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No Annual Fee Cards vs. Low Interest Credit Cards

When selecting a credit card, you need to consider how the features offered with them would work, in terms of saving you money.

You need to decide whether a card with a low interest rate or one with a minimal annual fee will be of more benefit to you. Working out which card is right for you usually comes down to your spending habits when using your card, so you need to weigh up the benefits of low interest vs no card fee credit cards.

Comparison of No Annual Fee and Low Interest Rate credit cards

Rates last updated May 24th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
Westpac Low Rate - Online Offer
13.49% p.a.
0% p.a. for 26 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
Take advantage of 0% p.a. for 26 months on balance transfers with a one-time 2% balance transfer fee and a $0 first year annual fee.
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($129 p.a. thereafter)
Offers a 0% p.a. for 22 months balance transfer, $0 annual fee for the first year and an annual fee refund each year when you spend $6,000.
Bendigo Bank Low Rate Mastercard
11.99% p.a.
$0 p.a. annual fee for the first year ($45 p.a. thereafter)
A no-frills card with a first year annual fee waiver, a low variable purchase interest rate of 11.99% p.a. and up to 55 interest-free days on purchases.
Citi Simplicity Card
19.99% p.a.
0% p.a. for 15 months with 1.5% balance transfer fee
$0 p.a.
Save with 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from approval. Plus, a 15 month balance transfer offer.
ANZ Frequent Flyer Black
19.99% p.a.
$0 p.a. annual fee for the first year ($425 p.a. thereafter)
Get 75,000 bonus Qantas Points when you meet the spend requirement, unlimited Véloce airport lounge access and a $0 annual fee for the first year.
CUA Low Rate Credit Card
11.99% p.a.
0% p.a. for 13 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Take advantage of a 0% p.a. balance transfer rate for 13 months, $0 first year annual fee, and a low ongoing 11.99% p.a. interest rate on purchases.
28 Degrees Platinum Mastercard
21.99% p.a.
4.99% p.a. for 6 months
$0 p.a.
Designed for travel, benefit from 0% foreign transaction fees on purchases, a $0 annual fee for life and a personal concierge service.
Qantas American Express Discovery Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Earn uncapped Qantas Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
American Express Velocity Escape Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Earn uncapped Velocity Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
ANZ Rewards Platinum
18.79% p.a.
$0 p.a. annual fee for the first year ($95 p.a. thereafter)
Receive a $0 first year annual fee offer, 65,000 bonus Reward Points when you meet the spend criteria and up to 1.5 points per $1 spent.

