AMEX has just announced it is slashing its rate on the Low Rate Credit Card from 11.99% to 8.99%, the lowest so far seen across AMEX’s product range. Rates aren’t the only feature changing, however.
Additional benefits include no annual fees and a 0% rate on balance transfers for the first 12 months. This will open new opportunities for AMEX to be in the forefront of Aussie’s minds when previously thought of as a high-end credit card.
Competitors still have a chance of being chosen on top, due to the possibility of being hit with transaction fees from merchants, given its an AMEX branded card.
"When looking at the key drivers of choice for a front of wallet credit card, main bank relationship and rewards program is on top, with interest rates and fees being considered after."
According to RFi Group data, over 1 in 2 credit cards held earn rewards points, which could take out a chunk of potential AMEX cardholders, given the low rate card does not come with access to a rewards program.
The Big 4 and Amex currently lead in future consideration, with the proportion of cardholders likely to approach AMEX steadily increasing over the past year.
When looking at the key drivers of choice for a front of wallet credit card, main bank relationship and rewards programme is on top, with interest rates and fees being considered after.