Best Bank Card Transfer Rate

Big spenders win in credit card wars

Alongside the eye-catching deals are increases to fees and rates that could cost a fortune.

In recent days, Barclaycard has launched a card offering interest-free balance transfers for 20 months. This was just days after it had improved its best offer to 18 months to trump rival Nationwide.

Then, last week, MBNA launched a leading rewards card paying up to 1.5% cash for those who shopped in certain supermarkets. There are even tantalising offers for those who want to use their credit card abroad without being hit with foreign exchange charges, which can be as much as 3%.

Credit card companies have had to make massive changes to the way they do business this year. Since January, they have had to change the order in which debts are repaid — so now when you make your monthly repayment, the most expensive debt is cleared first.

Also, new European rules mean that it is easier for banks to advertise one rate, but give you a different one when you apply for a card. Under the old UK rules, a bank could advertise a rate if two-thirds of customers were accepted for it. But the new regime means they can advertise a 'representative' rate provided 51% of customers get it.

It means that, in effect, up to half of customers can be charged around 5 percentage points more than the rate they thought they were going to get.

Kevin Mountford, head of credit cards at comparison website Moneysupermarket .com, says: 'This price war is good for consumers — but it is likely to benefit only the very better off as card companies are being allowed to be more and more choosy.'

So what are the pick of the cards?

Best for balance transfers

Top of the pile in this fiercely fought category is Barclaycard, which is offering 20 months interest-free on its Platinum with Balance Transfer Visa.

But along with this came an increase in the fee for transferring a balance from 2.9pc to 3.2%. Transferring a £5,000 balance will cost £160, compared with £145 previously.

On top of this, the interest rate charged on purchases if you don't clear your balance is hiked from an average 16.9pc to 17.5pc.

Best for purchases

Shoppers need to choose whether they want to have interest-free purchases or cashback.

Choosing the Right Place for your Credit Card Application ...

The choices available nowadays for your credit card application are many and varied. It is competitive and can be misleading for many people who are confused by financial mumbo-jumbo and the fine print, as well as a growing mistrust of the high-street banks.

Getting a credit card in Australia is certainly not without its’ headaches but, thankfully there is a lot of online help available with sites that aggregate information from all the credit card suppliers and present it to you in a clear and meaningful fashion, helping you to choose the right credit card for your personal circumstances.

The quality personal finance sites will provide features and articles on how to find the best credit card in Australia, to help with your choice, along with a way to submit your credit card application online securely and efficiently. They will regularly update their site with new offers from the credit card companies to allow you to compare which ones fit in best with your lifestyle and your personal financial situation.

Sites like LowerBills will offer you special interest rates and you can accumulate bonus reward points too. They make it even easier by allowing you to sort through the credit card offers by the issuing Bank, annual fee, balance transfer rate, interest-free days or cash advance rate and also keep a Top 10 credit cards listing for a quick reference guide.

In addition to the above factors you may be looking for a credit card applications that allows you to gain frequent flyer points or build reward points for claiming cash back, especially if you will be using your card frequently. On the LowerBills site you will see such cards listed, with all their key features; there will be details on the Reward program and how much you need to spend to gain points and what the cash back arrangement is.

Consider carefully how you will be using your card as that will affect your choice. If you will be using your credit card in Australia for a particular large purchase you may benefit from looking at one with an introductory low purchase rate.

For more information regarding credit card applications , credit card offers and credit card in Australia , please visit: www.lowerbills.com.