Credit card boom: 5 top low card rate deals

As inflation and rising interest rates put a strain on finances, it's not surprising that more Australians are turning to credit to help buffer their budgets.  

According to credit reporting agency Equifax, applications for new credit cards surged by 21%^ in the December quarter. Yikes!

But a credit card can be an extremely useful financial tool to have at your disposal if you are savvy about when you use it, where you use it, and when to stop using it. 

And while it can be tempting to be drawn towards cards with flashy rewards points offers and extras like airport lounge access, these cards generally have interest rates over 20% p.a.  

Fortunately, there are some cards on the market with low interest rates on purchases, and some even come with low fees and perks. With this in mind, here’s our Editors’ round up of low interest credit card deals this month.

American Express Low Rate Card
  • 8.99% variable purchase rate
  • No annual fee
  • Complimentary card purchase and refund cover

American Express is generally known for its high end cards but the low rate card also packs a punch. It was named a Mozo Experts Choice Award winner^ in 2022 for its low 8.99% interest rate and no annual fee. It comes with up to 55 days interest free and cardholders can get up to 4 extra cards for no extra fee. There’s a 3% foreign exchange margin on overseas transactions. An added perk is the free card purchase and refund cover which covers you for purchases made on your card if they get lost or broken within 90 days of purchase (T&Cs apply).

NAB Low Rate Credit Card
  • 12.49% variable purchase rate
  • No annual fee in the first year
  • 0% interest on balance transfer for 32 months

The NAB Low Rate Credit Card has a low 12.49% p.a. variable purchase rate and for new cardholders NAB will waive the $59 annual fee for the first year. It comes with up to 55 days interest free on purchases and it's a Visa card so you'll be able to Tap and Go on purchases under $100 and use it anywhere in the world where Visa is accepted. Keep in mind that overseas transactions (in person and online) will attract a 3% foreign exchange margin. There’s also an extra long balance transfer offer of 0% for 32 months (no balance transfer fee) but it reverts to 21.74% afterwards so be sure to pay off your balance in this time.

Westpac Low Rate Cashback Offer
  • 13.74% variable purchase rate
  • $250 cashback by spending $5k on eligible purchases in the first 5 months
Find out more

This generous new cashback offer from Westpac makes its popular Low Rate card even more appealing. New cardholders can earn up to $250 cashback - that's $50 cashback for each month you spend $1,000 or more on eligible purchases in the first 5 months from card approval. The purchase rate is a low 13.74% and cardholders can enjoy up to 55 days interest free on purchases and the annual fee is $59. Overseas purchases online or in person have a 3% foreign exchange margin.

Want to compare more credit cards? Head over to our credit card comparison hub to see more top 2022 credit card offers and compare over 200 cards from 60 providers. 

^ Equifax Consumer Demand Index

^See information about the Mozo Experts Choice Credit Card Awards

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