What to look out for with low annual interest rate credit cards

In the last week or so there has been a fair bit of media coverage about the hidden costs behind allegedly 'low cost' credit cards.

With the huge number of new credit card lenders that have broken on to the market, Australian credit card holders are being warned that they may be being taken for a ride.

According to Wizard Home Loans chairman Mark Bouris, "In the last six months in particular, the credit card market has been flooded with new entrants promoting cards with seemingly cheap interest rates and tempting deals".

"However, once you scratch the surface you quickly realise that many cards come with hidden fees and costs."

Mr Bouris warned customers not to be sucked in by promotions of low-rate cards, which may have high interest rates and fees, as well as high annual card fees more than the average $100.

"The advertised low interest rate is not always what it seems," Mr Bouris said.

It's true that different fee structures can be confusing. So that's why it's so important to have as much information as possible at your fingertips where credit cards are concerned.

Get the lowdown on Australian low annual interest rate credit cards