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.
0% on purchases for 15 months from account opening (Reverts to 11.99% p.a). Bonus $150 Woolworths Supermarket Gift Card when you spend $1,000 on eligible purchases within 90 days of opening your account. Annual fee of $45 and no fees for additional cardholders.
0% on purchases for 15 months from account opening (Reverts to 11.99% p.a). Bonus $150 Woolworths Supermarket Gift Card when you spend $1,000 on eligible purchases within 90 days of opening your account. Annual fee of $45 and no fees for additional cardholders.
Read our Mozo Review to learn more about the Low Rate Credit Card
Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances (8.99% p.a. ongoing). Up to 55 days interest free on purchases.
Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances (8.99% p.a. ongoing). Up to 55 days interest free on purchases.
Read our Mozo Review to learn more about the Foundation Credit Card
13.99% p.a. low variable interest rate on purchases. 0% p.a. for 24 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
13.99% p.a. low variable interest rate on purchases. 0% p.a. for 24 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
Read our Mozo Review to learn more about the Vertigo
$10/month - $1,000 Credit Limit
Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.
Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.
Read our Mozo Review to learn more about the StraightUp Card
Enjoy an amazingly low 11.99% p.a. on purchases plus a 0% balance transfer rate for 13 months and up to 55 interest free days. No annual fee for the first year and $49 after.
Enjoy an amazingly low 11.99% p.a. on purchases plus a 0% balance transfer rate for 13 months and up to 55 interest free days. No annual fee for the first year and $49 after.
Read our Mozo Review to learn more about the Low Rate Credit Card
An everyday credit card with 0% p.a. for 20 months on balance transfers with no balance transfer fee and $0 annual fee in First Year. Apply online in just five minutes. A minimum credit limit of $1,000 applies.
An everyday credit card with 0% p.a. for 20 months on balance transfers with no balance transfer fee and $0 annual fee in First Year. Apply online in just five minutes. A minimum credit limit of $1,000 applies.
Read our Mozo Review to learn more about the Low Rate
A low on-going rate of 13.74% on all purchases plus enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days,
A low on-going rate of 13.74% on all purchases plus enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days,
Read our Mozo Review to learn more about the Low Rate
13.99% p.a. low variable interest rate on purchases plus get 24 months 0% p.a. on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Pay no annual card fee for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
13.99% p.a. low variable interest rate on purchases plus get 24 months 0% p.a. on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Pay no annual card fee for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Read our Mozo Review to learn more about the Vertigo
13.99% p.a. low variable interest rate on purchases. Consolidate debt with 0% p.a. for 24 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
13.99% p.a. low variable interest rate on purchases. Consolidate debt with 0% p.a. for 24 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.
Read our Mozo Review to learn more about the Vertigo
Take advantage of 0% p.a. on purchases for 15 months (rate then switches to 12.99% p.a.). 55 day interest free period for repayments. Low $49 annual card fee for the first year ($99 thereafter). Applicable to new Cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Low Rate Platinum Credit Card Winner 2020^.
Take advantage of 0% p.a. on purchases for 15 months (rate then switches to 12.99% p.a.). 55 day interest free period for repayments. Low $49 annual card fee for the first year ($99 thereafter). Applicable to new Cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Low Rate Platinum Credit Card Winner 2020^.
Read our Mozo Review to learn more about the Vertigo Platinum
Spend with confidence with a low 12.99% standard purchase rate. 0% p.a. interest on balance transfers for the first 20 months (2% fee). There's also up to 55 interest free days on purchases to help you manage your budget better.
Spend with confidence with a low 12.99% standard purchase rate. 0% p.a. interest on balance transfers for the first 20 months (2% fee). There's also up to 55 interest free days on purchases to help you manage your budget better.
Read our Mozo Review to learn more about the Low Rate Card
0% p.a. for 6 months on balance transfers and 0% p.a. for up to 14 months on purchases. Pay only half the annual fee in the first year and enjoy an exclusive $129 Virgin Australia Gift Voucher yearly.
0% p.a. for 6 months on balance transfers and 0% p.a. for up to 14 months on purchases. Pay only half the annual fee in the first year and enjoy an exclusive $129 Virgin Australia Gift Voucher yearly.
Read our Mozo Review to learn more about the Virgin Australia Velocity Flyer Card - Purchase Rate and Balance Transfer Offer
^See information about the Mozo Experts Choice Credit cards Awards
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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
My payment was due on the 14/02/21 and I did made the payment early on the 12/02/21 but they didn't take the money out of my account. Their statement says it's still pending and on the 17/02/21 they send a dishonoured fee of $15.00 to me stated that I dshonoured the payment. While I was with skye mastercard, everything runs well and good. Now humm90 took over it's a nightmare, no good customer service on the phone, giving dishonour fee for no reason, accumalating of dishonour fees for no good reasons and so on. Please people, don't use this bank. They are stealing money, even though you made payment before the due date, they won't take the money out of your account until the due date passed and then they say you dishonoured the payment and that's when they will charge you the dishonoured fee. They are Thieves.
Read full reviewMy payment was due on the 14/02/21 and I did made the payment early on the 12/02/21 but they didn't take the money out of my account. Their statement says it's still pending and on the 17/02/21 they send a dishonoured fee of $15.00 to me stated that I dshonoured the payment. While I was with skye mastercard, everything runs well and good. Now humm90 took over it's a nightmare, no good customer service on the phone, giving dishonour fee for no reason, accumalating of dishonour fees for no good reasons and so on. Please people, don't use this bank. They are stealing money, even though you made payment before the due date, they won't take the money out of your account until the due date passed and then they say you dishonoured the payment and that's when they will charge you the dishonoured fee. They are Thieves.
This is the worst card I have ever used - so confusing - trying to navigate the website is the first problem. Trying to phone for assistance was totally frustrating as the automated service would not recognise my card - even though I entered the number 5 times. Attempting to view my purchases online is another confusing episode of website navigation. No transparency. No care.
Read full reviewThis is the worst card I have ever used - so confusing - trying to navigate the website is the first problem. Trying to phone for assistance was totally frustrating as the automated service would not recognise my card - even though I entered the number 5 times. Attempting to view my purchases online is another confusing episode of website navigation. No transparency. No care.
Disgusting service can't get intouch,put on hold 2 days high volume oF calls,unhappy customers I would say!! All I want to do is cancel as they have already made me pay $102.86 fees for card not used and thought was cancelled, but oh no still charging me for card.
Read full reviewDisgusting service can't get intouch,put on hold 2 days high volume oF calls,unhappy customers I would say!! All I want to do is cancel as they have already made me pay $102.86 fees for card not used and thought was cancelled, but oh no still charging me for card.
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