Who has the cheapest credit card interest rate?

Rates and Fees verified correct on March 4th, 2015

A credit card with an extremely low interest rate may be easier to find than you think.

One of the most basic financial tools most Australians have in their arsenal is the credit card, and one of the most basic charges you’ll be familiar with if you have one is interest.

Finding a credit card with a relatively low interest rate can be a money saver for the right type of spender.


Credit Cards with some of the Cheapest Credit Card Interest Rates:

Rates last updated March 4th, 2015

Interest rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
McGrath Pink Visa
McGrath Pink Visa
Award winning credit card with a low interest rate offer in the market. 8.99% p.a. $40 p.a. 8.99% p.a. More info
ME Bank Low Rate Credit Card
ME Bank Low Rate Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee. 9.99% p.a. $0 p.a. 9.99% p.a. Go to site More info
Bankwest Breeze MasterCard
Bankwest Breeze MasterCard
Low interest rate on purchases and balance transfers. 12.24% p.a. 0% p.a. for 4 months $59 p.a. 21.99% p.a. Go to site More info
Westpac Low Rate Card
Westpac Low Rate Card
A simple low interest rate card featuring a low ongoing rate on purchases and balance transfers. 0% p.a. for 3 months (reverts to 13.49% p.a.) 0% p.a. for 16 months $59 p.a. 21.49% p.a. Go to site More info
St.George Vertigo Visa
St.George Vertigo Visa
Low ongoing rate on purchases, introductory balance transfer offer, plus a low annual fee. 0% p.a. for 3 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. 21.49% p.a. Go to site More info
ANZ Low Rate
ANZ Low Rate
Save with a low rate on purchases and balance transfers with a low annual fee and ongoing purchase rate. 13.49% p.a. 0% p.a. for 16 months with 2% balance transfer fee $58 p.a. 21.74% p.a. Go to site More info
Commonwealth Bank Low Rate Credit Card
Commonwealth Bank Low Rate Credit Card
Enjoy $100 cash back* for new cardholders and make at least one purchase, apply any lock, block or limit feature. Also get a low annual fee plus a low ongoing purchase rate and a balance transfer offer. 13.49% p.a. 5.99% p.a. for 5 months $48 p.a. 21.24% p.a. More info
NAB Low Rate Credit Card
NAB Low Rate Credit Card
The NAB Low Interest Visa Card offers a low interest rate combined with a purchase and balance transfer offer of 0% p.a. for 12 months. Apply by 19 April 2015. 0% p.a. for 12 months (reverts to 13.99% p.a.) 0% p.a. for 12 months $59 p.a. 21.74% p.a. Go to site More info
HSBC Credit Card
HSBC Credit Card
No annual fee for life, plus a low balance transfer offer. 17.99% p.a. 0% p.a. for 6 months $0 p.a. 21.99% p.a. Go to site More info
Citibank Clear Platinum Card
Citibank Clear Platinum Card
A low rate platinum credit card with a great purchase and balance transfer offer. 0% p.a. for 9 months (reverts to 13.99% p.a.) 0% p.a. for 9 months $49 p.a. annual fee for the first year ($99 p.a. thereafter) 21.74% p.a. Go to site More info
Commonwealth Bank Low Fee Credit Card
Commonwealth Bank Low Fee Credit Card
Transfer an existing balance at a competitive rate and enjoy a low ongoing annual fee. Take advantage of the $100 cash back* offer when you apply, make a purchase and use any lock, block or limit feature. 19.74% p.a. 5.99% p.a. for 5 months $0 p.a. annual fee for the first year ($24 p.a. thereafter) 21.24% p.a. More info
Citibank Rewards Credit Card - Platinum Card
Citibank Rewards Credit Card - Platinum Card
Consolidate your debt with a low balance transfer and a long purchase rate offer plus a host of platinum privileges. Earn up to 1.250 Citibank Reward points for every $1 spend. 20.99% p.a. 0% p.a. for 24 months $199 p.a. 21.74% p.a. Go to site More info
Citibank Ready Credit - Fixed Payment Option
Citibank Ready Credit - Fixed Payment Option
No annual fees with a competitive unsecured rate of interest over 48 months. 8.99% p.a. for 48 months (reverts to 19.49% p.a.) $0 p.a. 19.49% p.a. Go to site More info

How do credit cards with a cheap interest rate work?

Credit cards with low interest rates work in the same way as a regular credit card. You make purchases using your card, receive your statement, and then pay part or all of the funds due.

These cards have a few general characteristics, although because of the ever-evolving market, these aren’t hard and fast rules.

  1. Lower annual fees.
  2. No rewards programs.
  3. Higher number of interest free days.
  4. Usually aren’t platinum cards.

