What Is Better – Introductory Offers or Ongoing Low Interest Credit Cards?

Introductory offers are incredibly tempting when shopping around for a new credit card and while sometimes they are perfect, at other times it may be better to opt for a card that has long-term low interest rates in mind.

Some cards have a major difference between introductory offers and the standard interest rates after that period, before choosing a card based on the advertised rate it is a good idea to compare low interest rate offers on credit cards. Considering the introductory offer and the rate it will revert to can also show where low rates may overlap for even more credit card freedom.

Credit Card Introductory Offers

First time credit card users may be tempted by cards that advertise a low interest rate on purchases, but it is important to read the fine print before signing up to a credit card.

Sometimes these offers can be tied to conditions like no interest free days, or revert to a much higher rate after the offer is finished.

When a balance transfer is in mind the rate of interest becomes incredibly important in helping reduce credit debt.

In fact, many credit cards offer a special, introductory low interest rate for balance transfers, like the HSBC Credit Card’s 0% p.a. interest on balance transfers for the first six months.

When it comes to these kinds of offers, look for a card that will revert to a low interest rate after the introductory period ends, like the Aussie MasterCard which has interest at 2.99% p.a. for balance transfers for 12 months, then goes to 13.29% p.a. after that.

Ongoing Low Interest Credit Cards

Credit cards with low interest rates after the introductory period tend to offer more long-term flexibility. One trick when searching for ongoing low rates is to look for no frill credit cards or ones that include “low” in their description, like the ANZ Low Rate MasterCard.

The Aussie MasterCard mentioned above is a great example of a credit card with ongoing low interest. With many credit cards now featuring ongoing interest rates around the 20% p.a. mark after introductory offers, a rate of 13.29% p.a. is extremely competitive.

Another way to compare low rate credit cards is to look for featured cards and those that have won awards.

The Bankwest Lite MasterCard, for example, was awarded by Money Magazine as “Australia’s Cheapest Credit Card” and is also an example of where a low-rate introductory offer transitions to a competitively low rate. New cardholders will enjoy 5.99% p.a. interest on balance transfers and purchases for 12 months, then 10.75% p.a. after that.

While focusing on introductory or ongoing interest rates can help find a good low interest credit card option, these two credit card features will overlap on some cards. The key to finding a low interest credit card is to compare the different features and think about both short-term and long-term credit card needs.