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.
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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. Keep in mind that we don't compare every product in the market, but we hope that our tools and information will allow you to compare your options and find the best credit card for you.
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.
Compare credit cards with up to 55 interest-free days on purchases
No annual fee credit cards
There are two different types of no annual fee credit cards. Some give you $0 annual fee for the life of the credit card, while others offer no annual fee in the first year. These credit cards are usually the cheapest option for people who rarely use a credit card, want one for emergencies and those who pay back their card balance by the statement due date.
If you get a no annual fee credit card that offers interest-free days and take advantage of both features, it could cost you nothing to keep the card. But take note that no annual fee credit cards often have higher interest rates than low rate credit cards. They can sometimes be light on value-adding features as well, such as complimentary insurance or rewards points. However, cards with $0 annual fee for a promotional period usually have more features than cards with no annual fee for life.
Who are $0 annual fee credit cards best suited to?
- Good if: You rarely use your credit card or want to cut down on extra costs.
- Bad if: You want to take advantage of extra features such as rewards, complimentary insurance and concierge services.
0% balance transfer offers
A balance transfer credit card gives you a cheaper way to pay off existing debt by offering an introductory 0% p.a. interest rate (or reduced rate) when you move existing debt to the new account. The interest-free period typically lasts between 6 and 26 months. At the end of the balance transfer promotional period, a higher, standard interest rate will apply to any remaining debt from the balance transfer.
Keep in mind that a balance transfer credit card shouldn’t be used for purchases, because they will accrue interest at the purchase rate for that card and usually aren't eligible for an interest-free days.
Who are 0% balance transfer credit cards best suited to?
- Good if: You want to consolidate several debts under one card or pay off a debt without the burden of interest.
- Bad if: You plan to use your card for purchases or still have a balance at the end of the 0% p.a. period.
0% balance transfer credit cards comparison
Rewards credit cards with no annual fee
Most rewards credit cards come with high annual fees, but you can use these cards to earn points without paying any yearly fees. This means you don't have to worry about weighing up the value of the rewards you could redeem with the annual fee of the card. While some rewards cards offer $0 annual fee for life, others may only offer no annual fee for the first year. These cards may come with a high purchase rate, so they're best suited to cardholders who can repay their balance in full each month to avoid interest costs.
Compared to rewards cards or frequent flyer cards with annual fees, these cards generally offer less competitive earn rates (points per $1 spent), smaller bonus points offers and fewer extra features.
Who are $0 annual fee rewards credit cards best suited to?
- Good if: You want to earn rewards while cutting down on credit card costs.
- Bad if: You want to take advantage of competitive earn rates and bonus points offers, or if you carry a balance.
Compare rewards credit cards with no annual fee
The difference between a cheap credit card and an expensive one comes down to how you spend and repay your credit card balance. For example, a no annual fee rewards credit card represents good value for money if you can pay your balance back in full each month, while a low rate credit card will be cheaper if you carry debt. If you need help with your comparison of the cheapest credit cards, get in touch with us using the form at the bottom of this page. You can also check out our guide to the best credit cards to compare other options.
*The credit card offers on this page are chosen from a range of credit cards available to us and are not representative of all the products available in the market. The use of the terms "best" and "top" are not product ratings and are subject to our disclaimer. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.
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