Compare cheapest credit cards*
Whether you want to clear your debt, save on fees or cut down on interest costs, compare some of the cheapest credit card offers in Australia.
Updated . What changed?
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Credit cards can be a great way to free up cash flow while building your credit history, but they often come with expensive rates and fees. In this guide, we've rounded up some of the cards with the most competitive interest rates and fees to help you save on standard card costs. So whether you want to consolidate and clear your debt with a 0% balance transfer, pay no annual fee or save with a card with a low interest rate, you can compare and find the cheapest cards for your needs here.
Looking for the cheapest credit card?
There's no single credit card that's cheapest for everyone as all our needs and spending habits are different - and what's cheapest for you might not be cheapest for someone else.
Compare credit cards with low rates and fees
How to compare the cheapest credit cards* in Australia
The cheapest credit card for you will depend on how you plan to use it. For example, if you want to pay off an existing balance over time, a card with an introductory 0% balance transfer interest rate might be the cheapest option. If you hardly ever use your credit card or always pay your balance in full, it might be less expensive to get a card with a $0 annual fee. If you're travelling overseas or shopping online, a card 0% foreign fees could help you avoid hefty conversion fees. Or if you're using your card for purchases, you could opt for a card with a low or 0% interest rate on purchases or a card that offers interest-free days when you pay your balance in full.
Still not exactly sure what you're looking for? You can compare different types of credit cards to find the right one for you below.
Low or 0% interest rates
If you don't think you can pay off your balance by the statement due date and you regularly carry a balance from month to month, you can compare cards with 0% promotional purchase rates or low standard variable rates of interest. If the card has a 0% purchase rate, it'll usually only apply for a promotional period (which can often vary between 3 to 12 months). After the introductory period ends, the standard purchase rate will apply to any remaining balances.
If you'd prefer a card with a low purchase rate that applies longer than a promotional period, a low standard variable rate of interest might be better for you. These cards usually come with purchase rates starting from 8.99% p.a. and going up to around 14.99% p.a. (although it varies). These rates are much lower than other products, which can have purchase interest rates of up to 22% p.a. or higher. Although you'll still have to pay interest if you're carrying a balance between statement periods, the overall costs will be much lower than if you had a card with a higher compounding interest rate.
Who are low interest credit cards best suited to?
- Good if: You want to pay off your purchases over time or often carry a balance on your card.
- Bad if: You’re an infrequent spender or always pay your balance in full by the end of the statement period, as you won't get much benefit from a 0% purchase rate if you don't usually carry a balance from month to month.
Example: How much can I save with a 0% purchase rate credit card?
As an example, let's say you spent $2,000 on a credit card with an interest rate of 21.99% p.a. and planned to pay $200 off it each month. At this rate, it would take you 12 months to pay off the debt and cost you $229.66 in interest.
In comparison, if you spent $2,000 on a credit card with a promotional 0% p.a. on purchases for 12 months and made the same $200 payments each month, you'd clear the debt in 10 months and pay $0 in interest.
Credit cards with 0% p.a. on purchases
Credit cards with interest-free days
Many credit cards offer up to 44 or up to 55 interest-free days for new purchases made during your statement period. This interest-free period is usually only available when you pay your balance in full by the due date listed on your statement. If you meet the requirements, you'll get the maximum number of interest-free days for purchases made on the first day of your next statement period (i.e. the day after your statement is issued). The number of interest-free days then goes down day by day, until your next statement due date.
Interest-free days only apply to purchases, so you can't take advantage of this perk if you're carrying a balance from cash advance transactions such as ATM withdrawals and balance transfers. Check out Finder's guide to interest-free days for more details on how to make the most of them.
Who are credit cards with interest-free days best suited to?
- Good if: You always repay your balance each month and make regular purchases on your credit card.
- Bad if: You often miss repayments or are unable to pay your balance in full.