Compare Credit Cards Interest Rates
The interest rates displayed on this website are for informational purposes only and may be used as a general guide to compare interest rates. Although every care is taken in presenting this credit card comparison, InterestRateComparison.com.au cannot guarantee the correctness of values displayed here, and you should always check rates and fees with your provider before making any financial decisions.
Credit Card Comparison Guide
Different types of credit cards have different pros and cons. Before you compare credit cards side-by-side you really need to know what it is you wish to get out of your new card. Are you looking to transfer a balance from an old card to a new, much lower interest rate, or are you looking to use it for everyday spending?
This can make a huge difference to the fees associated with credit cards, because if you transfer over to a card that has a low transfer balance interest rate and use it for everyday spending, you will probably find that the interest rate on everyday spending is much higher than that of a card that is specifically designed for that purpose. Like wise for rewards centric cards, you would find that if you transferred the balance of another card over, you would be paying far more in interest costs than if you chose a card specifically for that purpose.
Something else to take into consideration when looking for a credit card to use for everyday spending is the amount of interest free days allocated. This figure indicates the number of days after spending money on an item or items that you have to pay that amount off before you start to get charged interest for that same amount. Effectively what this means is that you can 'shift' your expenses by up to 55 days, as you are still paying the same amount, but allowing extra time to do so.
When looking for a card for everyday speding it may be important to take into consideration the rewards available to you for set amounts of spending during the month. Most rewards based credit cards will provide you with interest free days anyway, but some will provide you with extra benefits such as air points or other rewards based on the amount you spend each month. This can be advantagious when using the card as described above to 'shift' your spending, as you are still only paying the same as you would with cash, but are also reaping extra benefits from your spending.
Be Wary of Credit Card Interest
The interest rate offered for a credit card can generally be changed without notice by the credit card company. The most common causes for changing the credit card's rate are late payments, over the limit balances and rising Reserve Bank interest rates. Credit card companies do list the maximum allowable interest rate in their terms and conditions and this should be reviewed prior to becoming a card holder.
For further information of what to watch out for and the likely benefits of your choice of credit card, check out our section on Credit Card Pros & Cons