Compare the Best Credit Cards in Australia

• How it works: Low rate credit cards are designed to be a relatively cheap credit card option based on the interest rate. They are usually fairly basic in terms of the features, perks and rewards on offer.
• Purpose: Often used by people who will occasionally have an outstanding balance that interest is charged on. Offers payment flexibility while keeping costs lower than some other credit cards.
• Interest rates: 7.49% - 13.99% p.a.
• What's good: Access credit at a relatively low rate (rates may even be lower than a personal loan in certain situations.)
• What to watch for: Cards where the low interest rate is based on a special introductory offer that will revert to a higher rate later on.

• How it works: Interest-free credit cards charge no interest, but usually come with a monthly fee for using the card instead. Some standard credit cards offer a 0% introductory rate for a limited period.
• Purpose: These are basic cards designed for light usage, as the credit limit is generally capped at $1,000 - $3,000. They may be handy as an emergency/backup source of funds. If you don't use the card, it likely won't cost you anything.
• Interest rates: 0% either ongoing or for an introductory period.
• What's good: No interest and low credit limits mean there is a cap on the cost and how much debt you can build up.
• What to watch for: Monthly fees can be relatively expensive. If you actually use the card, it may not be any cheaper than a standard credit card. These cards also typically do not offer rewards.

• How it works: A type of no-frills credit card with no annual fee. It can help keep costs as low as possible, particularly for people who only use their card for emergencies, and/or repay their balance in full each month. Note, credit cards with no annual fee won’t necessarily have a low interest rate.
• Purpose: An option for people who rarely use their credit card and don’t want the kinds of perks that come with more expensive cards.
• Interest rates: 8.99% - 23.99% p.a.
• What's good: Depending on how you use it, the card might cost you absolutely nothing, ever.
• What to watch for: No annual fee offers that are only for the first year, or conditional on you sending a minimum amount in a set period.

• How it works: Rewards credit cards are linked to a rewards program that allows you to earn points when you spend, and redeem those points for rewards like cashback, gift cards, hotel stays, and shopping across a wide range of products.
• Purpose: Rewards credit cards are all about earning points and getting access to more premium card features, like complimentary insurance.
• Interest rates: 12.49% - 23.99% p.a.
• What's good: Allows you to earn points for spending you would be doing anyway.
• What to watch for: Cards that lure you in with rewards sign-up offers and perks, but have very high fees, interest rates or restrictive caps on the number of points you can earn.

• How it works: Frequent flyer credit cards are rewards cards, tailored to customers who travel a lot. The rewards and benefits of the card are geared towards frequent travellers (e.g. points earning and redemption on flights and accommodation, airport lounge access, travel vouchers and travel insurance).
• Purpose: Earn and redeem points and other perks on travel related spending.
• Interest rates: 12.49% - 23.99% p.a.
• What's good: More targeted and valuable rewards for the right cardholder.
• What to watch for: Cards that offer very niche travel perks that are only worthwhile if you fly often and spend a decent amount of time overseas.

• How it works: Balance transfer credit cards allow you to transfer the balance of an existing credit card, and pay 0% interest on that balance for a period of time. Balance transfers can be available with low rate or reward cards.
• Purpose: Consolidated credit card debt and pay it off during the limited-time 0% interest period.
• Interest rates: 0% during the balance transfer period but reverting to higher rates from 8.99% - 23.99% p.a.
• What's good: The 0% interest periods available can be quite generous – up to 24 months, depending on the card.
• What to watch for: Balance transfer fees that sometimes apply, either as a flat fee or a percentage of the balance being transferred.

• How it works: Premium credit cards generally have the highest annual fees, credit limits and offer the most rewards. Gold, platinum, and black credit cards are all premium versions of standard credit cards, and often require the cardholder to spend a certain amount of money to access benefits.
• Purpose: Designed to maximise rewards and perks for high income, high spenders.
• Interest rates: 19.99% - 23.99% p.a.
• What's good: High-end perks, some of which may be exclusive to cardholders.
• What to watch for: The temptation to spend more than you can afford in an effort to chase premium card rewards.

Student credit cards

Student credit cards are targeted specifically towards students who have little to no credit history. These are usually a fairly basic credit card, with low costs and few significant perks.

