My Criteria

There are hundreds of credit cards and countless criteria for making a choice. They’re all trying to stand out from the pack.

Funnily enough the ANZ Low Interest Rate Mastercard that I recommended is a pretty boring card – but it’s got it where it counts.

The important criteria…

Because interest will be your biggest expense and you’ll probably have the card for ages, the interest rate on purchases is important.

Here’s why…

• More affordable for making purchases on your card. Make purchases on your card and repay them at a low interest rate, keeping control of your balance and long term cost.
• Reduce your credit card balance and repayments. As a general guide if the interest rate on your current credit card is 15% or more, you should opt for a balance transfer to a lower rate credit card to pay off your existing card
• Ideal if you have a revolving credit balance. If you don’t completely pay off your card balance each month like most people, you should definitely have a low interest rate to ensure you pay the least amount of interest.

Some credit card providers offer a low teaser rate on purchases for a set time period to entice you into getting that specific card, i.e. 3% for the first six months, after which time the interest will return to the standard rate.

I didn’t get too distracted by this when I made my choice – that’s just short sighted behaviour. I focus on the interest rate that will apply in the long run.

Again the ANZ Low Interest Rate Mastercard is the one. I don’t mince my words.

Balance on transfers

I paid a lot of attention to this when I made my choice.

A balance transfer is when one credit card repays debts on other credit or store cards; so you now owe money on your new credit card. If you choose the right card, you’ll save interest.

Most people bring a balance over from another card and it’s a great way to get some breathing space and save money.

If you still have a leftover balance after the balance offer expire, the remaining balance will generally revert to the standard interest rate on purchases.

Interest-free on purchases

Although there is no set rule as to how long banks allow for interest-free on purchases, it is generally between 40 – 55 days. This is an extremely useful benefit as it means you can make purchases and not have to pay any interest on them, providing you pay your monthly bills on time.

ANZ Low Interest Rate Mastercard performs well in this category giving you 55 days interest free on purchases.

So if you are well organised you get plenty of time, and if not, the interest rate on purchases is low – hence low rate.

Look no further. Stop dithering and just act on my recommendation.

Other less important considerations when choosing a credit card…

Annual Fee

No annual fee credit cards only benefit people who use their cards very sparingly or for emergencies. Unless you fall into this rare species, don’t get distracted by a super low or zero annual fee. I didn’t when I made my pick.

Even if you occasionally rack up interest, you’ll end up paying more on a no annual fee card than a regular low rate credit card with an annual fee.

As long as it’s under $60-$70, it shouldn’t affect your decision.

After all, when you think about it, if one card has a lower interest rate that could save you a lot of money over a long period of time, then if it’s annual fee if $15 dearer than another alternative, you should just go with the low interest rate.

Once again, the ANZ Low Interest Rate Mastercard comes in at just $58.

Free additional cards

This didn’t weigh too hard on my decision. It tends to be pretty standard.

The ANZ Low Interest Rate Mastercard gives you up to 3 additional card holders at no extra cost.