Amex, Westpac and CBA all offering low-rate credit cards

Nick Bendel-06/10/2018- 2 min read

There are a dozen different credit card providers offering cards with interest rates under 10 per cent, an analysis of the credit card market has found.

American Express, Community First Credit Union and Easy Street Financial Services all have credit cards that charge 8.99 per cent interest and offer an interest-free period of up to 55 days (see table below).

Northern Inland Credit Union also has a credit card with a purchase rate of 8.99 per cent, however this credit card does not have an interest-free period.

Commonwealth Bank and Westpac also offer low-rate credit cards.

The CBA Essentials credit card has an interest rate of 9.90 per cent and an interest-free period of up to 55 days, while the Westpac Lite Card charges 9.90 per cent interest and offers up to 45 days interest-free.

Auswide Bank, Bank Australia, Bank First, Bank of Us, Big Sky Building Society and G&C Mutual Bank also have credit cards with interest rates under 10 per cent.

Provider	Product	Interest rate	Interest-free days	Annual fee
American Express	Low Rate Credit Card	8.99%	55	$0
Community First Credit Union	Low Rate Visa Credit Card	8.99%	55	$40
Community First Credit Union	McGrath Pink Visa Card	8.99%	55	$40
Easy Street Financial Services	Easy Low Rate Visa Credit Card	8.99%	55	$40
Northern Inland Credit Union	Low Rate Visa Credit Card	8.99%	0	$0
Bank Australia	Low Rate Visa Credit Card	9.39%	0	$59
Auswide Bank	Low Rate Visa Card	9.45%	55	$50
G&C Mutual Bank	Low Rate Visa Credit Card	9.49%	50	$50
Bank of Us	Visa Credit Card	9.90%	57	$39
Commonwealth Bank	Essentials	9.90%	55	$60
Big Sky Building Society	Low Rate Visa Credit Card	9.90%	45	$59
Bank First	Visa Platinum Credit Card	9.90%	55	$99
Westpac	Lite Card	9.90%	45	$108

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Nick Bendel

Property Personal Finance Writer

A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.

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Today's top credit cards products

Purchase Rate

21.49%

Annual Fee

$49

for 12 months then $149

Balance Transfer

0% p.a. for 30 months on balance transfers and $49 annual fee p.a. in the first year

Purchase Rate

12.49%

Annual Fee

for 12 months then $58

Balance Transfer

0% p.a. for 20 months on balance transfers with no balance transfer fee and $0 Annual Fee in First Year with an ANZ Low Rate credit card.*

Purchase Rate

11.99%

Annual Fee

$45

Balance Transfer

0% on balance transfers for 18 months. 2% balance transfer fee applies.

