Compare some of the best credit cards in Australia

There is no single “best” credit card in Australia, as there is such a wide variety of options available. To identify the best credit card for you, you may want to look at your monthly income and spending habits, and consider how you want to use the credit card, such as for everyday expenses, emergencies, or earning rewards.

By better understanding your financial situation and specific needs, you can narrow down your search and find the best Australian credit card that suits your lifestyle. RateCity’s comparison tables can help you filter and sort options based on card type, purchase rate, interest-free days, and annual fees, helping you find the best card from RateCity's top picks.

Some of the best low rate credit cards in the RateCity Database for November 2024 

Some of the best frequent flyer credit cards, offering the highest sign up frequent flyer points, in the RateCity Database for November 2024 

Some of the best rewards credit cards, offering the highest sign up reward points, in the RateCity Database for November 2024 

Source: RateCity.com.au. Data accurate as of 05 November 2024.

Some of the common credit types in Australia include: 

Visa, Mastercard or AMEX

Credit cards in Australia will either be a Visa, Mastercard or American Express card. Each card type has its own advantages and disadvantages, as well as individual rewards offered to customers.

Low rate credit cards 

These credit cards offer lower-than-average purchase rates; generally around 10% or lower. Low rate cards may be helpful for some cardholders struggling to manage their debt. 

Low fee credit cards

Ongoing credit card fees can add up over the years. Low-fee credit cards typically don’t charge you ongoing fees, like annual fees. 

Rewards credit cards

Rewards credit cards allow eligible customers access to a card issuer’s rewards program. You can typically earn rewards points on eligible purchases or at sign-up, and exchange them for goods like appliances and electronics, or travel rewards like flight upgrades. You may also enjoy perks like cashbacks, complimentary travel insurance, concierge services or airport lounge access. 

Frequent flyer credit cards

Frequent flyer credit cards allow eligible customers to earn frequent flyer points through the issuer’s affiliated airline, such as Qantas or Virgin. You can earn points on eligible purchases or at sign-up, which may be exchanged for travel rewards like plane tickets, flight upgrades and hotel accommodation. You may also enjoy perks like complimentary travel insurance and rental car insurance. 

Travel credit cards

Ideal for avid adventurers, travel credit cards typically suit those planning overseas holidays, or those who shop online on international websites. These cards may not charge any foreign transaction fees, and may come with complimentary travel insurance and other perks, like airport lounge access. 

Platinum credit cards 

Designed for big spenders, platinum credit cards are a type of premium card that carries all the bells and whistles of rewards cards, along with higher credit limits, additional perks and protections like purchase protection. You typically will need to meet harder eligibility criteria to qualify, such as earning a higher than average income. Platinum credit cards may also come with higher annual fees and purchase rates, but it's assumed the cardholders can afford these costs. 

Business credit cards 

Intended for business owners, business credit cards are issued to a company with an Australian Business Number (ABN). They easily allow for the ordering of new cards and approving additional cardholders for various staff members. 

Balance transfer credit cards 

When a cardholder has an outstanding balance they're struggling to pay off, they can transfer this balance to a new card with an interest-free period. The balance transfer offer may be for a few months, or even for a year or longer. You may also be charged a balance transfer fee upon opening the new card account, which is generally a small percentage (e.g. 1%-3%) of your transferred balance. 

Depending on how you use your credit card, certain types of cards may offer you more benefits than others. Here’s a quick guide to help you determine which credit card might be the best for you based on your spending habits:

Habitual spenders 

You use your credit card like a debit card and are constantly racking up interest on your outstanding balance. 

Suggested cards - Low rate credit card, low fee credit card

Occasional/emergency spenders 

You use your credit card as a helpful financial tool and don't rely on it for everyday spending. You're only bringing it out for large purchases you otherwise couldn't afford in one go, in emergencies, or just when travelling or shopping online on overseas websites, and pay back this debt over time. 

Suggested cards - Low rate credit card, low fee credit card, travel credit card

Everyday spender 

You use your credit card every day for purchases like groceries or to pay bills. You may do so to maximise the number of rewards points you could earn. But unlike the habitual spender, you ensure your credit card balance is always paid in full each statement period. 

Suggested cards - Low rate credit card, low fee credit card, rewards credit card, frequent flyer credit card, travel credit card

Big spender 

You are a higher income earner and put over $5000 a month on your credit card. You may use your credit card for convenience or to try and earn rewards points and game point hacks. You are strict about paying off your balance in full to avoid interest charges.

Suggested cards - Platinum credit card, rewards credit card, frequent flyer credit card

Finding the right credit card requires thorough research and careful comparison. You can use comparison tools, such as tables and calculators, to help you in this process. 

1. Check credit card comparison tables 

Comparison tables allow you to compare apples with apples. You can filter and sort the options shown based on what you're looking for, such as card type, purchase rate, number of interest free days, and annual fees. You'll also get a clear indication of any features and perks linked to the new credit card. 

2. Make a checklist of the cards you're considering 

Once you've narrowed down your search, it’s worth creating a shortlist of potential cards and carefully looking at each card's Product Disclosure Statement (PDS), key fact sheet or equivalent document. 

3. Check the eligibility criteria 

Once you've settled on a choice, triple check the eligibility criteria set by the credit card provider before you begin your card application. If you don't meet the card issuer's criteria, you may not get card approval and be rejected. This could risk hurting your credit score and may be noted in your credit history. 

Finding the best credit card in Australia that’s tailored to your spending habits can be beneficial, offering rewards and perks that align with your lifestyle. While a well-chosen card can enhance your financial flexibility, it’s worth remembering that when misused, credit cards can lead to significant debt. Remember that maxing out your credit limit and accumulating high debt can risk negatively affecting your credit score. By being diligent and responsible in your selection and use of credit cards, you can enjoy the benefits while protecting your financial well-being.

Compare credit cards

When deciding on the best credit card for your budget, a general rule of thumb is to aim for one that keeps fees and charges down. These costs can add a lot to your bill and may result in you accumulating debt. Some common charges include: 

• Annual fees 
• Late payments fees 
• Cash advance fees 
• Fees for exceeding your credit limit 
• Foreign transaction fees 

However, not all credit card fees are considered bad. In fact, if you opt for a credit card with a rewards program, it's generally accepted that you will pay a little more in annual fees or interest rates for the benefit. These costs help to pay for the rewards and may be unavoidable for this type of card.

For a full breakdown of any potential fees, read the PDS and terms and conditions linked to your credit card. It's crucial that you’re aware of these charges so that you can budget accordingly. The PDS will also have a breakdown of the earn rate on rewards programs.

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