Save money on your credit card by paying lower interest rates
Low Interest Rate Credit Card Offer
The NAB Low Fee Credit Card offers a low annual fee combined with a long term introductory offer on purchases and balance transfers.
- Enjoy 0% p.a. on purchases for 15 months.
- Take advantage of 0% p.a. for the first 15 months on balance transfers (reverts to the standard cash advance rate thereafter). A one-off 3% balance transfer fee applies.
- A low annual fee of $30.
- Offer available to approved applicants who apply by 22 January 2017.
Comparison of Low Interest Rate Credit Cards
The finder.com.au list of Low Interest Rate Credit Cards
Compare the features of the low interest rate credit cards below.
| Credit Card | Purchase Rate | Annual Fee |
|---|---|---|
| 11.99% p.a. | $0 p.a. | |
| 13.99% p.a. | $59 p.a. | |
| 11.49% p.a. | $49 p.a. |
You can apply for any card listed here by clicking on the Apply button. This will securely transfer you to the relevant financial institution's website. There is no fee for applying from this page.
Complete guide to low interest credit cards
What is a low interest rate credit card?
Low interest rate cards are designed to save you money on interest charges when you carry a balance by offering a much lower interest rate for purchases than standard credit cards. While the typical range for interest rates on cards in Australia is 15% to 24% per annum, low rate cards offer standard variable rates as low as 10% p.a. Some cards even offer promotional 0% rates on purchases for a fixed period (you can learn more about those in finder's guide to 0% purchase credit cards).
A low interest rate credit card makes sense if you make regular use of your card and know you won't always be paying off the balance in full each month. It gives you the flexibility to pay purchases back over time, without the higher interest charges of some other cards. Meanwhile, if you have a large existing credit card debt and want to pay it off, you may want to look for a balance transfer card instead. If you always pay your balance in full, then a card with interest-free days or extra benefits such as rewards points makes more sense.
What types of low interest credit cards are available?
- Standard low interest rate. These credit cards typically offer standard variable purchase rates below 15% p.a. and have a low annual fee. This type of credit card usually has all the non-essential features removed to keep charges low.
- Low interest rate with introductory 0% purchase rate. These cards let you make purchases with 0% interest during the promotional period (typically a few months). After that period, the interest rate will be higher, but if you shop around, the rate is still likely to be better than with a standard card.
- Low interest rate with balance transfer. These cards let you transfer your existing balance from another credit card (usually with 0% interest on that balance for a fixed period), as well as charging a low rate on purchases.
- Premium low interest rate. Gold and platinum cards generally offer additional perks such as complimentary travel insurance or concierge services. While many platinum and gold cards charge relatively high interest rates, there are some low rate options as well. Note that the annual fees for gold and platinum low rate cards will usually be higher than those charged for standard low rate cards as a result of the premium features available.
How much money will I save by applying for a low interest rate credit card?
Even a small difference in interest rates can save you a lot of money. Say you have $2,000 on your credit card and you take 6 months to pay it off. With an interest rate of 20% p.a., you'd pay $118.30 extra on your debt. But if you had a card with a low interest rate of 12% p.a., you'd pay $70.60 in interest charges over the same time period. That's a saving of $47.70. And the bigger your expenditure, the bigger the difference gets.
How to compare low interest rate credit cards
There's more to finding the right low interest rate credit card than just looking at the headline interest rate. Here are the key factors you should consider:
Interest rates
Credit card interest is typically calculated daily on your existing balance, and charged monthly to your account on the statement date. The lower the rate, the less overall interest you'll pay. As well as the rate applying to new purchases and your existing balance, consider the following:
- Interest free days. If there's an interest-free period for purchases (and you're eligible for it), interest won't be calculated on those purchases until after that period ends. However, interest will apply in full if you haven't paid off the total owed by the due date on your statement. Learn more about how this works in our guide to interest free days.
- Cash advances. The interest rate for cash advances is usually higher than for purchases. This rate applies to transactions such as ATM cash withdrawals, foreign currency purchases and gambling. There is also no interest-free period, so avoid using cash advances unless it's a real emergency.
