Top Credit Cards in Australia

Looking for a credit card? Need help figuring out what factors you should be aware of? Check out our guide to top credit cards in Australia. Find the credit card that suits your needs!

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A few decades ago getting a credit card was a simple process. All you needed was a good credit rating and a reliable financial institute offering the product. However over the years there has been immense competition, not only between the credit card companies like Visa or MasterCard but also amongst the banks issuing these cards.

Then the technology advanced at a rapid pace during the last couple of decades. This tech revolution paved the way for more dynamic products, resulting in cards that addressed different market niches.

With all the different features now being offered by credit card companies, it has become absolutely important to know what to look for when getting a card issued. Here’s a list of key features to look for when you are getting your credit card.

Credit limit

It is your credit card’s maximum borrowing limit. Based on your income and credit history, the bank will assess this.

Interest-free days

The majority of credit cards provide interest-free periods of 44 or 55 days. The interest-free period begins on the first day of your statement period and ends when your payment is due at the conclusion of that period. Interest-free days are normally only available if your total debt has been paid in full.

Balance transfers

You can transfer an old credit card debt to a new credit card with a low or no interest introductory rate. This will allow you to pay off your debt over time while paying a low or no interest rate on the remaining sum. A higher rate of interest will apply if you still owe money from the balance transfer at the conclusion of the introductory period.

Cash advances

Cash advance transactions include using your credit card to withdraw money from an ATM, make casino purchases, acquire foreign currency, or pay bills. Additional fees and interest rates may apply, and interest-free periods are not available. Rewards programs

When you pay by card, a rewards credit card allows you to earn points. Frequent flyer miles, gift cards, and cashback are just some of the options for rewards.

Contactless and mobile payments

For purchases under $100, you may just touch to pay with your credit card without entering a PIN. You may make contactless purchases by linking your card to any mobile wallet, such as Apple Pay, Google Pay, or Samsung Pay.

Insurance covers

Many credit cards include insurance as a perk. This might include everything from purchase protection insurance to extended warranty coverage to international or interstate medical travel insurance and transportation accident coverage.

Extra features

Some credit cards include benefits such as access to airport lounges, concierge services, invites to special events, discounts at linked businesses, and more.

How do credit cards work?

Now that you know what features are offered by different credit cards, let’s have a look at how the system works.

A credit card is a type of unsecured revolving credit line. The term “unsecured” refers to a loan with no security, such as a car or a house. In contrast to a personal loan, which you use and pay off over a set term, “revolving credit” means you can use the card on an ongoing basis.

Your card will be invoiced on a monthly basis for the amount you have spent. The entire amount you owe for that billing cycle is reflected on your monthly statements. You have the option of paying off the full balance or only a portion of it, with a minimum payment of roughly 2-3% of the total amount owed.

The credit limit on our credit card is the maximum amount you may spend. The credit card company assigns this to you depending on your capacity to pay back the debt.

Unless your expenditure is eligible for an interest-free period or you have a no interest monthly fee card, you will be charged interest when you pay with a credit card.

Interest on credit cards is usually computed as a monthly average of the account’s daily outstanding balance. This implies that making more than one monthly instalment might save you money on interest rates.

If interest is charged, the rate may vary based on the transaction. For example, the interest rate on purchases normally runs from 8.99% to 21.99% per year, but the interest rate on cash advances is typically between 18.99 percent and 21.99 percent per year.

How do I get a credit card?

Applying for a credit card is straightforward after you’ve selected the one you want. If you have all of the necessary information, you can usually complete an online secure application form in 10-20 minutes. This normally contains basic personal information, your living status, work, and other financial information, such as if you have any savings or other assets, what loans or credit cards you have, and an estimate of your monthly costs.

Make sure you’re eligible to apply before getting started. The eligibility criteria differ for every card, but we’ve included some of the more common ones below:

Eligibility criteria

  • Australian residency status. You must be an Australian citizen or permanent resident. When temporary residents like students satisfy the visa criteria, several financial institutions will grant them credit cards.
  • Income. Some credit cards require a minimum annual income of $15,000 or $60,000. Some cards require you to be employed, while others state that you must have a consistent income. There are some cards that don’t specify an income criteria, but you’ll still need enough money to pay back the debt.
  • Age. To apply for any credit card in Australia, you must be over the age of 18.
  • Credit history. Most credit cards will accept your application if you have a decent or exceptional credit history. However, you won’t be able to receive a credit card if you have defaults, late payments, bankruptcy, or other unfavourable entries on your credit report. You will not be penalised if you have no credit history, but you may only be eligible for a modest credit limit until you get some.

