Save money when you make purchases or carry a balance on a low interest rate credit card.
Use this guide to compare low rate credit cards, including those that offer 0% p.a. interest for an introductory period. You can also find out how much you could save by switching to a lower interest rate credit card and learn about the different features to compare, so that you can choose a credit card that works for you.
Low Interest Rate Credit Card Offer
NAB Low Rate Platinum Card
0% p.a. for 9 months
on purchases
Eligibility criteria, terms and conditions, fees and charges apply
Low Interest Rate Credit Card Offer
With a new NAB Low Rate Platinum Card, get 0% interest for the first 9 months on purchases. Plus, a range of platinum benefits.
- 0% p.a. interest on purchases for 9 months from account opening. Reverts to the standard purchase rate (currently 13.99% p.a.)
- Receive seven complimentary insurance covers when you make an eligible purchase. Plus, access to the 24/7 NAB Concierge Service.
- Up to 55 days interest-free on purchases when you pay your balance in full by the statement due date.
- 0% p.a. interest on balance transfers for 6 months with a one-time 2% BT fee. Reverts to the cash advance rate thereafter.
- NAB may vary or end this offer at any time.
Compare the latest low interest rate credit card deals
You can apply for any low rate credit card listed here by clicking on the "Go to site" button. This will take you to the bank or credit card company's secure online credit card application. There is no fee for applying from this page.
Compare these low interest rate credit cards trending now
- Bank Australia Low Rate Visa Credit Card. A credit card with an ongoing interest rate of 9.39% p.a. (variable) for purchases and cash advances.
- McGrath Pink Visa Credit Card. This charity credit card has a standard variable interest rate of 8.99% p.a. and supports the McGrath Foundation.
- NAB Low Rate Platinum Card. Get a low purchase rate and platinum perks, including overseas travel insurance, with this credit card.
- Virgin Money Low Rate Credit Card. A credit card with a low ongoing purchase rate of 11.99% p.a. (variable).
How do low interest rate credit cards work?
What is a low interest rate credit card?
Low rate credit cards give you a way to save on debt from new purchases by offering an ongoing interest rate that is lower than the purchase rates offered by standard credit cards. This means the amount of interest you pay on your balance will also be lower compared to what you'd be charged on a card with a higher rate. While credit cards in Australia typically have interest rates that range from 15-22% per annum (p.a.), low interest rate cards offer standard variable rates as low as 8.99% p.a. Some cards even offer introductory 0% interest rates on purchases for a fixed period of time.
If you regularly pay with plastic and carry a balance on your credit card, a low rate credit card can give you the flexibility to pay off your balance over time, without the higher interest charges of some other cards. But if you have a large existing credit card debt and want to pay it off, you may want to consider a balance transfer card instead. Or, if you always pay your balance in full, a card with a low annual fee or extra benefits such as reward points might make more sense.
How much money can I save with a low interest rate credit card?
Even a small difference in your credit card's interest rate can save you a lot of money. Say you have a $2,000 balance on your credit card and you take six months to pay it off. With an interest rate of 20% p.a., you'd pay $118.30 in interest on this debt.
But if you had a low interest rate card that charged 12% p.a., you'd pay $70.60 in interest over the same period of time. That's a saving of $47.70 compared to the higher-interest card. And the bigger your credit card debt, the bigger the difference gets. So comparing interest rates before you apply for a new credit card can help you find one that's affordable based on your needs.
How to compare low interest rate credit cards
Here are the key factors you should consider to help you find a low rate credit card that works for you:
Interest rates
Put simply, the lower the rate, the less interest you'll pay. But when it comes to interest rates, all of the following factors can have an impact on your potential savings and costs:
- Promotional interest rates. Some credit cards give you an introductory low or 0% interest rate for purchases or balance transfers. This is usually the lowest rate you'll get on a credit card and is only available for a limited time. So this type of rate can be useful if you have planned purchases or existing debt that you want to pay off. But keep in mind that when the introductory period ends, the low or 0% introductory rate will revert to a higher standard variable rate. So always check the standard rate to make sure the card you're applying for provides an ongoing low interest rate.
- Standard interest rate. This is the interest rate that's usually applied to your credit card balance. Usually, there are different standard variable interest rates for purchases, cash advances and balance transfers. If you get a card with an introductory 0% interest rate, the "standard" or "revert" rate is also the interest rate that applies to any balance remaining at the end of the introductory period.
