Low interest credit cards – compare and save
Compare low interest cards | How to compare | Pros and cons | FAQ’s
Can’t sleep because you’re thinking about your monthly interest payments? A low interest credit card can be the answer.
ASIC estimates that Aussie consumers could save over $600 million in interest if they moved over to cards with lower interest rates. If that’s not a motivation to get switching we don’t know what is!
Like it says on the tin, low interest cards are credit cards that have a low interest rates on new purchases, meaning if you struggle to pay off the balance each month, you can keep your balance in check with a card that doesn’t charge you an arm and a leg.
Switching to a low interest rate card can help you save if you have a balance on a card with an exxy interest rate.
Generally speaking, low interest cards don’t tend to have all the bells and whistles of the premium cards.
Compare low interest credit cards
Balance transfer
Interest free
Low interest
Rewards
Frequent flyer
No annual fee
Balance transfer calculator
- Provider
- Balance transfer
- Purchase rate
- Annual fee
- Savings*
Bankwest Low Rate Business Mastercard% p.a. for months (% balance transfer fee)0% p.a. for 55 days (reverts to 11.99%)$99 p.a. for 12 months
($99 p.a. thereafter)$912 over 12 monthsManage your business expenses and save with a low purchase interest rate...
Bankwest Zero Mastercard0% p.a. for 26 months (reverts to 14.99% p.a.)0% p.a. for 55 days (reverts to 14.99%)$0 p.a. for 12 months
($0 p.a. thereafter)$1,011 over 12 monthsIntroductory balance transfer rate of 0% p.a. for the first 26 months....
Bankwest Breeze Platinum Mastercard0% p.a. for 15 months (reverts to 9.9% p.a.)0% p.a. for 15 months (reverts to 9.9%)$0 p.a. for 12 months
($69 p.a. thereafter)$1,011 over 12 months0% p.a. on purchases and balance transfers for the first 15 months....
Bankwest Zero Platinum Mastercard0% p.a. for 26 months (reverts to 14.99% p.a.)0% p.a. for 55 days (reverts to 14.99%)$0 p.a. for 12 months
($0 p.a. thereafter)$1,011 over 12 months0% p.a. on balance transfers for 26 months. One-off 2% balance transfer fee....
Bankwest Breeze Classic Mastercard0% p.a. for 15 months (reverts to 9.9% p.a.)0% p.a. for 15 months (reverts to 9.9%)$0 p.a. for 12 months
($49 p.a. thereafter)$1,011 over 12 months0% p.a. interest for 15 months on purchases and balance transfers....
Virgin Money Low Rate Card0% p.a. for 15 months (reverts to 21.69% p.a.)0% p.a. for 55 days (reverts to 11.99%)$99 p.a. for 12 months
($99 p.a. thereafter)$912 over 12 months0% p.a. on the balance transfer for 15 months with a one-time 1% balance transfer fee....
NAB - Low Rate Business Card0% p.a. for 12 months (reverts to 13.25% p.a.)0% p.a. for 12 months (reverts to 13.25%)$0 p.a. for 12 months
($60 p.a. thereafter)$1,011 over 12 monthsEnjoy 0% on purchases for the first 12 months and no annual fee in the first year....
NAB - Low Rate Credit Card0% p.a. for 6 months (reverts to 19.74% p.a.)0% p.a. for 55 days (reverts to 12.99%)$59 p.a. for 12 months
($59 p.a. thereafter)$952 over 12 months0% p.a. interest rate for the first 6 months on balance transfers....
NAB - Low Rate Card0% p.a. for 32 months (reverts to 21.74% p.a.)12.99% p.a. for 12 months (reverts to 12.99%)$0 p.a. for 12 months
($59 p.a. thereafter)$361 over 12 monthsA low 12.99% interest rate for new purchases....
St George - No Annual Fee% p.a. for months (% balance transfer fee)0% p.a. for 12 months (reverts to 20.74%)$0 p.a. for months
( p.a. thereafter)$1,011 over 12 months0% p.a. on purchases for 12 months and no annual fee....
St George - Vertigo Card – Cashback Offer6.99% p.a. for 12 months (reverts to 21.49% p.a.)0% p.a. for 55 days (reverts to 13.99%)$0 p.a. for 12 months
($55 p.a. thereafter)$1,011 over 12 months13.99% p.a. interest rate for new purchases and offers up to 55 days interest-free....
How to compare low interest credit cards
Make your card work for you! Whether you’re after rewards, frequent flyer miles, $0 balance transfers, or low interest payments, it’s important to thoroughly compare to find the right card for you.
When you apply for a low interest credit card there’s a few things to consider:
Purchase rate
If you have credit card debt and want to reduce the balance, finding a low rate on purchases should be your main goal. Typically you’ll find rates vary between 9- 14%.
Interest free days on purchases
Many cards offer around 55 interest free days on purchases. This literally means you won’t pay anything extra on any new things you buy with your card for the number of days specified (depending on when you buy them within your payment cycle).
Once the interest free period is over, does the rate skyrocket? Beware of promotional interest rates that end and then go way up.
Balance transfers
Maybe low interest is appealing, but $0 balance transfer is better!? When comparing cards, try to figure out which type will allow you to pay off the most balance in the quickest amount of time.
Fees
Annual, late payment, cash advance… all cards come with fees, so make sure you read the full terms to understand which ones apply to you. A nasty surprise on your statement is never much fun.
Minimum payments
If your goal is low interest and small repayments, make sure you’re comparing how different cards calculate their minimum repayments so you don’t end up getting stung down the track.
Extras:
Cards can come with all sorts of enticing features like price protection, travel insurance, or no charge for extra cardholders. Whilst these things are great, it’s wise to bear in mind if you’ll actually use them. When comparing, make sure you’re considering your main goal, rather than being sold on the extras designed to hook you in.
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Pros and cons
Pro: Lets you pay off your balance quicker
Have payment goals? Low interest cards help you to take back control of your debt without it spiralling out of control.
Con: You’re still paying interest
Whilst a low interest card is a good option, if you’re not going to change your spending/repayment habits you’ll still be accruing debt and not paying off the balance. It’s just that your interest is growing at a slower rate.
FAQ’s
What are the best low interest credit cards?
Everyone’s circumstances are different, so it’s hard to say which low balance card is the best. When comparing apples with apples, it’s important to ensure you’re comparing the card based on your financial situation.
Always consider the purchase rate and how long it remains at that rate, fees, interest free periods, balance transfer rates and more. Read more on how to find the best credit card for you.
What is the best low rate credit card in Australia?
In Australia, low interest rates tend to be within the region of 9-14% p.a. If you’re carrying a balance, you can reduce your interest repayments and save with a low interest rate credit card.
Which bank has the lowest interest rate on credit cards?
As of June 2020 xxx has 0% for 15th months but then goes up to $18.99% p.a. Bendigo Bank has 11.99% xxxx
How can I get a better rate?
You might not have to switch credit cards in order to get a better rate. Deals can certainly be found by comparing the market and seeing what rates are out there. Sometimes all it takes is a phone call to your credit card provider and they’ll offer you a deal to keep you on their books.
Conclusion
Carrying the weight of your credit card balance on your shoulders? Don’t do that. A balance transfer card can help take a load off and allow you to enjoy a lower rate (and enjoy your weekends) with less weighing you down.
By choosing a low rate credit card, you can save on interest making it a great option for cardholders who don’t always manage to clear their balance each month.
General Advice Warning
The information provided is of a general nature only and does not take into account any personal objectives, financial situation or needs. Before making a decision you should consider the appropriateness of the information having regard to your personal circumstances. Always read the full terms and conditions.
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