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Name: Credit Card Comparison Australia | RateCity
Creator: RateCity
Published: 2017-11-28T02:01:32.000Z

Compare a range of credit cards with low interest rates or fees, frequent flyer points, and rewards on RateCity.

60+ credit card providers in RateCity’s database

180+ credit card products in RateCity’s database

Mark Bristow

Updated on

26 Nov, 2024

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Product data updated on 26 Nov 2024

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Expert research

Our team of research experts evaluates credit cards for value (including price and features), offering detailed ratings to aid your comparison.

Dedicated experts

Our seasoned editorial team has extensive experience in financial comparisons, aiming to simplify complex terms into useful information for Australians.

A variety of providers

We review and rate credit cards from numerous providers, offering a wide selection of credit cards for informed decision making.

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Credit cards expert tips

	Managing how you spend your credit card and how you pay that debt back is vital to make sure you don’t find yourself in a debt spiral - even if you didn’t mean to.
	While some cards will offer interest free days on your spending (up to 55 for some), it’s important to remember that if you miss that deadline you’ll be forking out interest on top of what you already owe.
	Your bank will require a minimum repayment, typically of about 2% of your total debt each month. While that might seem manageable, it does mean that, for some people with thousands of dollars in debt, it could take years and years before it’s repaid.
	If you’re looking for a credit card, make sure you carefully consider a few things:
	The interest rate: the rate of interest you’ll be paying on your card is one of the most important - if not the most important - thing you need to consider. While some cards may come with the bells and whistles of rewards or frequent flyer points, if you don’t pay off your balance in full each month, you might be better suited to a low rate card instead.
	Be realistic about how you’ll use the card: getting a card that offers rewards or points with each purchase may sound great - but they often come with sizable minimum spends each month - and often a higher rate to match. Make sure you’ve considered what they are, and importantly, how you’ll pay it off.
	Make repayments a fixed part of your budget: Spending big but repaying small will not get your budget far. Make sure you’re tracking how much you spend each month so you know what you’ll need to repay when that credit card bill comes.
	Focus on the fees: credit card fees can be charged monthly or annually - make sure you know when and how often you’ll be paying for each card.
	Laine Gordon - Money Editor at RateCity

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What's new in credit cards for November 2024?

Australians reportedly spent a record $27.43 billion on credit card purchases in August 2024, according to the latest Reserve Bank of Australia (RBA) statistics. However, at the same time Australia’s total credit card bill dropped to $17.55 billion, which could indicate that households with credit card debt are starting to get back on top of it, even as people reach for their cards more.

Given that economists from Australia’s big banks are predicting rate cuts in the new year, and inflation has been on the decline, it’s possible that conditions could start to ease in the new year, reliving some financial pressure on households. Though it’s important to be careful if you plan on using a credit card to help manage your household expenses, as it’s easy to find yourself stuck in a debt trap.

Some of the lowest credit card interest rates on purchases on the RateCity database at the time of writing include:

G&C Mutual Bank Low Rate Visa Credit Card - 7.49%
Easy Street Financial Services Easy Low Rate Visa Credit Card - 8.99%
Community First Bank Low Rate Blue Visa Card - 8.99%
Defence Bank Foundation Visa Card - 3.99% for up to 6 months, then 8.99%
Australian Unity Low Rate Visa Credit Card - 9.90%

Source: RateCity.com.au. Data accurate as of 01/11/2024.

What is a credit card?

A credit card is a flexible financial product that lets you access money for shopping.

When you make a purchase using a credit card, you’re essentially borrowing money from the card issuer to pay for the product or service, up to your maximum credit limit. As you’re using money that’s not your own, you’ll need to repay the borrowed amount at the end of the billing cycle.

You can either repay this amount in full to avoid interest charges, or make the minimum monthly payments required by your credit card issuer to avoid defaulting. However, you'll incur interest charges on any remaining balance if you choose not to pay the full amount.

Which credit card will suit me?

There is no one-size-fits-all approach when it comes to credit cards. Different types of credit cards may better suit different cardholders, depending on your financial situation and goals.

