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


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 - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By 30 June 2021
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    Bendigo Bank Low Rate Credit Card

    0% p.a. balance transfer for 24 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    11.99% p.a.
    0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    -
    Go to site
    Details
  • placeholder
    Bankwest Breeze Mastercard

    Enjoy 0% p.a on balance transfers for 15 months then 9.90% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 15 months then 9.90% p.a.
    0% p.a. for 15 months and then 9.90% p.a.
    $49 $0 in the first year
    -
    Go to site
    Details
  • Apply By 7 September 2021
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    Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.74% p.a.
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59 $0 in the first year
    -
    Go to site
    Details
  • Apply By 31 May 2021
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    Citi Simplicity

    There is no annual fee ever, you'll get up to 55 days interest free, free wine when you dine with the Citi Dining Program and the convenience of worldwide acceptance with Visa and Visa payWave. Plus for the first 6 months you'll enjoy 0% on balance transfers.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 6 months then 21.49% p.a.
    0% p.a. for 6 months and then 22.24% p.a.
    $0
    -
    Go to site
    Details
  • placeholder
    Defence Bank Foundation Credit Card

    Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    3.99% p.a. for 6 months then 8.99% p.a.
    3.99% p.a. for 6 months and then 8.99% p.a.
    $45
    -
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

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