Co-Author: Michelle Norton
When it comes to choosing a credit card, credit card interest rates are likely to be top of mind. But for those who aren’t satisfied with their current provider, or who are looking to get their first credit card, a bit of research will help you get a better deal while you’re shopping around.
Credit card offers on the market
In order to stay front of customers’ minds, banks will often put forward enticing credit card offers to try and get your business. Keeping in mind that you will have to pay credit card fees and interest at some point, some banks will waive that fee initially, or offer you a lower rate, to get you on board.
Have a look at credit card offers for new customers:
If your current credit card isn’t exactly cutting the mustard when it comes to credit card interest rate, fees, or rewards, have a look at some sign-up offers now available on the credit card market.
|Company||Product||Interest Free Days||Purchase Rate p.a.||Annualised Fees||Sign up bonus points||Bonus offer conditions|
|American Express||Air New Zealand Platinum Card||55||19.95%||$395||200 Airpoints Dollars||Spend $500 within first three months.|
|American Express||Platinum Edge Credit Card||55||
2.99% for first six months , then 19.95%
|$149||20,000 Bonus Points||Spend $550 within first two months.|
|American Express||Platinum Card||–||Charge Card||$1250||80,000 Bonus Points||Spend $550 within first two months.|
|American Express||Air New Zealand Card||55||0% for first six months, then 19.95%||Nil||50 Airpoints Dollars||Spend $300 within first three months.|
Balance transfer deals and how they can affect credit card interest ratesSign up offers current as at 14 September 2016.
Balance transfers are when you transfer the outstanding balance on your credit card to another card, usually one with a lower promotional credit card interest rate, often as low as 0.00%.
A balance transfer can one of the more beneficial credit card offers if you’re looking for a way to pay off debt accumulated from holidays throughout the year. Credit card balance transfers make monthly repayments easier if you’re carrying a debt over a number of bills.
Lower credit card interest rates won’t last forever
Just be warned, the promotional credit card interest rate usually reverts to a higher rate after a certain number of months, generally 6 to 12 months, according to the products CANSTAR included in the 2016 star-ratings credit card report. Make sure you pay off your debt within that timeframe, in order to avoid paying higher interest rates. Check out the credit cards available on the CANSTAR database to make a shortlist of products that might suit your needs.
Credit card traps to be aware of
Once you settle on one of the credit card offers, or find a credit card that suits you, remember to use your new spending powers wisely. Here are a few spending traps to be aware of: