American Express launches new low interest credit card offer
American Express have launched a new low rate credit card with a very competitive purchase rate.
The Low Rate Credit Card from American Express features a low 2.99% p.a. for 6 months introductory rate on purchases, and a low ongoing purchase rate of 12.69% p.a..
To see how the new card from AMEX compares we prepared an analysis of low rate credit cards in the New Zealand market, we covered the majority of low rate credit cards (those with a purchase rate below 14% p.a.) currently available in the country.
Our analysis found that out of all eight low rate credit cards monitored, the American Express Low Rate Card offers the lowest ongoing purchase rate of 12.69% p.a. as well as the lowest annual fee at $59. It’s also currently the only low rate card with an introductory purchase rate of 2.99% p.a..
We prepared a scenario of a revolving credit card debt of $5,000 each month for our analysis and found that the American Express card charged the least interest after a 12 month period, shown in the comparison table below:
Low Rate Credit Card Analysis
|Issuer||Intro APR||Intro mths||APR||Interest free on purchases||Annual fee||Balance transfer||BT months||Revert rate||Total interest charged after 6 months||Total interest charged after 12 months|
Source: finder.com/nz, ranked by lowest purchase rates, correct as at November 21, 2013.
What does this new low rate card launch mean for consumers?
This is the first time we’ve seen AMEX make such a bold move into the low interest credit card space. It’s crucial that you perform a credit card comparison using the data we have provided above to identify whether or not you could save money by applying for or switching to the new The Low Rate Card from American Express.
We’re expecting more exciting offers from American Express so it’s important to keep monitoring your credit card to see how well it compares to the latest offers in the market.
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