Australian credit cards carry some of the highest interest rates of any consumer finance product — often 19–22% p.a. on purchases. Understanding how credit card interest works and which cards offer the best rates can save you thousands.
Average and Best Credit Card Rates — April 2026
| Card Type | Purchase Rate | Annual Fee |
|---|---|---|
| Low rate cards (e.g. CBA Essentials) | 9.90% | $0–$30 |
| Balance transfer cards (0% intro) | 0% for 12–26 months | $0–$59 |
| Standard cards (e.g. Visa/MC) | 19.49%–20.99% | $0–$149 |
| Rewards/Platinum cards | 19.99%–22.49% | $99–$700+ |
How Credit Card Interest Is Calculated
Credit card interest compounds daily. If you carry a $5,000 balance at 20.99%, you pay approximately $104 in interest per month. Over 12 months of minimum payments, you’d pay over $1,200 in interest while barely reducing the principal.
Balance Transfer — How to Use It Correctly
Balance transfer cards offer 0% for a promotional period. The catch: if you don’t pay the full balance before the period ends, you’re hit with the revert rate (usually 20%+). Only do a balance transfer if you have a clear plan to repay the entire amount within the promotional period.
Calculate Debt Consolidation Savings
See how much you could save by consolidating credit card debt into a personal loan.
Disclaimer: General information only. Not financial advice. Always consult a licensed professional before making financial decisions.