Credit Card Comparison

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.

• Use case: Consolidate 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.
• Pros: The 0% interest periods available can be quite generous – up to 24 months, depending on the card.
• Cons: Balance transfer fees sometimes apply, either as a flat fee or a percentage of the balance being transferred.

Frequent flyer credit cards are rewards cards tailored to customers who travel a lot. The rewards and benefits are geared towards frequent travellers (e.g. points earning and redemption on flights and accommodation, airport lounge access, travel vouchers, and travel insurance). Most commonly, these credit cards earn Qantas Points or Velocity Points.

• Use case: Earn and redeem points and other perks on travel-related spending.
• Interest rates: 12.49% - 23.99% p.a.
• Pros: More targeted and valuable rewards for the right cardholder.
• Cons: Cards that offer very niche travel perks that are only worthwhile if you fly often and spend a decent amount of time overseas.

Interest free credit cards charge no interest but usually have a monthly fee instead. Some standard credit cards offer a 0% introductory rate for a limited time.

• Use case: These are basic cards designed for light usage, with credit limits generally capped at $1,000 - $3,000. They may be useful as an emergency/backup source of funds. If unused, the card likely won't cost anything.
• Interest rates: 0% either ongoing or for an introductory period.
• Pros: No interest and low credit limits mean there is a cap on the cost and how much debt you can accumulate.
• Cons: Monthly fees can be relatively expensive. If used, the card may not be any cheaper than a standard credit card. These cards also typically don't offer rewards.

Low interest rate credit cards offer a relatively cheap credit card option based on the interest rate. They are generally basic in terms of features, perks, and rewards.

• Use case: Often used by people who occasionally carry a balance that incurs interest. Provides payment flexibility while keeping costs lower than some other credit cards.
• Interest rates: 7.49% - 13.99% p.a.
• Pros: Access credit at a relatively low rate (rates may be lower than a personal loan in certain situations).
• Cons: Cards where the low interest rate is based on a special introductory offer that will revert to a higher rate later on.

No-frills with a no annual fee credit card. It can help minimise costs, particularly for people who only use their card for emergencies and/or repay their balance in full each month. Note that cards with no annual fee won't necessarily have a low interest rate.

• Use case: An option for people who rarely use their credit card and don't want the perks that come with more expensive cards.
• Interest rates: 8.99% - 23.99% p.a.
• Pros: Depending on usage, the card might cost absolutely nothing, ever.
• Cons: No annual fee offers that are only for the first year or conditional on spending a minimum amount in a set period.

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.

• Use case: Designed to maximise rewards and perks for high-income, high spenders.
• Interest rates: 19.99% - 23.99% p.a.
• Pros: High-end perks, some of which may be exclusive to cardholders.
• Cons: The temptation to spend more than you can afford to chase premium card rewards.

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 some offer enticing sign-up bonus points.

• Use case: Rewards credit cards focus on earning points and accessing more premium card features, like complimentary insurance.
• Interest rates: 12.49% - 23.99% p.a.
• Pros: Allows you to earn points for spending you would be doing anyway.
• Cons: 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.

Business credit cards

Business credit cards offer a line of credit specifically for business customers. These cards come with many of the same perks as personal credit cards, such as rewards schemes, interest-free days, and balance transfers. Corporate credit cards are designed for larger businesses with more substantial credit requirements.

Cashback credit cards

Cashback credit cards reward a percentage of your spending as credit, effectively giving you money back on your purchases. Some cards may offer cashback in the form of gift cards or other rewards, providing flexibility in how you receive your rewards.

Charge cards

Charge cards are similar to credit cards but without a set credit limit. However, the cardholder must pay off the full balance each month, as there is no option to carry a balance forward. Charge cards do not incur interest charges, making them suitable for those who consistently pay their balance in full.

First timer credit cards

Credit cards for first timers have low rates and fees, which are well suited to first-time cardholders as they keep costs down. Due to low limits and minimum income requirements, users might find these easy approval credit cards more straightforward to apply for.

Pensioner credit cards

Pensioner credit cards are suitable for retirees and seniors that are easy to be eligible for. Although there are no specific pensioner credit cards in Australia, many cards suit pensioners, offering no or low fees and low interest rates.

Student credit cards

Student credit cards are designed specifically for students who have little to no credit history. These cards are typically basic, with low costs and few significant perks, making them an accessible option for students looking to establish their credit.

Store credit cards

Store credit cards are offered by specific retailers and allow customers to earn points as part of the store's rewards program. These cards are subject to a purchase rate on transactions, and some may offer interest-free days. Store credit cards are best suited for loyal customers who frequently shop at the associated retailer.

Travel credit cards

A travel credit card allows you to earn frequent flyer points on your purchases, which can be redeemed for flights, accommodation, and other travel-related perks. These cards are ideal for frequent travellers looking to maximise their rewards.