Westpac Low Interest Credit Cards – Westpac Low Rate Credit Cards

Below are all the Westpac low interest credit cards currently available. For more low interest credit cards visit our low interest credit cards page, and for all Westpac credit cards please visit the Westpac credit cards page.

Updated: 24 Dec, 2024

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Card	Description	Purchase Rate (p.a.)	Balance Transfer	Cash Rate (p.a.)	Annual Fee	Interest Free Days
Westpac Fee Free MasterCard Credit Card Platinum Award	Comes with a low rate of just 12.90% p.a. plus 5.95% p.a. for the life of the balance transferred to this card. it also comes with no annual fee, no cash advance fee and no foreign transaction fees.	12.90% p.a.	5.95% for life of balance transferred	19.95% p.a.	$0.00	55 days More Info » Apply Now »

^ To help you compare reward points across different credit cards and rewards programs, we provide an estimate of the cash-equivalent of the reward points that you will get back for every $100 you spend on eligible purchases with your card. The cash equivalent value given is an estimate only based on a specific redemption example. In some cases you might earn less or more depending on how you redeem your ponts and some reward points cannot be redeemed for cash directly. Click on the card to find out how the estimate was calculated.

Understanding Low Rate Credit Cards

What Defines a Low Rate Credit Card?

A low rate credit card is a credit card with a lower interest rate compared to standard credit cards. These cards are designed to help you save on interest charges, making them a good option if you tend to carry a balance from month to month. Typically, a low rate credit card will have an interest rate starting from around 13% per annum.

How Low Rate Credit Cards Work

Low rate credit cards work by offering a reduced interest rate on purchases and sometimes on balance transfers. This means you will pay less in interest if you do not pay off your balance in full each month. Many low rate credit cards also come with an interest-free period on new purchases, usually up to 55 days, allowing you to manage your finances more effectively.

Common Features of Low Rate Credit Cards

Low rate credit cards often come with the following features:

Lower Interest Rates: As the name suggests, these cards have lower interest rates compared to standard credit cards.
Balance Transfer Options: Many low rate credit cards offer balance transfer deals, allowing you to transfer existing debt from a higher interest card to a lower interest one.
No or Low Annual Fees: Some low rate credit cards come with no annual fees or lower annual fees compared to other types of credit cards.
Interest-Free Periods: These cards often provide an interest-free period on new purchases, giving you time to pay off your balance without incurring interest.

Understanding these features can help you decide if a low rate credit card is the right choice for your financial needs.

Benefits of Low Rate Credit Cards

Lower Interest Payments

One of the main advantages of low rate credit cards is the reduced interest payments. With a lower interest rate, you can save a significant amount of money over time, especially if you tend to carry a balance from month to month. This can make managing your finances easier and less stressful.

Debt Consolidation Options

Low rate credit cards can also sometimes be a useful tool for debt consolidation. By transferring balances from higher interest credit cards to a low rate card with a low balance transfer rate, you can reduce the amount of interest you pay and potentially pay off your debt faster. This can simplify your financial situation by having all your debt in one place.

Financial Flexibility

Having a low rate credit card can provide you with greater financial flexibility. Whether you need to make a large purchase or cover unexpected expenses, the lower interest rate means you won’t be paying as much in interest charges. This can give you more freedom to manage your money and make financial decisions that are best for you.

Comparing Low Rate Credit Cards

Interest Rates and Fees

When comparing low rate credit cards, it’s essential to look at the interest rates and fees. These cards typically offer lower interest rates than standard credit cards, but the rates can still vary. Make sure to check the annual percentage rate (APR) and any additional fees, such as annual fees or late payment charges.

Balance Transfer Offers

Many low rate credit cards come with balance transfer offers. These can be a great way to consolidate debt from higher-interest cards. Look for cards that offer a 0% introductory rate on balance transfers for a set period. Be aware of any balance transfer fees that might apply.

Additional Perks and Benefits

While low rate credit cards focus on offering lower interest rates, some also come with additional perks and benefits. These might include rewards programs, cashback offers, or travel insurance. Evaluate these extras to see if they add value to your financial situation.