- Revert rate. On a balance transfer or 0% purchase rate offer, the revert rate is the interest rate that will apply after the promotional period expires. Avoid deals where the revert rate is high (if it's the same as the cash advance rate, that's a clear warning sign).
Fees and charges
- Annual fee. Try to find a card with a low annual fee, but don't make this your sole deciding factor. A $0 annual fee isn't helpful if the base interest rate on purchases is a lot higher. Annual fees typically range from $0 (for cards with basic features) to $250 or more (for gold and platinum cards).
- Other fees and charges. Fees may apply for using your card in an ATM; for using the card overseas; or if you overdraw your credit limit. Make sure you're aware of the relevant charges that apply to your card. If you're a regular traveller, consider a card with no foreign currency fees.
Additional features
While most low rate credit cards have limited features, more premium cards could offer a few extra perks. Some of the most popular include:
- Complimentary extras. Gold or platinum low rate credit cards may include perks such as travel insurance, purchase protection insurance or concierge services. If you use these extras, they have the potential to offset the cost of any annual fee you pay.
- Rewards. Most low rate credit cards don't offer rewards points for your spending. Currently the American Express Essential is one of the only products that earns points per $1 and has a low standard variable purchase rate. Another option is the Coles Low Rate MasterCard, which doubles as a flybuys rewards card and offers a bonus 1 point per $2 spent at Coles Supermarkets.
- No international transaction fee. If you plan in travelling with your credit card or shop online with international retailers, a low rate card that waives foreign transaction fees – such as the Bankwest Breeze Platinum – could help you save even more money.
Pros and cons of a low rate credit card
Pros
- You'll pay less interest on purchases, making it easier to manage your credit card debt.
- Many low rate cards also have low annual fees
- You can often combine low-rate cards with other features such as balance transfers or zero foreign transaction fees.
Cons
- You're less likely to receive reward points and other perks.
- You'll still need to compare fees and charges to identify the best overall deal for you.
- You may not qualify if you have a poor credit history.
If you frequently find yourself carrying a balance, a low interest credit card could help you save on additional fees and charges. Just remember to consider the other features offered – such as introductory offers, annual fees, and complimentary extras – to help you find a card that suits your needs.
if our salary is below 15000, then if we are interested to apply for a credit card at that time, what is the Secondary Process for that.
Hi Divya,
Thank you for your question.
Your income is one of the most important factors that a bank or credit card company considers for their applicants. Although credit card companies vary when it comes to income requirements, there are banks or card issuers that accept applicants with $15,000 p.a. or more and some require applicants to have earnings from $20,000 or $25,000. If you find that your income is below the minimum requirement, you may need to have an additional income source to present to be approved.
Nevertheless, on this page, you can compare your low-income credit card options.
Cheers,
May
Hi,
This morning I applied for a St George Vertigo Credit Card. I was approved for credit of $2000 and a balance transfer of $2000 (sorry if I’m incorrect) but does that mean that the total value of this card is $4000?
Thanks.
Hello
If the bank accepts my application for a credit card and i transfer my dept to them an I able to switch back at the end of the promotional period?
Is there a minimum time I have to stay with the new credit card?
kind regards
Garry
Hi Garry,
Thanks for your question.
If you are referring to using your old credit card again after the promotional period of your new balance transfer card, the answer is yes, that is possible. When you transfer your balance to a new card, you have the option to cancel or retain your old card.
There is no time requirement for keeping your new card. You can also cancel it anytime, so long as you follow the correct procedure as we have listed on our credit card cancellation guide.
Cheers,
Anndy
Hi Mia,
Thanks for your question.
Essentially, when you apply for a credit card, the card institution will give you a credit card limit that you can use – either for purchases, cash advances and even balance transfers. As you mentioned, you were approved for a credit and balance transfer limit of $2,000 for the St. George Vertigo Credit Card, however, this does not imply that you’re given a total of $4,000 credit limit on the card (that you can spend). This means that St. George allows you to transfer a balance (a debt from your old credit card) up to $2,000 to this card. Unlike other card issuers (depending on the type of card), they would only allow you to transfer a total balance up to a percentage of your credit limit, usually 70%-95%.
