While many credit cards charge 20% or more on purchases, low interest rate credit cards can save you hundreds of dollars a year. These cards are a cheaper way to manage purchases if you tend to carry your balance from month to month. Or perhaps you simply forget to pay off your balance from time to time. Both are good reasons to look into low interest credit cards. Compare cards below.
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11.99% p.a.
0% p.a. for 13 months and then 21.74% p.a.
$49 $0 in the first year
11.99% p.a.
0% p.a. for 13 months and then 21.74% p.a.
$49 $0 in the first year
0% p.a. for 7 months then 13.99% p.a.
0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
$55 $0 in the first year
0% p.a. for 7 months then 13.99% p.a.
0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
$55 $0 in the first year
Hot Deal$200 Cashback Offer (T&Cs apply)
13.74% p.a.
0% p.a. for 20 months and then 21.49% p.a. (1.00% balance transfer fee)
$59
13.74% p.a.
0% p.a. for 20 months and then 21.49% p.a. (1.00% balance transfer fee)
$59
11.99% p.a.
No current offer
$0
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0.90% p.a. for 15 months then 14.99% p.a.
0.90% p.a. for 15 months and then 22.24% p.a.
$99
0.90% p.a. for 15 months then 14.99% p.a.
0.90% p.a. for 15 months and then 22.24% p.a.
$99
$10/month - $1,000 Credit Limit
0% p.a.
No current offer
$120 $10/month - waived if no spend & no balance owing
$10/month - $1,000 Credit Limit
0% p.a.
No current offer
$120 $10/month - waived if no spend & no balance owing
0% p.a. for 7 months then 13.99% p.a.
0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
$55 $0 in the first year
0% p.a. for 7 months then 13.99% p.a.
0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
$55 $0 in the first year
0% p.a. for 15 months then 12.99% p.a.
6.99% p.a. for 12 months and then 21.49% p.a.
$99 $49 in the first year
0% p.a. for 15 months then 12.99% p.a.
6.99% p.a. for 12 months and then 21.49% p.a.
$99 $49 in the first year
0% p.a. for 7 months then 13.99% p.a.
0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
$55 $0 in the first year
0% p.a. for 7 months then 13.99% p.a.
0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
$55 $0 in the first year
$20/month - $3,000 Credit Limit
0% p.a.
No current offer
$240 $20/month - waived if no spend & no balance owing
$20/month - $3,000 Credit Limit
0% p.a.
No current offer
$240 $20/month - waived if no spend & no balance owing
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Views, news, tips and guides to help find the best credit card for you.
If you're on the hunt for a new or replacement credit card why wouldn't you choose one that has the lowest interest rate? Low interest cards, or low rate cards generally have an interest rate of 14% p.a. or less. With many credit card interest rates over 20% p.a., you may be wondering what the catch is with low interest cards. Read on as we outline the key features of low interest cards and explain some of the differences between their higher interest counterparts.
Banks are very good at marketing and so you'll find that there are a range of low rate offers available when you look for a new card. Generally, there three main types of cards offers that fall into the low interest category.
Low rate cards have the same standard features as regular credit cards, these include:
Some low rate cards also offer:
Annual fee: Most low rate cards will have annual fees under $60, though if you opt for a platinum version you could expect to pay an annual fee of around $100 a year.
Cash advance fee: If you make a cash withdrawal you will either pay an upfront fee or a percentage fee of the cash advance amount whichever is higher.
Foreign transaction fee. Low rate credit cards are generally not designed for frequent international travel so you would expect to pay a foreign exchange fee on any purchases or withdrawals. The standard charge is around 3% of the Australian dollar transaction account.
Late payment fee. This fee can be completely avoidable so set up automatic monthly deposits for the minimum payment. Late payment fees can be as high as $30.
Replacement fee. If you lose your card you'll need to pay a replacement fee. Just be aware that the cost for replacing a card overseas will be much higher than if you lose your card in Australia. There may also be an emergency card fee on top of the replacement fee if you need the replacement card urgently.
If you don't always pay your card balance off in full each month then a low rate card will be a great option for keeping your interest repayments to a minimum and make it easier to pay back your debt in a shorter timeframe.
There are a number of instances when an alternative credit card could be a better choice. These include:
The amount of money you'll save by opting for a low rate card over a rewards card, for instance, will depend on your ongoing spending and repayment habits. But let's look at the following scenario as an example.
Jill has a credit card with a balance of $3000. This card does not have an annual fee but the interest rate is 19.99%. She can afford to pay back $300 a month. It will take Jill 1 year and cost her $309 in interest to pay off the card according to Mozo's credit card debt repayments calculator. If instead she had a low rate card from one of the Big 4 Banks, with a $59 annual fee and an interest rate of 13.49%, she would pay off the card in 11 months and only pay $260 interest.
Now, many people do not ever get their balance to zero as they make new purchases on the card, so the amount of interest paid over the life of the card is much higher, which is why having a low going interest rate is so important if you do carry a balance on your card regularly.
Written by: Kelly Emmerton, Mozo Money Editor
Branch closures in regional areas are appalling - no thought or care for aged/isolated/ non-driving/ country-dwelling customers. Not everyone can catch public transport/taxi or drive independently to a branch or ATM. Many older people don’t have the means/confidence/trust to access online or phone banking.
Read full reviewBranch closures in regional areas are appalling - no thought or care for aged/isolated/ non-driving/ country-dwelling customers. Not everyone can catch public transport/taxi or drive independently to a branch or ATM. Many older people don’t have the means/confidence/trust to access online or phone banking.
I like the product. Safety of using my platinum rewards card. Once the bank alerted me that my card had been used to by airline tickets in another country and they refunded me really fast.
Read full reviewI like the product. Safety of using my platinum rewards card. Once the bank alerted me that my card had been used to by airline tickets in another country and they refunded me really fast.
Interest free period is useful as I clear the balance each month.
Read full reviewInterest free period is useful as I clear the balance each month.
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