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Best low-interest credit cards

Why pay high rates with CBA, NAB, ANZ and Westpac?

Last updated: 29 July 2020

Standard and rewards credit cards from ANZ, CommBank, NAB and Westpac still charge up to 20% interest, so unless you enjoy paying more than you have to, now's a good time to find a better rate.

Switching to a lower interest rate can make a big difference to your finances if you're struggling to keep on top of your credit card bills.

We found seven credit cards with rates below 9%. The lowest rate card is from G&C Bank with a 7.49% rate for purchases.

Best low-interest credit cards

Note: Consider the financial risk if you can't afford to pay the balance on your credit card right away.

Do you even need to switch credit cards?

You might not have to switch credit cards to get a better rate. Sometimes all it takes is a phone call to your credit card provider. 

For example, the big banks all offer low-rate cards that charge less than 14% interest, a rate cut of about 6%.  

Credit card traps

Interest rates are arguably the most important consideration when it comes to picking a credit card, but other factors should be taken into account. The top things to consider are:

Rates for cash advances

A cash advance on a credit card is a really bad idea as the interest applies immediately and can range up to 29.49% on some cards. 

Note that some credit cards don't offer cash advances.

Annual fees

Your low-interest card can really lose its sparkle if you get hit with high annual fees. Fees can be hundreds of dollars, especially for rewards credit cards, so be sure to check before you apply for a new card.

Balance transfers

Cards that offer cheap balance transfer rates often charge high rates if you don't pay the balance off within the promotional period. Also, watch out for balance transfer fees. 

Don't use the card for other purchases during the balance transfer period as interest-free days may not apply until you've paid off the full balance – including the balance transfer amount.

Interest-free days

Most low-rate credit cards offer interest-free days. Yours should too.

Late payment fees

These should be reasonable, not punitive. They can range from $0–35.

Over-limit fees

These range from $0–40.

We care about accuracy. See something that's not quite right in this article? Let us know or read more about fact checking at CHOICE.

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