These prerequisites may be seen on the card review or information pages, as well as when you select to apply before beginning the application process. You can begin the application once you’ve verified that you’re eligible.

How quickly will I receive my credit card?

The amount of time it takes to apply for and receive a new credit card is determined by a variety of factors, but most banks and issuers give recommendations so you know what to anticipate. We’ve put up a table to show you how long various credit card companies in Australia typically take.

Provider Duration of Application Waiting period
American Express 10 minutes 5-10 business days
ANZ 5 Minutes Within 5 Business Days
Bank Australia 10-15 Minutes 7-10 Business days
Bank of Melbourne 10 - 20 minutes 5-7 business days
Bank of Queensland 20 minutes 7-10 business days
Bankwest 15 minutes Within 10 business days

As previously stated, advances in technology have allowed credit card companies to provide a wide range of products. These solutions meet the needs of all types of clients.

In Australia, there are various different types of credit cards available; the most common ones are given here.

  • Low rate cards
  • No or low annual fee cards
  • No interest flat fee credit cards
  • Rewards cards
  • Frequent flyer cards
  • Premium cards
  • Balance transfer cards
  • Student credit cards

Then there’s the issue of deciding whether to use Mastercard or Visa as a payment platform. The payment network with which your bank is linked determines your lender’s card alternatives, which might include:

  • Mastercard
  • Visa
  • American Express
  • Diners Club

Top 5 Credit Card Providers in Australia

Australia is a mature market for credit cards. Hence the customers ranging from beginners to heavy users have an option available that best fulfils their requirements. Here are some of the best credit card providers that are popular these days.

1. Kogan Money Black Card

The Kogan Money Black Card is a major contender if you enjoy being rewarded for your shopping sprees while also avoiding costs. There is no annual charge on this rewards credit card, and points do not have a limit or expiration date. As a result, it’s an excellent choice for point collectors who are waiting for the appropriate time to cash in their chips.

If you want to avoid paying high interest rates when paying off credit card debt, the Kogan Money Black Card offers a 0% balance transfer rate for the first 12 months.

Purchase rate: 20.99% p.a. Cash advance rate: 21.74% p.a. Interest-free period: upto 55 days Annual fee: None Balance transfer rate: 0% p.a. for 12 months Best for: Shopping, Rewards and Balance Transfer Overall rating: 3.5

2. Citi Premier Qantas Card

It comes with an 80,000 bonus point incentive as well as 0% APR for 6 months on purchases and debt transfers, making it ideal for frequent flyers. To qualify for the bonus points, you must spend $4,000 on qualifying purchases within 90 days after applying. This card rewards online purchases with 1 Qantas point for every $1 spent.

The annual fee is reduced to $175 if you spend $48,000 in the preceding year; otherwise, it rises to $350, making it a high-tier premier credit card worth considering. The cost is justified by the hotel discounts and cash back offers provided by Luxury Escapes. The Citi Premier Qantas Card comes with a long list of benefits.

Purchase rate: 0% p.a. for 6 months, 21.49% p.a. Cash advance rate: 22.24% p.a. Interest-free period: upto 55 days Annual fee: $175 first year, $350 thereafter Balance transfer rate: 0% p.a. for 6 months Best for: Travel, Hotel, Online Shopping Overall rating: 5

3. HSBC Platinum Credit Card

The HSBC Platinum Credit Card might be a terrific discovery for new cardholders wishing to pay off current credit card debt, since it offers 0% p.a. on transfers of balance for an amazing 36 months with no balance transfer charge. Aside from a slew of platinum perks and the chance to earn points, the card also comes with a waived annual fee for the first year, making it a fairly good value.

Purchase rate: 19.99% p.a. Cash advance rate: 21.99% p.a. Interest-free period: upto 55 days Annual fee: $29 first year, $129 thereafter Balance transfer rate: 0% p.a. for 36 months Best for: Travel, Rewards & Perks Overall rating: 7

4. Coles Low Rate Mastercard

Coles Credit Cards may be more tempting to you than their jingles. The Coles Low Rate Mastercard, as the name implies, is the grocery giant’s low-interest credit card, allowing consumers to save money on interest while still collecting points and receiving a few advantages.

This card may give the advantages and incentives you require if you are a frequent Coles shopper.