How to Choose the Right Low Rate Credit Card

Assessing Your Financial Situation

Before selecting a low rate credit card, it’s crucial to understand your own financial situation. Ask yourself if you can pay off your balance each month. If you often carry a balance, a low rate card can save you money on interest. However, if you pay off your balance regularly, a rewards card might be more beneficial.

Evaluating Card Terms and Conditions

Carefully read the terms and conditions of any credit card you are considering. Look for details about interest rates, annual fees, and any other charges. Some cards offer low rates but have high fees, which can negate the benefits. Make sure you understand the interest-free period for new purchases and any balance transfer offers.

Considering Long-term Costs

Think about the long-term costs associated with the credit card. While a low rate is attractive, other factors like annual fees, late payment fees, and balance transfer fees can add up. Compare different cards to find one that offers the best overall value for your needs. Remember, the goal is to minimise costs while maximising benefits.

Common Misconceptions About Low Rate Credit Cards

Impact on Credit Score

Some believe that using a low rate credit card will hurt their credit score. This is not true if you use the card wisely. Paying your bills on time and keeping your balance low can actually help improve your credit score over time.

Hidden Fees and Charges

People often worry about hidden fees with low rate credit cards. While some cards do have extra fees, you can avoid surprises by reading the terms and conditions carefully. Look out for things like annual fees, late payment fees, and balance transfer fees. Knowing these details can help you avoid unexpected costs.

Tips for Managing Low Rate Credit Cards Effectively

Paying Off Balances on Time

Always aim to pay off your balance in full each month. This practice helps you avoid interest charges and keeps your debt from growing. If you can’t pay the full amount, try to pay more than the minimum to reduce your interest costs.

Avoiding Unnecessary Purchases

Be mindful of your spending. Only use your low rate credit card for necessary purchases. This will help you stay within your budget and avoid accumulating debt.

Monitoring Your Credit Card Statements

Regularly check your credit card statements for any errors or unauthorized charges. This habit ensures that you are only paying for what you have actually purchased and helps you spot any potential fraud early.

Alternatives to Low Rate Credit Cards

Reward Credit Cards

Reward credit cards offer points or cashback for every dollar you spend. These points can be redeemed for travel, merchandise, or even statement credits. If you pay off your balance each month, a reward credit card can be more beneficial than a low rate credit card.

Cashback Credit Cards

Cashback credit cards give you a percentage of your spending back as cash. This can be a great way to save money on everyday purchases. Look for cards that offer higher cashback rates on categories you frequently spend in, like groceries or fuel.

Personal Loans

Personal loans can be a good alternative if you need to consolidate debt or make a large purchase. They often have fixed interest rates and set repayment terms, which can make budgeting easier. Unlike credit cards, personal loans provide a lump sum of money that you repay over time.

Frequently Asked Questions

What is a low rate credit card?

A low rate credit card is a type of credit card that offers a lower interest rate compared to standard credit cards. This means you pay less interest on your outstanding balance each month.

How do low rate credit cards work?

Low rate credit cards work just like regular credit cards, but they come with a lower interest rate. This makes them a good option for people who tend to carry a balance from month to month.

Are there low rate credit cards with balance transfer offers?

Yes, some low rate credit cards offer balance transfer deals. These deals often provide an even lower interest rate on the transferred balance for a set period, usually between 6 to 12 months.

What should I consider before getting a low rate credit card?

Before getting a low rate credit card, consider your spending habits and financial needs. If you pay off your balance in full each month, a reward credit card might be better. But if you carry a balance, a low rate card can save you money on interest.

Do low rate credit cards have hidden fees?

Some low rate credit cards might have hidden fees, so it’s important to read the terms and conditions carefully. Look out for annual fees, late payment fees, and balance transfer fees.

Will a low rate credit card affect my credit score?

Using a low rate credit card responsibly can help improve your credit score. Make sure to pay at least the minimum payment on time each month and keep your balance low relative to your credit limit.

What is the best credit card in NZ?

The best credit card for you would depend on your personal circumstance and how you intend to use your credit card. We have put together a list of some of the best credit cards in New Zealand to help you find the best credit card in NZ to suit your individual needs. Alternatively, you can narrow down your search by credit card type such as Airpoints credit cards, interest free credit card, low rate credit card, balance transfer, credit card reward or air nz credit card