Compare credit cards on what they cost you
To compare credit cards, start with how you'll use one. If you carry a balance, the interest rate matters most. If you pay in full every month, the annual fee and what you'd earn back matter most. If you're clearing a debt, the balance transfer terms decide it.
This guide explains each type of card, how interest and interest-free days really work, the fees, the rules on credit limits, and how cards affect your credit score. We list cards alphabetically from issuers' own published fees and rates, dated; we don't rank them, and there are no apply or affiliate links.
By Better Rate Mate Editorial Team · Last reviewed
21.24%
Average standard card rate, September 2026 (RBA)
$21.6 billion
Card debt accruing interest, August 2026 (RBA)
3 years
Your limit must be repayable within it (ASIC)
Low rate, rewards, balance transfer and no annual fee
How to find the best credit card for you
The best credit card for you is the one built for how you use a card, so there's no single winner. Pick the situation closest to yours, then judge cards on the numbers that matter for it.
Compare cards from issuers' own pages
Each of these guides has a table of cards taken from the issuers' own sites, checked on 10 October 2026and listed alphabetically, with a link to every issuer's page. They're not rankings: use the guide's criteria to judge the cards against how you'd use one.
Types of credit cards in Australia
Most Australian credit cards fall into a handful of types. They are built for different jobs, and a card that's good value for one job is poor value for another: a rewards card with a high rate is expensive if you carry a balance, and a low rate card's advantage is wasted if you always pay in full.
Moneysmart's advice is to decide how you'll use the card before you look at any: pay the full balance each month, carry a balance sometimes, or use rewards and travel benefits. The table below maps each type to that decision.
| Card type | How it works | Suits you if | Watch for |
|---|---|---|---|
| Low rate cards | A lower purchase rate, usually a low annual fee and few extras | You carry a balance some or most months | Introductory rates that rise; cash advance rate |
| No annual fee cards | Nothing to hold each year; fewer features | You pay in full, or rarely use a card | Monthly fees instead; higher rates than low rate cards |
| Rewards and cashback | Earns bank points or cash back on spending | You pay in full and spend enough to beat the fee | Caps, rewards fees, programs changing after October 2026 |
| Frequent flyer cards | Earns Qantas or Velocity points, directly or by conversion | You pay in full and redeem with that airline | Opt-in points fees, earn tiers and caps |
| Balance transfer credit cards | 0% or a low rate on moved debt for a set period | You can clear the debt before the offer ends | Transfer fee, revert rate, purchases on the card |
| Travel cards | No international transaction fee on overseas and overseas-processed purchases | You travel or shop on overseas websites | Annual fee, purchase rate and cash advance fees overseas |
| Premium (platinum, black) | Higher fees for extras such as lounge access, travel credits and complimentary insurance | You'd use the extras and pay in full | Insurance conditions and exclusions; fees that outweigh the perks |
How credit card interest actually works
Credit card interest is worked out from a daily rate (the annual rate divided by 365) on what you owe, and added to your account once each statement period. Five mechanics decide what you pay.
Interest-free days only apply if you pay in full
"Up to 55 days interest-free" is the maximum for a purchase made on the first day of a statement period. It only applies if you pay the full closing balance by the due date. Pay less and you usually lose the interest-free period: interest is charged on the unpaid balance, and new purchases attract interest from the day you make them until you clear the balance again.
Purchases and cash advances are charged differently
Purchases are charged at the purchase rate. Cash advances (ATM withdrawals, money transfers and transactions treated as cash) usually carry a higher cash advance rate, a fee, and no interest-free period at all: interest runs from the day of the transaction.
Balance transfers revert to a higher rate
A balance transfer charges 0% or a low rate for a set period, usually 6 to 24 months. Anything left then reverts to a higher rate, which ASIC found is in most cases the card's standard purchase rate. Our balance transfer guide andbalance transfer calculator show what that costs. If you're juggling several cards, read debt consolidation too.
Your payment clears the highest-rate debt first
Section 133BQ of the National Consumer Credit Protection Act requires a card issuer to apply your payment to the closing balance on your last statement, and within it to the part charged the highest interest rate first, then the next highest. Extra repayments therefore clear your most expensive debt, such as a cash advance, first. On a card with a 0% transfer, they clear higher-rate purchases before the transfer.
Interest can't be backdated
Since 1 January 2019 card issuers have been prohibited from charging interest retrospectively, for example on a balance that had an interest-free period (section 133BS). And an issuer can't charge an over-limit fee or a higher rate for going over your limit unless you've expressly agreed to it (section 133BI).
For worked examples, including what minimum repayments cost over time, readhow credit card interest works. Tocompare credit card interest rates against the RBA's averages, and what a balance costs at each, see our low rate cards guide.
