Low interest rate credit cards

If you don't pay off your credit card in full every month, you could save money with a card that charges a lower interest rate. Competitive rates typically range between 8.99% p.a. and 14.99% p.a., but some cards also offer 0% interest on purchases for an introductory period. These low rate cards help you save significantly compared to others that charge interest rates between 18% p.a. and 22% p.a.

If you're trying to pay off an existing credit card debt, you can use a 0% balance transfer credit card to pay it off with no interest for a promotional period.

Westpac Credit Card Offer

Westpac Low Rate Card

0% p.a. for 20 months on balance transfers
$200 cashback

Offer ends 02 December 2020

Eligibility criteria, terms and conditions, fees and charges apply

Westpac Credit Card Offer

The Westpac Low Rate credit card features a long-term balance transfer offer and a low variable interest rate on purchases.

• 0% p.a. for 20 months on balance transfers (reverts to 21.49% p.a.) with a one-time 1% balance transfer fee
• $200 cashback when you spend $1,000 in the first 90 days
• Variable interest rate of 13.74% p.a. on purchases
• $59 annual fee and additional cardholder at no extra cost

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Compare the latest low interest rate credit card deals

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Name	Product	Purchase rate (p.a.)	Interest-free period	Annual fee	Balance transfer rate	Balance transfer rate
Westpac Low Rate Card Finder Award		13.74% p.a.	Up to 55 days on purchases	$59 p.a.	0% p.a. for 20 months with 1% balance transfer fee	0% p.a. for 20 months with 1% balance transfer fee	A low rate card offering 0% p.a. interest on balance transfers for the first 20 months and a $200 cashback offer.	Go to site More Info	Compare	loading Fetching your data...
ANZ Low Rate - Exclusive Offer		12.49% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($58 p.a. thereafter)	0% p.a. for 25 months with 1.5% balance transfer fee	0% p.a. for 25 months with 1.5% balance transfer fee	Finder Exclusive Save with 0% p.a on balance transfers for 25 months (with a 1.5% BT fee) and $0 first year annual fee.	Go to site More Info	Compare	loading Fetching your data...
Bankwest Breeze Classic Mastercard		0% for 15 months, reverts to 12.99% p.a.	Up to 55 days on purchases	$79 p.a.	2.99% p.a. for 9 months	2.99% p.a. for 9 months	Save with an introductory rate of 0% p.a on purchases for 15 months and 2.99% p.a. on balance transfers for 9 months.	Go to site More Info	Compare	loading Fetching your data...
Bendigo Bank Low Rate Mastercard		11.99% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($45 p.a. thereafter)	0% p.a. for 6 months	0% p.a. for 6 months	Save with a $0 first-year annual fee and get a $150 Woolworths Supermarket gift card when you spend $1,000 in the first 60 days.	Go to site More Info	Compare	loading Fetching your data...
Coles Low Rate Mastercard		12.99% p.a.	Up to 55 days on purchases	$58 p.a.	0% p.a. for 6 months	0% p.a. for 6 months	Collect 1 flybuys point per $2 spent at Coles supermarkets and get free delivery on orders over $100. Plus, Coles Mobile Wallet.	Go to site More Info	Compare	loading Fetching your data...
St.George Vertigo Classic		0% for 7 months, reverts to 13.99% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($55 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	Get 0% p.a. promotional purchase and balance transfer rates and save with a first-year annual fee waiver.	Go to site More Info	Compare	loading Fetching your data...
ANZ Low Rate		12.49% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($58 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	With a low minimum credit limit of $1,000, this no frills card allows you to add up to 3 additional cardholders for $0.	Go to site More Info	Compare	loading Fetching your data...
