Low Rate Credit Cards

Compare low rate credit cards to reduce the interest paid on purchases and maintain a balance.

By   |   Updated 17 Jul 2024

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Comparing low rate credit cards

Bankwest Breeze Mastercard

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

12 months at 0% p.a.

Annual fee

$49.00 p.a. ongoing

Highlights

  • Benefit from 0% p.a. interest on balance transfers for 12 months (with a 2% BT fee, then 12.99% p.a.).
  • 0% p.a. for 12 months on purchases (returning to 12.99% p.a.).
  • Enjoy up to 55 interest-free days on purchases.
  • Exclusive offer for new customers for a limited time. Additional charges, as well as terms and conditions, apply.

Pros

  • 0% p.a. on balance transfers for 12 months.
  • 0% p.a. for 12 months on purchases.
  • Up to 55 interest-free days on purchases.

Cons

  • There are no rewards on this card.
  • There is a 2% BT fee.
Bankwest Breeze Platinum Mastercard

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

12 months at 0% p.a.

Annual fee

$69.00 p.a. ongoing

Highlights

  • Experience 0% p.a. interest on balance transfers for 12 months (with a 2% BT fee, then 12.99% p.a.).
  • 0% p.a. for 12 months on purchases (reverting to 12.99% p.a.).
  • Benefit from up to 55 interest-free days.
  • Offer exclusively for new customers within a specified period. Additional charges, along with terms and conditions, apply.

Pros

  • 0% p.a. on balance transfers for 12 months.
  • 0% p.a. for 12 months on purchases.
  • No foreign transaction fees. Plus, complimentary overseas travel insurance for you and your family.

Cons

  • There is no rewards program on this card.
  • There is a 2% BT fee.
Bankwest Zero Mastercard

On website

Balance transfer

28 months at 0% p.a.

Purchase rate

14.99% p.a. ongoing

Annual fee

$0.00 p.a. ongoing

Highlights

  • Avoid annual fees for the duration of card ownership.
  • 0% p.a. for 28 months on transferred balances (with a 3% balance transfer fee). Returns to 14.99% p.a. thereafter.
  • Enjoy up to 55 days interest-free on purchases.
  • Offer exclusive to new customers for a limited time. Additional fees and charges, as well as terms and conditions, apply.

Pros

  • There is no annual fee for as long as you keep the card.
  • The current balance transfer offer is extremely competitive.
  • Interest on purchases is comparatively low.

Cons

  • Balance transfers incur a one-off fee.
  • You cannot earn credit card points.
Citi Clear Credit Card

Citi Clear Credit Card

Balance transfer

24 months at 0% p.a.

Purchase rate

14.99% p.a. ongoing

Annual fee

$49.00 for 1st year

Highlights

  • Benefit from 0% p.a. for 24 months on Balance Transfers (with a 1.5% Balance Transfer fee). The rate reverts to the cash advance rate.
  • Get a discounted first-year annual fee of $49 ($99 p.a. thereafter)
  • Enjoy a low ongoing variable purchase rate of 14.99% p.a.
  • Access to complimentary insurances including Extended Warranty Insurance and Purchase Protection Insurance.*



*Complimentary insurance covers are subject to eligibility requirements: AWP Australia Pty Ltd ABN 52 097 227 177 AFSL 245631 (trading as Allianz Global Assistance) under a binder from the underwriter, Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (Allianz) has issued a Complimentary insurance group policy to National Australia Bank Limited (ABN 12 004 044 937, AFSL and Australian Credit Licence 230686) (“NAB”) which allows eligible NAB account holders and cardholders to claim under it as third party beneficiaries by operation of s48 of the Insurance Contracts Act 1984 (Cth). NAB is the credit provider and issuer of Citi branded credit cards. NAB has acquired the business relating to these products from Citigroup Pty Limited (ABN 88 004 325 080, AFSL and Australian Credit Licence 238098) (“Citi”). Citi has agreed with NAB to provide transitional services in relation to the transferred business. Any advice on insurance is general advice only and not based on any consideration of your objectives, financial situation or needs. The terms, conditions, exclusions, limits and applicable sub-limits of the group policy are set out in the Citi Credit Cards Complimentary Insurance Policy Information Booklet which may be amended from time to time. Neither NAB nor Citi nor any of its related corporations guarantee this insurance.


