Our review of the American Express Low Rate Credit Card
Once you’ve spent as much time as we have comparing credit cards, you’ll know that’s it’s not all glossy features, extravagant extras and enticing rewards programs. While those certainly are appealing, sometimes you have to go for the simple option. When money-saving is more important than perks, we’ve found simple is almost always better.
Which is exactly what the American Express Low Rate Credit Card is offering. While it may not have the wow factor of some other American Express options, the American Express Low Rate Credit Card could help you save some serious money – especially if you tend to carry a balance month-to-month.
With a super low rate – and 2.99% p.a. on purchases for the first six months – this card could be a real money-saver. And because it’s brought to you by American Express, you know it’s got all the basics covered too, with exceptional customer service, security and account accessibility always easily at hand.
What we love...
As you would expect, the thing we love most about the American Express Low Rate Credit Card is its low cost. Not only does it have a low annual fee, it also has a low standard purchase rate. Add to that its introductory offer – giving you 2.99% p.a. on purchases for the first six months – and this card turns out to be a real low-cost winner.
One of the other great things about the American Express Low Rate Credit Card is its simplicity. Credit cards packed with features and rewards can get somewhat complicated. You have to find out how those features and rewards work in order to make the most of them. Otherwise you are paying for extras that you don’t really use.
Of course, the American Express Low Rate Credit Card provides all the basics you need in a card, including account accessibility, security and customer service. But that’s it. No need to worry about intricate rewards programs or complex features with heaps of small print. As long as you understand what you’re getting, this card is pretty awesome.
What’s not so great...
While the card’s purchase rate is nice and low, its cash advance rate is much higher. There is also a $2 fee for cash advances within New Zealand and a $5 fee for cash advances overseas, and unlike purchases, there are no interest free days. This is pretty standard for credit cards, so the best thing to do is avoid cash advances altogether.
There are other fees to be on the lookout for as well, with a $25 late payment fee and $25 dishonour fee lurking around, potentially making life expensive for you. However, if you avoid unnecessary fees and treat your card correctly, then there’s really not much to complain about with the American Express Low Rate Credit Card.
Why should you choose this card?
Looking for reasons to apply for the American Express Low Rate Credit Card? Read on to find out why applying for this card may just be the best thing you do today.
Everyone loves a good introductory offer! Giving you 2.99% p.a. on purchases for the first six months from account opening, this intro offer could help you save money on your spending. Whether it helps you save on interest on your day-to-day spending, or even on a big purchase, this offer lets you pay less in interest, so you can pay down your balance quicker.
Take note that this intro rate does not apply to balance transfers, and only applies to new spending on the card within the first six months. After that introductory six month period, any balance left unpaid will revert to the card’s standard purchase rate. While this is low, it’s best to clear your balance whenever possible to avoid interest charges.
Keeping Costs Low
As the name of the card suggests, this is a low rate card, so it helps to save you money on interest. But, with a relatively low annual fee, the American Express Low Rate Credit Card can also help to keep costs low with minimal output in the form of fees.
As a cardholder, you can also benefit from up to four supplementary cardholders at no extra cost, helping to save you even more money. Bear in mind that supplementary cardholders must be 18 years or older, and as the primary accountholder, you will be liable for all spending on supplementary cards on your account.
In terms of further interest savings, the American Express Low Rate Credit Card gives you up to 55 days interest free on purchases. Again, this could come in handy for everyday spending or when making a larger purchase. All you need to do to take advantage of this is clear your balance by the due date – and read the terms and conditions to ensure you understand how it works!
American Express is known for its customer service, so as a cardholder, you know have support should you need it. The American Express Low Rate Credit Card offers an Online Fraud Protection Guarantee, helping to keep you safe when shopping online, as this guarantee means you will not be held liable for any unauthorised charges.
You can also benefit from emergency card replacement, from pretty much anywhere in the world. If your card is lost or stolen, simply call American Express, and they will usually have it replaced within 48 hours. This is also backed up by Global Card Support available day and night, and online access to your account via smartphone, tablet or computer.
A simple, low rate credit card with an affordable annual fee, backed by excellent customer service, easy accessibility and an introductory purchase rate of 2.99% p.a. for the first six months.