Low Rate Credit Cards: Are You Interest-ed?

Like the convenience of carrying a credit card but looking for a low rate to reduce the interest charged on your balance for those periods you can’t pay your card off in full? Then you might want to consider a low rate credit card.

If you’re wanting to learn more about low rate credit cards, how they work and how they can stack up against other kinds of credit cards, read on.

Low rate credit cards on Canstar

The table below displays a snapshot of low rate credit cards on Canstar’s database, sorted by purchase rate (lowest to highest). The results are based on a monthly spend of $1,000 ($12,000 annually). To see the full list of low rate credit cards on Canstar, click here.

Compare Credit Cards

What are low rate credit cards?

Low rate credit cards typically come with lower interest rates than other types of credit cards, with some on our database as low as 8.99%. Low rate credit cards can be suitable for customers who occasionally revolve their balance.

Using ASIC’s credit card calculator, a $2,000 credit card debt charged at 24.99% interest, while making the minimum monthly repayments, could cost you $8,253 over 23 years!

In contrast, an 8.99% purchase rate for that same debt means you’d only pay $2,849 over just under 10 years.

Pros and cons of low rate credit cards

Here are some of the pros and cons of low rate credit cards:

Low rate credit cards: pros and cons



  • Lower interest rates can mean lower monthly interest repayments when compared with higher rate credit cards
  • They can also come with low fees, suitable for those consumers looking for a ‘low frills’ card without premium features.
  • Low rate credit cards can also come with even lower rate balance transfers
  • Low rate cards tend to not have strong rewards programs and so tend not to be suitable for people seeking rewards, although there are exceptions
  • They also typically don’t come with the perks and bonuses of some premium cards

Compare Credit Cards with Canstar

5-Star low rate credit cards

The following low rate credit cards received a 5-Star rating in October 2017:

Company Winning Product
Bank Australia Low Rate Visa Credit Card
Bank First Visa Platinum Credit Card
Bank of us Visa Credit Card
Community First CU Low Rate Black Visa
Community First CU McGrath Pink Visa
Easy Street Fin Services Easy Low Rate Visa
Endeavour Mutual Bank Visa Credit Card
G&C Mutual Bank Low Rate Visa Credit Card
Nexus Mutual Low Rate Platinum Credit Card
Northern Inland CU Low Rate Visa Credit Card
Police Bank Visa Credit Card
SCU Low Rate Visa Credit Card
Teachers Mutual Bank Teachers Credit Card
UniBank Visa Credit Card
Woolworths Employees CU Low Rate Credit Card

Source: Canstar Credit Cards Star Ratings, April 2018.

How to compare low rate credit cards

When searching for a low rate credit card, there a few factors to keep in mind:

  • The purchase rate and revert rate (the rate your card reverts to after any introductory period) on the card
  • The fees, such as annual fees, late payment fees, balance transfer fees etc
  • The perks and bonuses, if any, the card has
  • The promotional interest rate, and how long it lasts for
  • The number of interest-free days – our database shows the maximum for credit cards is currently 62.

To compare these and more when choosing a new credit card, use Canstar’s comparison tables:

Compare Credit Cards with Canstar

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