Credit card fees
The annual fee is the fee everyone compares, but it's rarely the only one. Moneysmart lists annual or monthly fees, rewards program fees, late payment fees, cash advance fees, over-limit fees and overseas fees. Most can be avoided with how you use the card.
| Fee | When it applies | How to avoid it |
|---|---|---|
| Annual or monthly fee | Every year or month you hold the card | Choose a $0 card unless the features are worth more than the fee |
| Late payment fee | The minimum isn't paid by the due date | Automatic repayment of at least the minimum |
| Cash advance fee | ATM withdrawals and cash-like transactions, with interest from day one | Don't use a credit card for cash |
| Foreign transaction fee | Purchases in foreign currency or processed overseas | Use a card without these fees for travel and overseas sites |
| Balance transfer fee | A one-off percentage of the amount transferred | Include it in the cost of the transfer |
| Rewards or points fee | Some cards charge to join the rewards program or to earn airline points | Add it to the annual fee before comparing |
| Over-limit fee | Only if you have expressly consented to go over your limit | Don't opt in; you can withdraw consent at any time |
"No annual fee" doesn't always mean no fee: some cards charge monthly instead. Our guide tono annual fee credit cards explains what to check.
How to compare credit cards
A card's advertised headline (a low rate, a big bonus, a long interest-free period) tells you little on its own. Work through it in this order.
- 1Decide how you'll use itPaying in full every month, carrying a balance sometimes, or clearing an existing debt. Moneysmart starts here because it decides which numbers matter.
- 2Compare the numbers that matter for youCarrying a balance: the ongoing purchase rate. Paying in full: the annual fee against what you'd really earn. Clearing debt: the transfer fee, period and revert rate.
- 3Read the key facts sheetIssuers must give you one with the application. It sets out the rates, interest-free days, fees and how minimum repayments are calculated.
- 4Choose a limit you can affordThe lender must check you could repay the whole limit within three years. You don't have to take the full limit offered.
- 5Apply for one card, onceEach application stays on your credit report for five years, and several close together can harm your score.
If you pay in full, the question is whether the fee pays for itself. Moneysmart's worked example is a useful reality check: a rewards program costing $30 a year needed $5,700 of spending for a $25 gift card. Our rewards vs cashback guide andfrequent flyer card guide show the break-even sum. If you carry a balance, start withlow rate credit cards.
Credit limits: the rules that protect you
Your credit limit is the most you can owe on the card. Moneysmart puts it simply: it's based on your ability to pay it back within three years, and you don't have to accept the full amount offered. These rules sit behind it.
The three-year test
Since 1 January 2019 a lender can't give you a credit card, or a limit increase, with a limit you couldn't repay within three years. ASIC set that period in a legislative instrument.
Your limit counts against other loans
ASIC found lenders generally treat 3.8% (or more) of your card limit as a monthly commitment when assessing any new loan, even if you owe nothing. On a $10,000 limit that's $380 a month.
No unsolicited increase offers
Since 1 July 2018 lenders can't offer or invite you to apply for a higher limit unless you ask.
Reduce or cancel online
For cards opened after 1 January 2019, you have the right to reduce your limit or cancel, including online, and the issuer must not talk you out of it.
The practical point: a limit you don't use still reduces what you can borrow. If a home loan is coming up, reducing or closing spare cards first can help; ourhome loans guide covers how lenders assess you.
What credit limit can I get?
There's no set limit for a given salary. A lender works out whether you could repay the whole limit within three years from your income after your other debts and living costs, so the limit follows from the repayment you can manage. At the RBA's average standard rate of 21.24%, $300 a month clears a limit of about $7,937 in three years. Use the calculator to run your own figures, then ask for a limit you'd be comfortable repaying: you don't have to take the full amount offered.
Three-year test calculator
Lenders must check you could repay your whole limit within three years. Work out the sum both ways.
To clear $10,000 in 3 years
$378 a month
$300 a month clears a limit of about
$7,937
Equal monthly repayments over 36 months at the rate entered, with no new spending. A lender's own assessment also counts your income, other debts and living costs, so it may approve less. General information only.
Credit cards and your credit score
Every card you hold, and every card you apply for, shows up on your credit report. Under comprehensive credit reporting, the report lists each account you've held in the last two years with its limit, plus two years of repayment history, so paying on time now builds a positive record.
What hurts: missed payments (a payment not made within 14 days of the due date is recorded), defaults, which stay for five years, and credit enquiries, which also stay for five years. Several applications in a short time can harm your score, and that includes balance transfer cards and buy now pay later.
You can get your credit report free every three months from each credit reporting body; the OAIC lists Equifax and Experian. Our credit score guideexplains what's on a report and how long it stays, and ourbuy now pay later guidecompares BNPL with credit cards since it became regulated credit in June 2025.
