low interest credit cards

Low interest credit cards

While many credit cards charge 20% or more on purchases, low interest rate credit cards can save you hundreds of dollars a year. These cards are a cheaper way to manage purchases if you tend to carry your balance from month to month. Or perhaps you simply forget to pay off your balance from time to time. Both are good reasons to look into low interest credit cards. Compare cards below.

Low interest credit card comparisons on Mozo - last updated February 26, 2021

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By May 31, 2021
    Bendigo Bank Low Rate Credit Card

    0% on purchases for 15 months from account opening (Reverts to 11.99% p.a). Bonus $150 Woolworths Supermarket Gift Card when you spend $1,000 on eligible purchases within 90 days of opening your account. Annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    11.99% p.a.
    0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    Compare
    Details
  • 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 (8.99% p.a. ongoing). Up to 55 days interest free on purchases.

    Purchase rate
    Balance transfer rate
    Annual fee
    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
    Compare
    Details
  • St.George Vertigo

    13.99% p.a. low variable interest rate on purchases. 0% p.a. for 24 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    0% p.a. for 24 months and then 21.49% p.a.
    $55 $0 in the first year
    Compare
    Details
  • NAB StraightUp Card

    $10/month - $1,000 Credit Limit

    Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a.
    No current offer
    $120 $10/month - waived if no spend & no balance owing
    Compare
    Details
  • Mozo Experts Choice 2020
    CUA Low Rate Credit Card

    Enjoy an amazingly low 11.99% p.a. on purchases plus a 0% balance transfer rate for 13 months and up to 55 interest free days. No annual fee for the first year and $49 after.

    Purchase rate
    Balance transfer rate
    Annual fee
    11.99% p.a.
    0% p.a. for 20 months and then 21.74% p.a.
    $49 $0 in the first year
    Compare
    Details
  • ANZ Low Rate

    An everyday credit card with 0% p.a. for 20 months on balance transfers with no balance transfer fee and $0 annual fee in First Year. Apply online in just five minutes. A minimum credit limit of $1,000 applies.

    Purchase rate
    Balance transfer rate
    Annual fee
    12.49% p.a.
    0% p.a. for 20 months and then 20.24% p.a.
    $58 $0 in the first year
    Compare
    Details
  • Hot DealLimited time cashback offer
    Westpac Low Rate

    A low on-going rate of 13.74% on all purchases plus enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days,

    Purchase rate
    Balance transfer rate
    Annual fee
    13.74% p.a.
    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59
    Compare
    Details
  • Bank of Melbourne Vertigo

    13.99% p.a. low variable interest rate on purchases plus get 24 months 0% p.a. on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Pay no annual card fee for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    0% p.a. for 24 months and then 21.49% p.a.
    $55 $0 in the first year
    Compare
    Details
  • BankSA Vertigo

    13.99% p.a. low variable interest rate on purchases. Consolidate debt with 0% p.a. for 24 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    0% p.a. for 24 months and then 21.49% p.a.
    $55 $0 in the first year
    Compare
    Details
  • St.George Vertigo Platinum

    Take advantage of 0% p.a. on purchases for 15 months (rate then switches to 12.99% p.a.). 55 day interest free period for repayments. Low $49 annual card fee for the first year ($99 thereafter). Applicable to new Cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Low Rate Platinum Credit Card Winner 2020^.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 15 months then 12.99% p.a.
    6.99% p.a. for 12 months and then 21.49% p.a.
    $99 $49 in the first year
    Compare
    Details
  • NAB Low Rate Card

    Spend with confidence with a low 12.99% standard purchase rate. 0% p.a. interest on balance transfers for the first 20 months (2% fee). There's also up to 55 interest free days on purchases to help you manage your budget better.

