8 new low rate credit card offers you need to know about
Monday 30 July 2018
If you're sick of the same old credit card offering, then we've got good news for you.
In the last 12 months, there are now 8 new credit cards in our database with purchase rates under 15.00%.
On average, that’s almost one new low rate product every month since the start of the year.
And the news may have come in at just the right time, as a recent report by ASIC found that Aussie cardholders could be saving themselves big time, all by switching to a lower rate card.
“Low rate cards come in all shapes and sizes and now Aussies have even more options when it comes to finding budget-friendly piece of plastic,” said Mozo Director, Kirsty Lamont.
“If you tend to carry a balance or miss a payment every now and then, a low rate credit card helps to keen interest costs down, making it a great addition to any wallet.”
As well as the new low cost credit cards hitting the market, 3 credit cards in the Mozo database also had their purchase rate reduced. They included:
- American Express, Low Rate 8.99% (was 11.99%)
- Bank of us Visa Credit Card, 9.99% (was 12.99%)
- QBANK Bluey Card, 11.99% (was 13.24%)
The eight hot new offers
If you’re on the hunt for a new piece of plastic, here are the eight places to start:
The Bank of Sydney Classic card has an introductory purchase rate of 6.99% for 6 months before it reverts to the regular 11.99% rate. There’s a low $49 annual fee and the chance to earn 1 point per dollar spent up to $30,000 a year. Just be sure to avoid ATMs, as the Classic Credit Card does come with a hefty 19.49% cash advance rate.
Bendigo Bank’s Low Rate card features an 11.99% purchase rate and a $45 annual fee, so it’s easy on any Aussie budget. But what’s a little different about the Bendigo Low Rate card is it’s unique interest option. Unlike regular cards which charge interest from the time you make a purchase, interest is instead charged from when you receive your statement, saving you big time.
While this card may appear like the Bendigo Bank Low Rate card, the Low Rate First is actually a card designed for customers aged 18-25! The card has a rock bottom low annual fee of $29 and up to 55 interest-free days. And if you want to share the card with a sibling or family member there’s no fee for adding other cardholders.
Next is the Bendigo Bank Low Rate Platinum credit card, delivering platinum perks on a budget. Along with the low 11.99% purchase rate, there’s up to 55 interest-free days and a 13.99% cash advance rate. And since it is a platinum card, you’ll enjoy 90 days of purchase protection on new items, while having your newly-purchased smartphone or tablet insured for up to $1,200. Throw in a $89 annual fee and you’re looking at a 2017 Mozo Experts Choice award winner!
But if you like the idea of having a piece of plastic with a big bank, look no further than the CommBank Essentials credit card. With this card, there’s a low 9.90% purchase rate and $24 annual fee - just as long as you choose to receive your statements online and sign up to AutoPay. And remember, this card does come with a maximum $3,000 spending limit, which makes it better for frugal spenders.
While ING’s Orange One credit card does have the highest purchase rate in our list so far, it could be a great pick for frequent travellers. If you make a deposit of at least $1,000 every month from an external bank account and make at least 5 purchases on either your ING credit or debit card, you’ll have the foreign currency conversion fee waived. There’s also a 14.99% purchase and cash advance rate and no annual fee. Just keep in mind that in order to be eligible for this card, you will have to open a an ING everyday account.
The ING Orange One Platinum credit card is similar to the Orange One card, however there are a few extras to play around with. There’s complimentary travel insurance and the chance to earn 1 point per dollar spent up to $3,000 per month. Your points will never be capped either and there’s no currency conversion fee if you deposit a minimum of $1,000 every month and make 5 purchases on either your ING credit and debit card. Just keep in mind that there is a $149 annual fee with this card that you’ll need to factor into your budget.
Last but not least is the Westpac Lite credit card - a card that’s light in fees and rate charges, not to mention a double award winner in the 2018 Mozo Experts Choice awards. Along with a low 9.90% purchase rate, there’s no late payment and foreign exchange fees. This no frills card also features up to 45 interest free days and has a credit limit of up to $4,000, so it’s a great option for mindful spenders. Just keep in mind that there is a $9 monthly service fee, which does total to $108 over the year.
If you’d like more plastic options, you can check out our credit card comparison tool! It compares over 214 credit cards, helping you find your next plastic match.