- Cash advances. The interest rate for cash advances is usually higher than the rate applied to purchases. This rate is charged for transactions such as ATM cash withdrawals, foreign currency purchases and gambling. Cash advances also aren't eligible for interest-free days.
- Interest-free days. If there's an interest-free period for purchases (and you're eligible for it), interest won't be calculated for those purchases until after that period ends. However, interest will usually apply in full if you don't pay off the total owed by the due date on your statement. Learn more about how this works in our guide to interest-free days.
How are credit card interest rates calculated?
Credit card interest rates are usually advertised based on the annual rate that applies to the account, shown as "per annum" or p.a. However, interest on your account balance is typically calculated daily and then charged monthly on the statement due date.
Fees and charges
- Annual fee. Annual fees typically range from $0 for cards with basic features to $250 or more for gold and platinum cards. Try to find a card with a low annual fee, but don't make this your sole deciding factor. In some cases, a card with a low interest rate could offer you more value than a $0 annual fee, particularly if you're carrying a lot of debt.
- Other fees and charges. Fees may apply when you use your card at an ATM, overseas, online with international retailers or even when you apply for a balance transfer. Make sure you're aware of the relevant charges that apply to your card.
Additional features
Low interest rate credit cards often have fairly basic features. However, more premium cards could offer some of the following benefits:
- Complimentary extras. Gold, platinum or black low interest rate credit cards may include perks such as travel insurance, purchase-protection insurance or concierge services. If you use these extras, they have the potential to offset costs, such as the card's annual fee.
- Rewards. Most low interest rate credit cards don't offer reward points for your spending because these features serve different purposes. Currently, the American Express Essential is one of the only products that earns points per dollar spent and has a competitive standard variable purchase rate. Another option is the Coles Low Rate Mastercard, which doubles as a flybuys rewards card and offers a low standard purchase rate.
- No international transaction fee. If you plan to use your credit card when you travel overseas or shop online with international retailers, a low rate credit card that waives foreign transaction fees, such as the Bankwest Breeze Platinum Mastercard, could help you save even more money.
Pros and cons of low interest rate credit cards
Pros
- You'll pay less interest on purchases, which can make it easier to manage your credit card debt.
- Many low interest rate cards also have low annual fees.
- You can often combine low interest rate cards with other features such as balance transfers or zero foreign transaction fees.
Cons
- You're less likely to receive reward points and other perks.
- You may not qualify if you have a poor credit history.
- If you opt for a card with a 0% purchase rate, it will only be available for a promotional period.
If you often carry a balance, a low interest credit card could help you save on charges. Just remember to consider the other features, such as introductory offers, annual fees and complimentary extras, to help you find a card that best suits your needs.
How can I get a low rate credit card?
You can apply for a low rate credit card online in around 10–20 minutes. Get started by comparing cards in the table above (or on individual review pages). When you find a card you like, click the "Go to site" button and you will be taken to the bank's secure application page.
From there, you'll need to provide details about yourself, your employment situation and your financial situation. In order to prove your identity, you will usually need your driver's licence, passport or Medicare card details. Most online credit card applications give you a response within 60 seconds of submitting the completed form.
FAQs about low interest rate credit cards
If you want to learn more about low rate cards, check out these answers to common questions. If you have a question of your own, you can also get in touch with us using the comment box below.
Pictures: Shutterstock
My debt is over 70,000 AUD,I would like a loan one payment/month,and not five.
Hi Eric,
Thank you for getting in touch with finder.
Regarding your enquiry, if it is about consolidating debt please check out this link.
If you want to do a balance transfer and pay 0% for some months, you may want to visit this page to see your options.
I hope this helps.
Have a great day!
Cheers,
Jeni
Hi I’m trying to find a better credit card than what I have at present. The interest rate I’m paying at the moment is 19.74 is there anything under 10%? Cheers Brenton
Hi Brenton,
Thank you for your inquiry.
I’m afraid that there may not be a credit card which has an interest lower than 10%. At the moment, the credit cards with low interest are listed above. In case you want to check your options for a credit card with 0% interest on purchases for a limited time, you can find them here or for a credit card with no annual fees, please click this link.
When selecting a credit card, it’s always best that you factor in which one that best meets your preferences and fits into your financial situation.
Hope this helps.
Cheers,
May
if our salary is below 15000, then if we are interested to apply for a credit card at that time, what is the Secondary Process for that.
Hi Divya,
Thank you for your question.
