Low Cost Credit Cards

A Low cost credit card offers you a low interest rate, combined with a low annual fee and charges. If you are sick of paying a high interest rate, with your current credit card, then it makes sense to transfer to a low cost credit card deal. Currently, most banks in a Australia have one credit card, that is their "low cost credit card", for example, St George have the Vertigo MasterCard, ANZ have the Lowrate MasterCard and Citibank offer the Clear Visa card.

What are the characteristics of a low cost credit card? First of all is the interest rate, banks and credit unions offer a range of different interest rates depending on the card you apply for. Interest rates can start from over 20% to bellow 9%, obviously a low cost credit card will have a purchase interest rate of around 10%. The advantage of a low interest rate occurs if you do not pay off your outstanding balance each month, the lower the rate the less you will have to pay on the outstanding balance.

The Annual fee of a credit card is paid each year, as a type of "service fee". Annual fee's can range from in the hundreds of dollars to absolutely nothing. A low cost credit card will have an annual fee ranging for $0 to upwards of $60, credit cards that have a low annual fee include, Woolworth's Everyday Money card, St George's No Annual Fee card and HSBC's Low Rate Visa.

Low cost credit cards are for those, that require a card with low fee's, without all the bells and whistles. If you are looking for a credit card that offers rewards, in general, you will pay a higher interest rate and annual fee. Be sure to do your research and compare credit card offers to get the best deal for you. By doing some research you will increase the chances of getting the best low cost credit card on the Market, and in doing so, potentially save hundreds of dollars each year in repayments....Want to learn more? Compare low cost credit cards here.