Pros

  • Low ongoing variable purchase rate of 14.99% p.a.
  • Add up to 4 additional cardholders at $0 fee.
  • Up to 55 days interest-free on retail purchases.
  • Enjoy 10% off (up to $250) Limited Time LUX Exclusive hotel offers until 1 March 2025.

Cons

  • There is no rewards program on this card.
  • After the initial year, the annual fee reverts to $99 p.a.
  • Interest will be charged on retail purchases while you have a balance transfer.
The Low Rate Credit Card from American Express

Balance transfer

N/A

Purchase rate

10.99% p.a. ongoing

Annual fee

$0.00 p.a. ongoing

Highlights

  • Benefit from a competitive 10.99% p.a. interest rate for purchases.
  • Enjoy a perpetual $0 annual fee with card ownership.
  • Access up to 55 days interest-free.

Pros

  • Benefit from a competitive 10.99% p.a. interest rate for purchases.
  • Enjoy a perpetual $0 annual fee with card ownership.
  • Access up to 55 days interest-free.

Cons

  • There are no rewards program for this card.
Bendigo Bright Credit Card

On website

Balance transfer

N/A

Purchase rate

9.99% p.a. ongoing

Annual fee

$59.00 p.a. ongoing

Highlights

  • Ongoing interest rate remains low at 9.99% p.a.
  • Benefit from its continual low annual fee of $59 p.a.
  • No charges for extra cardholders.

Pros

  • Up to 55 days interest-free.
  • No fees for additional cardholders.
  • Compatible with Apple Pay, Fitbit Pay, Garmin Pay, Google Pay, and Samsung Pay,

Cons

  • You can't earn credit card rewards.
NAB Low Rate Credit Card

On website

Balance transfer

28 months at 0% p.a.

Purchase rate

13.49% p.a. ongoing

Annual fee

$0.00 for 1st year

Highlights

  • Experience 0% p.a. on balance transfers for 28 months with a 2% balance transfer fee. Reverting to a variable cash advance rate of 21.74% p.a. after the promotional period.
  • Initial $0 annual card fee for the first year ($59 p.a. thereafter).
  • Receive a response within 60 seconds.

Pros

  • 0% p.a. on balance transfers for 28 months.
  • A variable purchase rate of 13.49% p.a.
  • The waived annual fee for the first year.
  • Additional credit card is free.

Cons

  • There is a 2% balance transfer fee.
  • No rewards program for this card.
  • No insurance coverage.
NAB StraightUp Credit Card

On website

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Annual fee

$0.00 p.a. ongoing

Highlights

  • Obtain the latest credit card from NAB - straightforward, affordable, and above all, interest-free!
  • No Use, No Pay. Should your NAB StraightUp credit card remain unused throughout the entire statement period, the monthly fee will be reimbursed. No unexpected charges!
  • Utilize your card for foreign currency transactions and relish in zero foreign transaction fees!
  • Consistent fixed minimum payments determined by your credit limit, providing you with assurance of monthly payment amounts.

Pros

  • Charges a monthly fee based on your selected credit limit.
  • The monthly fee will be reversed if you do not have any outstanding balance or purchase.
  • No interest charges or other fees, including foreign currency fees and late payment fees.

Cons

  • No rewards program for this card.
  • No balance transfers or cash advances.
MONEYME Freestyle Virtual Card

On website

Balance transfer

N/A

Purchase rate

From 18.24% p.a. ongoing

Annual fee

From $0.00 p.a. ongoing

Highlights

  • Use virtual card instantly once approved (typically within 60 mins)
  • Tap n Pay with up to 55 days interest free
  • Use credit to transfer money to anyone
  • Exclusive features
  • Thousands of 5-star customer reviews

Bank promo

  • Get MONEYME's lowest advertised rate EVER of 18.74% p.a.
  • Annual fee of $0 to $149 p.a. based on credit limit plus a monthly fee of $5 for balances over $20.

Pros

  • Available to use immediately after approval.
  • Money can be transferred to your bank account.
  • Get cashback at participating stores with Cashrewards.

Cons

  • The maximum credit limit is comparatively low.
  • Combination of annual and monthly fees can be quite expensive for the highest credit limit.
  • There is a 1.5% withdrawal fee.
St.George Vertigo Visa Credit Card

On website

Balance transfer

28 months at 0% p.a.