I hope this answers your question.
Cheers,
May
i just wandering if i could get balance transfers,what could i do? if yet how much interest could i get each month.
Hi Gina, thanks for you inquiry.
You may check our balance transfer page first to compare credit cards that has this offer. You can check the complete details about a specific product by clicking the product name. This will direct you to the product review page where benefits, features, application requirements and other information that the product has to offer. When you’re done selecting for the right card, you can start the application process by clicking the “Go to site” button that is also available on the upper right side of the review page.
I hope this helps,
Sharon
Hi
Can I call to speak to someone to compare credit card accounts
Hi Meaghan, thanks for your inquiry!
You can reach us on 1300 FINDER (346 337) and one of the specialists from our credit cards team will be happy to assist you.
Cheers,
Jonathan
Hi i am in a situation where i am in need of 2000-5000 to pay for a solicitor as i don’t have the money. I am looking into credit cards that i can either afford by myself as i am on centrelink or one that my partner and i can get together with his income and mine. What would be the best way to go? As we have never applied for one before. Thank you
Hi Kylie,
Thanks for your question.
Please note that you’ve come through finder.com.au and as a financial comparison service, we’re unable to recommend any specific product, service or strategy to our users as the ‘best’ option will always depend on the individual’s financial situation and needs.
Whether you can apply for a credit card will depend on how much you earn per year and what type of Centrelink payments you receive.
You might need to get in touch with the bank directly to confirm your likelihood of approval before applying.
I hope this helps.
Cheers,
Debbie
Do you no anyone that will help people on disability pensioner with below average credit score to get a low limit credit card with below average credit score to rebuild my credit rating and give me a second chance
Hi Rhys, thanks for your inquiry!
You can compare low income credit cards here which have lower requirements than higher tier credit cards.
Cheers,
Jonathan
I have an existing credit card with a balance of 9000.I am looking to transfer to a new card which has 0% on balance transfers and a low interest rate with 55 days interest free. I can pay the balance off in about 12 months or less
Hi Shani, thanks for your inquiry!
Please refer to the this page for how much banks allow you to balance transfer to their credit cards. It is a key point to note no interest-free days will be awarded when you have an outstanding balance, so until your balance transfer debt has been fully cleared you will be unable to utilise this feature. You may like to compare balance transfer credit cards on this page.
Cheers,
Jonathan
Is there a low rate credit card for pensioners?
Hi Majella, thanks for your inquiry!
Credit card eligibility for pensioners depends on whether you meet the application requirements. Generally the bank/ lender will request a specific minimum income per year. If your primary form of income is through Centrelink/ pension benefits, contacting the bank before completing the application process to determine whether Centrelink qualifies as a form of income would be ideal.
Cheers,
Jonathan
I am traveling overseas for 12 months in Oct this year to the USA. I have loan approval for money I really don’t need the full amount of (or the stupidly high interest rate) someone suggested I get a low interest credit card to take with me or emergencies and small purchases?
Can you suggest a low interest rate card I can use whilst overseas?
Hi Jenna,
Thanks for your question.
As a financial comparison service, we can’t actually suggest one particular product to our users.
However, you may want to consider a card with no annual fee, no foreign transaction fees and no currency conversion fees.
You can compare your options on our comparison page.
I hope this has helped answer your question.
Thanks,
Sally
I want a low interest credit card for purchase of sewing machine
I won’t be able to pay back in full for the first few months
however I endeavour to pay off as quick as possible after 6 months.
What are some options please
Hi Jlb,
Thank you for your question.
If you think you’ll have difficulty paying off your credit card each month, a low interest rate credit card may be of value to you.
Please visit our Low Interest Rate Credit Cards comparison page here.
I hope this has answered your question.
Thanks,
Sally