What is the best credit card in Australia?
Why settle for a card that’s only second best when you find the best credit card* for your wallet? Start researching and compare a selection of some of the best credit cards* on offer from major banks and small banks. This best credit card* comparison table includes balance transfer offers, low interest rates, no annual fees, rewards and frequent flyer programs.
When looking for the best credit card* on Credit Card Compare, it's important to understand the different types available and how they cater to various financial needs.
What type of credit card should you get?
When comparing to find the best credit card to suit your financial needs, it's important to understand the different types available since each has its own combination of features and benefits.
- Balance transfer credit cards. Useful for consolidating and paying off existing credit card debt, with most offering 0% interest for a set period lasting up to 24 months or longer. Balance transfer fees may apply, and higher rates kick in after the offer period ends. Use our Balance Transfer Savings Calculator to see how much money you could save.
- Frequent flyer credit cards. Suitable for frequent travellers or those who want to save up for flights and upgrades. most earn either Qantas Points or Velocity Points. These cards often come with additional benefits like airport lounge access and travel insurance, but annual fees and interest rates are typically higher (although there are no annual fee frequent flyer cards).
- Low interest rate credit cards. Aimed at people who carry a balance from month to month. These cards have lower ongoing interest rates, reducing the cost of borrowing compared to standard credit cards.
- No annual fee credit cards. Suitable if you want to save money, aren't particularly interested in high-end rewards since they typically offer fewer perks, and pay off your balance in full each month.
- No interest credit cards. These basic no-frills cards are designed for first timers who are more used to BNPL services like Afterpay. Instead of interest, they typically charge a monthly fee instead. Great for those who want something that's very simple but will also report to credit agencies and help them build credit.
- Premium credit cards. Gold, Platinum, and Black level credit cards cater to higher income earners and come with exclusive perks such as concierge services, luxury travel benefits, and higher earn rates for rewards points. Annual fees for these cards are higher, with the highest being for metal credit cards.
- Rewards credit cards. Earn points on your everyday purchases, from a morning coffee to groceries. Points can be redeemed for rewards like cashback, gift cards, or for travel. Some rewards programs have transfer partners, including airlines and hotels, giving increased flexibility at the point of redemption. Annual fees and interest rates are higher with these cards.
Here’s how Credit Card Compare's expert chose their best credit card
With all of this advice in mind, here's Credit Card Compare co-founder David Boyd on how he chose the best credit card that suited him.
Even though I’m familiar with which cards offer the most generous rewards, standout sign-up bonuses, and useful perks, I always start by thinking about what I personally need from a credit card. Do I want a card that would be cost-effective in the long run? Do I want one that rewards everyday spending? If I do, what program do I want to earn points with?
Since I avoid carrying a balance, a competitive purchase rate wasn’t really a priority. Instead, my focus was on finding a card that rewarded my spending without unnecessarily high fees. No annual fee would be a nice bonus.
My regular expenses revolve around groceries, dining out, and some online shopping. With Coles being my go-to supermarket for groceries and household essentials, a card that could reward me for those purchases while keeping fees at bay seemed ideal.
I settled for theColes No Annual Fee Mastercard not only because it has no annual fee but because it earned Flybuys points. As someone who regularly shops at Coles, Flybuys offers a lot of upside potential. Those points can be redeemed for a wide range of options, but I prefer to transfer them over to Velocity Frequent Flyer for upgrades.
Expert insights: What is the best credit card this month?
While no single card is "the best" for everyone, here are some of the most popular credit cards based on clicks on our comparison tables.
- ANZ Rewards Black Credit Card. This card is a powerhouse for those who love earning rewards on their spending. Its sign up bonus is among the biggest, plus points can be converted to Velocity Points or KrisFlyer miles. It also includes complimentary insurances, adding extra value for globetrotters.
- Westpac Altitude Black (Qantas or Velocity). Frequent flyers will love the bonus points on offer, with additional points if you continue to use the card after the first year. This card is geared toward those who travel often, offering Qantas or Velocity Points on everyday purchases.
- Coles No Annual Fee Mastercard. If you want to earn rewards without paying an annual fee, this is a solid choice. You can earn Flybuys points at higher rates on eligible purchases at Coles and other partners, making it perfect for everyday grocery shoppers.
What to consider when choosing a credit card
Ultimately, what's the "best" comes down to your personal financial situation and how you plan to use it. Whether you're a frequent flyer, a daily shopper, or someone who wants to maximise rewards, Australia has a variety of excellent credit card options to choose from in 2024. Be sure to consider what matters most to you — whether it's rewards, fees, or interest rates — before making your decision.
- Interest rates. The interest rate impacts how much you'll pay in interest if you carry a balance on your card. Look for cards with competitive interest rates to save money. Some come with 0% on purchases for an introductory period.
- Fees. Annual fees, late payment fees, balance transfer fees, and foreign transaction fees all add up. Choose a card with fees that align with your budget and your spending patterns.
- Rewards and benefits. Evaluate the rewards structure of the credit card to determine if it aligns with your preferences. Consider whether you prefer cashback, travel rewards, points for specific retailers, or other benefits like insurance coverage and extended warranties. And would you prefer to earn points with an airline (Qantas or Virgin Australia) or points that can be transferred to several airline or hotel partners?
- Credit limit. A card's credit limit dictates how much you can spend on the card. Particularly relevant if you want to spend a lot to maximise rewards or need to balance transfer a large amount of debt onto one card.
- Eligibility criteria. Check the minimum income requirements, accepted residency status, and your credit report. Make sure you meet the criteria before applying to increase your chances of approval.
