The lowest rate credit cards in Australia are designed for people who sometimes carry a balance on their cards and want to keep their interest payments manageable. People who are new to using credit, students or beneficiaries might find these credit cards cheaper than high rate credit cards. Low-rate credit cards are often very simple cards with few frills, fees and perks. Low rate credit vs balance transfer credit card Having a slightly lower interest rate can make a big difference to the overall amount of repayments that you have to pay. Ignoring fees and other factors, if you have a balance of $3,000 on your card and you pay it off over nine months with a 20 per cent p.a. interest rate, you’ll pay around $240 in interest. If your card had an annual interest rate of 12 per cent, however, you’d only pay around $144 in interest on the same balance and with the same repayment schedule. This is a saving of almost $100. Calculate your own savings with the Credit Card Repayment Calculator at InfoChoice. How are credit card interest rates calculated? A frequently asked question about credit cards is – how is interest calculated? Your interest rate displayed as “p.a.” (which stands for “per annum”) but this is calculated daily and charged monthly. So, for each day that you don’t make a payment, after the interest-free period has ended, the interest builds up. Read InfoChoice’s Guide to Low-rate credit cards. As with all financial products, you should compare what’s on offer before selecting your best option. Once you’ve made your choice, click through to the lender’s site and start the application The best low rate credit cards in February on InfoChoice The best low rate credit cards have low purchase rate, low fees and low costs overall. Some of the lowest rate credit cards in Australia also have points offers featuring QFF and VFF points. The Bankwest Breeze MasterCard credit card has a zero per cent p.a. rate for 26-months on balance transfers with a one off 2% BT fee. The Bankwest Breeze MasterCard charges a discounted annual fee of $39 in the first year, reverting to $79 later, with a low interest rate on purchases of 12.99% pa (after up to 55 days interest-free). See Bankwest Breeze Mastercard credit card interest rates and fees information at InfoChoice. Find Bankwest credit card interest rates and fees information at InfoChoice. Compare Bankwest credit card rates other low-rate credit cards at InfoChoice. It’s not strictly a low-rate credit card but Virgin Money’s Velocity Flyer Visa credit card has a 0% pa purchase interest rate for 14 months. The annual fee is $64 in first year, reverting to $129. The Virgin Velocity Flyer Visa credit card is promoting a $129 Virgin Australia Gift Voucher giveaway. Cardholders get the voucher each year. The Virgin Velocity Flyer Visa comes with up to 55-days interest-free, then a purchase interest rate of 20.74 per cent pa. See Virgin Velocity Flyer Visa credit card interest rates and fees information at InfoChoice. Find Virgin Money credit card interest rates and fees information at InfoChoice. Compare Virgin credit card rates other low-rate credit cards at InfoChoice. The Coles Low Rate Mastercard has an interest rate of 12.99 per cent p.a. and an annual fee of $58, as well as 55 days interest–free on new purchases. It also has a Flybuys reward scheme which earns you 0.5 points per dollar spent in Coles stores. See Coles Low Rate Mastercard credit card rates and fees information at InfoChoice. See Coles credit card interest rates and fees information at InfoChoice. Compare Coles credit card rates other low-rate credit cards at InfoChoice. There may be other credit cards in Australia charging lower interest rates on purchases or cash advances than these cards. There are many other banks and credit card issuers now promoting amazing credit card offers. Including these cards that offer airport lounge access or these top Qantas Frequent Flyer linked cards or these Virgin velocity linked cards. The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible. The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.