The American Express Low Rate credit card is a product of American Express, as the name implies. Moreover, American Express only provides this credit cards in this category. If you desire flexibility with your monthly payback, this product is perfect for managing cash flow and minimizing interest costs. It features American Express’ lowest Buy interest rate of 8.99% p.a. and up to 55 interest-free days. The 5% lowest purchasing rates are among the finest using this card. Moreover, the product has no annual cost, the lowest standard annual price offered by American Express. As a result, this card is one of a select few that continuously waives annual fees.
Given its main benefits, this card is best suited to someone who wants the assurance that the interest rate will be reasonable if they occasionally pay it. No further cardholder fees are one of the added benefits. Please be aware that American Express card acceptance is typically less widespread than Visa and Mastercard in the Australian market. Also, compared to Visa and Mastercard, American Express cards have a higher level of merchant surcharging, however, some businesses may also charge a surcharge for these cards.
Card Details
Category: Low Rate Credit Cards, No Annual Fee Credit Cards and Balance Transfer Credit Cards
Card Type: American Express
Minimum Credit Limit: $1,000
Minimum Income: $50,000
Additional Cardholders: 4
Additional Cardholder Fee: $0 p.a.
Minimum Repayments: 2.5%
Contactless Payments: Apple Pay, Fitbit Pay, Google Pay and Samsung Pay
Purchase Rate: 8.99% p.a.
Late Payment Fee: $30
Annual Fee: $0 p.a.
Foreign Transaction Fee: 3%
Interest-Free Period: 55 days
Balance Transfer Period: 12 months
Balance Transfer Rate: 0% p.a.
Balance Transfer Fee: 1%
Pros:
- No yearly charge.
- 8.99% p.a. is the low-interest rate on purchases.
- Purchases are interest-free for up to 55 days.
- 4 more cards are available at no extra charge.
- Pay down your credit card amount in equal monthly installments with Plan ItTM Instalments, which has 0% p.a. interest and a set monthly charge.
Cons:
- No balance transfer offer
Benefits
The American Express Low Rate Credit Card has no annual fee and a low-interest rate to assist cardholders to save money while still having access to credit.
Cardholders can take advantage of retail security in the form of a Card Purchase Cover, Card Refund Cover, and Fraud Protection Guarantee, as well as up to 55 days of interest-free shopping.
Let us take you through some more benefits that this card has to offer.
Competing low-cost cards.
Several credit cards with no annual charge are available, including the St. George No Annual Fee Credit Card and the MoneyMe Freestyle Virtual Credit Card. The issue is that their continuous purchase interest rates are significantly higher.
There are further cards with low-interest rates, such as the Bankwest Breeze Mastercard and the St.George Vertigo Visa, however, most of them include annual fees, even if they are waived the first year.
Minimal but valuable insurance protection.
Since this is not a card for frequent travelers, it does not offer access to airport lounges, international travel insurance, car rental excess coverage, or any of the other benefits included in cards with high annual fees. Yet, it does contain two useful insurance coverage for those who want to use the card for more than just gas or grocery store purchases.
A $50 extra will be charged along with a maximum of $2,500 per claim ($20,000 maximum in a year) and 90 days of coverage against loss, theft, or damage to purchased things. In the event that you change your mind about a purchase or discover that a present has been duplicated, for example, there is also helpful protection against stores refusing to accept unused products for return within 90 days. In the event that the seller declines to accept the goods back and issue a refund, Amex will (up to a maximum of $500 per item and $2,000 annually).
Very low ongoing purchase interest rate
This rate isn’t simply cheap for purchases; it’s the lowest offered by Amex and typically one of, if not the lowest, credit card rates in Australia at any given moment. Compared to the company’s other cards, which often have carried-over purchases interest rates of more than 20% annually, it is clear that this card is targeted at a distinct segment of the market.
Of course, the interest rate won’t matter if you utilize the interest-free days (up to 55) by paying off your debt in full each month. Moreover, keep in mind that this card does not allow cash advances, which is why there isn’t a cash advance interest rate listed.
The ideal yearly cost
Without the added benefit of up to four supplemental cards at the same cost, there is nothing more gratifying than this card’s $0 annual charge (for every year, not just the first). Therefore, don’t anticipate receiving any frequent flier or reward points. That kind of card it is not.
Why should you choose this card?
If you’re in the market for a credit card that’s low on interest and big on perks, the American Express Low Rate Credit Card is definitely worth considering. With a competitive purchase rate, no annual fee, and a range of features, this card could help you save money while rewarding you for your spending.
One of the standout features of this card is the Plan It™ Instalments. It’s a flexible payment option that lets you split your credit card balance into equal monthly installments, interest-free. This feature is perfect for those who want to manage their cash flow and avoid paying high-interest charges. However, it’s important to review the terms and conditions of this feature carefully to see if it’s right for you.
Another great feature of the American Express Low Rate Credit Card is the range of coverage it offers on purchases. With Card Purchase Cover, you can enjoy peace of mind knowing that your purchases are protected for up to 90 days if they’re stolen or accidentally damaged. Plus, with Card Refund Cover and an online Fraud Protection Guarantee, you can shop with confidence knowing that you’re covered if anything goes wrong.
Overall, the American Express Low Rate Credit Card is a great option for those who want to save money on interest while enjoying a range of benefits. With no annual fee and a competitive purchase rate, it’s a card that’s well worth considering if you’re in the market for a new credit card.
Conclusion
The American Express Low Rate Credit Card is a credit card that offers low-interest rates and no annual fees, making it a good option for those who want to save money while still having access to credit. It also offers up to 55 days of interest-free shopping and the ability to add up to four additional cardholders at no extra charge. Other benefits include a low ongoing purchase interest rate, minimal but valuable insurance protection, and no cash advance interest rate.
The card does not offer a balance transfer offer or reward points, but it does offer the Plan It™ Instalments feature, which allows cardholders to split their credit card balance into equal monthly installments, interest-free. Overall, the American Express Low Rate Credit Card is a good option for those who want a low-cost credit card with useful features and benefits.