    Purchase rate
    Balance transfer rate
    Annual fee
    12.99% p.a.
    0% p.a. for 20 months and then 21.74% p.a. (2.00% balance transfer fee)
    $59
    Compare
    Details
  • Virgin Money Virgin Australia Velocity Flyer Card - Purchase Rate and Balance Transfer Offer

    0% p.a. for 6 months on balance transfers and 0% p.a. for up to 14 months on purchases. Pay only half the annual fee in the first year and enjoy an exclusive $129 Virgin Australia Gift Voucher yearly.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 14 months then 20.74% p.a.
    0% p.a. for 6 months and then 20.99% p.a.
    $129 $64 in the first year
    Compare
    Details

^See information about the Mozo Experts Choice Credit cards Awards

**Saving based on the average difference in fees and charges over 3 years between the most competitive product Mozo can refer a consumer to and the average credit card product input by 6,863 consumers (average balance of $4,262 or balance transfer balance of $5,818, interest rate of 19.6% and annual fee of $36.50) who used the Mozo Credit Card Health Check tool between 1 January 2012 to July 2012.

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.

Credit Card Resources

Views, news, tips and guides to help find the best credit card for you.

FAQ

Low interest credit cards explained

If you're on the hunt for a new or replacement credit card why wouldn't you choose one that has the lowest interest rate? Low interest cards, or low rate cards generally have an interest rate of 14% p.a. or less. With many credit card interest rates over 20% p.a., you may be wondering what the catch is with low interest cards. Read on as we outline the key features of low interest cards and explain some of the differences between their higher interest counterparts.

What types of low interest cards are available?

Banks are very good at marketing and so you'll find that there are a range of low rate offers available when you look for a new card. Generally, there three main types of cards offers that fall into the low interest category.

Features of low interest rate cards, what should I look for? 

Low rate cards have the same standard features as regular credit cards, these include:

  • Interest free days. Most low interest cards will have up to 55 interest free days. This means if you pay your balance off in full each month you will not pay any interest at all.
  • Worldwide access. You'll be able to make purchases online or in person worldwide through the MasterCard, Visa or American Express network. Just be aware that your bank may charge you foreign transaction fees for overseas purchases.
  • Tap 'n go and payPass. Credit cards now come chip enabled which means you can go contactless for purchases under $100 in Australia.
  • Contactless payment options. Having contactless payment options like Apple, Google or Samsung Pay are a lot more handy than you think. With these nifty perks, you can afford to leave your wallet at home. 
  • Cash advances. While your card will allow you to make cash withdrawals, you should generally try avoid using your credit card for this purpose. Interest free periods generally do not apply for cash advances and the interest rate is generally much higher than the standard purchase rate for the card.

Some low rate cards also offer:

  • Complimentary insurance. Many credit cards now come with overseas insurance cover and other insurances like price protection, extended warranty and purchase cover. Be sure to check eligibility criteria as this can vary.
  • Concierge. Some low rate platinum cards will come with concierge service to assist you with shopping, restaurant or entertainment bookings.

What fees could I pay with a low interest card?

Annual fee: Most low rate cards will have annual fees under $60, though if you opt for a platinum version you could expect to pay an annual fee of around $100 a year.

Cash advance fee: If you make a cash withdrawal you will either pay an upfront fee or a percentage fee of the cash advance amount whichever is higher.

Foreign transaction fee. Low rate credit cards are generally not designed for frequent international travel so you would expect to pay a foreign exchange fee on any purchases or withdrawals. The standard charge is around 3% of the Australian dollar transaction account.

Late payment fee. This fee can be completely avoidable so set up automatic monthly deposits for the minimum payment. Late payment fees can be as high as $30.

Replacement fee. If you lose your card you'll need to pay a replacement fee. Just be aware that the cost for replacing a card overseas will be much higher than if you lose your card in Australia. There may also be an emergency card fee on top of the replacement fee if you need the replacement card urgently.

Are low rate cards for everyone?

If you don't always pay your card balance off in full each month then a low rate card will be a great option for keeping your interest repayments to a minimum and make it easier to pay back your debt in a shorter timeframe.

