Low Rate
Credit Card

What is a low rate credit card?

A low rate credit card typically has a lower interest rate than standard credit cards. This lower interest rate can benefit cardholders who tend to carry a balance on their credit card from month to month. It means that when you carry a balance forward to the next month on your low interest rate credit card, you’ll incur less interest expense. However, the lower cost of this credit card also typically means less perks and rewards than a standard credit card. Perks that you would normally find on a credit card, like complimentary insurance or rewards points programs may not be offered with a low rate credit card. So while you may save on interest charges, you may not enjoy the same level of benefits.

What is the purchase rate on credit cards?

The purchase rate on a credit card is the interest rate that is charged on purchases you make using the credit card. It’s essentially the cost you incur if you carry a balance on your card by not paying off your full statement balance by the payment due date. Interest is charged at the end of each statement period.

What is the interest charged on credit cards?

The interest rate that is charged on your credit card is essentially the cost of borrowing money through the credit card. When you make purchases, or carry a balance on your card, the issuing bank or lender charges you interest on the amount you owe. This can be offset by taking advantage of interest free periods or other promotional offers. Understanding your credit card’s interest rate and any associated terms is essential to ensure that you maximise the benefits of your credit card, while minimizing the cost of borrowing.

How does interest work?

When an amount is charged to your Account, it’s the same as us lending you that amount. And like a loan, we will charge your Account with interest, unless the amount is a part of the Retail Purchase Balance and an interest free period applies.

How you incur interest on each transaction depends on the type of transaction. The interest rate or Annual Percentage Rate for Cash Advances, for example, is typically higher than the Annual Percentage Rate for Retail Purchases.

How does the interest free period work?

You'll enjoy interest-free days on all purchases, provided you repay the full balance on your card each month, excluding any Instalment Plan balances or Balance Transfers which aren't due for payment by that payment due date.

Interest free periods also don't apply to Cash Withdrawals and you will incur interest from the date the transaction is made (regardless of whether the Account is repaid in full each month).