Free credit cards

Free credit cards offer a cost-effective way to manage finances and build credit without the added expense of an annual fee. With the potential for rewards and benefits, low interest rates and balance transfer options, a free credit card can be a valuable financial tool when used responsibly.

Yvonne Taylor avatar
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David Boyd avatar
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Updated 3 Jan 2025   |   Rates updated regularly

Comparing of 10 free credit cards

Bankwest Breeze Mastercard

Balance transfer

24 months at 0% p.a.

Purchase rate

12.99% p.a. ongoing

Interest-free days

55 days

Annual fee

$49.00 p.a. ongoing

Highlights

  • Enjoy 0% p.a. interest on balance transfers for 24 months, with a 3% balance transfer fee (then 12.99% p.a. thereafter).
  • Enjoy up to 55 interest-free days on purchases.
  • Exclusive offer for new customers for a limited time. Additional charges, as well as terms and conditions, apply.

Pros

  • 0% p.a. on balance transfers for 24 months.
  • Low ongoing purchase rate of 12.99% p.a.
  • Up to 55 interest-free days on purchases.

Cons

  • There are no rewards on this card.
  • There is a 3% BT fee.
Bankwest Breeze Platinum Mastercard

Balance transfer

24 months at 0% p.a.

Purchase rate

12.99% p.a. ongoing

Interest-free days

55 days

Annual fee

$59.00 p.a. ongoing

Highlights

  • Enjoy 0% p.a. interest on balance transfers for 24 months, with a 3% balance transfer fee (then 12.99% p.a. thereafter).
  • Benefit from up to 55 interest-free days.
  • Offer exclusively for new customers within a specified period. Additional charges, along with terms and conditions, apply.

Pros

  • 0% p.a. on balance transfers for 24 months.
  • No foreign transaction fees.
  • Plus, complimentary overseas travel insurance for you and your family.

Cons

  • There is no rewards program on this card.
  • There is a 3% BT fee.
St.George No Annual Fee Credit Card

Balance transfer

N/A

Purchase rate

20.74% p.a. ongoing

Interest-free days

55 days

Annual fee

$0.00 p.a. ongoing

Highlights

  • No annual fee requirement for the duration of card ownership.
  • Experience up to 55 days interest-free on purchases.
  • Benefit from a low minimum credit limit.

Pros

  • No annual fee for life.
  • Up to 55 days interest-free.
  • As low $500 credit limit.

Cons

  • No rewards program for this card.
  • Ongoing rates are not low.
NAB Low Rate Card (Cashback Offer)

Balance transfer

N/A

Purchase rate

13.49% p.a. ongoing

Interest-free days

55 days

Annual fee

$59.00 p.a. ongoing

Highlights

  • Receive $300 cashback when you spend $1,500 on purchases within 90 days from account opening.
  • With a low annual fee of $59, this card helps keep your costs manageable.
  • Apply online in minutes and get a response in 60 seconds.

Pros

  • Earn a $300 cashback when you meet the criteria
  • The card has a variable purchase rate of 13.49% p.a.
  • Add a cardholder at no extra cost.
  • The credit limit starts at $1,000, making it a good option for those seeking a manageable starting limit.
  • Unlock exclusive offers on shows, events, and movies with your Visa Credit Card.
  • Includes Fraud protection.
  • Compatible with Apple Pay, Google Pay, Fitbit Pay, Garmin Pay and Samsung Pay.

Cons

  • This card doesn’t have a rewards program, but it may suit those who prefer a straightforward, no-frills option.
  • There is no complimentary insurance, which is typical for a low-rate credit card, but it could still be a good option if you're looking for a low-cost choice.
NAB StraightUp Credit Card

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Highlights

  • Get the newest credit card from NAB - simple, cheap and most of all no interest charges!
  • No Use, No Pay. If you don't use your NAB StraightUp credit card during the whole statement period, the monthly fee will be reversed. No surprise charges!
  • Use your card to pay foreign currency and enjoy no foreign transaction fees!
  • Predictable fixed minimum payments based on your credit limit, giving you certainty of what to pay each month.

Pros

  • Charges a monthly fee based on your selected credit limit.
  • The monthly fee will be reversed if you do not have any outstanding balance or purchase.
  • No interest charges or other fees, including foreign currency fees and late payment fees.

Cons

  • No rewards program for this card.
  • No balance transfers or cash advances.
Heritage Gold Low Rate Credit Card

Balance transfer

12 months at 0% p.a.

Purchase rate

11.8% p.a. ongoing

Interest-free days

0 days

Annual fee

$0.00 p.a. ongoing

Highlights

  • $0 p.a. annual fee.
  • Save on low interest of 11.80% p.a. on purchases.
  • Cash advance rates are comparatively low at 11.80%, which is lower than the standard rate of many other cards.

Pros

  • No annual fee.
  • Low-interest rate.
  • 0% p.a. for 12 months on balance transfers with no balance transfer fee on amounts transferred (reverts to 11.80% p.a. thereafter).

Cons

  • No interest-free days.
  • Not entitled to participate in Heritage Rewards program.
MONEYME Freestyle Virtual Card

Balance transfer

N/A

Purchase rate

From 18.24% p.a. ongoing

Interest-free days

55 days

Annual fee

From $0.00 p.a. ongoing

Highlights

  • Use virtual card instantly once approved (typically within 60 mins)
  • Tap n Pay with up to 55 days interest free
  • Use credit to transfer money to anyone
  • Exclusive features
  • Thousands of 5-star customer reviews

Bank promo

  • Get MONEYME's lowest advertised rate EVER of 18.74% p.a.
  • Annual fee of $0 to $149 p.a. based on credit limit plus a monthly fee of $5 for balances over $20.

