Match Your Low Interest Credit Card to Your Spending Habits

In the hands a particular person with particular spending habits, even the best value credit card can turn into a black hole for cash. The same is true of low interest credit cards – the webs of incomings, outgoings, fees and interest-free days can quickly turn in the banks favor if you choose the wrong card for your habits. Today we look at matching your credit card spending style to a low interest credit card.

Emergency spenders

Interest rates won’t be as important to you (unless your budget is very tight week to week, and an emergency spend will take a while to pay off). Go for a low interest credit card that also charges a low annual fee, like the Low Rate Westpac credit card or the Suncorp Standard Visa.

Impulse spenders

Do you tend to leave your credit card to sleep in your wallet for most of the time, but occasionally you just can’t help yourself? Choose a card with more interest free days. Almost all low interest credit cards have 55 days interest free – just stay away from the Suncorp offering (no interest free days).

Habitual spenders

If credit card acts like an extension of your bank account, you’ll want the lowest interest rate possible, as standard purchase interest will make up the bulk of your payments to the bank. The credit cards with the lowest interest are the Bankwest Lite and Citibank Clear Platinum.

Big spenders

Big spenders will typically be carrying a balance from an existing credit card, and fortunately there are quite a few low interest cards that also offer you a balance transfer discount. Check out the Bankwest Lite (3.99% for 9 months), the Citibank Clear (0% for 6 months) and Jetstar (0% for 6 months).

Everyday spenders

For everyday spenders, as long as you clear your balance rewards programs are excellent value. The Bankwest Lite, Citibank Clear, Jetstar and St George Vertigo low interest credit cards all have rewards programs associated with them.