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The credit card with the lowest interest rate may not be the best

The credit card with the lowest interest rate may not be the best

There are plenty of low-rate credit cards on the market, but finding one that ticks all the boxes can be easier said than done.

Strange though it might sound, consumers should pay attention to more than just interest rate when trying to find what they consider to be the best low-rate credit card in Australia.

Consumers should also consider other features when comparing credit cards, such as the ongoing annual fee and the maximum number of interest-free days.

Each person will have to make their own decision around value, but one option might be to search for a low-rate credit card that meets these three criteria:

  • Interest rate under 12 per cent
  • Annual fee under $30
  • Interest-free period of at least 55 days

Do your research before taking out a low-rate credit card

Some low-rate credit cards meet some of these criteria, but not all.

G&C Mutual Bank’s Low Rate Visa, for example, has an interest rate of 7.49 per cent. However, the credit card includes an annual fee of $50 and an interest-free period of 50 days.

Northern Inland Credit Union’s Low Rate Visa has an interest rate of 8.99 per cent and does not charge an annual fee, but it does not provide an interest-free period.

Move Bank’s Low Rate Credit Card has an interest rate of 8.99 per cent, but it has a $59 ongoing annual fee and an interest-free period of only 45 days.

Interest rate is just one factor to consider with low-rate credit cards

Bendigo Bank and six smaller providers have low-rate credit cards that meet all three criteria (see table below).

Bendigo Bank’s Low Rate First Mastercard, which is exclusive to Australians aged 18 to 25, has an interest rate of 11.99 per cent, an annual fee of $29 and an interest-free period of 55 days.

ProviderCardAnnual fee (ongoing)Interest-free days (maximum)Interest rate (ongoing)
Teachers Mutual BankTeachers Credit Card$05511.50%
Hume BankValue Visa$05511.95%
Bendigo BankLow Rate First Mastercard$295511.99%
CUABrisbane Heat Supporters’’ Low Rate Credit Card$05511.99%
Holiday Coast Credit UnionLight Visa$255511.99%
ME BankFrank$05511.99%
QBankBluey$05511.99%

Data accurate as at 5th September 2019

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