Compare low rate credit cards

What is a low rate credit card? 

In Australia, low rate credit cards typically have an interest rate below 14% p.a., compared to rewards credit cards, which tend to have rates around 20% p.a., making them a very competitively-priced credit card option. 

Suited to those who want to reduce the amount of interest they are charged, these low interest credit cards often don’t come with any perks, bonuses, or rewards programs. However, some providers do offer  balance transfer deals on their low rate cards, if you’re looking to consolidate existing credit card debt. 

Features

• Low interest rates
• Interest-free days (up to 55 days)
• Annual fees 
• Late payment fees
• Balance transfer deals, rates & fees
• Cash advance rates & fees. 

Pros and cons of low interest credit cards 

While a low interest rate is tempting, it’s worth considering the pros and cons of these types of credit cards. 

Pros

• Low interest rates can make it easier to pay off your credit card debt faster and manage your balance. 
• Generous interest-free periods provide breathing room between making a purchase and paying interest on it. 
• Balance transfer offers give you an opportunity to work on paying off your existing credit card debt while paying no (or very low) interest for a period of time. 

Cons

• Few low interest credit cards come with rewards programs or perks. 
• Cash advance rates on low rate credit cards are usually very high compared to the purchase rate. 
• Most low rate cards charge an annual fee.

What is the best low rate credit card in Australia?

The best low rate credit cards, according to the 2024 Mozo Experts Choice Awards, are:

Check out more of the best credit cards in Australia, including top picks for this month by the Mozo editors.

How to compare low rate credit cards 

When you come to compare low rate credit cards, the key features to pay attention to include:

• Interest rates. While the purchase rates on low rate credit cards are often very low (8-14% p.a.), cash advance interest rates tend to be much higher. If you’re opting for a balance transfer, compare both the interest rates on offer and the balance transfer period’s length. 
• Interest-free days. Interest-free periods can differ between low interest credit cards. Generally, the longest you’ll find when comparing is 55 days, with some exceptions. 
• Fees. Low rate credit cards typically charge an annual fee to make up for the low interest they charge. So, finding an introductory $0 annual fee deal will save you some money on your credit card right off the bat. Other fees to consider include balance transfer fees, cash advance fees, late payment fees, and foreign currency conversion fees which, if you use your card for these purposes, can add up quickly.
• Perks. Perks on a low interest credit card are usually few and far between. But some low rate cards do have them, which can include purchase cover, rewards points and programs, international ATM fee waivers, introductory cashback deals, and more.