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

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
“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
-
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
$45Rewards program
-CompareCompareLow 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
- Purchase rate
- 0% p.a. for 20 months then 11.99% p.a.
- Intro purchase rate
- 0% p.a. for 20 months
- Balance transfer rate
- 0% p.a. for 20 months and then 11.99% p.a. (2.00% balance transfer fee)
- Cash advance
- 13.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- Foreign exchange margin
- 3.00%
- Annual card fee
- $45
- Late payment fee
- $15.00
- Cash advance fee
- 0.50%, Min $3.25
Read our Mozo Review to learn more about the Low Rate Credit Card
-
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
$59Rewards program
-CompareCompareLow 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
- Purchase rate
- 13.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Low Rate - Cashback Offer
-
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 yearRewards program
-CompareCompareVertigo - 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
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 32 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Vertigo - Balance Transfer Offer
-
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 yearRewards program
-CompareCompareLow 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
- Purchase rate
- 12.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 2%, Min $2.50
Read our Mozo Review to learn more about the Low Rate Card
-
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 yearRewards program
-CompareCompareVertigo - 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
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 32 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Vertigo - Balance Transfer Offer
^See information about the Mozo Experts Choice Credit Card Awards
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