Pros

  • Available to use immediately after approval.
  • Money can be transferred to your bank account.
  • Get cashback at participating stores with Cashrewards.

Cons

  • The maximum credit limit is comparatively low.
  • Combination of annual and monthly fees can be quite expensive for the highest credit limit.
  • There is a 1.5% withdrawal fee.
ME Frank Credit Card

Balance transfer

N/A

Purchase rate

11.99% p.a. ongoing

Interest-free days

55 days

Annual fee

$0.00 p.a. ongoing

Highlights

  • Save with one of the lowest ongoing interest rates on purchases at 11.99% p.a.
  • Cash advances are also cheap, also at 11.99% p.a. with a $4 or 2% fee (whichever is greater).
  • The perfect annual fee: none.

Pros

  • 11.99% p.a. interest rate on purchases and cash advances.
  • No annual fee for life.
  • Get up to 55 days interest-free on purchases.
  • Low foreign transaction fee.
  • Easily lock the card from the app if lost.

Cons

  • You will not earn rewards points on this card.
  • No interest-free balance transfers.
  • No complimentary insurance coverage.
Great Southern Bank Low Rate Credit Card

Balance transfer

N/A

Purchase rate

11.99% p.a. ongoing

Interest-free days

55 days

Annual fee

$0.00 for 1st year

Highlights

  • Low purchase rate of 11.99% p.a.
  • First-year annual fee waiver. $49 p.a. thereafter.
  • Enjoy up to 9 additional cards for no extra cost.

Pros

  • Indulge convenience with contactless transactions: Apple Pay and Google Pay.
  • Save on interest with interest-free days up to 55 days on purchases.
  • Comes with fraud protection.

Cons

  • There is no rewards program on this card.
Coles No Annual Fee Mastercard

Apply by 30 September 2024

Coles No Annual Fee Mastercard

Balance transfer

N/A

Purchase rate

20.74% p.a. ongoing

Interest-free days

55 days

Annual fee

$0.00 p.a. ongoing

Highlights

  • Enjoy 10,000 Flybuys bonus points when you spend $3,000 on eligible purchases within 3 months from card approval.
  • No annual fee, guaranteed.
  • Earn 1 Flybuys point per $2 spent on qualifying purchases.

Pros

  • Earn 10,000 Flybuy points when you meet the criteria.
  • No annual fee ever.
  • Complimentary access to your 24/7 local concierge.

Cons

  • Transactions made in a foreign currency incur a fee.

Free credit cards are a popular option for managing finances and building credit. These cards typically do not charge an annual fee, making them a cost-effective choice for many consumers. However, it's important to understand the benefits and drawbacks of using a free credit card, as well as how to choose and use the card responsibly.

Types of free credit cards

There are several types of free credit cards with no annual fee available in Australia, including low rate credit cards, balance transfer credit cards, and rewards credit cards with no annual fee.

  • Low rate credit cards. generally have lower interest rates than traditional credit cards, making them a good choice for consumers who carry a balance.
  • Balance transfer credit cards. Transfer high-interest credit card balances to a card with a lower interest rate.
  • Rewards credit cards. These typically come with an annual fee, but limited versions have rewards without the annual fee to keep the account open.

Note that if you do not pay off the balance each month, you will be charged interest.

How to choose a free credit card

When choosing a free credit card, it's important to consider your spending habits and financial goals.

  • Compare ongoing interest rates, fees, and credit limits between different cards to find the option that suits best.
  • Look for additional benefits such as introductory rates, bonuses, rewards, and travel insurance.

Tips for using a free credit card responsibly

To use a free credit card responsibly, you should pay off your balance monthly to avoid interest charges. There are a handful of credit cards with no interest that operate like a credit card'ised version of buy now pay later, but generally a credit card charges interest if you don't pay it off. Therefore, it's important to keep track of your spending, stay within your budget, and make at least the minimum payment on time to avoid late fees.

Pros and cons

Pros

  • No annual fee. Save money and have access to credit for a rainy day.
  • Potential to earn rewards. Reduce the cost of your travel or other purchases.
  • Credit building opportunities. Improve your credit profile to qualify for loans or premium cards.

Cons

  • Credit limits may be lower. This can affect your credit utilisation ratio and credit score.
  • Less rewarding. Free credit cards may not offer as many benefits as credit cards that charge an annual fee.
  • Can lead to overspending if not used responsibly. Aim to avoid spending more than you can repay each month.

FAQs

What is a free credit card?

A free credit card is a type of credit card that does not charge an annual fee.

Can a credit card be free?

A credit card could be free if it has no annual fee and you do not carry a balance over.

Are there any drawbacks to using a free credit card?

While free credit cards can be a cost-effective option, you may be missing out on the higher benefits that come with more expensive cards. Additionally, some free credit cards may have a low credit limit which can be detrimental to your credit score if you have a high credit utilisation ratio.

Can a free credit card help me build my credit?

Using a credit card responsibly, such as making payments on time, keeping credit utilisation low and not maxing out the credit limit, can help you build your credit history and improve your credit score. Additionally, using a credit card responsibly can demonstrate to lenders that you can also handle other types of credit responsibly.

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