Don't like high interest rates draining your wallet on unpaid balances? Compare low interest rate credit cards that cut the cost of purchases and help you carry a balance more affordably.
Australians owed $44.7 billion on credit and charge cards in August 2026
Of that, $21.6 billion was still accruing interest, up 0.6% on the month (seasonally adjusted, Reserve Bank of Australia).
Nearly half of the $44.7 billion Australians owe on cards is still charging interest, suggesting many cardholders aren't paying down their balances quickly enough to avoid ongoing costs.
Market news
Australian mortgage stress surges to 450,000 households as default risks hit tipping point.
Mortgage stress among Australian households has increased to 450,000 as cost-of-living pressures continue to affect homeowners' ability to service their debts.
With 450,000 households now experiencing mortgage stress, reducing interest paid on credit card balances could free up cash for mortgage repayments, though our data shows the lowest purchase rate available across 104 cards sits at 6.96% p.a.
Market news
Australian households are spending significant portions of pay on home loans.
Household mortgage servicing costs have increased substantially across Australian states as interest rates and cost-of-living pressures affect borrowers.
As household mortgage servicing costs climb, minimising credit card interest becomes more important for budgeting, and cards in our database have a median annual fee of $49.50 to factor into the overall cost.
Low interest rate cards suit people who sometimes carry a balance. Where premium rewards cards often charge above 20% p.a., low-rate cards usually sit between 8% and 15% p.a., and some business cards offer 0% p.a. ongoing.
These cards focus on affordability over perks. A lower rate cuts the interest that builds on unpaid purchases, helping you clear debt faster.
How to compare low rate cards
Look past the headline rate. Check the annual fee, since a very low rate can be offset by a high yearly cost, and check the interest-free days (often up to 44 or 55) that let you avoid interest when you pay in full.
Also look at balance transfer offers, which can give 0% for a set period, and note the revert rate that applies once any promo ends. Carrying existing debt? A balance transfer card can give you a 0% runway to clear it.
Low rate credit card FAQs
Anyone who carries a balance from month to month. The lower the ongoing purchase rate, the less interest builds up. If you always pay in full, interest-free days matter more than the rate.
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Nilooka Dissanayake
Vidhu Bajaj
David Boyd
