Top Low Interest Credit Cards to Help Manage Debt in the New Financial Year

a close up of a woman tapping her low interest credit card at a credit card machine at a cafe

The financial new year is a time to make moves towards your money goals and to action your money resolutions.

One meaningful step you can take is considering a new or replacement low interest credit card option.

An assessment of the over 200 credit cards in the Mozo database showed that low on-going interest cards or low rate cards generally have an interest rate of 14% p.a. or less. These basic cards are offered by financial institutions from the Big Four Banks to regional credit unions.

Unlike higher interest rate cards, these cards do not have rewards programs attached to them and do not come with any additional benefits, such as transit or travel insurance. Like all other credit cards, they allow you to purchase items online and in-person and make gradual payments over time.

Check out some top low interest credit cards:

Compare Low Interest Credit Cards

Bendigo Bank Low Rate Credit Card
  • 0% purchase rate for first 12 months
  • 0% balance transfer offer for 12 months (2% balance transfer fee)
  • Low $45 annual fee

Bendigo Bank's Low Rate Credit Card offers an introductory 0% purchase rate for the first year. After that, the rate reverts to 11.99%. Bendigo also offers 0% on balance transfers for 12 months, with a 2% balance transfer fee. The card’s balance transfer reverts to 11.99% p.a. after the 12 month period , and comes with a low $45 annual fee. It  also comes with 55 interest-free days.

Heritage Bank Gold Low Rate Credit Card
  • Low 10.80% purchase rate
  • $0 annual fee
  • Access to Visa Entertainment
Find out more

The Heritage Bank Gold Low Rate Credit Card offers a 10.80% purchase rate, along with no annual fee. Additionally, you will pay 0% on balance transfers for 12 months, after which it reverts to a 10.8% p.a. rate. Keep in mind there are no interest-free days on offer. That said, like a more premium card, it does offer Visa Entertainment access, where you can get your hands on tickets before they hit pre-sale and other hot offers involving travel or sporting events.

Westpac Low Rate Credit Card
  • 0% balance transfer rate for the first 28 months (1% fee applies)
  • $0 annual fee for the first year (then $59)
  • 13.74% p.a. ongoing purchase rate
Find out more

Westpac Low Rate Credit Card has a low purchase rate of 13.74% p.a. The card also offers a 0% balance transfer rate, with a 1% transfer fee, for the first 28 months but reverts to a 21.49% rate after the 2 year period. You can enjoy 55 interest-free days, as well as no annual fee for the first 12 months, then a fairly low $59 per year after that.

Bank of Melbourne Vertigo
  • 0% p.a balance transfer rate for 30 months
  • 13.99% p.a. Purchase rate
  • 2020 Mozo Experts Choice Award winner^

The Bank of Melbourne Vertigo card has a low 13.99% p.a. purchase rate and offers 55 interest-free days. It also comes with a reasonable $55 annual fee. In 2020, this card took home a Mozo Experts Choice Award^ for best Balance Transfer Credit Card. The Vertigo card offers a 0% p.a balance transfer rate for 30 months (offer ends 30 November 2021). Just bear in mind that after that period, the balance will revert to the cash advance rate of 21.49%, so you should be sure to pay off your balance within the 30 month period.

NAB StraightUp
  • 0% p.a. Interest
  • Set monthly fee
  • 2020 Mozo Experts Choice Award Winner^

The NAB StraightUp Card is a different kind of credit card. It was awarded the 2020 Mozo Experts Choice Award^ for Credit Card Innovation. Instead of paying interest on purchases like most credit cards in the market, with the StraightUp card, there’s a set monthly fee that ranges from $10 to $20 a month. But if you don’t use the card, you don’t pay the fee. When you have a balance owing, the minimum payment is set and predictable - between $35 and $110. Both the monthly fee and minimum payment depend on your credit limit. Keep in mind, NAB StraightUp does have a $240 annual fee, but it is the only fee the card has.

^See information about the Mozo Experts Choice Credit Card Awards

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