There are hundreds of credit cards out there in the market, so how do you know which one is the best one for you?

When looking for the best credit card for you, it’s important to compare products against your own financial situation and budget before sealing the deal. Credit cards offer a range of features but also may come with costly fees, so it’s up to you and a little bit of research to decide which card type best suits you.

Find and compare Australia's best credit cards

Sort By
Product Name Card
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Go to site

Purchase Rate

19.99%

Interest Free Days

55

Annual Fee

$0

for 12 months then $149

$12.5

More details

Purchase Rate

11.99%

Interest Free Days

55

Annual Fee

$49

$25

More details

Purchase Rate

16.99%

Interest Free Days

45

Annual Fee

$149

$20

Go to site
More details

Purchase Rate

19.74%

Interest Free Days

44

Annual Fee

$30

$15

Go to site
More details

Purchase Rate

20.24%

Interest Free Days

55

Annual Fee

$80

$20

Go to site
More details

Purchase Rate

20.24%

Interest Free Days

55

Annual Fee

$95

$20

Go to site
More details

Purchase Rate

0.90%

for 15 months then 14.99%

Interest Free Days

55

Annual Fee

$99

$30

Go to site
More details

Purchase Rate

20.24%

Interest Free Days

55

Annual Fee

$375

$20

Go to site
More details

Purchase Rate

16.99%

Interest Free Days

55

Annual Fee

$55

$20

More details

Purchase Rate

16.99%

Interest Free Days

55

Annual Fee

$125

$20

More details

Purchase Rate

10.80%

Interest Free Days

Annual Fee

$0

$20

More details

Purchase Rate

12.99%

Interest Free Days

55

Annual Fee

$99

$30

More details

Purchase Rate

21.49%

Interest Free Days

55

Annual Fee

$99

for 12 months then $199

$30

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$99

$30

More details

Purchase Rate

23.99%

Interest Free Days

55

Annual Fee

$79

$30

More details

Purchase Rate

20.74%

Interest Free Days

55

Annual Fee

$195

$30

More details

Purchase Rate

14.95%

Interest Free Days

55

Annual Fee

$30

$20

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$295

$30

More details

Purchase Rate

11.95%

Interest Free Days

55

Annual Fee

$0

$20

More details

Purchase Rate

14.99%

Interest Free Days

55

Annual Fee

$0

$30

More details

Purchase Rate

20.74%

Interest Free Days

55

Annual Fee

$395

$30

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$99

$30

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$450

$30

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$249

$30

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$0

$30

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$295

$30

More details

Purchase Rate

20.24%

Interest Free Days

55

Annual Fee

$99

for 12 months then $129

$10

More details

Purchase Rate

12.99%

Interest Free Days

55

Annual Fee

$49

$10

More details

Purchase Rate

8.99%

Interest Free Days

55

Annual Fee

$0

$30

More details

Purchase Rate

22.74%

Interest Free Days

55

Annual Fee

$0

$30

More details

Purchase Rate

21.99%

Interest Free Days

55

Annual Fee

$0

$30

More details

Purchase Rate

24.99%

Interest Free Days

55

Annual Fee

$99

$30

More details

Purchase Rate

20.70%

Interest Free Days

55

Annual Fee

$99

$35

More details

Purchase Rate

20.70%

Interest Free Days

55

Annual Fee

$149

$35

More details

Purchase Rate

20.70%

Interest Free Days

55

Annual Fee

$99

$35

More details

Purchase Rate

20.70%

Interest Free Days

55

Annual Fee

$149

$35

More details

Purchase Rate

15.95%

Interest Free Days

55

Annual Fee

$69

$35

More details

Purchase Rate

12.99%

Interest Free Days

55

Annual Fee

$30

$0

More details

Purchase Rate

11.99%

Interest Free Days

55

Annual Fee

$0

$10

More details

Purchase Rate

20.69%

Interest Free Days

55

Annual Fee

$0

for 12 months then $69

$35

More details

Purchase Rate

19.99%

Interest Free Days

44

Annual Fee

$250

$15

More details

Purchase Rate

19.99%

Interest Free Days

44

Annual Fee

$295

$15

More details

Purchase Rate

19.99%

Interest Free Days

44

Annual Fee

$295

for 12 months then $395

$15

More details

Purchase Rate

19.99%

Interest Free Days

44

Annual Fee

$195

$15

More details

Learn more about credit cards

Which is the best credit card in Australia?