Bankwest Breeze Platinum Mastercard		0% for 15 months, reverts to 12.99% p.a.	Up to 55 days on purchases	$99 p.a.	2.99% p.a. for 9 months	2.99% p.a. for 9 months	Get 0% interest on purchases for 15 months, complimentary travel insurance and no foreign transaction fees.	Go to site More Info	Compare	loading Fetching your data...
St.George Vertigo Platinum		0% for 15 months, reverts to 12.99% p.a.	Up to 55 days on purchases	$49 p.a. annual fee for the first year ($99 p.a. thereafter)	6.99% p.a. for 12 months	6.99% p.a. for 12 months	Features an introductory 0% p.a. purchase rate, $49 first year annual fee and complimentary travel insurance covers.	Go to site More Info	Compare	loading Fetching your data...
St.George Amplify Platinum		0% for 7 months, reverts to 19.74% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($99 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	Save with 0% p.a. interest rates on purchases and balance transfers. Plus a $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
Bank of Melbourne Vertigo Classic		0% for 7 months, reverts to 13.99% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($55 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	Save with 0% p.a. for 7 months on purchases, 0% p.a. interest for 22 months on balance transfers and a $0 annual fee for the first year.	Go to site More Info	Compare	loading Fetching your data...
BankSA Vertigo		0% for 7 months, reverts to 13.99% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($55 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	A no-frills Visa with the protection of a zero liability policy and a 24/7 fraud monitoring service.	Go to site More Info	Compare	loading Fetching your data...
NAB Low Rate Credit Card		0% for 6 months, reverts to 12.99% p.a.	Up to 55 days on purchases	$59 p.a.	0% p.a. for 6 months with 2% balance transfer fee	0% p.a. for 6 months with 2% balance transfer fee	This card offers a low introductory rate of 0% p.a. for 6 months on purchases. Plus 0% p.a. on balance transfers for 6 months.	Go to site More Info	Compare	loading Fetching your data...
St.George Rainbow Vertigo Platinum		0% for 15 months, reverts to 12.99% p.a.	Up to 55 days on purchases	$49 p.a. annual fee for the first year ($99 p.a. thereafter)	6.99% p.a. for 12 months	6.99% p.a. for 12 months	All the platinum features of the Vertigo Platinum Visa with a rainbow design in support of the LGBT community.	Go to site More Info	Compare	loading Fetching your data...
Bank of Melbourne Amplify Platinum		0% for 7 months, reverts to 19.74% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($99 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	Enjoy 0% p.a. on purchases and balance transfers along with a $0 first year annual fee waiver.	Go to site More Info	Compare	loading Fetching your data...
BankSA Amplify Platinum		0% for 7 months, reverts to 19.74% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($99 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	Save with a 0% p.a. interest rate for up to 22 months on balance transfers and up to 7 months on purchases. Plus a $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
St.George Vertigo Classic Rainbow		0% for 7 months, reverts to 13.99% p.a.	Up to 55 days on purchases	$0 p.a. annual fee for the first year ($55 p.a. thereafter)	0% p.a. for 22 months with 1.5% balance transfer fee	0% p.a. for 22 months with 1.5% balance transfer fee	All the great low cost features of the Vertigo Visa with a rainbow design in support of the LGBT community.	Go to site More Info	Compare	loading Fetching your data...