Purchase rate

13.99% p.a. ongoing

Annual fee

$55.00 p.a. ongoing

Highlights

  • Benefit from a 28-month 0% interest period on Balance Transfers, accompanied by a 1% balance transfer fee. Afterwards, it switches to a cash advance rate of 21.49% p.a.
  • Enjoy a low variable interest rate of 13.99% p.a. on purchases.
  • The annual fee remains low at $55 p.a.

Pros

  • 0% p.a. for 28 months on balance transfers with no balance transfer fee.
  • 13.99% p.a. low variable interest rate on purchases.
  • Low annual fee of $55 p.a.

Cons

  • Balance transfer rate reverts to 21.49% p.a. after 28 months.
  • There are no rewards program for this card.
ME Frank Credit Card

On website

Balance transfer

N/A

Purchase rate

13.49% p.a. ongoing

Annual fee

$0.00 p.a. ongoing

Highlights

  • Benefit from one of the most competitive ongoing purchase interest rates at 13.49% p.a.
  • Cash advances are equally cost-effective, also at 13.49% p.a., accompanied by a $4 or 2% fee (whichever is greater).
  • The ideal annual fee: zero.

Pros

  • 13.49% p.a. interest rate on purchases and cash advances.
  • No annual fee for life.
  • Get up to 55 days interest-free on purchases.
  • Low foreign transaction fee.
  • Easily lock the card from the app if lost.

Cons

  • You will not earn rewards points on this card.
  • No interest-free balance transfers.
  • No complimentary insurance coverage.
BankSA Vertigo Credit Card

On website

Apply by 31 July 2024

BankSA Vertigo Credit Card

Balance transfer

28 months at 0% p.a.

Purchase rate

13.99% p.a. ongoing

Annual fee

$55.00 p.a. ongoing

Highlights

  • Receive up to $400 cashback on your supermarket purchase or benefit from 0% interest for 28 months on Balance Transfers with a 1% balance transfer fee. Reverts to a cash advance rate of 21.49% p.a.
  • Enjoy a low variable interest rate of 13.99% p.a. on purchases.
  • 55 days interest-free on purchases.

Pros

  • Get 10% cashback on your supermarket shop or 0% p.a. for 28 months on balance transfers with a 1% balance transfer fee.
  • 13.99% p.a. low variable interest rate on purchases.
  • Up to 55 days interest-free on purchases.

Cons

  • Balance transfer rate reverts to 21.49% p.a. after 28 months.
  • There are no rewards program for this card.
Bank of Melbourne Vertigo Visa Credit Card

On website

Balance transfer

28 months at 0% p.a.

Purchase rate

13.99% p.a. ongoing

Annual fee

$55.00 p.a. ongoing

Highlights

  • Receive up to $400 cashback on your supermarket purchase or benefit from 0% interest for 28 months on Balance Transfers with a 1% balance transfer fee. Reverts to a cash advance rate of 21.49% p.a.
  • 13.99% p.a. low variable interest rate on purchases.
  • Low annual fee of $55 p.a.

Pros

  • Get 10% cashback on your supermarket shop or 0% p.a. for 28 months on balance transfers with a 1% balance transfer fee.
  • 13.99% p.a. low variable interest rate on purchases.
  • Low annual fee of $55 p.a.

Cons

  • Balance transfer rate reverts to 21.49% p.a. after 28 months.
  • There are no rewards program for this card.
Australian Unity Low Rate Visa Credit Card

On website

Balance transfer

N/A

Purchase rate

9.9% p.a. ongoing

Annual fee

$59.00 p.a. ongoing

Highlights

  • Leverage the enticing 9.90% per annum purchase rate.
  • Enjoy up to 45 days interest-free on purchases, enhancing your financial flexibility.
  • Additionally, secure up to 4 extra cards at no supplementary annual fees, extending the benefits to your loved ones.

Pros

  • Low interest rate applied to purchases.
  • Relatively cheap ongoing annual fee.
  • Add up to 4 additional cardholders for free.

Cons

  • No balance transfer offer.
  • You can't earn rewards with this card.
  • There's a 3% fee on purchases made in a foreign currency.
Border Bank Visa Credit Card

On website

Balance transfer

N/A

Purchase rate

10.76% p.a. ongoing

Annual fee

$0.00 for 1st year

Highlights

  • Experience a low ongoing rate of 10.76% p.a. on purchases.
  • Pay no annual fee in the first year (then reverts to $30).
  • Compatible with Apple Pay, Samsung Pay, and Google Pay.

Pros

  • Low ongoing interest rate.
  • $0 annual fee on the first year.
  • Get up to 55 days interest-free period on purchases.

