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Thread: The best no annual fee credit card with a low interest rate.

  1. #1
    Gav
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    The best no annual fee credit card with a low interest rate.

    I'm often asked about the best no fee credit card with a low interest rate so people can get themselves out of debt problems. Sadly there's not a great one out there, in those circumstances the best would be to get a no fee balance transfer credit card and consolidate all your debt into that one card... However not everyone can get these, sadly you often need a good credit record to get one!

    that said Bank West are offering a good deal, it offers no annual fee, the lowest APR - Annual Percentage Rate - for a credit card without a fee and what's more it offers 9 months interest free on balance transfers!

    Sadly the interest rate once the 9 months is up is 17.99%, that however is the lowest for the no fee credit cards in Australia.

    Bank West Zero Special MasterCard:
    find out more here: No Annual Fee Credit Card - Apply for a Bankwest Zero MasterCard&reg

    Also the 6th Month no fee MasterCard from Bank West:
    Zero MasterCard
    No Annual Fee Credit Cards

    If it were me and I was getting this card, I'd take these steps to try and minimise debt:

    I'll list it in 2 ways, those that know they can have money in a bank account and not touch it, and the best option for those that know if there's money available they'll burn through it.

    If you know you can have money in an account and not spend it approach:
    1: Do not add anything extra to the credit card debt
    2: Find out the minimum you have to pay per month
    3: pay the minimum each month
    4: open a high interest rate cash savings account, something like the RAMs or ING Direct listed on the instant access savings page and put as much as you can into there for the 9 months.
    5: before the interest free period is up take your savings out and pay off as much as you can
    6: If you need to find another credit card that offers interest free balance transfers it's a good idea to repeat the cycle until you have removed your debt and you're actually getting a small amount back in interest.

    If you can't trust yourself with cash sitting in a savings account approach:
    1: Do not add anything extra to the credit card debt
    2: Pay off as much as you can each month
    3: try to pay all outstanding debt by the 9th month.
    4: If not possible, look at other balance transfer credit cards, there are a few out there now that offer 6 or 9 months, just steer clear of the ones that charge a fee, as you don't want to be adding to the debts.



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    Gav a great article on credit card consolidation, a few companies offer debt consolidation loans that are also worth looking into, Gav's post over here mentions them: 2 year interest free on balance transfer credit cards in Australia?

    The reason I went to reply to this message was I think you've got your numbers wrong Gav, you've got that the Bankwest interest free balance transfer last 9 months and then you say once the 6 month period expires the interest rate reverts to 17.99%, should that be 9 months and not 6 months?
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    Gav
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    Thanks MoneySavingExpert I've fixed the error, glad you picked it up.

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    Hi all, just wondering what the user's experiences with balance transfers were? To cut it short, were they accepted?

    Rather than start a new thread I thought I'd just add on here.

    Basically what happened is I paid my tax bill with my credit card, leaving me with about 10k in credit card debt. Now since I'm pretty damn strict on myself, I have been putting money away since I knew I would be payable and have all the money. I was looking at changing credit cards anyway and by doing a balance transfer meant that I could keep the money in Ubank a little while longer.

    The balance transfer I tried was the ANZ platinum rewards. (ANZ Rewards Platinum - Platinum Credit Cards | ANZ). Which has the same terms 0% for 9 months, however it has an annual fee. I got knocked back online and was given the "you will get a letter in 7 days treatment".

    Basically I don't really mind either way as all it means is that I can't stooze the money longer than I already have, but 10k for 9 months at Ubank interest rates is probably worth about 270 odd bucks.

    Keen to hear peoples experiences, cheers!!!

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    Gav
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    Hi the_bingster, welcome to the website.

    I've had pretty good luck with ANZ in the past, sadly never online but going into the branch. I used the one in St Leonards Sydney for about 4 years and they worked great. I left Westpac to ANZ without problems, at the time ANZ only gave 3 months interest free on balance transfers and the card was $10 a year.

    I'd missed 2 payments over 2 years with my westpac card (was on holiday both times and forgot to pay, I've gotten a lot better at managing my money after those fees!) but in general had a decent credit record with bills from AGL, Telstra land line and mobile phone always paid on time.

    Maybe worth checking your credit record: How do I get a copy of my credit report? - OAIC

    From what I understand another thing they will check how much available debt you have, so if there's credit cards you don't use, it's often worth getting rid of them.

    Also ANZ are offering a no fee 9 month stoozing card, it's the top one on here:
    Credit cards with interest free balance transfers, comparing cheapest 0% transfer cards. - pages hopefully have an overhaul to make them cleaner and easier to find the details in the near future.


    Good luck, and feel free to ask more questions, not an expert but do try, feel free to keep us up to date.
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    Hey mate thanks for all the helpful hints. Interestingly enough, I'm also moving over from WBC to ANZ.

