Credit cards

Low-interest credit cards

Why pay high rates with CBA, NAB, ANZ and Westpac?
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Standard and rewards credit cards from ANZ, CommBank, NAB and Westpac still charge up to 20% interest, so unless you enjoy paying more than you have to, now’s a good time to find a better rate.

Switching to a lower interest rate can make a big difference to your finances if you’re struggling to keep on top of your credit card bills.

We found seven credit cards with rates below 9%. The lowest rate card is from G&C Bank with a 7.49% rate for purchases.

Low-interest credit cards

Note: Consider the financial risk if you can’t afford to pay the balance on your credit card right away.

Text-only accessible version
Low-interest credit cards (by interest rate and annual fee)
  1. G&C Mutual Bank, Low Rate Visa, 7.49% purchase interest rate, $50 annual fee
  2. Auswide Bank, Low Rate, 8.20% purchase interest rate, $50 annual fee
  3. American Express, Low Rate, 8.99% purchase interest rate, $0 annual fee
  4. Community First, McGrath Pink Visa, 8.99% purchase interest rate, $40 annual fee
  5. Easystreet, Easy Low Rate Visa, 8.99% purchase interest rate, $40 annual fee
  6. Illawarra Credit Union, No Bull Low Rate, 8.99% purchase interest rate, $50 annual fee
  7. Move Bank, Low Rate, 8.99% purchase interest rate, $59 annual fee

*Last updated 23 July 2020.

Do you even need to switch credit cards?

You might not have to switch credit cards to get a better rate. Sometimes all it takes is a phone call to your credit card provider. 

For example, the big banks all offer low-rate cards that charge less than 14% interest, a rate cut of about 6%.  

Credit card traps

Interest rates are arguably the most important consideration when it comes to picking a credit card, but other factors should be taken into account. The top things to consider are:

Rates for cash advances

A cash advance on a credit card is a really bad idea as the interest applies immediately and can range up to 29.49% on some cards. 

Note that some credit cards don’t offer cash advances.

Annual fees

Your low-interest card can really lose its sparkle if you get hit with high annual fees. Fees can be hundreds of dollars, especially for rewards credit cards, so be sure to check before you apply for a new card.

Balance transfers

Cards that offer cheap balance transfer rates often charge high rates if you don’t pay the balance off within the promotional period. Also, watch out for balance transfer fees. 

Don’t use the card for other purchases during the balance transfer period as interest-free days may not apply until you’ve paid off the full balance – including the balance transfer amount.

Interest-free days

Most low-rate credit cards offer interest-free days. Yours should too.

Late payment fees

These should be reasonable, not punitive. They can range from $0–35.

Over-limit fees

These range from $0–40.

Uta

I've been at CHOICE for over 20 years, starting as a research assistant and nowadays a senior content producer in the money and travel team. I am originally from Germany and my background is in journalism; I started in my teens at my local paper and then studied journalism in Germany and Australia. I hold a Master in History and Politics from the Technical University of Berlin, a Graduate Certificate in Journalism from UTS and a Certificate IV in Financial Advising from the Securities Institute in Sydney. Over the years I have worked on all types of financial topics – from credit cards to reverse mortgages and kids bank accounts. My main interest and expertise is in health insurance and I am member of the government health insurance website reference group of the Commonwealth Ombudsman.    I love working at CHOICE because I feel that we can make a real difference helping consumers to get a fair go. You can find me on Twitter and LinkedIn.

I've been at CHOICE for over 20 years, starting as a research assistant and nowadays a senior content producer in the money and travel team. I am originally from Germany and my background is in journalism; I started in my teens at my local paper and then studied journalism in Germany and Australia. I hold a Master in History and Politics from the Technical University of Berlin, a Graduate Certificate in Journalism from UTS and a Certificate IV in Financial Advising from the Securities Institute in Sydney. Over the years I have worked on all types of financial topics – from credit cards to reverse mortgages and kids bank accounts. My main interest and expertise is in health insurance and I am member of the government health insurance website reference group of the Commonwealth Ombudsman.    I love working at CHOICE because I feel that we can make a real difference helping consumers to get a fair go. You can find me on Twitter and LinkedIn.

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