There is no one-size-fits-all credit card as there is a variety of options to choose from that suit different financial situations. The best credit card for you will depend on your budget and spending profile.

  • 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 cards, low fee credit cards
  • Impulse 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/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, but, different to 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 high income earner and put over $5,000 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  

What different types of credit cards are available?

As mentioned above, there are a range of spending profiles for each different credit card type. But what are the different types of credit cards available in Australia? 

  • Visa, Mastercard or AMEX - first and foremost, each credit card 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 - as the name suggests, these are credit cards offering low interest rates below the average purchase rate (generally around 16-18 per cent). These are typically ideal for cardholders who find themselves always being charged interest. 
  • No annual fee credit cards - again, as the name suggests, these credit cards either will not charge an annual fee or keep their ongoing fees very low. 
  • Rewards credit cards - whether your perks and rewards are linked to a standard rewards program, a frequent flyer program (like Qantas frequent flyer) or a store rewards program (retail gift cards and discounts), you are able to turn your everyday spending into handy extras. Bonus points are earned via spending on earned on eligible purchases. You may also enjoy perks like cash back, complimentary insurances such as travel insurance, concierge services and airport lounge access.
  • Travel credit cards - ideal for avid adventurers, travel credit cards typically suit those planning overseas travel or those who shop online on international websites. They may not charge any foreign transaction fees, and may come with complimentary travel insurance and other perks like airport lounge access. 
  • Balance transfer credit cards - When cardholders have an outstanding balance they're struggling to pay off, they can transfer this balance to a new card that has an interest-free period. The balance transfer offer may be a few months, or even years. You may be charged a balance transfer fee/balance transfer rate upon opening the new card account, which is generally a small percentage (1-3 per cent) of your balance. 
  • 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 a harder eligibility criteria, such as having a higher income than the average Australian. 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 - ideal 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. 

What are the pros and cons of having a credit card?

Unsure whether to switch from the humble debit card or savings account to a credit card? There are a few things to weigh up. 

Credit cards can be a handy asset when:

  • You don’t have a lot of cash with you;
  • You're travelling overseas; and
  • You want to earn bonus points for your everyday spending.

Keep in mind that credit card providers make money mostly by charging you interest on purchases you make when you don't pay your balance in full each statement period. They also may charge interest on money you withdraw and sting you with costly ongoing fees, such as annual fees, late payment fees and foreign transaction fees. 

That's not to say that credit cards aren’t worth getting - you just need to make sure you use them sensibly. But that convenience can also come with a cost. You might find yourself spending more when using a credit card than when using cash if you aren’t a disciplined spender.

RateCity tips for new cardholders

Be aware of the interest-free period. Remember that the interest-free period is for a limited time only. You may only have a window of no interest for the first year of the card. If you still have an unpaid balance on your credit card when the offer ends, you will be charged interest on the amount you owe. It’s best to pay off the debt before the interest-free period expires.

Credit card fees and charges

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. Here are some of the main fee types you could be facing:

  • Annual fees
  • Late payments fees
  • Cash advance rate
  • 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 Product Disclosure Statement (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.

How do I find the best credit cards?

The best way to find the right credit card for you is to use comparison tools, such as tables and calculators. 

Comparison tables allow you to compare apples with apples. You can filter down and sort from the options shown based on what you're looking for, such as card type, purchase rate, number of interest free days, and annual fees. This will help you to find the best credit card for your needs from RateCity's top pics. You'll also get a clear indication of any features and perks linked to the new credit card. 

Once you've narrowed down your search, it’s worth making a short list of potential cards and carefully looking at each card's PDS, key fact sheet or equivalent document. 

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 can seriously hurt your credit score and will be noted in your credit history. 

Also, keep in mind that credit cards can be a helpful financial tool but when misused are very capable of growing credit card debt. Maxing out your credit limit and having too much credit card debt will also hurt your credit score.

Today's top credit cards