Our Pick Of The Best Credit Cards For Australians In 2024

Forbes Advisor Australia compared 27 of the most popular credit cards from a variety of financial institutions to find the 10 best credit cards for Australians in 2024. Among those compared were low rate cards, interest free cards, balance transfer cards, rewards cards and more.

To allow for a fair comparison between each credit card choice, we analysed 17 different key criteria:

• A company assessment: to determine the range of cards the company provides to Australian consumers
• Annual fees: whether the fee is paid annually or on a monthly basis, how much it is, and any other considerations
• Additional annual cardholder fee: if there is a fee to be paid annually for any additional cardholders
• International transaction fees: whether the card can be used overseas and, if so, is there a percentage fee added to payments as a foreign transaction charge
• Other additional fees: this includes late payment fees, overdraft fees, missed payment fees and any others that are applicable
• Minimum credit limit: what the minimum credit limit is for each card, as the lower credit limit, the better for consumers’ credit ratings
• Maximum credit limit: the maximum credit limit of each card, as the higher limit equates to a higher risk of credit card debt
• Interest rate: what the monthly interest rate–also known as a purchase rate–is, and if it is significantly higher or lower than the average
• Interest-free period: is there an interest-free period and, if so, for how many days?
• Cash advances: whether cash advances are allowed with the specific credit card and, if so, what the interest rate on cash advances is
• Reward details: in-depth evaluation of the rewards offered on rewards cards, including limits, conditions or expiry dates;
• Insurance: if the card includes complimentary insurance, what kind of insurance it is and any conditions of accessing the insurance
  Cash-back offer: whether the card offers a cash-back offer, such as $400 cash-back if you spend $3,000 in the first 90 days of taking out the credit card;
• Additional bonus features: any other perks and benefits that come with the card, from airport lounge access to discounts on events or subscription offers;
• Balance transfers: if balance transfers are offered, the conditions applicable to such, and what the balance transfer fee would be
• Card acceptance: where the credit card is accepted, and whether there are any places that restrict the use of the credit card
• Multiple card holders: if the card allows for multiple people to use it and if so, how many people and whether there is a charge

Forbes Advisor used these key criteria to compare each card, and then gave each card a star rating as well as considered who the card would be ‘best for’: that being the most suitable demographic to use the card. To this end, we tried to cover a range of credit card uses, from balance transfer cards and no-frills products to rewards and credit cards suited to corporate use.

Related: AMEX Velocity Escape Card Reviewed

About Star Rankings

You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.

A credit card is a card that allows you to make purchases by borrowing money from the financial institution that has provided you with said credit card. The money you borrow is your “credit”, which needs to be paid back within a certain period of time to avoid high interest rates and late fees.

For some, credit cards are worth the while due to the ability to purchase big ticket items and pay them off in increments, accrue points, and enjoy other perks. However, having a credit card also increases your risk of debt, so it is important you know what you are signing up for before you take out a credit card in your name.

As with home loan products, borrowers pay interest on their credit card purchases in return for borrowing money. The interest rate is, therefore, simply the amount of interest you pay on the purchases you make using your credit card, and can also often be referred to as the ‘purchase rate’.

When comparing credit cards, it’s important to consider the interest rate so you know how much money you may have to pay in addition to what your purchase. Ideally, it is best to have an interest rate that is lower than the average. As of 2023, according to data from the RBA, the current average interest rate on credit cards is an astonishing 19.94%.

While that is a high figure, it’s important to note that many credit cards offer significant interest-free periods after purchases—often around 55 days. This means that if you pay the total amount owing on your statement by your due date each month, you won’t be charged the interest rate on your purchases.

The trick, therefore, in making a credit card work in your favour is to pay the balance off in full each month and to never stray into interest-payment territory.

Related: CommBank Neo Credit Card Review

Not all credit cards have additional fees, but many do. Just like interest rates, it’s paramount that you understand the additional charges you may be subject to when using your credit card. Here are some of the most common types of credit card fees:

• Annual fee: Some credit card companies charge an annual fee to borrowers in exchange for having the credit card. This is usually paid when you first take out the card, and at the same point every year for as long as you keep the card open.
• Late payment fee: A fee charged to your account if you miss the due date for your monthly credit card repayment.
• Foreign transaction fee: The percentage you will be charged on any purchases made overseas, if your credit card is able to be used outside of Australia.
• Balance transfer fee: If your credit card offers balance transfers, you’ll typically incur a fee whenever you choose to transfer debt from one card to another.
• Cash advance fee: Like balance transfers, if your card allows for cash advances, you will be charged a fee for each cash advance transaction.
• Payment dishonour fee: A charge levied if you have direct debits set up to pay off your monthly credit card bill, and the debit does not go through.
• Additional cardholder charge: If you wish to have additional cardholders on your account, your financial institution may choose to charge you a fee for each new cardholder
• Card replacement fee: Some financial institutions may charge you a fee for needing to be sent an additional card as a replacement for a lost or damaged card.

Related: What Does APR mean on Loans and Credit Cards?

There are numerous different types of credit cards, varying in their interest rates, yearly fees, additional perks and more. One financial institution may offer the choice of all different types of credit cards, while others may only offer one kind.

Interest-Free Credit Cards

An interest-free credit card means exactly that: it offers you a 0% interest rate on your purchases, meaning you don’t have to pay any additional interest if you don’t pay your balance off in the specified time frame.

Balance Transfer Offers

Often, credit card lenders will give new holders an interest-free period as an introductory offer. However, in recent times, more financial institutions have started offering credit cards with a permanent 0% interest rate, choosing to charge their borrowers monthly fees instead.

Read More: Our Pick of the Best Balance Transfer Credit Cards

No Annual Fee Credit Card

Some credit card companies for certain products charge an annual fee in order to be a cardholder, usually in exchange for the extras they offer such as airport lounge passes or complimentary insurance.

Cards that don’t offer such perks may instead choose to not charge any annual fee, classifying them as a ‘no annual fee credit card’. Some cards may also offer this as an introductory offer, and give you one year free of the annual charge.

Reward Credit Cards

Reward credit cards are credit cards that offer exactly that: rewards. This usually comes in the method of points, which are earned on everyday purchases made on the card. These points can then be redeemed to pay off your monthly balance or purchase other items, such as products or flights.

Frequent Flyer Credit Cards

Frequent flyer credit cards are another type of reward card, however, these are specifically targeted towards frequent flyer programs and are in association with airlines such as Virgin Australia or Qantas.

Instead of earning generic points on a credit card, those with frequent flyer credit cards will earn frequent flyer points that can then be used to purchase flights, book holidays, and upgrade your travel.

You can read more in our guide to the best frequent flyer credit cards for Australians.

The decision to take out a credit card is a personal one. Some people like to have a credit card for emergencies, and others find they are more than capable at keeping up with their monthly repayments even if they use their credit card frequently.

For those with a rewards or frequent flyer credit card, the benefits of upgrading to business class flights for free, or using points to pay off your monthly balance, may be too good to ignore.

Regardless of why you choose to take out a credit card, whether it is “worth it” comes down to your individual circumstances. If you can’t pay off your credit card, you’ll be hit with interest rate charges, potential additional fees, and you could run the risk of going into credit card debt.

Whatever you decide, it is critical to fully understand the terms and conditions of a credit card agreement before applying. Though we always recommend paying off your balance in full each month, it’s particularly important with rewards credit cards as interest rates are generally higher. Any interest charges on a balance will quickly wipe out the value of any rewards earned.

Data research by Mia Dunn