Official interest rates are at a record low but our Hamilton Branch Manager, Ben Burns, poses a question very relevant to credit card holders.
Has your bank reduced your credit card interest rate lately?
The Reserve Bank has cut official interest rates to record levels but many financial institutions have not been as quick to pass on some of that benefit to credit card customers.
The Greater Building Society cut its credit card rates by 1% this month. Our credit card rates now start from a low 9.25%. The Greater Visa Credit Card doesn't just have a low rate. it also has a low $40 annual fee which is waived if you have a minimum spend of $10,000 annually after the first year.
When you bank with The Greater you always know we will pass on rate cuts across all products whenever we can. The major banks have lower funding costs, higher rates and higher profits so they can afford to be passing on more to their customers too.
One of the reasons customers of The Greater enjoy low rates is because as a mutual (customer-owned) financial institution we’re focussed on customers rather than shareholders.
Credit cards are a convenient way to safely and securely pay for goods and services but you need to use them wisely. here are five tips for helping you with credit cards.
- Limit the number of cards you own. Remember store charge cards are effectively credit cards.
- If you can, pay your card off in full each month to avoid interest. If you can’t, pay as much as you can and never pay just the minimum amount on your statement.
- If you get into trouble with cards, get help from your financial institution or a financial planner. Consider redrawing off your home loan or taking out a personal loan to pay off that debt (those rates should be lower than the credit card rate).
- Unless you spend at least $1,000 per month, credit card reward schemes, which often come with higher annual fees and rates, are not always worth it. You need to spend big money and avoid interest charges to get value from them.
- Cards that offer no interest balance transfers are good if you can repay your whole debt within the interest free period. If not, they’re only a short term fix.
What's your credit card tip? Please share it below.