Travel credit cards

A travel credit card allows you to earn frequent flyer points that can be used towards flights, accommodation, and other travel perks.

Cashback credit cards

Cashback credit cards reward a percentage of your spending as credit. Alternatively, you can get your cash back in other forms such as gift cards.

Business credit cards

Business credit cards are designed to offer a line of credit for business customers. All of the perks of personal credit cards also apply to business cards such as rewards schemes, interest-free days, and balance transfers. Corporate credit cards are designed for larger businesses.

Charge cards

Charge cards are very similar to credit cards, but there is no set credit limit and the cardholder must pay off the full balance each month. There are no interest charges on charge cards.

Store credit cards

Store credit cards are offered by specific retailers to earn points as part of their rewards program. A purchase rate will still apply to your transactions and there may be interest-free days available.

Most lenders require you to have good credit before they issue you a credit card. You can request a copy of your credit history from any of the main credit agencies in Australia before applying for a card.

It is generally more difficult to be approved for a credit card if you have a bad credit score. That said, a bad credit score does not automatically disqualify you from getting a credit card. It will come down to your individual circumstances and the lender.

But you should think carefully about whether it will be suitable for you if you have bad credit. It may be worth spending some time improving your credit score before applying.

Remember, having a credit card application declined could damage your credit score further.

You can still get a credit card with no credit, provided you have a stable source of income and are in a good overall financial position. You may only be able to get approval based on a low credit limit if you have a limited credit history.

Cards that have a low credit limit are easier to get approved for than those that have high limits. Standard credit cards that don’t have a lot of extras or additional fees may also be easier to get approved for than gold, platinum, or black credit cards.

In most cases, the card’s annual fee is the main cost of your credit card. But the cost of a credit card will depend on the type of card you apply for, and how you use it. You can often reduce the cost of your credit card by qualifying for interest-free days, and always repaying your balance in full each statement period.

If you let interest build up, credit cards can be very expensive.

The credit limit you can get largely depends on your income, assets, and credit score. A high income, valuable assets, and a clean credit report all increase the amount of credit you can access.

You can increase the credit limit on your credit card by calling your card issuer. The amount that you can increase your credit card limit to will be determined by the issuer and will often be subject to a credit check before additional funds will be made available.

Approval of an initial credit card application can be very quick – within minutes if you apply online. However, it’s common to be asked to provide documents, like payslips and bank statements, in order for your application to be assessed in full.

Overall, a lot of people can get approved with a day or two and have their credit card ready to use within 1-2 weeks.

If you have applied for a credit card and wish to cancel your application, you will need to call the card issuer and ask them to process your request. If you were issued with an application number or reference when submitting your application, you can provide this to help speed up the process.

You can save on interest and fees by consolidating debt from multiple cards into one. This is called a balance transfer. You may find balance transfer cards with a 0% interest introductory offer to help you repay your debt without accruing further interest.

You can avoid paying interest on your credit card by repaying the full amount at the end of your statement period. You can also consider changing to a low-interest or interest-free credit card if you will carry the balance over from month to month.

Another option is a charge card which works similarly to a credit card but with no interest applying. However, you need to clear the balance in full each month. Only American Express offers charge cards to consumers in Australia.

The number of credit cards you can have is determined by the card issuer(s). There is no hard limit, and many people use multiple cards with different rewards structures to take advantage of various promotions.

Each application will be assessed separately by the lender, based on your ability to repay the balance comfortably.

Be aware, however, that multiple cards with a high combined credit limit can negatively impact your credit score.

Additional credit cards are offered to people who are approved for a card and want to pass on a secondary card to a spouse or other family member.

The person who uses the card must be over 18 years of age. You remain responsible for paying the balance, interest, and fees on the supplementary credit card.

You can usually activate a credit card through the provider’s mobile app or online banking. Once the card is activated, it’s ready to use and add to your device’s mobile wallet for mobile payments.

You can cancel your credit card by calling your card issuer. A representative will inform you of the next steps and how you can pay off your remaining balance if necessary.

It’s recommended to dispose of old credit cards to prevent anyone from accessing your financial information. To properly dispose of your card, you will need to cut it up with scissors and disable the card’s chip.