About you	Credit card options
You never pay interest	If you always pay your credit card balance in full each statement period, you might want to look for a card that offers benefits for your spending. This may include cashback deals on sign up, rewards points or frequent flyer points. This way, you can earn points or cashback on your purchases without paying any interest.
You always pay interest	If you tend to accrue interest on your credit card each statement period, it may be worth considering a low interest rate credit card. Alternatively, if you’re struggling to clear your credit card balance, a 0% introductory rate on a balance transfer credit card may help you gain some much-needed breathing room to pay off your debt faster.
You frequently travel	If you frequently travel overseas, you may want to consider a card that rewards you through generous perks and programs, such as frequent flyer points for your preferred airline membership, complimentary travel insurance, or free airport lounge access.
You have a big-ticket item to purchase	If you have a specific goal in mind, such as buying a new appliance or gadget, it may be worth looking for credit cards with a high number of interest-free days. Some credit cards will offer around 44 – 55 interest free days, but can be higher or lower. A longer interest-free period may offer you more time to budget for, and pay off, your big-ticket purchase before you’ll start being charged interest on any outstanding balance.
You run a small business	Business owners may benefit from credit cards designed exclusively for business use. A business credit card is similar to a personal credit card, except that it must only be used for business expenses. Using a business credit card could help business owners separate business transactions from personal transactions, simplifying their accounting. Further, as business credit cards are meant to be used by companies, they often come with helpful features like expense tracking and other budgeting tools. These cards may also offer higher credit limits compared to personal credit cards and offer rewards tailored to business spending.

Ultimately, the right credit card for you will depend on your individual financial situation and spending habits. Be sure to compare credit cards before you apply.

The pros and cons of credit cards

Credit cards can be a helpful financial tool for cardholders, but they can also be an easy way to accrue debt or hurt your credit score if you’re not careful. If you want to take out a new or additional credit card, it is important to be aware of the potential benefits and disadvantages before applying:

Benefits of a credit card

Access to credit

The main draw of a credit card is that it offers access to a line of credit. Whether used to pay for a holiday or new appliances, or kept just in case of emergency, credit cards let customers access funds that would be otherwise unavailable. Credit limits differ for each cardholder depending on the provider and the cardholder's personal financial situation.

Rewards and perks

Some credit cards offer more than just credit to cardholders. Additional benefits from some card issuers may include:

rewards programs;
frequent flyer programs;
shopping rewards;
cashback offers;
complimentary insurances, including domestic and international travel insurance, and;
rental vehicle excess insurance.

Interest-free windows

Credit cards may offer two types of interest-free windows: interest-free days and interest-free periods.

Interest-free days (generally 44-55 days) are how long cardholders have to pay off their latest statement before interest will start being charged.

Some specialist credit cards offer longer interest-free periods, often from six months to two years.

Zero per cent purchase cards are often used to make one-off purchases, which can then be repaid within the interest-free period without accruing interest. But keep in mind that once the interest-free period expires, you may be charged interest at a relatively high rate on any debt still owing.

Balance transfer credit cards are often used as debt repayment tools, as you can move your outstanding credit card debt to one of these cards, where it will be kept from growing due to interest charges while you pay them off. But any outstanding debt still owing once the interest-free period expires will see interest charged at a relatively high rate.

Boost your credit score

Making regular repayments on a credit card and paying your balance in full each statement period may help some cardholders boost their credit score.

Risks of a credit card

Easy to grow debt

Credit cardholders who struggle to pay their balance in full each statement period can find their interest charges building up over time, increasing their total outstanding debt. Cardholders who may easily fall into this debt trap could look for low rate and low fee credit card options - or avoid credit cards altogether.

Hurting your credit history

Making multiple credit card applications at once or having one or more outstanding credit card debts can hurt a cardholder’s credit history. Cardholders run the risk of defaulting on their credit card, or more serious credit infringements, if they miss multiple repayments.

Fees

Credit cards may come with a range of fees that could increase the cost of using the card. These fees may include:

Annual fees
Foreign transaction fees
Cash advance fees, which may be charged for withdrawing cash from the credit card
Late fees (for missed or late payments)

Over time, these additional costs can begin to add up, even if a cardholder has opted for a lower rate credit card.