Before you start looking at these types of cards ask yourself:

  1. Do you regularly pay interest on your balances each month? Don’t simply go for the card with the lowest interest rate if you pay your card off in full each month. Cards with low or no annual fees can be a better alternative in this case.
  2. Have a look at cards with no annual fees

  3. Would a balance transfer be more useful? If you have a credit card/cards with a large balance and you’re viewing a low interest credit card as a way to stay afloat while you attempt to pay them off, a balance transfer may be a better option. Please keep in mind that there a number of considerations you must take before completing a balance transfer, like the balance transfer period, how much you can actually transfer, and if you transfer from one particular lender to the other.

    Check out cards with balance transfer offers

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How to compare credit cards with low interest rates

Compare credit cards with low interest rates by looking at the factors listed below.

  1. Interest rate – The main reason why you probably want a credit card with a low interest rate is because you’re going to be paying interest each month. Ensure this figure is reasonable in conjunction to the annual fee.
  2. The annual fee – In addition to the interest rate, the annual fee will be an indicator of how much you’ll be paying each year for the privilege of having a credit card.
  3. Current deals – Many credit cards offer low purchase rate or balance transfer rate deals as an incentive. These can be useful depending on how you’re going to use your card. If you’re getting a low interest rate card to make a big purchase when you first get your card, a low or 0% purchase rate deal might be a good option.
  4. Hidden fees and charges – If you travel overseas often for instance, using your card overseas either physically or online can come with foreign transaction fees and ATM withdrawal fees. Similarly there are also fees for making cash advances, late payment fees and more. If you’re likely to have to pay them try to find a card with lower fees.
  5. Rewards programs – Some cards with low purchase rates may also come with a rewards program. These can add to the cost of the card through higher annual fees, so calculate the value of any rewards you’re likely to receive in a year and ensure it equals or exceeds the annual fees you’re going to pay.
  6. Interest free days – Credit cards on the lower side of the interest rate spectrum are no different to regular credit cards. Some cards will come with no interest free days, whereas others will come with 55, and yet some will sit somewhere in between. How many days you need to pay each statement off depends on you.

Pros and cons of credit cards with the cheapest interest rates

Pros

  • Pay less in interest
  • Pay less in annual fees
  • Most give you 55 days interest free
  • Uncomplicated – it’s just you, your card and your purchases

Cons

  • No rewards programs
  • No platinum benefits e.g concierge, discounts,
  • complimentary insurances

Things to avoid with a credit card with a cheap interest rate

As always, credit cards require discipline, and even if a credit card has a low interest rate this rule still applies. Here are some other things to avoid with this type of card.

  • Making needless purchases – Unless you have a 0% interest deal on your card, any purchase you make using your card which you pay interest on will cost you more than the original price. Interest, no matter how small, is something you want to avoid having to pay.
  • Paying for features you won’t use – A card with a rewards program attached to it may sound good, but if this card isn’t going to be used for regular purchases you’re going to be paying higher annual fees for a feature of little benefit. Likewise, if you’re paying a higher annual fee for a card with 55 days interest free, and you pay your balances off the next day then again this feature may not be worth it.

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Frequently asked questions about cheapest rate credit cards

This depends on how you plan to use your card, so there’s no one answer. Spenders who plan to use their credit card to make a number of large purchases early on may benefit from a card with a rate which is initially very low or 0%. Those who wish to use their card for regular purchases may benefit from a credit card which has a low rate for the life of the card. Using our credit card interest repayment calculator may give you indication of which one is most suitable.

The answer to this question depends again on how you plan to use your card. Cards come with many different features and fees. The right mix of these features, fees and interest rates will help you decide which cards will be worthwhile additions to your wallet.

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This page was last modified on 15 December 2014 at 15:37.

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Credit Cards Comparison

Rates last updated March 4th, 2015
Interest rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
St.George Vertigo Visa
St.George Vertigo Visa
A low annual fee and low interest rate offer on balance transfers. 0% p.a. for 3 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. 21.49% p.a. Go to site More info
Virgin No Annual Fee Credit Card
Virgin No Annual Fee Credit Card
Take advantage of the 0% p.a. for 14 months balance transfer offer 18.99% p.a. 0% p.a. for 14 months $0 p.a. 20.99% p.a. Go to site More info
Westpac Low Rate Card
Westpac Low Rate Card
A low interest rate credit card with a low annual fee and balance transfer offer. 0% p.a. for 3 months (reverts to 13.49% p.a.) 0% p.a. for 16 months $59 p.a. 21.49% p.a. Go to site More info
HSBC Platinum Credit Card
HSBC Platinum Credit Card
Earn rewards points plus a balance transfer offer. Access to prestige services including a personal concierge service and VISA Platinum reward program. 19.99% p.a. 0% p.a. for 8 months $0 p.a. 21.99% p.a. Go to site More info
American Express Qantas Discovery Card
American Express Qantas Discovery Card
Receive 7500 Qantas Points and pay no annual fee ever. Plus earn 1 Qantas Point per $1 spent on all your everyday purchases. 20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $0 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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