Purchase Rate

0.00%

for 12 months then 18.99%

Annual Fee

Balance Transfer

0% p.a for 12 months on balance transfers and purchases

Based on your details, you can compare the following Credit Cards

Product Name Card Citi Rewards (Balance Transfer Offer) Balance Transfer 0% p.a. for 30 months on balance transfers and $49 annual fee p.a. in the first year Rewards Available through Citi Rewards Program Reduced $49 annual fee p.a in the first 12 months and $149 p.a thereafter.	Purchase Rate Purchase Rate 21.49%	Interest Free Days Interest Free Days 55	Annual Fee Annual Fee $49 for 12 months then $149	Late Payment Fee $30	Go to site Go to site	Compare Earn extensive rewards while keeping costs down, thanks to a reduced annual fee for the first year. This card comes with a zero per cent balance transfer rate over a long 30 month balance transfer time. More details	Highlighted
Product Name Card ANZ Low Rate Balance Transfer 0% p.a. for 20 months on balance transfers with no balance transfer fee and $0 Annual Fee in First Year with an ANZ Low Rate credit card.* Waived $0 annual fee p.a in the first 12 months and $58 p.a thereafter. Apple Pay, Google Pay and Samsung Pay available	Purchase Rate Purchase Rate 12.49%	Interest Free Days Interest Free Days 55	Annual Fee Annual Fee $0 for 12 months then $58	Late Payment Fee $20	Go to site Go to site	Compare A credit card that charges a low purchase rate and no annual fee so thrifty cardholders can keep costs down. More details
Product Name Card Bendigo Bank Low Rate Credit Card Balance Transfer 0% on balance transfers for 18 months. 2% balance transfer fee applies. Apple Pay, Google Pay and Samsung Pay available Free supplementary cards	Purchase Rate Purchase Rate 11.99%	Interest Free Days Interest Free Days 55	Annual Fee Annual Fee $45	Late Payment Fee	Go to site Go to site	Compare A low rate, low fee Mastercard card offer with a long interest free period, so cardholders can keep costs down. It also comes with a balance transfer offer. More details
Product Name Card Virgin Money No Annual Fee Card Balance Transfer 0% p.a for 12 months on balance transfers and purchases No Annual Fee Free supplementary cards	Purchase Rate Purchase Rate 0.00% for 12 months then 18.99%	Interest Free Days Interest Free Days 55	Annual Fee Annual Fee $0	Late Payment Fee $30	Go to site Go to site	Compare Avoid one of the biggest costs of a credit card with this competitive no annual fee offer from Virgin Money. More details

Data last updated on 1 Mar 2021

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If you’re an American Express credit card customer, you may not be able to transfer money from your credit card to your bank account. However, you may be eligible for cash advances, which involves withdrawing money through an ATM.

To qualify for a cash advance, you’ll likely have to enrol for American Express Membership Rewards. Consider checking your online credit card account to see if you can withdraw a cash advance and, if so, the fees and charges you’ll incur for this transaction.

You should remember that cash advances are different from balance transfers, which were available with some American Express credit cards earlier. Balance transfers allow customers to consolidate debt from high-interest credit cards to a credit card offering a lower interest rate. If you only recently applied for an American Express credit card, balance transfers may not be available irrespective of the card you own.

Once you've compared credit card interest rates and deals and found the right card for you, the actual process of getting a credit card is quite straightforward. You can apply for a credit card online, over the phone or in person at a bank branch.

It is possible to get a credit card as a pensioner. There are some factors to keep in mind, including:

Annual income. Look for credit cards with minimum annual income requirements you can meet.
Annual fees. If high fees are a concern for you, opt for a card with a low or $0 annual fee.
Interest rate. Make sure you won’t have any nasty surprises on your credit card bill. Compare cards with a low interest rates to minimise risk.

Your credit card will be charged interest when you don’t pay off the balance on your credit card. Your card provider or bank charges you the individual interest rate that is associated with your card, which is usually between 10 and 20 per cent.

The interest will be added onto your bill each month or billing period if you don’t pay off the balance, unless you are in an interest-free period.

You will be charged interest on anything that hasn’t been paid for inside the interest-free period. Usually you will receive a notice on your bill or statement saying you will be charged interest so you have some form of notice before you’re charged.

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

Your ANZ credit card is considered expired only after the last day of the month and year marked on your card. For instance, if your card’s expiry date reads 03/22, it is valid until 31 March 2022 and expires on 1 April 2022. Typically, you should have received a new credit card by that date, and you won’t have to request a new card.

Once you get the new card, you should remember to switch any automatic payments you have - such as a utility or mobile phone bill - from your expired credit card to your new credit card. Equally, if you are using CardPay Direct to repay your ANZ credit card debt, you may need to update the credit card account details for that service as well.

In case the new card doesn’t arrive by the expiry date of your current credit card, you can call ANZ on 13 22 73 to find out the reason and if you need to request an expedited card. Please note that if you were planning to close your credit card account or request a credit card upgrade, you may need to call ANZ at least before the 25th of the month your current credit card expires in, as that’s when they may send you the new credit card.

