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.

St.George Vertigo Visa

0% p.a. for 18 months on balance transfers
with a one-time 2% balance transfer fee

Offer ends 22 November 2017

Eligibility criteria, terms and conditions, fees and charges apply

St.George Credit Card Offer

The St.George Vertigo Visa features a low variable interest rate on purchases, 0% p.a. introductory offer on balance transfers and a competitive annual fee.

  • $55 p.a. annual fee.
  • 13.24% p.a. on purchases
  • 0.00% p.a. for 18 months with 2% BT fee on balance transfers
  • Cash advance rate of 21.49% p.a.
  • Up to 55 days interest free
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Comparison of low interest rate credit cards

Rates last updated September 23rd, 2017
Name Product Purchase rate (p.a.) Interest Free Period Annual fee Balance transfer rate (p.a.) Product Description
St.George Vertigo Visa
13.24% p.a.
Up to 55 days on purchases
$55 p.a.
0% p.a. for 18 months with 2% balance transfer fee
Receive a low annual fee and the ability to make contactless payments with Visa payWave technology.
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 2% balance transfer fee
Get a range of complimentary insurance covers, access to a 24/7 concierge and the convenience of Visa payWave contactless technology.
St.George Vertigo Platinum
12.74% p.a.
Up to 55 days on purchases
$99 p.a.
0% p.a. for 24 months with 2% balance transfer fee
Offers complimentary travel insurance, complimentary purchase insurance and access to a 24/7 personal concierge service.
Westpac Low Rate Card - Online Only Balance Transfer Offer
13.49% p.a.
Up to 55 days on purchases
$59 p.a.
0% p.a. for 24 months with 2% balance transfer fee
Take advantage of 0% p.a. for 24 months on balance transfers with a 2% balance transfer fee. Plus, use of the Westpac mobile banking app.
BankSA Vertigo Visa
13.24% p.a.
Up to 55 days on purchases
$55 p.a.
0% p.a. for 18 months with 2% balance transfer fee
A no-frills Visa with the protection of a zero liability policy and a 24/7 fraud monitoring service.
HSBC Low Rate Credit Card
13.25% p.a.
Up to 55 days on purchases
$55 p.a.
0% p.a. for 15 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.
ANZ Low Rate
12.49% p.a.
Up to 55 days on purchases
$58 p.a.
0% p.a. for 16 months with 2% balance transfer fee
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.
American Express Essential®  Credit Card
14.99% p.a.
Up to 55 days on purchases
$0 p.a.
0% p.a. for 12 months with 3% balance transfer fee
Receive a $50 credit when you apply online, are approved and spend $750 on your new card within the first 3 months of card membership.
Bendigo Bank Low Rate First Mastercard
11.99% p.a.
Up to 55 days on purchases
$29 p.a.
For customers aged 18 to 25 years, this card gives you up to 55 interest-free days and a low variable interest rate on purchases.
ANZ Low Rate Platinum
11.49% p.a.
Up to 55 days on purchases
$99 p.a.
0% p.a. for 16 months with 2% balance transfer fee
Enjoy platinum benefits with exclusive discounts, complimentary travel and purchase insurances and a 24/7 personal concierge.
NAB Low Rate Credit Card
13.99% p.a.
Up to 55 days on purchases
$59 p.a.
0% p.a. for 16 months with 2% balance transfer fee
Offers a low $500 minimum credit limit, special offers from Visa Entertainment and Tap and Pay capabilities.
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 and a low variable interest rate of 11.99% p.a. on purchases.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 12 months (reverts to 20.74% p.a.)
Up to 44 days on purchases
$129 p.a.
0% p.a. for 6 months
Until 31 October 2017, save with 0% p.a. on purchases for 12 months. Plus, up to 0.66 Velocity Points per $1 spent.
Virgin Money Low Rate Credit Card
11.99% p.a.
Up to 44 days on purchases
$99 p.a.
0% p.a. for 12 months
Take advantage of the optional insurance coverage of CreditShield Edge. Plus, enjoy the convenience of contactless payments with Visa payWave.
NAB Low Rate Platinum Card
13.99% p.a.
Up to 55 days on purchases
$100 p.a.
0% p.a. for 16 months with 2% balance transfer fee
Enjoy the protection of 7 complimentary insurances including overseas travel and purchase protection insurance.
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
Offer a low minimum credit limit of $500, the ability to use Apple Pay and Android Pay and a discounted annual fee for the first year.

Compare up to 4 providers

happy girl holding a credit cardHow do credit cards with a cheap interest rate work?

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

This depends on how you plan to use your card, so there’s no one answer. Spenders who plan to use their credit card to make a number of large purchases early on may benefit from a card with a rate which is initially very low or 0%. Those who wish to use their card for regular purchases may benefit from a credit card which has a low rate for the life of the card. Using our credit card interest repayment calculator may give you indication of which one is most suitable.
The answer to this question depends again on how you plan to use your card. Cards come with many different features and fees. The right mix of these features, fees and interest rates will help you decide which cards will be worthwhile additions to your wallet.
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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

    • Staff
      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?

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