Overspending

A credit card could make it easier to overspend, especially for individuals who struggle with managing their spending habits or controlling impulsive purchases. If you think a credit card could tempt you into spending more money than you can afford, you could consider a lower credit limit that you can afford to repay in full each month. This may help you to set a boundary on your spending, ensuring that you only spend what you can comfortably repay each month.

Types of credit cards available in Australia

There's no shortage of cards to include in your Australian credit card comparison. Your credit card choice will ultimately depend on what you want to use your card for, your financial situation, and the perks you may receive whenever you do.

Some of the most popular credit card types include:

Credit card type	About
Low rate credit cards	Credit cards that come with competitive, lower-than-average purchase rates. Card issuers may keep rates down by not offering perks, like rewards programs or high credit limits. If you’re looking for a no-frills option that may help you avoid snowballing debt, you could consider a low-rate credit card. A low-rate credit card may have a low purchase rate but carry a higher-than-average cash advance rate. Make sure you read the key fact sheets around which rate is “low” before you apply.
Low fee credit cards	Low fee cards typically do not charge cardholders an annual fee - or may charge very few fees. Annual fees can range between $25 and $1200, depending on the type of card. If you’re the type of cardholder who always pays their balance in full by the due date and is never charged interest, an annual fee may be the biggest cost you face, so opting for a card that waives this fee may be cost-effective.
Platinum credit cards	Aimed towards Australians looking for high credit limits and extensive rewards programs, platinum credit cards may come with higher interest rates and annual fees. However, these cards are marketed towards those with higher incomes, who may be better positioned to afford these costs.
Balance transfer cards	A balance transfer card allows you to move your existing credit card debt over to a new credit card, where you won’t be charged interest for a set period, known as the balance transfer offer. Balance transfer cards may help you concentrate on clearing your debt without being charged more interest on top of it. The new card provider may charge a balance transfer fee; typically a percentage of the total balance you are transferring. Just remember that you’ll still be charged interest on new purchases, often straight away, without the benefit of interest-free days. If you get a balance transfer card, you could consider putting it in the freezer to focus on paying off your debt.
Rewards credit cards	Credit cards that are attached to rewards programs. The dollars you spend on eligible purchases could earn you rewards points, which may be exchanged for gift cards, home goods and electronics, and much more. Some rewards cards may offer perks such as concierge services, VIP seating for events, airport lounge access and more. You may also earn bonus points on card sign-up, which could net you thousands, or even hundreds of thousands of rewards points.
Frequent flyer cards	One of the most popular types of credit cards, frequent flyer cards work similarly to rewards points, letting you earn frequent flyer points based on how much you spend on eligible purchases. These points can be spent on flights and upgrades with major airlines, and may come with perks like concierge services and airport lounge passes, as well as complimentary insurances, like travel insurance and car rental insurance. Like rewards credit cards, you may also be able to earn up to hundreds of thousands of bonus points on card sign up. The airline points will depend on the frequent flyer program attached to the card. For example, Qantas rewards will offer bonus Qantas frequent flyer points.
Travel cards	Credit cards structured with travel and overseas spending in mind. Travel credit cards may carry some of the same perks as frequent flyer cards, such as complimentary insurance. They also typically come with no or low foreign transaction fees, such as foreign ATM withdrawal fees and currency conversion fees. They may also allow you to hold multiple currencies on your credit card.

How to compare credit cards

Different credit cards better suit different spenders, so it’s crucial that you compare a range of options if you’re in the market for a credit card in Australia.

Some of the key factors to consider when shopping around for your best credit card include:

Purpose

How do you plan on using your credit card? For example, is it for:

everyday shopping?
major purchases only?
international transactions?
travel?
transferring an existing balance?
business use?

The best credit card options may vary depending on your needs, so identify your card purpose to easily compare apples with apples.

Interest rates

Credit cards can charge different rates for purchases, cash advances (withdrawing cash from the ATM with your credit card) and balance transfers. Also, keep an eye out for discounted introductory, promotional, or “honeymoon” rates that revert to a higher rate after a set period (typically the first year). Knowing what rate you may be charged before applying could help you better manage your credit card debt.

