Credit cardholders could save $500 every year with low rate cards

By Mozo · · 3 min read
Fact Checked
Advertiser disclosure

Even while the lowest rate credit card could save the average credit cardholder $466 in fees and interest every year, there aren't enough options for consumers to choose from, according to the latest data collected by Mozo.

After looking at 171 credit cards from 57 providers to reveal the cheapest low rate cards on the market, Mozo found there are only six cards charging ongoing interest rates below 10%.

“While it’s great to see a handful of low rate cards providing great value, it’s not enough to drive competition or provide enough choice for consumers,” said Mozo Director Kirsty Lamont.  

“The average credit card rate is 17.55% yet a huge 54% of cards have an interest rate over and above 18%”.

According to Mozo, the cheapest low rate credit card charges just 7.99% interest and costs $1,942 to maintain over five years. The average cost over five years is $4,273 while about a third of cards in the Mozo database cost more than $5,000 over that time. Mozo’s money experts found 10 low rate cards as offering great value but none of them are from a big bank.

“Credit Unions and Mutuals have really stepped up to the plate when it comes to low purchase rates and low annual fees, while the big banks don’t rate a mention,” said Lamont.

Mozo’s pick of Australia’s cheapest credit cards  

Card

Purchase rate

Annual fee

Stand-out features

Best Low Rate Credit Card

Quay Credit Union Visa Credit Card

7.99%

$36*

Lowest cost of over 5 years ($1,942)

Best Fee Free Card with lowest interest rate

ME frank Credit Card

9.99%

$0

55 interest free days

Best Platinum Credit Card with lowest interest rate

P&N Bank Platinum Visa Credit Card

11.49%

$80

Concierge, Travel Insurance, Extended Warranty, Purchase Protection benefits

Best Overseas Transaction Credit Card with lowest interest rate

Bankwest Zero Platinum MasterCard

17.99%

$0

0% foreign exchange margin, 55 interest free days

*Waived in first year

The above cards were recognised among others in Mozo’s Experts Choice Credit Card Awards but are singled out for having the lowest rate in their given category. Source: Mozo.com.au as at 14/9/15


The average Big 4 credit card interest rate is 18.98% with an average annual fee of $146, while Mutuals charge an average 13.92% and less than half the annual fee ($58).

“While premium and rewards credit cards have dominated the market in recent years, there is still a great need for low rate cards and we’d like to see a lot more of them,” said Lamont.

Top 5 Low Rate credit cards Versus the Big 4

Top 5 Low Rate Credit Cards

Ongoing Interest Rate

Annual Fee

Lowest rate cards from the Big 4

Ongoing Interest Rate

Annual Fee

1.

Quay Credit Union Visa Credit Card

7.99%

$36*

ANZ Low Rate Card

13.49%

$58

2.

Community First Credit Union

8.99%

$40

Westpac Low Rate Card

13.49%

$59

3.

ME frank Credit Card

9.99%

$0

Commonwealth Bank Low Rate Card

13.49%

$59

4.

GC Mutual Bank

9.99%

$50*

NAB Low Rate Card

13.99%

$59

5.

Maritime, Mining & Power Credit Union Visa Credit Card

10.12%

$60*

NA

NA

NA

*Waived in the first year. Source: Mozo.com.au as at 18/9/15

For a full list of Mozo’s Experts Choice Credit Card winners and award criteria, click here.

Credit card comparisons on Mozo - last updated 14 May 2022

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • Apply By 31 Jul 2022
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases and 0% p.a. on balance transfers for up to 20 months from account opening (Reverts to 11.99% p.a). A balance transfer fee of 2% applies to the balance transferred. Low annual fee of $45.

    Purchase rate
    0% p.a. for 20 months then 11.99% p.a.
    Balance transfer rate
    0% p.a. for 20 months and then 11.99% p.a. (2.00% balance transfer fee)
    Annual fee
    $45
    Rewards program
    -
    Go to site
    Details
  • Apply By 30 Jun 2022
    Westpac Low Rate - Cashback Offer

    Enjoy a super low rate of 13.74% with 55 days interest free plus up to $400 cashback - $100 cashback for each month you spend $1,000 or more on eligible purchases in the first 4 months from card approval. New Cards only. T&C's and exclusions apply.

    Purchase rate
    13.74% p.a.
    Balance transfer rate
    6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)
    Annual fee
    $59
    Rewards program
    -
    Go to site
    Details
  • Apply By 30 Jun 2022
    St.George Vertigo - Balance Transfer Offer

    0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.

    Purchase rate
    13.99% p.a.
    Balance transfer rate
    0% p.a. for 32 months and then 21.49% p.a.
    Annual fee
    $55 $0 in the first year
    Rewards program
    -
    Go to site
    Details
  • NAB Low Rate Card

    0% p.a. interest on balance transfers for the first 32 months, plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.

    Purchase rate
    12.99% p.a.
    Balance transfer rate
    0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)
    Annual fee
    $59 $0 in the first year
    Rewards program
    -
    Go to site
    Details
  • Apply By 30 Jun 2022
    Bank of Melbourne Vertigo - Balance Transfer Offer

    0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.

    Purchase rate
    13.99% p.a.
    Balance transfer rate
    0% p.a. for 32 months and then 21.49% p.a.
    Annual fee
    $55 $0 in the first year
    Rewards program
    -
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Card Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.