Who has the best low rate credit card of all the major Australian banks? Why don’t we compare the 4 major banks by rates and features on their main low rate credit card options?

So let’s get this straight, Australians major 4 banks have a similar purchase rate on each of their low interest credit cards as of writing this article. Could this be right? In a system of market competition they all have the same rates. There are other banks that offer even lower rates but this comparison is only for Australia’s major 4 banks so let’s keep going.

The cash rate, for when you draw money in the form of cash on credit. Never a good idea to draw a cash advance rate because of the higher interest rate this incurs and none of these credit cards offer too much relief in this area. All the banks showed big cash interest rates in the high 21% but Westpac had a little less at the lowest purchase rate of 21.24%, 25 basis points off the other three banks CAB, NAB and ANZ at 21.49%. So cash advances are not the best use of these credit cards.

Westpac have the lowest annual credit card fee at $45 with CBA having the highest at $79($48 if you qualify). NAB the next best annual fee at $49, only $4 more that Westpac’s yearly fee and ANZ at a seemingly close $58. So credit card annual fees vary between the banks being compared but not by too much.

ANZ has the best balance transfer at 0% interest over 6 months. All the other cards have a higher balance transfer rate between 3.99% to 5.99%. If you were choosing to transfer your credit card balance then ANZ might be the way to go.

All the compared credit cards have the same 55 day interest free terms on purchases.

If you were only considering these cards then you would not be doing your credit card research properly, there are other credit cards that can save you money in the low interest area. You just need to consider other lenders to find a better deal.

Bank West for instance, that have a genuinely competitive interest rate on it low rate credit card but if you haven’t heard of them or are not near a bank branch you might never getting choose. With the internet, online applications can have a great impact on your ability to apply for a different credit card easily. You can apply for most credit cards online these days so you should look to more credit card lenders to find better deals.

If you own a credit card your probably know how all too easy it is to build up a debt. Here are some great tips about reducing your credit card debt that can really help reduce debt.

Make regular repayments
Stop Spending on your card for a while
Use a debit card instead
Use your savings
Consider Switching Cards

Make Regular Repayments
Do you know when you should repay your credit card? as soon as you can? That’s why you should always make a budget to make regular repayments on your credit card. Yes credit cards are useful for buying anything without cash but you should avoid the interest charges you get for any debt, it’s too easy build the debt up and harder to get it down.

On your credit card statement you will see a minimum repayment amount; this is the amount your credit card lender wants you to repay. If you repayed your credit card at that minimum rate you probably never get rid of your card debt. This is why you should always repay more that the minimum, and probably pay as much as you can regularly.

Stop Spending on your card for a while
If you can resist the temptation, stop using your credit card until you have reduced your cards balance. Debt can creep up on you slowly, especially with credit cards. So if you find yourself in debt difficulty you will want to manage your money better and try to stop spending on it. Which means you stop racking up the debt, start using cash for all purchases and chip away at your credit card debt until it’s gone.

Use a Debt Card instead
A debit card is like a credit card except it draws money directly from your own bank account. Think of it as like an eftpos card that can use credit card payment facilities. Debit cards give you the buying convenience of shopping online and not incurring any debt. This will help you if you have to use your credit card for payments like’s essentials avoiding a debt in the first place.

Use your Savings account?
If you do have money sitting in a savings account, you should pay off your card debt and avoiding interest charges. The interest you earn from your savings account doesn’t offset the higher credit card interest charges. You can start saving again once you have reduced your credit card debt.

Consider a credit card switch
Does your current credit card give you a competitive interest rate? You can switch credit cards to get a better interest rate or annual fee. You should compare what your current credit card charges you and what other low rate credit cards could offer you. Even just a few percent interest reduction can save you a lot in the long run.

Most new credit card applications offer a balance transfer period where little to no interest is charged on all of your transferred debt. These interest free periods are there to help you switch credit cards and give you an opportunity to meet all your repayments.

