Compare Credit Cards

Canstar uses a sophisticated and unique Star Ratings methodology to compare credit cards. We compare a wide range of credit card products in Australia and present the results in a simple, user-friendly format. Our Star Ratings methodology is transparent and extensive, and compares all types of personal unsecured credit cards in Australia. It accounts for an array of characteristics, such as:

• Fees
• Interest rates
• Number of interest-free days
• Rewards programs or loyalty programs
• No frills card options

The results are reflected in a consumer-friendly one to five-star system, with a 5-Star Rating denoting a product offering outstanding value.

Compare Credit Cards

What is a credit card?

A credit card is a form of unsecured lending that gives the cardholder access to a revolving line of credit. That line of credit is accessed via a small, plastic card – the credit card.

The cardholder can typically make purchases up to a specified limit. They can then repay any ‘spent’ credit in full or in part to the bank by the due date. If the credit is only repaid in part, the remaining balance is taken as extended credit and interest will generally be charged on that amount until the cardholder repays it. For some cards, interest is charged on all purchases and transactions from the day of the transaction.

It could be a good idea to keep in mind that a credit card could present a higher financial risk to customers than other types of loans. Credit cards also typically have higher interest rates than other forms of credit such as personal loans, because they come with a higher chance of the borrower not making their repayments in full every month. Consider the key facts sheet or other applicable product documentation before making any financial decision.

However, credit cards can be useful in a variety of ways, if used responsibly, such as:

• Potentially helping cardholders to build a positive credit history, by paying the total balance off by the due date every month
• A rewards program may apply depending on the card and how it is used
• They can be convenient when making purchases online or overseas, and anti-fraud protections may apply if a card is lost, stolen, or used in online credit card fraud.

Compare Credit Cards

Types of credit cards

There are several different types of credit cards available on the market in Australia, each of which can be compared on the Canstar website:

• Low Rate Cards
• Low Fee Cards
• Rewards Credit Cards
• Frequent Flyer Credit Cards
• Premium Cards
• Balance Transfer Cards

Then there’s the question of which payment platform to choose, such as MasterCard or Visa. What card your lender offers you depends on the card payment services they partner with, which could include:

1. MasterCard
2. Visa
3. American Express
4. Diners Club

It’s important to consider your circumstances when choosing which credit card is right for you, including:

• How much you spend per year on your card
• Whether the annual fee or other costs for a rewards program would be worth it
• What type of rewards you are most likely to use (if you are considering a rewards, premium or frequent flyer card)
• Whether you already have a credit card debt

Looking to compare cheap credit cards?

How much your credit card ends up costing you can depend on quite a few different factors. So, what should you be looking out for if you want to compare cheap credit cards? The interest rate the card charges on purchases and other transactions is one important potential cost, particularly if you don’t pay off the card’s balance in full each month. Generally the lower the interest rate, the less the card is likely to cost you in interest. The card’s annual fee can also play a part. A card with a low or no annual fee can help reduce the ongoing cost, although these cards may not come with as many features or perks as cards with higher fees.

If you’re looking at cheap credit cards, you might also want to weigh up the features on offer. For example, a card with a high number of interest free days could help you avoid or reduce the amount of  interest you pay on purchases.

Ultimately, while the cheap credit cards on the market may be tempting, simply using your card responsibly can be the most effective way to use a credit card without incurring unnecessary costs. This could include taking steps such as setting an appropriate credit limit, avoiding unnecessary spending where possible and ensuring you don’t carry over debt from month to month.

Compare Credit Cards