Low Rate Credit Cards Guide
Key Benefits:
- Lower interest rates
- Reduced annual fees
- Simple features
- Interest-free days
Why Choose a Low Rate Card?
Low rate credit cards are ideal if you occasionally carry a balance or want to minimize interest charges. They typically have lower annual fees and simpler features compared to rewards cards.
Example Savings
On a $3,000 balance over 12 months:
- Standard card (19.95%): $598.50 interest
- Low rate card (12.95%): $388.50 interest
- Potential savings: $210.00
Compare Low Rate Cards
| Card | Interest Rate | Annual Fee | Features |
|---|---|---|---|
| ASB Visa Light | 12.95% | $0 |
|
| ANZ Low Rate | 13.90% | $35 |
|
| Kiwibank Low Rate | 13.95% | $30 |
|
Calculate Your Interest Savings
Credit Card Interest Calculator
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Results
Time to Pay Off
12 months
Total Interest
$103
Tips
- • Paying more than the minimum payment saves interest
- • Consider a balance transfer to save on interest
- • Pay full balance to avoid interest charges
Key Features to Consider
Interest Rates
- Purchase rate
- Cash advance rate
- Balance transfer offers
- Interest-free days
Fees
- Annual fee
- Late payment fees
- Cash advance fees
- Foreign transaction fees
Low Rate Card Tips
- Pay more than the minimum
- Set up automatic payments
- Use interest-free days
- Avoid cash advances
- Compare total costs
Common Questions
How do interest-free days work?
Most low rate cards offer 44-55 interest-free days on purchases if you pay your balance in full each month.
Should I choose a card with no annual fee?
Consider both the interest rate and annual fee. A slightly higher rate with no annual fee might cost less overall, depending on your typical balance.
Can I still get rewards with a low rate card?
Most low rate cards don't offer rewards programs, as they focus on providing lower interest rates instead.