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:
The results are reflected in a consumer-friendly one to five-star system, with a 5-Star Rating denoting a product offering outstanding value.
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:
There are several different types of credit cards available on the market in Australia, each of which can be compared on the Canstar website:
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:
It’s important to consider your circumstances when choosing which credit card is right for you, including:
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.
As Canstar’s Editor-in-Chief, Nina heads up a team of talented SEO experts and journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.
Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.
Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.
You can follow her on Instagram or Twitter, or Canstar on Facebook.
You can also read more about Canstar’s editorial team and our robust fact-checking process.
The credit card types compared by Canstar are:
Rewards credit cards allow the cardholder to access one or more reward schemes, such as cash, gift vouchers, lifestyle, food and beverage, merchandise and additional (charity donations, bank fees, etc).
Frequent flyer credit cards allow accrual of frequent flyer points and redemptions through frequent flyer programs.
Premium credit cards typically come with an extensive rewards program and high credit limits, having at least four of these features:
There are also credit cards for a balance transfer. Your lender may offer different credit cards depending on the card payment services they partner with, whether Visa or Mastercard, or American Express or Diners Club. You can compare credit cards with Canstar and see our most recent Credit Card Star Ratings to compare how cards in the different categories stack up.
Consider your personal circumstances and budget in deciding whether to get a credit card. Ask yourself: Why do you need it? How will you pay it off? Will any incentives or rewards on offer justify the cost? If you want to pay down debt using a balance transfer offer, can you pay it off during the interest-free period? Also consider the pros and cons. Credit card benefits include contactless payments; paying during an interest-free period, rather than immediately; secure payments; and in some cases, price protection, purchase protection and other insurance that comes with the card.But credit cards can be an expensive way to borrow money, and if you find making repayments hard, you risk damaging your credit score. You may want to compare credit cards to help find one that’s right for you.
Steps to apply for a credit card generally include:
Tips to get rid of credit card debt include:
If you can’t pay your credit card bill and don’t have any hardship arrangements in place, your lender will ordinarily charge you a late payment fee and you may pay interest on this. If you don’t pay your closing balance in full, you also won’t avail of any interest-free period. This means you’ll be charged interest on your balance . Your bank can also issue you with a default notice and eventually take legal action against you. This can have a negative impact on your credit score. If you are feeling overwhelmed, contact a financial counsellor for free by calling the National Debt Helpline on 1800 007 007. You can also get free financial counselling through some community organisations, community legal centres and government agencies.
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Below are some popular credit card providers in Australia, or view more here:
