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Which credit cards have the cheapest interest rate?

Save money on purchases and transactions with a low interest rate credit card

Choosing a credit card with a lower interest rate can save you a considerable amount of money in the long-run. Compare and find a credit card with lower interest to save money today.

Rates last updated August 21st, 2018
Name Product Purchase rate (p.a.) Interest Free Period Annual fee Balance transfer rate (p.a.) Product Description
ANZ Low Rate
12.49% p.a.
Up to 55 days on purchases
$58 p.a.
0% p.a. for 15 months
With a low minimum credit limit of $1,000, this no frills card allows you to add up to 3 additional cardholders for $0.
St.George Vertigo Platinum - Online Offer
12.74% p.a.
Up to 55 days on purchases
$99 p.a.
0% p.a. for 25 months
Get platinum perks and save with 0% p.a. interest for up to 25 months on balance transfers with no BT fee.
Westpac Low Rate Card
13.49% p.a.
Up to 55 days on purchases
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
0% p.a. for 24 months with 1% balance transfer fee
Offers a 0% for 24 month balance transfer option, first year annual fee waiver and a competitive purchase rate.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
Up to 44 days on purchases
$129 p.a.
0% p.a. for 6 months
Buy now and pay later with 0% p.a. interest on purchases for 14 months. Plus, 0% p.a. on balance transfers for up to 6 months.
Virgin Money Low Rate Credit Card
11.99% p.a.
Up to 44 days on purchases
$49 p.a.
0% p.a. for 14 months
Offers a $49 annual fee, 10% cashback on purchases made in the first 3 months (capped at $100) and 0% p.a. for 14 months on balance transfers.
Citi Clear Platinum - Exclusive Offer
14.99% p.a.
Up to 55 days on purchases
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
0% p.a. for 24 months with 1.5% balance transfer fee
finder Exclusive: Receive 0% p.a. for 24 months on balance transfers and a discounted annual fee in the first year. Plus, access to Citi World Privileges.
St.George Vertigo Visa
13.74% p.a.
Up to 55 days on purchases
$55 p.a.
0% p.a. for 16 months
Get 0% p.a. interest for up to 16 months on balance transfers with no BT fee. Plus, a competitive annual fee.
Bendigo Bank Low Rate Platinum Mastercard
11.99% p.a.
Up to 55 days on purchases
$0 p.a. annual fee for the first year ($89 p.a. thereafter)
Offers premium features such as mobile phone and tablet insurance and purchase protections, plus, a $0 first year annual fee.
CUA Low Rate Credit Card
11.99% p.a.
Up to 55 days on purchases
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
0% p.a. for 13 months
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.
NAB Low Rate Credit Card
0% p.a. for 6 months (reverts to 13.99% p.a.)
Up to 55 days on purchases
$59 p.a.
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.
HSBC Low Rate Credit Card
13.25% p.a.
Up to 55 days on purchases
$79 p.a.
0% p.a. for 20 months with 2% balance transfer fee
Add additional cardholders for $0 and pay using Apple Pay. Also enjoy exclusive offers with the home&Away Privilege Program.
NAB Low Rate Platinum Card
0% p.a. for 9 months (reverts to 13.99% p.a.)
Up to 55 days on purchases
$100 p.a.
0% p.a. for 6 months with 2% balance transfer fee
A platinum card that offers 0% p.a. for 9 months on purchases. Plus 0% p.a. on balance transfers for 6 months.
Bendigo Bank Low Rate Mastercard
11.99% p.a.
Up to 55 days on purchases
$45 p.a.
A no-frills card with a competitive annual fee, a low variable purchase interest rate of 11.99% p.a. and up to 55 interest-free days on purchases.
Bank of Melbourne Vertigo Visa Credit Card
13.74% p.a.
Up to 55 days on purchases
$55 p.a.
0% p.a. for 16 months
Enjoy 0% p.a. interest for up to 16 months on balance transfers with no BT fee. Plus, a competitively low annual fee.
Bank of Melbourne Vertigo Platinum
12.74% p.a.
Up to 55 days on purchases
$99 p.a.
0% p.a. for 24 months with 1% balance transfer fee
Get a range of complimentary insurance covers, access to a 24/7 concierge and the convenience of Visa payWave contactless technology.
BankSA Vertigo Visa
13.74% p.a.
Up to 55 days on purchases
$55 p.a.
0% p.a. for 16 months
A no-frills Visa with the protection of a zero liability policy and a 24/7 fraud monitoring service.
NAB Low Rate Platinum Card - Online Offer
13.99% p.a.
Up to 55 days on purchases
$100 p.a.
0% p.a. for 6 months with 2% balance transfer fee
Enjoy $20 cashback per month for the first 12 months, up to $240 when you apply online and spend $1,500 per statement period.

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How do credit cards with a cheap interest rate work?

couplemoved into new home with credit card

Credit cards with low-interest rates work in the same way as a regular credit card. You make purchases using your card, receive your statement, and then pay part or all of the funds due.

These cards have a few general characteristics, although because of the ever-evolving market, these aren’t hard and fast rules:

  1. Lower annual fees
  2. No rewards programs
  3. Higher number of interest-free days
  4. Usually aren’t platinum cards.

Before you start looking at these types of cards ask yourself:

  • Do you regularly pay interest on your balances each month?
    Don’t simply go for the card with the lowest interest rate if you pay your card off in full each month. Cards with low or no annual fees can be a better alternative in this case.
  • Would a balance transfer be more useful?
    The balance transfer period, how much you can actually transfer, and if you transfer from one particular lender to the other.

How to compare credit cards with low-interest rates

Compare credit cards with low-interest rates by looking at the factors listed below:

  • Interest rate. The main reason why you probably want a credit card with a low-interest rate is because you’re going to be paying interest each month. Ensure this figure is reasonable in conjunction to the annual fee.
  • The annual fee. In addition to the interest rate, the annual fee will be an indicator of how much you’ll be paying each year. You might benefit more from a card with no annual fees.
  • Current deals. Many credit cards offer low purchase rate or balance transfer rate deals as an incentive. These can be useful depending on how you’re going to use your card. If you’re getting a low interest rate card to make a big purchase when you first get your card, a low or 0% purchase rate deal might be a good option.
  • Hidden fees and charges. If you travel overseas often, using your card to make purchases in foreign currencies can incur foreign transaction fees and ATM withdrawal fees. You can also be charged fees for cash advances, late payment and more. If you're likely to incur a number of these, you might want to find a card with lower foreign transaction fees.
  • Rewards programs. Some cards with low purchase rates may also come with a rewards program. These can add to the cost of the card through higher annual fees, so calculate the value of any rewards you’re likely to receive in a year and ensure it equals or exceeds the annual fees you’re going to pay.
  • Interest free days. Credit cards on the lower side of the interest rate spectrum are no different to regular credit cards. Some cards will come with no interest free days, whereas others will come with 55, and yet some will sit somewhere in between. How many days you need to pay each statement off depends on you.

Pros and Cons of credit cards with the cheapest interest rates

Pros

  • Pay less in interest
  • Pay less in annual fees
  • Most give you 55 days interest-free
  • Uncomplicated - it’s just you, your card and your purchases

Cons

  • No rewards programs
  • No platinum benefits e.g. concierge, discounts,
  • complimentary insurances

Things to avoid with a credit card with a cheap interest rate

As always, credit cards require discipline, and even if a credit card has a low interest rate this rule still applies. Here are some other things to avoid with this type of card:

  • Making needless purchases. Unless you have a 0% interest deal on your card, any purchase that will incur interest will cost you more than the original price. Interest, no matter how small, is something you want to avoid having to pay.
  • Paying for features you won’t use. While a rewards program may sound good, if you're not going to be using the card for regular purchases you could just end up paying higher annual fees for a feature of little benefit.
  • Take note of your payment pattern. Likewise, if you’re paying a higher annual fee for a card with 55 days interest-free, and you pay your balances off the next day then again this feature may not be worth it.

Frequently Asked Questions

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Credit Card Offers

Important Information*
Citi Clear Platinum - Exclusive Offer

Interest rate

14.99

Annual fee

49*

*$99 p.a. after first year

Westpac Low Rate Card

Interest rate

13.49

Annual fee

0*

*$59 p.a. after first year

Westpac Altitude Platinum Card - Qantas

Interest rate

20.24

Annual fee

50*

*$200 p.a. after first year

ANZ Low Rate

Interest rate

12.49

Annual fee

58

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4 Responses

  1. Default Gravatar
    GwenMarch 22, 2016

    I am a pensioner and recently had to have 3 operations so now I am in trouble as I cannot pay it all of at once and sometimes I can only pay the required amount.I know that sometimes there is a bank that gives you 12-18 mths to pay off with no interest. Also they have no annual fee or maybe a small amount. Is there any bank at the moment who could help me. I am from Melbourne Victoria au

    • finder Customer Care
      SharonMarch 22, 2016Staff

      Hi Gwen, thanks for your inquiry.

      Please note that finder.com.au is an online comparison service and is not in the position to recommend specific products, providers and services to you, as the best option will always depend on your individual financial needs and situation.

      You may want to check this page to check credit cards with cheap interest rates. Take time to compare credit cards to find the one that suits you. Please take note of the eligibility requirements as well at the bottom of each credit card’s review page as each submitted application will appear on your credit history.

      I hope this has helped.

      Thanks,

      Sharon

  2. Default Gravatar
    MurrayApril 8, 2015

    I have an Amex Gold Credit Card ($8000.00 balance) and Aussie credit card ($24000.00 balance). I want to reduce these amounts by half within 18-14 months of today (April 2015). This would mean paying around $7-800 per month). My only other scheduled payment is for accommodation of $650 per month.

    What is my best approach and to whom should I make that approach?

    • finder Customer Care
      JonathanApril 9, 2015Staff

      Hi Murray, thanks for your inquiry!

      Balance transfer cards are an ideal method to repay debts over a specific period of time. In terms of transferring a specific amount over to a new credit card, most lenders/ banks allow 95% of the available credit limit for balance transfers. Please see this page for a list of balance transfer credit cards and offers and this page for bank/s lenders and their balance transfer allowances.

      Cheers,

      Jonathan

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