'Beware of low-interest offers when comparing credit cards'

By Mozo ·

Australians should check the fine print when transferring their credit card debt to a low interest card, an expert has said.

Writing for Coolum News, Noel Whittaker, a director at the financial consultancy Whittaker Macnaught, noted that such low interest cards may offer initial interest rates of about two per cent plus added incentives like 55 days free credit on purchases.

However, he suggested that such offers will simply encourage the card holder to return to their extravagant spending habits without checking the fine details of the arrangement.

In advice to Aussies looking to compare credit cards, he noted that most card providers do not offer interest-free periods unless the holder pays the entire balance in full each month, meaning that people with large residual debts that have been transferred over will not qualify for the perk.

Instead, they will be lumbered with more debt if they have mistakenly embarked upon a fresh spending spree with their new card, Mr Whittaker said.

Meanwhile, it was reported last week that Visa has teamed up with DeviceFidelity to create an iPhone case that allows the smartphone to be used as a credit card at retailers that offer a contactless payment system.

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