If having a low interest rate is a priority for you, you can sort your results on a credit card comparison table to show you the lowest interest rate options first. Strict eligibility criteria will apply for each card, but this is one way you can quickly find and compare some of the lowest-rate credit cards on the RateCity database.

Card fees and charges

Some credit cards charge a range of fees to cardholders. Consider whether the credit card’s benefits would likely be worth these costs. Some of the most common fees include:

Annual fee: Can range from $0 to $1200 depending on the credit card status tier and the card issuer. Make sure to weigh up whether the card’s benefits and other perks are worth the cost.
Cash advance fee: When you withdraw money at an ATM, you might have to pay a fee, as well as be immediately charged interest on that transaction amount at a higher rate.
Late payment fee: If you don’t make your minimum repayment on time each month, you may be charged a late payment fee.
Overseas fees: Currency conversion fees, foreign transaction fees and foreign ATM charges could apply to international transactions, even if you’re not travelling and are simply shopping with overseas businesses.

Some cards offer a low interest rate or interest-free period for a limited time after you sign up. Keep in mind that this interest rate can rise steeply after the introductory period expires.

Interest-free periods

The number of days allocated to pay your credit card balance before you’re charged interest on your purchases at the card’s purchase rate. The higher the number of days, the more breathing room to make repayments. A typical interest-free period is around 44-55 days.

Rewards programs and frequent flyer programs

Rewards card programs let you earn points on your everyday spending that can be exchanged for goods, converted into frequent flyer points, or redeemed for cashback deals. You’ll want to carefully compare the types of rewards the card issuer offers to ensure it meets your specific needs and goals.

Some of the most common rewards associated with credit cards include:

Travel rewards: Frequent flyer points to put towards flight upgrades, airport lounge access, travel insurance, accommodation, etc.
Merchandise: Rewards points to put towards items such as electronics, appliances and event tickets.
Cashback: Points you can redeem for cash, usually credited back to your account.
Gift cards: Department store vouchers, fuel vouchers etc.
Events: Exclusive access to pre-sale tickets, discounted tickets, VIP event access, etc.

Some credit cards also offer extras like not charging a fee for supplementary cards for additional cardholders. The more rewards and extras a credit card offers, the more likely you may need to pay higher annual fees.

Credit card status tier

There are different credit card tiers that customers may be approved for, ranging from the more basic options with smaller credit limits, through to platinum credit cards for bigger spenders, and even black credit cards for rockstars and royalty. The status of a credit card may be listed as a colour, such as a gold credit card, or it could be branded with a name from the issuer.

These different credit card status tiers, may better suit different types of spenders:

Basic low rate and low fee credit cards: Your standard entry-level offering which typically comes with a lower interest rate, more accessible eligibility criteria and lower credit card limits. May be a useful first credit card.
Mid-tier credit cards: May offer a competitive purchase rate, plus perks like rewards points and complimentary travel insurance, but may also charge higher annual fees of around $100-$200+.
Premium credit cards: Platinum credit cards that offer a range of perks and benefits, from rewards programs to frequent flyer bonuses and concierge services. Applicants are typically offered higher credit limits, but may need to have higher incomes and meet spending minimums each year. These cards typically come with much higher annual fees, but it is expected that applicants can afford these.

Credit card type

There are three main credit card types: Visa, Mastercard and American Express (Amex). Visa and MasterCard are quite similar in that they are payment processing systems, and cannot issue cards directly to customers. Whereas Amex is both a payment processing system and a credit provider that can issue its own cards. Visa and MasterCard typically carry lower card fees than Amex.

How to apply for a credit card

When applying for a credit card, the card issuer will need to assess your personal financial situation, budget, and credit history to determine if you can safely manage the risks associated with said card. To do this, you’ll need to provide some or all of the following:

Proof of income: recent payslips,
Proof of bonuses and commissions: via payslips or tax returns
Photo ID (driver’s license, proof of age card or passport)
Additional assets and income (such as a savings account or managed investments)
Credit history
Tax file number
Details of any existing loans, such as personal loans, a lease or other credit cards
Recent tax returns, particularly if you’re self-employed

The steps to apply for a credit card are as follows:

Research and compare credit cards: Start by researching and selecting a credit card that aligns with your financial goals and needs.
Check eligibility and gather documents: Review the card's eligibility criteria and collect the necessary documents, including proof of income and identification.
Complete the application: Hop online or head into a branch to fill out the application form, providing all requested information.
Submit the application: Wait for the issuer's response, which may arrive instantly of take a few business days to process..
Activate your Card: Once approved, you'll typically need to activate your card as instructed.
Use responsibly: Use your credit card wisely, make timely payments, and regularly monitor your statements to maintain good credit and financial health.

