Low Interest Rate Credit Cards - Find the Best Rates

Finding a credit card with low interest can help you pay off debt and help you manage your finances.

We compare 100+ low interest credit cards in Australia so you can easily decide which low rate credit card is best for you.

Compare Top 10 low rate credit cards in Australia now

The perks of a low interest rate credit card

While the first benefit of a low rate credit card is a lower interest rate than many other credit cards, there are other perks as well.

Look for an option with little to no interest on purchases during the introductory period. If you continue to pay your bills and regular necessities on your credit card, you could use grace periods of up to six months to get ahead on your previous debt.

As well as this, many low rate credit cards offer an interest free period on any purchases that ranges from 44 to 55 days.

This means you can get the things you need without waiting and take the grace period to make repayments without incurring any interest on the debt.

Related: Which credit card is best for you?

Transfer debt to a lower interest rate

You can slash your existing interest repayments if you transfer any of your current debt to a low interest rate credit card that also has a balance transfer offer.

The honeymoon period of little to no interest on transfers of any existing debt to a low interest rate credit card might see you paying zero per cent interest on your current debt for up to six months. Why not Compare low interest rate credit cards now.

The MoneySmart website from ASIC encourages Australians who are only able to pay the minimum monthly repayment on their credit cards to transfer the debt to a low interest rate credit card and pay off more when you are able to.

For example, if you make minimum repayments on a 20 per cent interest rate, a switch to a 10 per cent interest rate can help you pay more off the interest and into the principal.

Balance transfers and introductory rates

If you are interested in moving your debt to a low interest credit card, take note of the balance transfer rate offer and the interest rate you will need to pay when the rate reverts to the default rate.

Otherwise, at the end of the honeymoon period these rates could add extra financial pressure to your existing debt. Why not compare balance transfer credit card offers now.

Make sure to use the grace period to try and pay back as much of the debt as possible, taking advantage of the little to no interest that is being applied so you can pay back as much of the principle as you can.

Low interest rates help quickly

Your monthly statement might say that the rate is applied ‘per annum’, but your credit card interest is calculated daily and charged monthly. If you have gone beyond the interest-free days offered on purchases then compounding credit card debt can affect your financial situation quicker than you realise.

If you have pre-existing credit cards or debt that is accumulating interest charges of higher than 16 per cent, then a low rate credit card offering around 10 per cent is a smarter choice. Couple that with a low introductory rate, and a low rate balance transfer offer, and you could be on your way to paying down your debts at much lower rate, helping you get back on track. Why not compare low rate credit card offers now.

Does a low interest card suit you?

Anyone who uses a credit card to constantly make purchases will benefit from a low interest credit card. Those who will see the most benefit from a credit card focused on low interest are usually those who make minimum payments while continuing to carry their debt over for multiple months.

If you have outstanding debt on your credit card account that you just can’t seem to shake, switching to a low interest rate credit card coupled with a low rate balance transfer offer, could be the move that gets your finances back on track.

If you’re still not sure, you might want to read more about which credit card is best for you.

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Whilst Yahoo7 Moneyhound attempts to provide information regarding as many products in the market as is possible, not all available products are compared on this site.The comparison rates for home loans are based on secured credit of $150,000 and a term of 25 years. The comparison rates for car and personal loans are based on credit of $10,000 and a term of 3 years. WARNING: The comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Read more on our disclaimers here.

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