the introductory interest rate period expires can get caught by subsequent rate hikes on low interest credit cards and the result can be a cycle of debt.

The smart ones use the card for what they have to, within the period of the low interest rate teasers, and then cut loose and pick up on another current deal that's being offered. Some people don’t like the perceived "insecurity" of moving from card to card, but those who understand the system can "play" the low interest credit cards game very well.

For more information regarding low interest credit cards, low interest rate credit cards and credit card deals, please visit: www.lowerbills.com.au