Purchase rate: 12.99% p.a. Cash advance rate: 19.99% p.a. Interest-free period: upto 55 days Annual fee: $58 Balance transfer rate: 0% p.a. for 36 months Best for: Balance Transfer and Shopping Overall rating: 2

5. St.George Vertigo Card

Saving money, unfortunately, is not glamorous. When it comes to credit cards, it’s generally the attractive characteristics and outstanding rewards programmes that capture the attention and get prospective cardholders to get on board. However, this isn’t to suggest that saving money isn’t tempting. The St.George Vertigo Credit Card may be right for you if you don’t care about major rewards and features but do care about saving money.

This card foregoes glitz for something much more valuable, its capacity to save you money. It offers 0% p.a. for 32 months on balance transfers with no additional charges and no card charges for the starting 2 years.

Purchase rate: 13.99% p.a. Cash advance rate: 21.49% p.a. Interest-free period: upto 55 days Annual fee: None in first year, $55 thereafter Balance transfer rate: 0% p.a. for 32 months Best for: Shopping, Rewards and Balance Transfer Overall rating: 3

Best Credit Card for Miles

If you meet certain criteria, the ANZ Frequent Flyer Black credit card will reward you with 130,000 Qantas Frequent Flyer Points and $255 in cashback. Apply for a new credit card and spend $3,000 on qualifying items within the first three months of receiving approval.

You’ll earn 1 Qantas Point for every $1 spent on qualifying purchases up to $7,500 every statement period, then 0.5 Qantas points after that, plus a bonus point when you purchase certain Qantas items and services.

This card also comes with first-class perks such as two Qantas Lounge invitations per year, International and Domestic Travel Insurance, Purchase Protection Insurance, Exclusives by ANZ access to invite-only events, and a 24/7 personal concierge service. Because this is a premium card, the yearly cost is somewhat higher at $425 p.a.

Best Credit Card for Rewards

If you apply for the Citi Rewards Credit Card before June 29, 2022, you’ll get 60,000 extra Velocity Points and a $0 annual fee for the beginning 1st year. You’ll continue to earn points through the Citi Rewards Program while taking advantage of the card’s many benefits.

If you spend $3,000 on eligible purchases within 90 days of receiving your card, you can earn 60,000 additional Velocity Points.

The offer of an annual fee for the first year, you’ll save $149 by paying no yearly fee. This may be a terrific discovery on a rewards card like this, as it allows you to get more value out of your benefits in the first year while also allowing you to ‘test drive’ the card’s features at a lesser fee.

Balance transfers are also offered at 0% APR for 15 months with no balance transfer charge with the Citi Rewards Card. This allows you to transfer up to 80% of your authorised credit limit, giving you more flexibility with credit card spending and interest. Keep in mind that until the amount transfer is fully off, there are no interest-free days on purchases.

Best Credit Card, Rate-wise

With one of the longest balance transfer offers presently available, the Coles Low Rate Mastercard is ideal for consumers looking to save money on interest payments.

If you apply by June 30, 2022, you’ll enjoy 0% interest for 36 months and no balance transfer charge. While there is an annual charge, it is not as high as some other cards with long balance transfer deals.

In addition to the points earned when scanning your Flybuys membership barcode, this card gets 1 Flybuys point for every $2 spent at Coles Supermarkets. This distinguishes it from other low-rate cards that don’t normally earn points – albeit you’d have to purchase at Coles on a frequent basis to take advantage of the card’s earn rate. However, keep in mind that while you have a balance transfer, any additional purchases will incur interest right away.

Summary - What to Look for in a Credit Card

With so many choices, it has become difficult to pick the right credit card. So here’s our expert advice.

  • Consider your spending habits
  • How you will pay it off
  • Setting a credit limit
  • Find out about card types and their benefits
  • Compare rates and fees charged by different cards

Conclusion

Whether you are getting your first credit card or want to acquire one in a different locale, it will most likely require a bit of homework. Regardless of your awareness levels it is best to first assess your requirements, spending habits and payment options.

Based on this essential information, choose a card type that best meets the criteria. Once you’ve decided on the type of card, pick a provider that offers best deals in terms of features, benefits and charges.

All this may sound overwhelming. However the time spent will help you save money and get the best deal to satisfy your needs. There are a number of websites that provide comparisons and reviews. All banks and financial institutes provide comprehensive information on their product offerings. Do visit them to find your best match.