You can apply for a credit card online, over the phone or in person at the bank. Once you’ve compared the current credit card offers, the application process is quick and easy. Before you get your application started, you’ll need to gather your personal information like proof of ID, payslips and bank statements, proof of employment and details of your income, assets and liabilities. To be eligible for a credit card, you’ll need to be an Australian citizen over 18 and earn a minimum of $15,000 each year. Once you’ve applied for a credit card, you should get a response fairly instantly. If your credit card application has been approved, you should receive a welcome pack with your new credit card within 10-15 days.

Credit card fraud is a serious problem. If your credit card is compromised and you’re wondering what to do, here are a few precautionary steps to take.

Contact you credit provider – Get in touch will your credit card provider. If you feel your card has been compromised, you should be able to lock or block it.

Monitor your accounts – Keep an eye on your credit card accounts. Any unauthorised transactions could be a sign your credit card has been compromised.

Check your credit rating – It’s also important to check your credit rating, to ensure you’re not a victim of identity theft or some other financial mischief.

Losing your credit card is a serious situation, and could land you in financial trouble. Here is a simple guide detailing what to do when you lose your credit card.

Lock you card – Contact your provider and inform them about your lost credit card. From here lock, block or cancel your card.

Keep track of transactions – Look out for unauthorised credit card transactions. Most banks protect against fraudulent transactions.

Address recurring charges – If your card is linked to recurring charges (gym membership, rent, utilities), contact those businesses.

Check credit rate – To ensure you’re not the victim of identity theft, check your credit rating a month or two after you lose your credit card.

The credit card market changes all the time, so the credit card with the highest annual percentage rate is also liable to change.

Keep in mind that credit card interest rates are expressed as a yearly rate, or annual percentage rate (APR). A low APR is generally good but also consider:

There can be different APR's for each feature of the card (e.g. purchases may have an APR of 14 per cent, while cash advances on same card could have an APR of 17 per cent.
Credit cards with a variable rate can change throughout the year, affecting your APR, so check the full details.
If you pay your balance in full every month, having the lowest APR is not as important as the other fees associated with the card. However, if you carry a balance from month to month, then you want the lowest APR possible.

Credit cards are a quick and convenient way to pay for items in store, online or over the phone. You can use a credit card as a cashless way to pay for goods or services, both locally and overseas. You can also use a credit card to make a cash advance, which gives you the flexibility to withdraw cash from your credit card account. Because a credit card uses the bank’s funds instead of your own, you will be charged interest on the money you spend – unless you pay off the entire debt within the interest-free period. If you pay the minimum monthly repayment, you will be charged interest. There are many different credit card options on the market, all offering different interest rates and reward options.

A balance transfer credit card lets you transfer your debt balance from one credit card to another. A balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. If your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card.

For most Australians, there are no great barriers to applying for and getting approved for a credit card. Here are some points that a lender will consider when assessing your credit card application.

Credit score: A bad credit score is not the be all and end all of your application, but it may stop you being approved for a higher credit limit. If your credit score is less than perfect, apply for the credit limit that you need, rather than the one you want.

Annual income: Most credit cards have minimum annual income requirements. Make sure you’re applying for a card where you meet the minimum.

Age & residency: You need to be at least 18 years old to apply for a credit card in Australia, and most require that you are an Australian citizen or permanent resident. However, there are some credit cards available to temporary residents.

Credit card interest can quickly turn a manageable balance into unmovable debt. So being able to understand how interest rates translate into dollars is an important skill to acquire.

The common mistake people make is focusing on the credit card’s annual percentage rate (APR), which often sits between 15 and 20 per cent. While the APR does provide a rough idea of how much interest you’ll pay, it’s not entirely accurate.

This is because you actually accrue interest on your balance daily, not annually. So, you need to work out your daily periodic rate (DPR). To do this, divide your card’s APR by the number of days in a year (e.g. 16.9 per cent divided by 365, or 0.05 per cent). You can then apply this figure to the daily balance on your credit card.