It depends on many things. Do you pay your balance monthly? Are you good with your monthly budget? If so, it doesn't matter what the interest rates are and instead look around for a good rewards program.
I have a great card with Westpac - it's an Amex/Mastercard platinum card and it costs $290 per year - may sound like a lot but we buy EVERYTHING on it and pay it off each month and accumulate heaps of points. I don't even know what the interest is. You can use the points to pay the annual fee, buy things and get gift vouchers for heaps of places like myer and bunnings. In the last few months we've accumulated about $400 worth of vouchers - for nothing! Also, when we travel, if we buy our tickets with the card, we automatically get travel insurance, which can also save hundreds. I used that insurance policy in 2007 when I had to claim an emergency flight to escape a dangerous situation (due to a politically motivated riot in Nepal with 35 people killed, buildings burnt, looters etc.) and apart from a $200 excess, they reimbursed us for the cost of the flight.
I also do balance transfers at 0% interest. We paid for our home reno last year mostly on credit card and then did 2 balance transfers onto two new cards - one at 4mths at 0% (Paid off last week
) and one at 6 months (almost there!). Then once paid off, we cancel the cards. We're running out of banks to do that with though
If you're good at managing your money and cashflow, this is definitely the way to go. I'm not good like that but thankfully my husband is. He runs spreadsheets and tracks all our spending. He's fantastic at managing it all and makes the banks work for us!
If you don't pay your balance off each month, then shopping around for a cheaper rate is the best way to go. 9.99% sounds pretty good.
Just keep moving! And don't be lazy...
SW: 74.3kg - 1/1/09
CW: 71.1kg - 3/5/09