Keep in mind that throughout the credit card application process, your credit score can fluctuate. The credit card issuer will perform a hard credit check on your credit file when you apply to determine your creditworthiness and the likelihood of you meeting your repayment obligations.

Even if your credit card is approved, your credit score may fall after a hard credit check. However, this typically corrects itself and may even improve if you demonstrate positive credit behaviour. This may mean ensuring you can pay off your balance in full each statement period.

It’s worth keeping in mind that you will need to meet credit card eligibility criteria to be approved, such as:

Being an Australian citizen or permanent resident
18 years old or over
No history of bankruptcy
Meet minimum income requirements
Good credit rating

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Is it safe to get a credit card?

Choosing whether to get a credit card is a personal decision, and not one to be made lightly. As credit cards are easy to misuse, even the most diligent cardholder can quickly begin accruing debt if they can’t pay their balance in time and have a high interest rate.

However, like any credit product, a credit card is simply a tool. When used responsibly, a credit holder may never pay a cent in interest. They may also earn generous perks and benefits, like cashback offers and rewards points.

It may be easier to be approved for a credit card than some other forms of finance, like a home loan, as you don’t need to offer up a deposit or security to be approved. But credit cards may come with some of the highest interest rates on the market, climbing into the high teens and beyond.

An unsecured personal loan may charge a comparable interest rate to some credit cards. However a personal loan requires you to make regular repayments so that your debt is repaid over the loan term (typically 1-5 years). Credit cards only require you to make minimum repayments (typically $20 or 2% of the balance owing, whichever is higher), which may take decades to clear your credit card balance and interest charges. This plus the fact that you can freely use a credit card to make more purchases and borrow your money, means that while it may be easier to get approval for a credit card than a home loan or personal loan, you could potentially be charged more interest and end up in more debt if you’re not careful.

If you are looking for your first credit card, you may want to consider prioritising low-rate options so that you can get used to spending and paying off your outstanding balance in full each statement period, without the risk of accruing too much debt. You could also consider no-interest alternatives, such as a buy now, pay later platform like Afterpay, though these services come with their own share of risks.

How do you pay off a credit card?

Your credit card will have a minimum repayment requirement for you to pay each statement period – usually $20 or 2% of the outstanding balance. However, by only making minimum repayments you could drag out your debt for decades, and spend thousands more in interest charges.

Instead, it may be worth repaying your full balance by the end of each statement period, or making higher ongoing repayments each payment cycle.

Repayments on a credit card

RateCity has crunched the numbers on the money and time it would cost you to repay a $10,000 credit card debt with a 15% interest rate with minimum repayments versus larger, ongoing repayments:

Credit card repayment comparison

	Repayments	Total paid	Time taken to pay off debt
Credit card A	$200 in the first month, decreasing as debt reduces.	$25,579	32 years and 1 month
Credit card B	$479 each month	$11,493	2 years
Difference	-	$13,602	30 years and 1 month

Source:ASIC Credit Card Repayment Calculator. Note: Hypothetical example for demonstrative purposes of $10,000 credit card debt with 15% interest rate where customer makes minimum repayments versus higher ongoing monthly repayments.

As you can see, while making minimum repayments on your credit card debt may seem more convenient, you may be hurting yourself in the long run in terms of ongoing interest charges. You’re also tying yourself to a debt for decades longer than you need to, essentially paying off a credit card debt for longer than you would repay a mortgage.

Alex Ritchie

Personal Finance Editor

Alex Ritchie was a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.

This article was reviewed by Mia Steiber before it was published as part of RateCity's Fact Check process.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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