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Find a card type that suits you best
What are the main types of credit cards in Australia?
- Balance transfer credit cards. Got debt on multiple cards or a card with a hefty interest rate? A balance transfer credit card lets you shift that debt to a card with a low or even 0% interest rate for an introductory period, helping you pay it off without interest piling up. Check the annual and upfront fees, plus the interest rate after the promo period ends.
- Business credit cards. If you use a card for work expenses, a business credit card can keep your personal and work spending separate. These cards are available to any Australian business with an Australian Business Number (ABN). Multiple cards can be issued to staff, and they often come with extras like accounting software integration.
- Low rate credit cards. A low rate credit card comes with a lower interest rate on purchases, making it a solid choice if you tend to carry a balance month to month and get hit with interest charges. Often dubbed ‘no frills’, these cards usually skip the rewards programs, perks, or bonuses you’d find on premium cards.
- No or low annual fee credit cards. Credit cards can come with a bunch of fees, and some premium ones might sting you with annual fees of hundreds of dollars. A no annual fee card has a $0 annual fee, either for a limited promo period or for as long as you hold the card. These cards might offer rewards programs but are generally more basic than high-end options.
- Rewards credit cards. If you’re keen to score bonuses and perks for your spending and can handle a credit card responsibly, a rewards credit card might be your go-to. These cards let you earn points based on your purchases, which you can redeem for cashback, retail discounts, frequent flyer points, or other rewards. Keep in mind they often come with higher fees and interest rates than basic cards.
- Frequent flyer credit cards. Frequent flyer credit cards are a type of rewards card tied to airline programs like Qantas Frequent Flyer or Velocity. You earn points per dollar spent, which transfer to your frequent flyer account. While these cards may have higher fees and interest rates, they can offer perks like complimentary travel insurance or airport lounge access.
- Travel credit cards. Planning an overseas trip? Travel credit cards are designed for travellers, offering features like low or no currency conversion fees, complimentary travel insurance, and the chance to earn rewards or frequent flyer points. There are options for both occasional and frequent travellers, but watch out for fees and interest rates.
How to choose the right type of credit card
Choosing the best credit card depends on your needs and financial habits, but no matter what, managing it responsibly is key.
A big factor is whether you’ll pay off your balance in full each month or carry a balance and only pay the minimum. If you’re likely to carry a balance, a low rate card can save you on interest charges.
However, if you clear your balance monthly and want to earn perks, a rewards card could be a good fit. Just make sure your spending will outweigh any fees you’re charged.
If you travel often for work or leisure, a frequent flyer card might be worth a look. You could earn points for flight upgrades or free flights, plus enjoy perks like travel insurance or lounge access, provided you can manage the fees and avoid interest by paying off the card.