What changed on 1 October 2026
Two RBA decisions announced on 31 March 2026 took effect on 1 October 2026. Card surcharges were removed for eftpos, Mastercard and Visa (and American Express, UnionPay and PayPal said they would drop them too). And the cap on interchange for consumer credit cards, the fee a shop's bank pays your bank on each purchase, fell from 0.8% to 0.3% of the transaction.
Interchange has helped fund card rewards, and the RBA said it doesn't think it should. Some issuers indicated they may change how they fund rewards; CommBank, for example, moved its Awards cards to CommBank Yello points from 1 October 2026. If you hold a rewards or frequent flyer card, check its current terms before deciding whether its fee is still worth paying.
| Measure | Figure | Period |
|---|---|---|
| Average standard credit card interest rate | 21.24% | September 2026 |
| Average low rate credit card interest rate | 13.49% | September 2026 |
| Total owed on credit and charge cards | $44.7 billion | August 2026 |
| Of which accruing interest | $21.6 billion | August 2026 |
| Owed on personal (not business) cards | $34.4 billion | August 2026 |
| Cap on consumer credit card interchange fees | 0.3% (was 0.8%) | From 1 October 2026 |
Credit card guides
How each type of card works, and the mechanics behind all of them.
Card types
- Frequent flyer cardsQantas and Velocity credit cards: earn rates, fees and caps compared
- Balance transfer cardsBalance transfer credit cards: 0% offers, fees and the traps to avoid
- Low rate cardsLow rate credit cards: issuers' rates and how to judge them
- No annual fee cardsNo annual fee credit cards: the $0 cards, and the fees that remain
- Rewards vs cashbackRewards credit cards vs cashback: are they still worth it after October 2026?
- Travel cardsTravel credit cards with no foreign or international transaction fees
A note on this guide
Our card tables list cards alphabetically from each issuer's own published fees and rates, with the date we checked each row and a link to the issuer's page. We don't rank cards or recommend an issuer, and there are no apply or affiliate links. Rates, fees and offers change often and we don't have a live product feed, so we re-check the tables monthly and remove any row older than 45 days. The tables cover the issuers we checked, not every card on the market.
Before you apply, read the card's key facts sheet and Target Market Determination. Where we cite a figure, it comes from a public source listed at the end of the page, with the date we checked it.
Credit card FAQs
What is the 2/3/4 rule for credit cards?
It's an unofficial US rule of thumb about how many new cards one American bank will approve in two, twelve and twenty-four months. It isn't a law and doesn't apply in Australia. Here, what limits new cards is responsible lending (the lender must check you could repay the limit within three years), your credit report (each application is an enquiry that stays for five years), and each issuer's own offer terms, which often exclude recent cardholders from sign-up bonuses.
Which credit card is the best in Australia?
There isn't one best card, because the right card depends on whether you pay in full, carry a balance or want to clear a debt. Decide that first, then compare the numbers that matter for that use. We list cards from issuers' own pages alphabetically and don't rank them.
What is the best site to compare credit cards?
Use more than one source. No comparison service lists every card, and many are paid by the issuers they list. Use comparison to build a shortlist, then check the issuer's key facts sheet and Target Market Determination before you apply.
Where do the card fees and rates on this site come from?
From each issuer's own product, fee or rates page, on the date shown in each table row (most recently 10 October 2026). We list cards alphabetically, remove any row we haven't re-checked within 45 days, and don't rank cards; there are no apply or affiliate links. Average rates come from the RBA.
Can I lower my credit card limit?
Yes. For cards opened after 1 January 2019 you have the right to reduce your limit or cancel the card, including online, and the issuer mustn't try to talk you out of it. A lower limit also counts for less when you apply for other loans.
Does comparing credit cards affect my credit score?
No. Comparing isn't an application and adds nothing to your credit report. Only a formal application to an issuer creates an enquiry.
What is the credit card limit for a $70,000 salary?
There's no set limit for a salary. The lender has to check you could repay the whole limit within three years, after your other debts and living costs. So start from what you could repay each month: at the RBA's average standard rate of 21.24%, $300 a month clears a limit of about $7,937 in three years. The three-year test calculator on this page works it out for your own figures.
Can I be charged a surcharge for paying by credit card?
From 1 October 2026 surcharging was removed for eftpos, Mastercard and Visa cards, and American Express, UnionPay and PayPal said they would remove surcharges from the same date.
Get a checklist for your next card
Tell us whether you pay in full, carry a balance or want to move a debt, and we'll email a summary of your answers and what to check in a card. It takes about two minutes and isn't a credit application, so it doesn't affect your credit score.
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