Cons

  • There is no rewards program on this card.

Low rate credit cards typically come with a lower interest rate on purchases, balance transfers, and sometimes cash advances. Used responsibly, a credit card can help manage your finances and one with low rates can help a little more.

David Boyd of Credit Card Compare

David Boyd, co-founder of Credit Card Compare, explains, "A credit card with low interest can save money if you carry a balance. It's better to pay off each statement balance in full so you can avoid having to pay interest."

Benefits of low rate credit cards

  • Cost savings: If you end up carrying a balance, a lower interest rate means you will pay less interest over time.
  • Debt management: If you have existing credit card debt, you can balance transfer to a significantly lower rate. They're also useful if you are planning to make a large purchase and need some time to pay off the debt.
  • Financial flexibility: Low rate credit cards offer a cushion for unexpected expenses without accruing high interest charges.

What to consider before applying for a low rate credit card

  • Credit score: Your credit score determines to a large degree whether you qualify for a credit card at all.
  • Introductory period: Some low rate credit cards offer a low or 0% introductory rate for a limited time on balance transfers and/or purchases (sometimes both). Ensure you understand when this period ends and the standard rate that will apply at the end of this period.
  • Fees: While the interest rate is a crucial factor, be mindful of other fees associated with the card, such as annual fees or balance transfer fees. They can add up and erode the benefit you get from a low rate card, especially if dealing with smaller amounts of debt.

How to choose a low rate credit card

When searching for a low rate credit card, consider the following factors.

  • Interest rates: Compare the ongoing rate for purchases, balance transfers, and cash advances. Lower is better when it comes to interest rates. Check that the low rate isn't only for an introductory period.
  • Introductory offers: Look for cards with introductory periods for balance transfers or purchases. A longer introductory period is generally better.
  • Fees: Check the annual fees, late payment fees, balance transfer fees, and foreign transaction fees. Ideally you don't incur fees, but lower is better if you do.
  • Rewards and benefits: Some low rate cards also offer rewards programs or additional perks, which may or may not be beneficial to you depending on your lifestyle.

Help choosing a low rate credit card

More about how to cut the cost of borrowing with low rate credit cards.

  • FAQs

  • Pros & cons

Do low rate credit cards have annual fees?

Some low rate credit cards come with no annual fees and others don't.

For example, a card with a small annual fee but a long interest-free period on balance transfers might work out cheaper on the whole when compared to a card with no annual fee and a shorter interest-free balance transfer period.

It's essential to consider the overall cost of the card, including any fees, to determine if it aligns with your financial goals.

What happens when an introductory low rate ends?

Once the introductory rate ends, whatever balance remains will revert to what's known as the revert rate. The revert rate is typically either the purchase rate or cash advance rate. The same revert rate typically applies to whatever introductory rate a card offers.

For example, a card has an introductory balance transfer rate, which reverts to the cash advance rate. You transfer $5,000 of debt and pay off $4,000 during the introductory period. The cash advance rate will apply to the $1,000 that remains for as long as it remains.

Do low rate credit cards earn rewards or cashback?

Although it is not impossible for a low rate credit card to earn rewards, most cards focused on a low rate, low fee offering do not earn rewards.

However, it's not uncommon for rewards cards to have introductory offers on balance transfers and/or purchases, but these offers typically revert to an interest rate that is about average and not particularly low.

Pros

Reduced interest payments

A standout benefit of low rate credit cards is the significantly lower interest charges on balances, making them a cost-effective option for those who occasionally carry a balance.

Lower overall costs

Many low rate credit cards are designed with affordability in mind, often featuring lower annual fees in addition to lower interest rates, helping to minimise the overall cost of holding and using the card.

Simplicity and transparency

These cards often offer straightforward terms and conditions, with fewer complex features or hidden costs, making them easy to understand and manage for all cardholders.

Cons

Lack of reward schemes

One of the main drawbacks is the absence of rewards programs, meaning users don't earn points, miles, or cashback on their spending, which can be a deal-breaker for those looking to maximise their purchases.

Minimal extra perks

Beyond the lower interest rates and fees, low rate credit cards typically offer few, if any, additional benefits such as complimentary insurance or concierge services, making them less appealing for those seeking premium card features.

Basic functionality

With the focus on low costs, these cards may not provide the enhanced features or flexibility desired by some users, such as higher credit limits or the ability to add multiple cardholders, limiting their utility for more complex financial needs.