Enjoy low interest rates when you carry a balance and save money on your credit card bills.
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The finder.com.au list of low interest rate credit cards
Compare the features of the low interest rate credit cards below.
| Credit Card | Purchase Rate | Annual Fee |
|---|---|---|
| 9.39% p.a. | $59 p.a. | |
| 11.99% p.a. | $99 p.a. | |
| 13.99% p.a. | $59 p.a. | |
| 11.49% p.a. | $49 p.a. | |
| 9.9% p.a. | $108 p.a. |
You can apply for any card listed here by clicking on the "Go to site" button. This will securely transfer you to the relevant financial institution's online credit card application. There is no fee for applying from this page.
What is a low interest rate credit card?
Low interest rate cards offer a lower ongoing interest rate for purchases than standard credit cards. While credit cards in Australia typically have interest rates that range from 15% to 24% per annum (p.a.), low rate cards offer standard variable rates as low as 10% p.a. Some cards even offer promotional 0% rates on purchases for a fixed period (you can learn more about these in finder's guide to 0% purchase credit cards).
A low rate credit card makes sense if you regularly pay with plastic and know you won't always pay off the balance in full each month. It gives 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. If you always pay your balance in full, then 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 rate credit card?
Even a small difference in credit card interest rates can save you a lot of money. Say you have a $2,000 balance on your credit card and you take 6 months to pay it off. With an interest rate of 20% p.a., you'd pay $118.30 extra on your debt.
But if you had a low rate card that charged 12% p.a., you'd pay $70.60 in interest over the same time period. That's a saving of $47.70. And the bigger your expenditure, the bigger the difference gets. So if you compare credit card rates before you apply, you'll be able to find a card that's affordable based on your needs.
How to compare low interest rate credit cards
With a wide range of low rate credit cards on offer in Australia, comparing your options will help you find one that suits your needs. Here are the key factors you should consider:
Interest rates
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 is typically calculated daily based on your existing balance and then charged monthly on the statement due date.
Put simply: the lower the rate, the less interest you'll pay. But when it comes to your rates, these factors can all 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 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, a higher revert rate will apply.
- Standard interest rate. The "standard" or "revert" rate is the variable interest rate that applies at the end of any introductory 0% period. Depending on the card you choose, this rate could be much higher and not considered as a "low rate" option. So always check the standard rate to make sure the card you're applying for provides an ongoing low interest rate.
- 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 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.
Fees and charges
- Annual fee. Try to find a card with a low annual fee, but don't make this your sole deciding factor. A $0 annual fee isn't helpful if the base interest rate on purchases is a lot higher. Annual fees typically range from $0 for cards with basic features to $250 or more for gold and platinum cards.
- 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
While most low rate credit cards have limited features, more premium cards could offer extra perks. Some of the most popular include:
- Complimentary extras. Gold or platinum low 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 the cost of any annual fee you pay.
- Rewards. Most low rate credit cards don't offer rewards points for your spending as they are somewhat conflicting propositions. Currently the American Express Essential is one of the only products that earns points per $1 and has a low 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 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 rate credit cards
Pros
- You'll pay less interest on purchases, making it easier to manage your credit card debt.
- Many low rate cards also have low annual fees.
- You can often combine low 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'll only be available for a promotional period.
If you often carry a balance, a low interest credit card could help you save on additional fees and 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 to get a low interest rate credit card
After you've compared your options, applying for a low interest rate credit card is easy. Click the "Go to site" button from the table above and you will be taken to the bank's secure application page. From there you'll provide details about yourself, your employment, your financial situation and prove your identity. In order to prove your identity you will usually need your driver's licence or passport. Applications usually take about 15 minutes and most provide a response within 60 seconds.
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Answers to frequently asked questions about low interest rate credit cards
Does the low interest rate apply to balance transfers?
This depends on the credit card and any applicable balance transfer offers. If the card allows balance transfers, it may come with a 0% interest rate for a promotional period before reverting to a standard rate. Some low rate cards apply the standard purchase rate to balance transfers after the introductory period while others apply the cash advance rate. Read our guide to balance transfer revert rates to find out what providers apply the purchase rate.
What other interest rates apply?
Low rate credit cards also have a cash advance rate that applies to cash advance transactions. Depending on the card, the cash advance rate will apply to any or all of the following: cash withdrawals from an ATM or supermarket, foreign currency purchases, gift card and prepaid debit card purchases, gambling transactions, BPAY transactions, government charges and balance transfers after the introductory period.
When you compare credit card rates, it's important to consider both the purchase rate and the cash advance rate (as well as any promotional rates) so that you can find a card that's affordable based on how you plan to use it.
What is the best* low interest rate credit card?
There is no one "best" low rate credit card in Australia. With so many cards on the market, the individual features have an impact on how well a card is suited to your circumstances. So the card that's right for you may not be right for someone else. Comparing low interest rate credit cards based on the features you're looking for will help you find a card for your individual needs.
Do low interest rate credit cards come with interest-free days?
Most low rate cards offer an interest-free period on purchases, up to a set number of days in each statement period. However, interest-free days are only available for purchases if you pay your balance in full by the due date on each statement.
I have a low rate card with 0% on purchases for 6 months. Do I still have to make repayments?
Yes, you will still have to pay at least the minimum amount for each statement period. Depending on your credit card provider, this is usually around 2-3% of your total balance. If you want to avoid interest charges, you'll need to may higher repayments to clear your balance before the end of the promotional 0% interest period.
How is credit card interest calculated?
Although the interest rate advertised is a yearly (per annum) number, credit card interest is actually calculated daily based on your average daily balance. It's then charged to your account at the end of each statement period.
Will I have to pay an annual fee on a low rate credit card?
Most low rate credit cards do have an annual fee that you'll have to pay each year you have the account. However, there are a few cards that offer low rates and $0 annual fees, as well as some that waive the annual fee in the first year. When you're comparing low rate cards, you can click on the "annual fee" column to compare them by this cost. You may also want to read our guide on no annual fee vs. low rate cards .
Are low interest credit cards good for students?
Typically, low interest credit cards or low fee credit cards are a good option for students to consider. You can also check out finder's specific guide to Student Credit Cards and compare your options.
Are there low interest rate credit cards with balance transfer offers?
Yes, a range of low rate cards also offer balance transfers. With these cards, you can get a promotional low or 0% balance transfer rate during the introductory period when you move debt from an existing card with a different issuer onto the new card.
At the end of the introductory period, a standard rate will apply for any debt remaining from the balance transfer. While some low rate cards will apply the low, ongoing purchase rate to your remaining balance transfer debt, others will apply the higher, cash advance rate. Make sure you check the revert rate for each low rate card you compare so you can find one that's affordable for you.
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
I am traveling overseas for 12 months in Oct this year to the USA. I have loan approval for money I really don’t need the full amount of (or the stupidly high interest rate) someone suggested I get a low interest credit card to take with me or emergencies and small purchases?
Can you suggest a low interest rate card I can use whilst overseas?
Hi Jenna,
Thanks for your question.
As a financial comparison service, we can’t actually suggest one particular product to our users.
However, you may want to consider a card with no annual fee, no foreign transaction fees and no currency conversion fees.
You can compare your options on our comparison page.
I hope this has helped answer your question.
Thanks,
Sally