lowest monthly repayment credit cards^

Find a credit card that best suits your needs. Compare interest rates, balance transfer rates, annual fees and more from Australia's leading lenders, big and small. - Data last updated on 25 Jun 2018

Now showing 1 - 12 of 12 lowest monthly repayments
Advertisement
Low Rate Platinum Mastercard
Purchase Rate
11.99%
Min Repayment
3%
Max Free Days
55
Late Payment Fee
$15
Compare
Low Rate Mastercard
Special$0 annual fee for the first year when you apply by 30 June 2018
Purchase Rate
11.99%
Min Repayment
3%
Max Free Days
55
Late Payment Fee
$15
Compare
Low Rate First Mastercard (ages < 25)
Purchase Rate
11.99%
Min Repayment
3%
Max Free Days
55
Late Payment Fee
$15
Compare
Vertigo Platinum
Balance TransferOnline only - 0% p.a. for 24 months on balance transfers requested at card application (1% BT Fee Applies). Rate then switches to applicable variable cash advance rate. $0 annual card fee for the first year (saving you $99).
Purchase Rate
12.74%
Min Repayment
2%
Max Free Days
55
Late Payment Fee
$15
Compare
Vertigo Platinum
Balance TransferOnline only - 0% p.a. for 24 months on balance transfers requested at card application (1% BT Fee Applies). Rate then switches to applicable variable cash advance rate. $0 annual card fee for the first year (saving you $99)
Purchase Rate
12.74%
Min Repayment
2%
Max Free Days
55
Late Payment Fee
$15
Compare
Vertigo Platinum
Balance TransferOnline only - 0% p.a. for 24 months on balance transfers requested at card application (1% BT Fee Applies). Rate then switches to applicable variable cash advance rate. $0 annual card fee for the first year (saving you $99).
Purchase Rate
12.74%
Min Repayment
2%
Max Free Days
55
Late Payment Fee
$15
Compare
Low Rate Card
Balance TransferExclusive online special: 0% p.a. on balance transfers for 26 months (2% BT fee applies) then reverts to variable cash advance rate. $0 annual card fee in the first year (saving $59). Exclusions apply. Offer ends 31 July 2018.
Purchase Rate
13.49%
Min Repayment
2%
Max Free Days
55
Late Payment Fee
$15
Compare
Amplify Platinum (Amplify Rewards)
Bonus PointsEarn 50,000 Bonus Amplify Points when you spend at least $2,000 on eligible purchases within 90 days of card approval. Apply by 26 Sep 2018.
Purchase Rate
19.49%
Min Repayment
2%
Max Free Days
55
Late Payment Fee
$15
Compare
Amplify Platinum (Amplify Rewards)
Bonus PointsReceive 50,000 bonus points when you spend $2,000 on eligible purchases within 90 days of approval. Apply by 26 Sep 2018.
Purchase Rate
19.49%
Min Repayment
2%
Max Free Days
55
Late Payment Fee
$15
Compare
Platinum Rewards Mastercard
Purchase Rate
19.99%
Min Repayment
3%
Max Free Days
55
Late Payment Fee
$15
Compare
Qantas Platinum Mastercard
Purchase Rate
19.99%
Min Repayment
3%
Max Free Days
55
Late Payment Fee
$15
Compare
RSPCA Rescue Mastercard
Purchase Rate
19.99%
Min Repayment
3%
Max Free Days
55
Late Payment Fee
$15
Compare
Advertisement

Paying the lowest monthly repayment off your credit card sounds simple. After all, it’s the minimum amount of money your provider requires you to pay. The dollar amount is easily found displayed on your monthly credit card statement.

However, the problem is, it can also be misleading. That’s because if you pay only the lowest monthly repayments, you could end up with a much larger debt that will take you years to pay off.

How is the lowest monthly repayment calculated on a credit card?

Usually credit card providers will set the lowest monthly repayment to about 2-3 per cent of the outstanding balance. Usually, added to this will be any interest due for the month and possibly part of the annual fee, if there is one.

The minimum payment should cover all of the interest, and also part of the money you owe. Every month the same calculation is made. However, as your debt balance reduces, so does your lowest monthly repayment. This means that even if you have a small debt, it could take several years to pay off.

Example #1

  • Credit card debt: $500
  • Interest rate: 17 per cent
  • Time to pay off: 2 years, 8 months (making minimum repayments)
  • You’d pay: $622

Example #2

  • Credit card debt: $3,000
  • Interest rate: 18 per cent
  • Time to pay off: 22 years, 3 months (making minimum repayments)
  • You’d pay: $8,383

How can you reduce your credit card debt faster?

Even if you have only a relatively small amount owing on your credit card, it can take an extraordinary long time to pay off if you make only the lowest monthly repayment.

To avoid paying a huge amount in interest, here are some steps you could take to get on top of your credit card debt:

  • Pay as much as you possibly can above the minimum payment. Anything extra you can pay each month that’s more than the lowest payment will go directly to repaying what you’ve borrowed. This means your debt will be repaid faster and will end up costing you a lot less in interest.
  • Try to avoid putting any more purchases on the credit card. If you keep paying for goods and services with your credit card, your debt will increase, as will the time it’ll take you to pay it off.
  • Consider transferring your debt to a balance transfer credit card. Zero per cent balance transfer credit cards can be good if you’re having trouble paying anything more than the minimum payment. This is because every dollar you pay goes straight to repaying the debt, not interest. There is often a one-off fee involved, and the 0 per cent interest usually only lasts for a limited amount of time; often between six months and 36 months, depending on the credit card you choose. RateCity has a balance transfer tool to help you compare the cards currently on offer.
Advertisement

^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, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

Compare your product with the big 4 banks, or add more products to compare
As seen on