Compare up to 4 providers

Read more about No annual fee credit cards
Rates last updated May 24th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
NAB Low Rate Platinum Card
0% p.a. for 9 months (reverts to 13.99% p.a.)
0% p.a. for 6 months with 2% balance transfer fee
$100 p.a.
A platinum card that offers 0% p.a. for 9 months on purchases. Plus 0% p.a. on balance transfers for 6 months.
Westpac Low Rate - Online Offer
13.49% p.a.
0% p.a. for 26 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
Take advantage of 0% p.a. for 26 months on balance transfers with a one-time 2% balance transfer fee and a $0 first year annual fee.
St.George Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Platinum card benefits including complimentary insurance, plus first year annual fee waiver and 0% p.a. for 24 months on balance transfers.
Bendigo Bank Low Rate Mastercard
11.99% p.a.
$0 p.a. annual fee for the first year ($45 p.a. thereafter)
A no-frills card with a first year annual fee waiver, a low variable purchase interest rate of 11.99% p.a. and up to 55 interest-free days on purchases.
HSBC Low Rate Credit Card
13.25% p.a.
0% p.a. for 20 months with 2% balance transfer fee
$79 p.a.
Add additional cardholders for $0 and pay using Apple Pay. Also enjoy exclusive offers with the home&Away Privilege Program.
Virgin Money Low Rate Credit Card
11.99% p.a.
0% p.a. for 14 months
$49 p.a.
Offers a discounted annual fee, $100 cashback when you meet the spend requirement and 0% p.a. for 14 months on balance transfers.
St.George Vertigo Visa
13.74% p.a.
0% p.a. for 18 months with 1% balance transfer fee
$55 p.a.
Enjoy a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
ANZ Low Rate Platinum
11.49% p.a.
0% p.a. for 15 months
$99 p.a.
Enjoy 0% p.a. on balance transfers for 15 months with no BT fee, combined with platinum card privileges and complimentary insurances.
NAB Low Rate Credit Card
0% p.a. for 6 months (reverts to 13.99% p.a.)
0% p.a. for 6 months with 2% balance transfer fee
$59 p.a.
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.
BankSA Vertigo Visa
13.74% p.a.
0% p.a. for 18 months with 1% balance transfer fee
$55 p.a.
A no-frills Visa with the protection of a zero liability policy and a 24/7 fraud monitoring service.
Bendigo Bank Low Rate Platinum Mastercard
11.99% p.a.
$89 p.a.
Offers premium features such as mobile phone and tablet insurance and purchase protections, plus, up to 55 days interest-free on purchases.
ANZ Low Rate
12.49% p.a.
0% p.a. for 15 months
$58 p.a.
With a low minimum credit limit of $1,000, this no frills card allows you to add up to 3 additional cardholders for $0 and has Mastercard PayPass.
Bank of Melbourne Vertigo Visa Credit Card
13.74% p.a.
0% p.a. for 18 months with 1% balance transfer fee
$55 p.a.
Enjoy a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
Bank of Melbourne Vertigo Platinum Card - Online Offer
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Online only: Enjoy 0% p.a. interest for 24 months on balance transfers (with a one-time 1% BT fee). Plus, a $0 first year annual fee.
BankSA Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Online only: A low rate platinum card with 0% p.a. on balance transfers for 24 months. Plus, $0 annual fee for the first year.

Compare up to 4 providers

Read more about Low Interest Credit Cards

People that struggle to make regular payments on the credit card, may find it more useful to have a low interest credit card. This means if you are taking longer to reduce the balance, your interest won't be excessively high. These cards usually include an interest-free period, which gives you a bit longer to pay for your purchase without worrying about accumulating interest.

When you need to make a larger than normal purchase, for example an item costing perhaps $2,000, that is beyond your budget to pay within the interest free period, you have the peace of mind in knowing the interest will be at a lower rate than other types of credit cards.

If you know that you aren't going to be able to pay your balance in full each month, it might be worthwhile considering the low annual fee card. These cards, although having the annual fee cost, do tend to offer a very low rate interest, so overall you would be making a saving if you are making your payments over a prolonged period of time.

No annual fee credit cards are a better alternative for people that enjoy the convenience of having a credit card, but either don't use it frequently or they are in a position to pay off their accounts in full each month. It's useful to know you have a credit card available if you want to do some online shopping or need to access some funds in a hurry or unexpectedly.

But there is no gain in having a low interest card, if you intend to pay your account by the due date. Consequently, it would be of more benefit for people in this position to have a no annual fee card, as they aren't getting the advantages of a low interest one. This is where the choice between a low interest vs no card fee, should be a no annual fee card.

Knowing you can access money in an emergency always gives peace of mind, and you don't have to worry about unforeseen costs catching you out. But, there is no point to having a card if you don't utilise the one which most benefits your circumstances.

The deciding factor on which card you should select will be whether you will have an ongoing balance each month or whether you will pay it in full. So based on that criteria it should simplify your selection of card between a low interest vs no card fee.

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Related Posts

Credit Card Offers

Important Information*
Westpac Low Rate - Online Offer
Westpac Low Rate - Online Offer

Interest rate

13.49

Annual fee

59
HSBC Platinum Credit Card
HSBC Platinum Credit Card

Interest rate

19.99

Annual fee

129
NAB Low Fee Card
NAB Low Fee Card

Interest rate

19.74

Annual fee

30
Citi Platinum Credit Card - 100k Bonus Points
Citi Platinum Credit Card - 100k Bonus Points

Interest rate

20.99

Annual fee

149

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