Choosing the right credit card is essential for managing your finances effectively, whether you’re looking for low fees, low interest rates, rewards points, or ways to transfer debt at 0% interest. In Australia, the credit card market is diverse, with numerous providers offering a variety of options. To help you find the best credit card, we’ve compiled an updated list of the top-rated “low-fee” credit cards for November 2024 based on expert reviews and user feedback.
Key Factors to Consider When Choosing a Credit Card
The best credit card for you depends on several factors, including your spending habits, how you plan to manage your balance, and the benefits that are most important to you. Here are a few important questions to ask when choosing a credit card:
- What is the primary purpose of the card? Are you looking to earn rewards, get cash back, or transfer an existing balance?
- How will you manage your balance? If you tend to carry a balance, you might want a card with a lower interest rate. If you pay off your card in full each month, a no-annual-fee or rewards card could be a good fit.
- Do you need a balance transfer option? If you’re carrying debt on another card, look for a card offering a 0% interest rate on balance transfers.
- How important are rewards to you? If you travel often or shop online, you may want a card that offers frequent flyer points, cashback, or other rewards.
Top Low Fee Credit Cards in Australia (Updated November 2024)
Based on expert ratings, here are the best low-fee credit cards available in Australia right now:
| Card Name | Purchase Rate p.a. | Annual Fee | Interest-Free Days | Special Offers |
|---|---|---|---|---|
| Coles No Annual Fee Mastercard | 20.74% | $0 | 55 | 10,000 Flybuys points if you spend $3k in 3 months (T&Cs apply) |
| Kogan.com Money Black Card | 0% for 10 months | $0 | 55 | Free FIRST membership for new applicants (Canstar exclusive offer) |
| St.George Vertigo Visa | 13.99% | $55 | 55 | 0% p.a. on balance transfers for 24 months (1% BT fee applies) |
| Westpac Low Rate Card | 13.74% | $59 | 55 | 0% p.a. on balance transfers for 26 months (2% BT fee applies) |
| American Express Low Rate | 10.99% | $0 | 55 | No annual fee, 24/7 fraud protection |
| Bank of Melbourne No Annual Fee Visa | 20.99% | $0 | 55 | Ideal for those who need no annual fee and decent interest-free days |
| BankSA No Annual Fee Visa | 20.99% | $0 | 55 | No annual fee, widely accepted across Australia |
| BankVic Qantas Visa Credit Card | 8.99% for 6 months, then 18.95% | $0 | 55 | Great for earning Qantas Points |
| BankVic Low Rate Visa | 8.99% for 6 months, then 13.95% | $0 | 44 | Low ongoing interest rate after the introductory period |
| Bankwest Zero Mastercard | 0% for 6 months | $0 | 55 | Great for balance transfers and no annual fee |
| Bendigo Ready Credit Card | 19.99% | $0 | 55 | A straightforward option for those seeking simplicity |
| Heritage Bank Gold Low Rate | 11.80% | $0 | 55 | Ideal for low-cost, long-term use without annual fees |
What to Look for in a Low Fee Credit Card
- Annual Fee: A low-fee credit card typically has little to no annual fee. These cards are best for those who don’t want to pay ongoing costs but still need a credit card for everyday transactions.
- Interest Rates: The interest rate on purchases (purchase rate) can vary between cards. If you tend to carry a balance from month to month, choosing a card with a lower interest rate can save you money. Some cards also offer a 0% introductory interest rate for balance transfers, which can help pay off existing debt more efficiently.
- Interest-Free Days: Most credit cards offer a grace period—usually between 44 to 55 days—where you can pay off your balance in full without incurring interest charges. This is crucial if you plan to pay off your balance every month to avoid paying interest.
- Additional Features: Some low-fee cards offer additional benefits, such as:
- Fraud protection: All cards on this list have fraud protection, but it’s still worth checking what specific protections each card offers.
- Bonus Points or Cash Back: Many low-fee cards offer introductory bonuses or ongoing rewards for spending.
- Balance Transfer Options: If you’re looking to pay off debt, some cards come with 0% balance transfer offers for a limited time. This can be a helpful tool for consolidating debt without paying interest.
Types of Credit Cards Available in Australia
In addition to low-fee credit cards, here are some other popular types of credit cards in Australia:
- Low Rate Credit Cards: These cards generally have a lower interest rate on purchases, which is ideal if you tend to carry a balance from month to month.
- Rewards Credit Cards: These cards allow you to earn points for every dollar you spend, which can be redeemed for travel, merchandise, or gift cards.
- Frequent Flyer Credit Cards: Specifically designed for frequent travellers, these cards allow you to earn frequent flyer points on everyday spending. Some of the most popular frequent flyer programs in Australia are Qantas and Velocity.
- Balance Transfer Credit Cards: If you have existing credit card debt, you can transfer it to a new card with a 0% introductory interest rate. This gives you a period (usually 12 to 24 months) to pay off the balance without incurring interest.
Is a Low Fee Credit Card Right for You?
A low-fee credit card might be the best option for you if you:
- Want to keep costs down with little to no ongoing fees.
- Don’t mind sacrificing extra perks like rewards programs or travel insurance in exchange for lower costs.
- Plan to pay off your balance each month to avoid interest charges.
- Are looking for a simple, straightforward credit card with minimal bells and whistles.
Conclusion: Finding the Right Credit Card
When choosing a credit card in Australia, it’s important to consider your individual spending habits, whether you plan to carry a balance, and what benefits or rewards matter most to you. Low-fee credit cards are a great option for many consumers, providing essential features without the high costs associated with premium cards.
If you’re not sure which card is right for you, use a credit card comparison tool to evaluate your options based on factors like annual fees, interest rates, and rewards programs. Always read the terms and conditions carefully to ensure you’re getting the best deal for your financial situation.
By taking the time to compare cards, you can ensure that you choose the best credit card for your needs—helping you save money, earn rewards, and manage your finances more effectively.