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Compare these low interest rate credit cards

• Bendigo Bank Low Rate Mastercard. Save money with a 0% p.a. on balance transfers for the first 6 months, plus a $0 annual fee for the first year.
• St.George Vertigo Classic Card. Save with a 0% interest rate on balance transfers for 22 months (with no balance transfer fee).
• Virgin Money Low Rate Credit Card. Enjoy a 0% balance transfer offer for 18 months and an ongoing purchase rate of 11.99% p.a.
• ANZ Low Rate Credit Card. Receive an introductory rate of 0% p.a. on balance transfers for 22 months (with a one-time 1.5% BT fee). Plus, a $0 annual fee for the first year.
• Coles Low Rate Mastercard. Earn flybuys points as you spend and save with 0% p.a. interest on balance transfers for 6 months.

How do low interest rate credit cards work?

Who are low interest rate credit cards best suited to?

These cards are designed to help you save on interest costs. If you often struggle to pay your balance in full by the due date on your statement, you could benefit from one of these cards. You could also benefit from a low rate card if you’re a student or new to paying on plastic and want a cheaper credit card option.

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. This means that for every day that you don’t make a payment, the interest charges will build up (or compound).

How to compare low interest rate credit cards

With so many competitive low interest rate credit cards on the market, here are some of the features that can help you narrow down your options:

Interest rates

From low ongoing interest rates to promotional 0% deals to interest-free days, these are the key factors to look at when comparing interest rates:

• Promotional interest rates. Some Australian credit cards offer 0% interest rates on purchases for a promotional period. The length of the interest-free offer usually varies between 6 and 15 months depending on the card. These offers can give you breathing room to repay your purchases and save without any additional interest costs. At the end of the promotional period, any remaining debt will collect the standard interest rate. So it’s wise to know when this rate applies and aim to clear your debt beforehand.
• Standard interest rate. On a low rate card, the purchase interest rates typically start at 8.99% p.a and go up to around 15% p.a. If you want a long-term option, a card with an ongoing low interest rate could potentially be a better fit than a card with 0% for a promotional period.
• Balance transfer rates. Some low interest credit cards also come with 0% balance transfer offers which can last for up to 26 months. If you’re paying off an existing debt, you can use a balance transfer to save interest and repay your debt faster. If you’re struggling with credit card debt, it’s wise to concentrate on paying it off instead of using a card to make additional purchases.
• Cash advance rates. The interest rate for cash advances is usually higher than the rate applied to purchases and can be as high as 23% p.a. 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. Most credit cards also come with interest-free days when cardholders pay their balance in full in the previous statement period. The number of interest-free days will vary between products, but usually range between up to 44 or 55 days.

Fees and charges

• Annual fee. Some low rate cards come with $0 annual fee for the first year or for life, while others charge annual fees that can be as high as $100 or more. Before you apply, you should weigh up the savings you’ll get from the interest rate against the annual fee to determine which card is right for you.
• International transaction fees. If you use your card to make a purchase overseas or online with an international merchant, you may be charged a foreign transaction fee (such as 3% of the transaction). However, there are some credit cards tailored for international use and offer 0% foreign transactions fees. Some cards do offer 0% foreign fees that can help save you money on these transactions.
• Minimum repayments. Each statement period, you’re required to make a minimum repayment. This is usually a small percentage (which can range from 2% to 10%) of your total balance owing. If you don’t pay this, you’ll usually be charged a late payment fee. However, if you want to minimise your interest payments and avoid falling into debt, it’s wise to pay as much you can before the statement due date.

Additional features

Credit cards with low interest rates generally come with fewer frills than costly cards, but here are some of the extra features you might want to consider:

• Rewards programs. Competitive frequent flyer or rewards credit cards usually come with higher interest rates and fees, but you can earn points on some low rate cards in the market. These cards usually come with less competitive earn rates, but can still be rewarding without the high price tag.
• Cashback. Some low rate cards also come with cashback offers, although you’ll usually need to meet a certain spend requirement to get the money back. As long as the spend requirements align with your budget and you can afford to pay it off, this can be another way to get extra value from your card.
• Complimentary insurance. Some low rate cards offer cardholders complimentary travel insurance and purchase cover. These features can help you reduce other necessary costs, but make sure you check out the eligibility requirements, inclusions and exclusions of the cover before you apply.

Pros and cons of low interest rate credit cards

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.

If you often carry a balance, a low interest credit card could be right for you. However, as there is no one best low interest card on the market, it's wise to compare a few options before you apply. Just remember to compare interest rates and consider the other features, such as introductory offers, annual fees and complimentary extras, to help you find a card that best suits your needs.

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.

• Does the low interest rate on a credit card 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 interest 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 which providers apply the purchase rate.

• Do low interest rate credit cards have other interest rates?

  Yes. Low interest 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 interest 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.

• What is the lowest interest rate credit card?

  Credit card interest rates are variable, which means they can change regularly. So the lowest interest rate card can vary depending on when you're comparing cards. You can click on the "Purchase rate" column of our comparison table to order the credit cards based on their current interest rates.

  Just keep in mind that the lowest interest rate credit card could be listed as one with a promotional 0% interest rate. When that's the case, you can continue scrolling through the table to find the card with the lowest ongoing interest rate.

• Is a low interest rate card the cheapest credit card option?

  There isn't a single "cheapest" credit card option because everyone uses credit cards differently. There are also other costs to consider beyond the purchase rate, such as annual fees and interest rates for cash advances or balance transfers. On the flip side, some people might find cards with high rates and fees "cheap" because of all the complimentary extras.

  Simply put, the term "cheapest credit card" is really subjective and varies from person to person. So when you're trying to find a credit card that's affordable, make sure you consider all of the potential costs based on how you plan to use the account. That way, you'll be able to find one with rates and fees that are affordable for you.

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