There are a number of instances when an alternative credit card could be a better choice. These include:

  • You always pay off your balance in full each month. If you always stick within your card's interest free period then a card with a low interest rate won't really matter as you won't pay interest charges. You should think about finding a card with a low or no annual fee or consider getting a rewards card.
  • You travel internationally more than once a year. Foreign exchange fees can add up, so if you're going to be travelling overseas regularly you should really think about getting a card that doesn't charge international fees. See here for travel credit card options.
  • You shop frequently at international online stores. For the same reason that if you travel regularly, if you purchase goods from international sites you'll get charged a foreign transaction fee. Even if the site allows you to pay in Australian dollars your bank will still charge a foreign transaction fee for the Australian dollar amount, so consider getting a card that doesn't charge these fees.

How much could I save with a low rate card?

The amount of money you'll save by opting for a low rate card over a rewards card, for instance, will depend on your ongoing spending and repayment habits. But let's look at the following scenario as an example.


Jill has a credit card with a balance of $3000. This card does not have an annual fee but the interest rate is 19.99%. She can afford to pay back $300 a month. It will take Jill 1 year and cost her $309 in interest to pay off the card according to Mozo's credit card debt repayments calculator. If instead she had a low rate card from one of the Big 4 Banks, with a $59 annual fee and an interest rate of 13.49%, she would pay off the card in 11 months and only pay $260 interest.

Now, many people do not ever get their balance to zero as they make new purchases on the card, so the amount of interest paid over the life of the card is much higher, which is why having a low going interest rate is so important if you do carry a balance on your card regularly.

Written by: Kelly Emmerton, Mozo Money Editor

Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Credit Card Reviews

humm90 Credit Card review
Overall 1/10
Pls people, don't use this bank. They are thieves.

My payment was due on the 14/02/21 and I did made the payment early on the 12/02/21 but they didn't take the money out of my account. Their statement says it's still pending and on the 17/02/21 they send a dishonoured fee of $15.00 to me stated that I dshonoured the payment. While I was with skye mastercard, everything runs well and good. Now humm90 took over it's a nightmare, no good customer service on the phone, giving dishonour fee for no reason, accumalating of dishonour fees for no good reasons and so on. Please people, don't use this bank. They are stealing money, even though you made payment before the due date, they won't take the money out of your account until the due date passed and then they say you dishonoured the payment and that's when they will charge you the dishonoured fee. They are Thieves.

Read full review

My payment was due on the 14/02/21 and I did made the payment early on the 12/02/21 but they didn't take the money out of my account. Their statement says it's still pending and on the 17/02/21 they send a dishonoured fee of $15.00 to me stated that I dshonoured the payment. While I was with skye mastercard, everything runs well and good. Now humm90 took over it's a nightmare, no good customer service on the phone, giving dishonour fee for no reason, accumalating of dishonour fees for no good reasons and so on. Please people, don't use this bank. They are stealing money, even though you made payment before the due date, they won't take the money out of your account until the due date passed and then they say you dishonoured the payment and that's when they will charge you the dishonoured fee. They are Thieves.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Dissatisfied, Western Australia, reviewed about 13 hours ago
David Jones American Express Card review
Overall 1/10
Avoid this card

This is the worst card I have ever used - so confusing - trying to navigate the website is the first problem. Trying to phone for assistance was totally frustrating as the automated service would not recognise my card - even though I entered the number 5 times. Attempting to view my purchases online is another confusing episode of website navigation. No transparency. No care.

Read full review

This is the worst card I have ever used - so confusing - trying to navigate the website is the first problem. Trying to phone for assistance was totally frustrating as the automated service would not recognise my card - even though I entered the number 5 times. Attempting to view my purchases online is another confusing episode of website navigation. No transparency. No care.

Customer service
1/10
Convenience
1/10
Trust
3/10
Less
Anna, Queensland, reviewed 1 day ago
humm90 Credit Card review
Overall 1/10
Unhappy customer

Disgusting service can't get intouch,put on hold 2 days high volume oF calls,unhappy customers I would say!! All I want to do is cancel as they have already made me pay $102.86 fees for card not used and thought was cancelled, but oh no still charging me for card.

Read full review

Disgusting service can't get intouch,put on hold 2 days high volume oF calls,unhappy customers I would say!! All I want to do is cancel as they have already made me pay $102.86 fees for card not used and thought was cancelled, but oh no still charging me for card.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Rosemary, New South Wales, reviewed 8 days ago

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