If you’re on the hunt for some new plastic for your pocket, you’re in luck because Mozo’s number crunchers have done the maths to reveal the top value credit cards of 2015 in the Mozo Experts Choice Awards.
We compared 171 credit cards from 57 providers and found the average credit card rate is a hefty 17.55% and only a mere 6 credit cards offer a purchase rate under 10%.
Even more alarming were the findings that showed 54% of cards have an interest rate over and above 18%.
The good news is, if you’re a savvy cardholder and opt for the lowest rate credit card in the market from Quay Credit Union, with a purchase rate of just 7.99% you could potentially save $466 in fees and interest each year.
Here’s a closer look at the credit cards that got the nod of approval from Mozo’s judges and all have a purchase rate under 10%:
- Quay Credit Union Visa Credit Card – 7.99% ongoing purchase rate, 0% balance transfer rate for the first 6 months, 55 interest free days and a $36 annual fee ($0 in the first year).
- Community First Credit Union McGrath Pink Visa – 4.99% intro rate for the first 6 months then reverts to a 8.99% ongoing purchase rate, 4.99% balance transfer rate for the first 6 months, 55 interest free days and a $40 annual fee.
- ME frank Credit Card – 9.99% ongoing purchase and cash advance rate, 55 interest free days and a $0 annual fee.
- G&C Mutual Bank Low Rate Visa Credit Card – 9.99% ongoing purchase, 0% balance transfer rate for the first 12 months and then 15.99%, 50 interest free days and a $50 annual fee ($0 in the first year).
- Maritime, Mining & Power Credit Union Visa Credit Card – 7.99% intro rate for the first 6 months then reverts to a 10.12% ongoing purchase rate, 7.99% balance transfer rate for the first 6 months, 55 interest free days and a $60 annual fee ($0 in the first year).
See the full list of credit cards that impressed the judges in the Mozo Experts Choice Awards here.
Tips for using a credit card the right way
No matter how competitive a credit card deal is, if you don’t use a credit card wisely you could easily slip into debt. Here are some thrifty tips to ensure you use your plastic like a pro:
- Check the revert rate. Many credit cards will advertise an enticing 0% intro rate deal, but be mindful these cards often revert to a much higher rate after the introductory period has come to an end. So always check what the revert rate is to ensure you sign up with a card with a competitive ongoing purchase rate.
- Pay your balance in full each month. If you’re savvy and pay your balance in full before the due date you could potentially pay no interest thanks to the interest free days. A good way of ensuring you never miss a credit card payment is by setting up an automatic payment that sends a direct debit to the lender before the due date each month.
- Don’t make cash withdrawals. Keep in mind, the low purchase rate doesn’t apply to ATM withdrawals, instead you will be charged the generally much higher cash advance rate. On top of this high interest rate, interest free periods don’t apply to cash withdrawals so you’ll be charged interest on that amount from the day you make the withdrawal.