Your income is one of the most important factors that a bank or credit card company considers for their applicants. Although credit card companies vary when it comes to income requirements, there are banks or card issuers that accept applicants with $15,000 p.a. or more and some require applicants to have earnings from $20,000 or $25,000. If you find that your income is below the minimum requirement, you may need to have an additional income source to present to be approved.
Nevertheless, on this page, you can compare your low-income credit card options.
Cheers,
May
Hi,
This morning I applied for a St George Vertigo Credit Card. I was approved for credit of $2000 and a balance transfer of $2000 (sorry if I’m incorrect) but does that mean that the total value of this card is $4000?
Thanks.
Hello
If the bank accepts my application for a credit card and i transfer my dept to them an I able to switch back at the end of the promotional period?
Is there a minimum time I have to stay with the new credit card?
kind regards
Garry
Hi Garry,
Thanks for your question.
If you are referring to using your old credit card again after the promotional period of your new balance transfer card, the answer is yes, that is possible. When you transfer your balance to a new card, you have the option to cancel or retain your old card.
There is no time requirement for keeping your new card. You can also cancel it anytime, so long as you follow the correct procedure as we have listed on our credit card cancellation guide.
Cheers,
Anndy
Hi Mia,
Thanks for your question.
Essentially, when you apply for a credit card, the card institution will give you a credit card limit that you can use – either for purchases, cash advances and even balance transfers. As you mentioned, you were approved for a credit and balance transfer limit of $2,000 for the St. George Vertigo Credit Card, however, this does not imply that you’re given a total of $4,000 credit limit on the card (that you can spend). This means that St. George allows you to transfer a balance (a debt from your old credit card) up to $2,000 to this card. Unlike other card issuers (depending on the type of card), they would only allow you to transfer a total balance up to a percentage of your credit limit, usually 70%-95%.
I hope this answers your question.
Cheers,
May
i just wandering if i could get balance transfers,what could i do? if yet how much interest could i get each month.
Hi Gina, thanks for you inquiry.
You may check our balance transfer page first to compare credit cards that has this offer. You can check the complete details about a specific product by clicking the product name. This will direct you to the product review page where benefits, features, application requirements and other information that the product has to offer. When you’re done selecting for the right card, you can start the application process by clicking the “Go to site” button that is also available on the upper right side of the review page.
I hope this helps,
Sharon
Hi
Can I call to speak to someone to compare credit card accounts
Hi Meaghan, thanks for your inquiry!
You can reach us on 1300 FINDER (346 337) and one of the specialists from our credit cards team will be happy to assist you.
Cheers,
Jonathan
Hi i am in a situation where i am in need of 2000-5000 to pay for a solicitor as i don’t have the money. I am looking into credit cards that i can either afford by myself as i am on centrelink or one that my partner and i can get together with his income and mine. What would be the best way to go? As we have never applied for one before. Thank you
Hi Kylie,
Thanks for your question.
Please note that you’ve come through finder.com.au and as a financial comparison service, we’re unable to recommend any specific product, service or strategy to our users as the ‘best’ option will always depend on the individual’s financial situation and needs.
Whether you can apply for a credit card will depend on how much you earn per year and what type of Centrelink payments you receive.
You might need to get in touch with the bank directly to confirm your likelihood of approval before applying.
I hope this helps.
Cheers,
Debbie
Do you no anyone that will help people on disability pensioner with below average credit score to get a low limit credit card with below average credit score to rebuild my credit rating and give me a second chance
Hi Rhys, thanks for your inquiry!
You can compare low income credit cards here which have lower requirements than higher tier credit cards.
Cheers,
Jonathan
I have an existing credit card with a balance of 9000.I am looking to transfer to a new card which has 0% on balance transfers and a low interest rate with 55 days interest free. I can pay the balance off in about 12 months or less
Hi Shani, thanks for your inquiry!
Please refer to the this page for how much banks allow you to balance transfer to their credit cards. It is a key point to note no interest-free days will be awarded when you have an outstanding balance, so until your balance transfer debt has been fully cleared you will be unable to utilise this feature. You may like to compare balance transfer credit cards on this page.
Cheers,
Jonathan
Is there a low rate credit card for pensioners?
Hi Majella, thanks for your inquiry!
Credit card eligibility for pensioners depends on whether you meet the application requirements. Generally the bank/ lender will request a specific minimum income per year. If your primary form of income is through Centrelink/ pension benefits, contacting the bank before completing the application process to determine whether Centrelink qualifies as a form of income would be ideal.
Cheers,
Jonathan