Credit card comparison Australia

Low interest credit cards

• Low interest rates
• No-frills

A low interest credit card typically has a low interest rate for purchases, which could help you to save money if you don’t always pay off your balance in-full each month. 

The trade-off of a low-interest rate credit card is that these ‘no-frills’ credit cards usually don’t have rewards programs, perks, or bonuses. 

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Rewards credit cards 

• Earn rewards points by spending
• High rates and fees 

Rewards credit cards are a popular way to earn something back while you spend using your credit card. Credit card rewards are usually tied to airline frequent flyer, brand-specific, or supermarket rewards programs, and typically revolve around accruing points, which can be redeemed later down the track. 

The downside is that rewards credit cards often come with higher fees and interest rates than no-frills cards. This means you’ll want to make the most of your credit card rewards points and ensure you pay off your balance in-full, to avoid paying interest. 

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Balance transfer credit cards 

• Transfer your credit card balance over 
• Opportunity to bust your debts 
• 0% introductory rates 

With a balance transfer credit card, you can roll over your existing credit card debts to a new card and enjoy 0% interest (or a very low rate) on your balance, for a limited time. Balance transfer introductory periods can last anywhere from 5 to 30 months, but it’s more common to see 12-month offers, according to the Mozo database. 

After it ends, your credit card rate will revert to the purchase or cash advance rate, which can be quite a shock to your finances. That’s why, during this time, it’s a great opportunity to pay down your credit card debt as much as possible. That way, by the time the balance transfer period ends and you need to start paying interest, you don’t get further into debt. 

Balance transfer fees, which is usually a percentage of the amount you’re transferring, may apply. So, factor that into your decision when comparing credit cards. 

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No annual fee credit cards

• No annual fee
• Typically have higher rates 

No annual fee credit cards don’t charge customers a yearly fee in order to use their cards. They usually still have other fees, such as late payment and foreign exchange fees, and the trade-off is sometimes a steep interest rate on purchases.

If you’re the kind of person who pays off their credit card balance in-full and won’t have to worry about being charged interest, then a no annual fee credit card could be a money-saving match.

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Interest-free credit cards 

• Won’t charge interest, will charge fees
• Fees are higher, but can be waived 

There are various types of interest-free credit cards on the market, which can include balance transfer and introductory-rate credit cards. 

However, there are also interest-free credit cards that instead charge a monthly or annual fee. This type of card usually has a lower credit limit (e.g. $1,000 or $3,000), with a fee that scales alongside it (e.g. $10 or $30/month). 

In some cases, these 0% interest, monthly fee credit cards will waive your fee if you haven’t used your card, or paid off your balance in-full. 

Examples of interest-free, monthly fee credit cards include the Westpac Flex Card, NAB StraightUp Card, and Community First Bank n0w Credit Card. 

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Travel credit cards 

• Fee-free overseas transactions and ATMs 
• Perks can include Frequent Flyer points and complimentary travel insurance 

Travel credit cards are tailored to those who like to splash out overseas. From no overseas transaction or ATM fees, to earning Frequent Flyer points, travel credits, and even complimentary travel insurance, these credit cards can help you save money while travelling for work or play. 

The catch, however, is that travel cards tend to charge you high interest rates. So, it’s important to weigh up whether a card’s travel perks outweigh its interest rate.

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Platinum credit cards 

• High credit limits 
• Stricter eligibility criteria
• Lots of perks and rewards

Platinum credit cards typically come with much higher credit limits and, as a result, have stricter eligibility criteria. However, what makes platinum credit cards appealing are the perks that often come with them. 

Platinum credit card perks can include complimentary insurance, flight upgrades, airline discounts, concierge services, exclusive rewards programs, and more.

This type of credit card is often only available to those with high incomes and good credit scores, partly due to the perks, and partly due to the higher cost of using these cards.

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