    Got an email today saying I'm approved for a 15k limit so that brings my total limit to over 35K which is pretty scary!!! I will close the WBC one once the balance transfer happens. (I have a 28 degrees mastercard for when I go overseas)

    I was tossing up between ANZ and Bankwest's offer of 0% 9 month, no annual fee. The Bankwest one even had no foreign transaction fees which is a bonus. The reason I chose the platinum rewards was for the points, a quick view of my history of spending shows that the bonuses I get from points outweighs the annual fee of $149. My current WBC annual fee is 250.

    So far ANZ have been really fast. Apparently I'll get my card in a couple of days.
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    Gav
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    fantastic! I got 15K from ANZ and must agree scared me too! never needed that much, but was helpful in the cases of emergency, after the interest free period ended, I would buy the most expensive items right at the start of the period before having to payback the debt and that'd give me 55 days interest free, and that bit extra interest from savings.

    I will admit I've not looked a lot at the rewards for credit cards, you think they're worth it, or does the spending have to be quite high to be worth it?

    the 28 degrees travel card is a very good deal for travel, and I gather for buying from overseas online?

    Travel Card with No International Fees - 28 Degrees MasterCard

    Also good deal for no fees! Credit Card with No International Fees - 28 Degrees MasterCard

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    I'm interested in a new card what are the points worth for the ANZ Platinum? I looked here: ANZ Rewards Platinum | ANZ and it says

    Earn 3 Reward Points for every $1 spent on purchases using your ANZ Rewards Platinum American Express® card and 1.5 Reward Points for every $1 spent on purchases using your ANZ Rewards Visa Platinum card

    What are the points worth in $/cents?

    The Bingster what are you getting interest rate wise at UBank? 4.66% seems to be their top offer now: UBank - A good place for money - Backed by NAB. that's pretty good at current rates.

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    Hi guys. I did the detailed mathematics on the rewards points a while back and I can’t remember exactly what the breakeven point is. It depends on a whole heap of variables, it may not really worth it for “stuff” or “gift vouchers” but it can be worthwhile for flights, but even now with air asia around, it might not even be worthwhile for that?

    A quick calculation using a gift voucher:
    100aud gift voucher (from ANZ rewards) is 19980 (rebel, myer, jb hi-fi, david jones, kmart etc)
    150aud gift voucher is therefore 29970 (149 is the annual fee)
    At a ratio of 3points=$1 that’s about 10000 you need to spend a year (that’s assuming 100% spend on AMEX)
    At a ratio of 1.5points=$1 that’s about 20000 you need to spend a year, assuming 100% spend on visa.

    If you have a family then I assume spending 1k+ a month on living is pretty easy; as usual you need to be careful that the lure of points does not actually change your psyche ever so slightly which actually increases your (useless) spending, which I have been guilty of. I am in a different boat to most people as I have payable tax, rather than a refund. So from time to time I will need to go close to the full 15k limit, sometimes even greater than it.

    The 28 degrees card is awesome for travel. I highly recommend it. I keep the balance usually at 0, but before travelling I budget a daily cash expenditure and BPAY that amount in, leaving the card with a credit amount. When I get to my destination I go to an ATM and take this amount out as a cash advance. Essentially I’m using my credit card as a bank account, the cash advance doesn’t attract any interest as the card was in credit. It has been my experience that the rates are very good, much better than going to a forex place, their spreads are way too high. Sometimes it even beats XE - The World's Favorite Currency and Foreign Exchange Site. Depending on your location, sometimes the ATM does not even charge a fee. If the ATM does charge extra, it’s usually around the usual 2 bucks charged if you use another branded ATM here. That charge is still less than the service fee of most forex places. As you mentioned it’s great for buying overseas as well, as you don’t have to pay the 3% charge that most credit cards have. The downside is having two credit cards greatly reduces the amount you can get in a homeloan.

    DealDude I’m on 4.66% with Ubank, it’s been a good account over the years.
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    Good to see people thinking about Stoozing as this is a good way to put your money to work, take advantage of interest free periods to make some money and earn points as well. If you've got $10,000 in Ubank and are getting the 4.66% that Dealdude mentioned for 9 months that would be an earning of $349.50 before tax in interest.

    Looking at the rewards points for a $100 Myer card - ANZ Rewards - Reward Details work out at about half a cent each point ($0.005005005). If you get 3 for every $1 you're earning 1.5% in rewards. Other rewards from ANZ offer different rates and it's hard to give an exact value.

    To cover the cost of the card in rewards points, only looking at the $150 Myer gift card you'd need to spend roughly $10,000 a year. edit- made a mistake first time it was $6,660 for the $100 and $3,330 for the $50.

    At a reduced price from the $250 to $149 you are already better off and the extra interest will be a great help as will the rewards. You've done well with this one!

    Do you know if you get rewards points for the balance transfer?

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