The same principles of using credit still apply to low rate cards. So don’t be fooled by its low ongoing rate as this will still end up costing you big bucks in the long run. With some discipline and a little knowledge you can learn how to use credit wisely and even where you can save by using these products to their full potential.

The general features of a low rate credit card are:

* Low annual fee
* Low ongoing interest rate
* 0% or low rate on balance transfers for up to 6 months
* Interest free period is usually the same as other credit cards

Companies such as BankWest, St George, Commonwealth Bank, Macquarie Bank, Aussie and even Woolworths are offering low rate cards with ongoing interest rates below 12 per cent and balance transfers rates of 0%. This 0% rate is usually offered on balance transfers up to the first 6 months. This may help to offer some temporary relief on making those payments, but after this time frame the rate will revert back to the standard rate and you’ll find yourself back in a debt bungle again.

To avoid being swamped by your repayments after the intro period ensure you know what your ongoing rate is once your intro period is up. And use the time before this to save and catch up on making all your repayments. You may find that the ongoing rate is higher than your current credit cards. If so, avoid taking out the card altogether as this won’t help you manage your debt at all. However in a situation where the rate is lower, you might find that rolling all your other credit balances into one card could help you gain control on the exact amount of repayments you need to make each month.

If you are considering applying for a low rate credit card these are some things which you should consider first:

* Find out what the ongoing rate is after the intro period has ended. This varies from card to card and can sometimes be higher than a standard card
* Know the intro rate and exactly when this expires
* Understand how balance transfers work and if there is an extra interest charge for additional purchases
* Understand how your credit cycle works and how your ‘interest free’ period works. This will help you pinpoint exactly what day a repayment will need to be made for a purchase.
* Make an effort to payback more than the minimum repayment each month. Paying back only the minimum amount isn’t actually enough to clear your debt
* Find out what is your annual fee. A higher fee might not be cost effective. See if this can be redeemed with points or reduced by having another account with your institution
* Change your spending habits or don’t bring a credit card out with you at all

Articles from Web RateCity Au

Following the acquisition of Wizard Home Loans in February 2009, Aussie now has a loan book currently worth close to $30 billion, with more than 250,000 customers being serviced 24 hours a day, seven days a week by Aussie’s mobile lending force of more than 800 mortgage advisers.

Aussie now has a loan book currently worth close to $30 billion since the acquisition of Wizard Home Loans in February 2009.Aussie’s mobile lending force are more than 800 mortgage advisers, a great effor by ounder and Executive Chairman of Aussie, Mr John Symond, who are responsible for this success which leads to business expanding to ational mortgage broking service, car and personal loans, general and life Insurance and the low rate Aussie MasterCard.

All of Aussie’s products and services are accessible via its national contact centre (on 13 13 33) or by visiting www.aussie.com.au