Choosing to get a credit card can be an exciting decision in your life. However, it can also can be a frustrating and complex one. For years people with limited to no knowledge on credit cards have enrolled in offers which they find appealing. Yet if you are not careful you can rack up a good amount of debt if you dont manage your credit card properly. The bottom line is that you can’t venture into obtaining a credit without having some fundamental knowledge of how they work and what respective benefits or downfalls their features.

Interest rates have always been, and will always likely be, the predominant factor in consumers’ decisions to obtain one credit card over another. A specific card’s interest charge is reflected in its APR. APR, an abbreviation for annual percentage rate, is the interest rate a card holder must pay if he/she chooses not to pay their outstanding monthly balance in full. APR is represented as a yearly interest rate, thus card holders may divide it by twelve to get a rough idea of what their monthly interest charge will be. It’s important that prospective card holders note that a credit card can have various APRs. They will have a specific one for outstanding balances and possibility different ones for cash advances or balance transfers.

A cheap credit card that has a low APR for outstanding balances, cash advances, and balance transfers is best for both long and short-term borrowers. APR owed on purchases is almost always less than that paid on cash advances or balance transfers. Long-term borrowers may be specifically interested in obtaining a card with a low balance transfer APR. If they happen to be presented with a credit card offer that features lower interest rates than those they already have, and decide to transfer the balance of their existing card to the new one, they’ll piggyback less expense by having a low balance transfer APR. Further, they should also be interested in the outstanding balance APR if they don’t intend to make all their monthly payments in full. Short-term borrowers who fully intend to make their outstanding payments in the proper time period shouldn’t be too concerned with APR, as they won’t be facing interest charges. All borrowers should be warned to avoid variable APRs. These types of interest charges can fluctuate depending on a variety of factors. Many card holders have unknowingly fallen victim to variable APRs, thus exercise caution and choose a card that offers a fixed-rate APR. Some credit companies also trap unknowing consumers by offering a promotional APR. Once, the promotional period is over, many cardholders get dinged for negligent spending. Again, exercise caution in spotting these tactics.

All prospective card holders should remember that APR is NOT the full amount they are paying to use credit. The actual charge is known as the finance charge, and is computed using the APR as well as the respective cardholder’s outstanding balances. How specific credit companies calculate outstanding balances can vary, thus it’s important to talk to your specific credit company. Borrowers who continually pay their outstanding balance need not worry about finance charges.

Most of us know that credit cards come bundled with various fees. Among these fees are late fees, over-limit fees, balance transfer fees, etc.. However, not all cardholders need to be wary of these fees. Charges stemming from late and over-limit fees tend to be of overwhelming interest to long-term borrowers. Since these individuals intend on constantly utilizing their credit cards over a long period of time, they’re bound to make a late payment here and there or surpass their credit limit. Various credit cards impose penalties of varying amounts for such actions. Check and double check these fees before enrolling for a certain card. Long-term borrowers should also be eyeing balance transfer fees. Although the above fees might be of less importance to short-term borrowers, they should still be acknowledged and avoided. The one fee that should interest both groups on an equal level is the annual fee. This is a per annum payment card holders make to retain their credit cards.

Finally, a specific consumer may benefit from a rewards credit card. Rewards credit cards, as their name implies, reward consumers for the expenditures they make. How specific companies calculate the rewards a particular person is entitled to vary, however, many use a point system in which a person is rewarded a certain number of points for each dollar they spend. They can redeem these points for anything from airline miles to free vacations at a specified time period. Incentivized credit cards will undoubtedly benefit more long-term borrowers who are constantly using their credit cards. One needs to rack up a good number of charges before their entitled to some sort of reward, thus this card is much more fitting for avid borrowers.

As someone new to the world of “plastic” it can be difficult to orient yourself and find the card that fits you best. Fortunately, by using some of the advice mentioned above, your tread into the credit card world can be made all the more pleasurable. If one exercises caution while selecting a card (in regards to reading all the fine print) and makes every additional effort to ensure the card is conducive to their spending habits, they’ll learn to enjoy the convenience allotted by credit cards. Otherwise, they may open themselves up to serious consequences.