The benefits of a no frills credit card |

The benefits of a no frills credit card

Save with low annual fees, interest rates and credit limits with a no frills credit card.

Couple paying for lunch at cafe with credit card.

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If you're more interested in competitive interest rates and low annual fees rather than flashy extra features, you might want to consider a no frills credit card. These cards are suited to people who use their credit card for emergencies and want to cut back on credit card costs. You can use this guide to compare the different types of basic credit cards and find the right one for you.

What is a no frills credit card?

A no frills credit card is a basic credit card offering a low interest rate or $0 annual fee, but with little or no additional features. The types of credit cards that fall under this category include cards with low interest rates, no annual fees and small credit limits.

Low interest rate credit cards

These cards charge low purchase interest rates that range between 8.99% p.a. and 14.99% p.a. This is competitive compared to other cards with interest rates ranging between 18% p.a. and 22% p.a. Some cards even offer 0% interest on purchases for promotional periods that can range between 6 and 14 months. At the end of the 0% introductory period, the purchases attract the standard purchase rate. Low rate cards are suited to people who regularly carry a balance from month to month and want to reduce their interest costs.

No annual fee credit cards

While credit cards with extra features and rewards programs generally charge high annual fees, there are some no frills cards that charge $0 annual fee. Depending on the card, the $0 annual fee may apply for the first year or for the life of the card. You'll find cards that charge no annual fee across a few different credit card types including balance transfer, rewards, frequent flyer credit cards and travel cards that offer zero annual fees. If you don't spend on plastic often or only have a credit card for emergencies, a no annual fee card could help you reduce your yearly costs.

Compare no annual fee credit cards

Data updated regularly
Name Product Annual fee Purchase rate Balance transfer rate
Kogan Money Black Card - Exclusive Offer
20.99% p.a.
0% p.a. for 24 months
Finder Exclusive
Save with a $0 annual fee and a 0% introductory rate on balance transfers. Plus, earn $50 Credit and uncapped rewards points. Ends 12 Apr 2021.
Virgin Money No Annual Fee Credit Card
0% p.a. for 12 months, reverts to 18.99% p.a.
0% p.a. for 12 months
Save with an ongoing $0 annual fee and 0% p.a. on balance transfers and purchases for 12 months.
Citi Simplicity Card
0% p.a. for 6 months, reverts to 21.49% p.a.
0% p.a. for 6 months
Get 0% p.a. interest for up to 6 months on purchases and balance transfers. Plus, a $0 annual fee for life.
Bankwest Zero Platinum Mastercard
17.99% p.a.
2.99% p.a. for 9 months
Offers a $0 annual fee, 0% foreign transaction fees, complimentary international travel insurance and a balance transfer offer.
ANZ Low Rate
$0 annual fee for the first year ($58 p.a. thereafter)
12.49% p.a.
0% p.a. for 20 months
Save with 0% p.a. on balance transfers for 20 months (with no BT fee) and $0 first-year annual fee. Plus a 12.49% p.a. purchase interest rate.
Coles No Annual Fee Mastercard
19.99% p.a.
0% p.a. for 6 months
Get $100 off a Coles Supermarket shop when you spend at least $1,000 in the first 60 days and save with a 0% balance transfer offer.
Bankwest Breeze Classic Mastercard
$0 annual fee for the first year ($49 p.a. thereafter)
10.99% p.a.
0% p.a. for 26 months with 2% balance transfer fee
Save with 0% p.a. on balance transfers for 26 months (with a 2% BT fee) and $0 first-year annual fee. Plus, a 10.99% p.a. purchase interest rate.
ANZ Platinum Credit Card
$0 annual fee for the first year ($87 p.a. thereafter)
0% p.a. for 17 months, reverts to 20.24% p.a.
20.24% p.a.
Receive a 0% purchase rate offer for 17 months and a $0 first-year annual fee. Plus, complimentary overseas travel and medical insurance.
Coles Rewards Mastercard
$0 annual fee for the first year ($99 p.a. thereafter)
19.99% p.a.
0% p.a. for 18 months with 1.5% balance transfer fee
Enjoy 20,000 bonus Flybuys points, a $0 first-year annual fee and 0% p.a. on balance transfers for 18 months (1.5% fee applies).
Qantas American Express Discovery Card
20.74% p.a.
Earn 0.75 Qantas Points for your everyday purchases, uncapped, and pay $0 annual fee for the life of the card on this no-frills frequent flyer card.
Bankwest Breeze Platinum Mastercard
$0 annual fee for the first year ($69 p.a. thereafter)
10.99% p.a.
0% p.a. for 26 months with 2% balance transfer fee
Get 0% interest on balance transfers for 26 months, a $0 first-year annual fee, complimentary travel insurance and no foreign transaction fees.
CUA Low Rate Credit Card
$0 annual fee for the first year ($49 p.a. thereafter)
11.99% p.a.
0% p.a. for 20 months
Take advantage of a 0% p.a. balance transfer rate for 20 months, $0 first year annual fee, and a low variable 11.99% p.a. interest rate on purchases.
St.George No Annual Fee
0% p.a. for 12 months, reverts to 20.74% p.a.
Save with a 0% p.a. interest rate offer and a $0 annual fee. Plus, a minimum credit limit of $500.
MoneyMe Freestyle Virtual Mastercard
16.99% p.a.
Get approved quickly online and start using your card right away. Plus, the ability to transfer money to a bank account.
BankSA No Annual Fee
0% p.a. for 12 months, reverts to 20.74% p.a.
Offers 0% p.a. on purchases for 12 months and an ongoing $0 annual fee.

Compare up to 4 providers

Low credit limit credit cards

Your credit limit is the minimum or maximum amount you can spend on your credit cards. While premium cards tend to have high credit limit options, these cards offer low credit limits that can range between minimums of $500 up to maximums of $25,000 for example. A low credit limit could work for you if this is your first credit card, you don't have big-ticket purchases to make or want to avoid overspending. You can request the maximum credit limit you'd like when you're applying for a credit card, but the limit you're approved for will depend on your financial situation and credit history.

The pros and cons of a no frills credit card


  • Save with low fees. No frills credit cards typically charge low or $0 annual fee, which will help you cut your yearly credit card costs.
  • Low interest rates. If you don't usually repay your balance in full each month, a card with low interest rates can help you save and reduce your accumulated debt compared to cards that charge higher rates. Even if your card charges a low rate, you should still aim to pay off as much as you can each month.
  • Less temptation to spend. If your card has a lower credit limit or doesn't offer reward points as you spend, you may be less likely to make unnecessary purchases or spend beyond your means.


  • Limited extra features. You can usually expect more competitive rewards programs and extra features with premium cards that charge higher rates and fees. There are some cards that offer extra perks and points as well as competitive rates and fees, so you should compare your options to find the right balance for you.
  • Less value for money. If you are a big spender and frequent traveller who always pays off your monthly account balance in full, you’ll probably get more value from using a frequent flyer credit card even if you’re forking out more for annual fees.
  • Low credit limit. While a low credit limit could help curb your spending, it could be a problem in times of emergency or when you want to make a large purchase. Depending on your situation, you may be able to request a credit limit increase.

No frills credit cards can be beneficial and cost-efficient for some people, but will not be suitable for everyone. As always, we recommend that you research and discover all the available credit card options out there before deciding on the one that will best serve your personal needs and spending habits.
Images: Getty

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