The Australian Credit Card Landscape Right Now
Australian cards fall into three broad camps. Big-bank Visa and Mastercard products earn either airline points or flexible bank points, American Express cards usually earn faster and bundle premium travel perks, and specialist "no FX fee" cards strip away the costs of overseas and online spending.
The golden rule that still holds: value comes from perks and points, not from carrying a balance. Purchase interest on rewards cards typically sits around 20 to 24 percent per annum, so the game is to pay the statement in full each month and harvest the benefits. If you carry debt, the rewards evaporate fast.
Three common scenarios we hear about from Australian cardholders:
- The overseas traveller who gets stung by a 3 percent international transaction fee on every purchase abroad.
- The points chaser who picks a card with a big sign-up bonus but never uses the travel credits or lounge passes bundled in.
- The balance carrier who treats a rewards card like an interest-free loan and ends up paying far more in interest than any points are worth.
The MoneySmart comparison tool is a solid starting point for checking interest-free days and how they actually work, because the way those days are calculated varies from one bank to the next.
What the Main Card Types Actually Deliver
Rewards and Frequent Flyer Cards
If your goal is Qantas Points, the NAB Qantas Rewards Premium Card has been one of the more talked-about offers, with up to 100,000 bonus points and $150 cashback for eligible new customers who meet the spend criteria, against a $295 annual fee. The Qantas American Express Ultimate earns up to 2.25 Qantas Points per dollar on Qantas spend and 1.25 points on everyday spend, plus a $450 Qantas Travel Credit that offsets a large chunk of the fee. For flexible points, the American Express Explorer earns 2 Membership Rewards points per dollar and includes a $400 annual Travel Credit against its $395 fee.
For Velocity points, the Virgin Money Velocity High Flyer stands out with two Virgin Australia lounge passes a year, a $129 Virgin voucher and up to 1 Velocity Point per dollar, all for a $329 annual fee.
Low Rate and No Frills Cards
Not everyone wants rewards. The ANZ First card runs a $30 annual fee with a 20.99 percent purchase rate, and ANZ Low Rate drops the purchase rate to 13.74 percent for a $58 annual fee. For families or small businesses that occasionally carry a balance, a low-rate card can save more in a year than any points program would return.
No Foreign Transaction Fee Cards
The CommBank Ultimate Awards card (with Qantas opt-in) charges no international transaction fees and waives its $35 monthly fee if you spend $4,000 per statement period, earning up to 1.2 Qantas Points per dollar up to $10,000 per statement. The NAB Rewards Signature also avoids international transaction fees on a bank-issued card, with a $35 monthly fee and a 20.99 percent purchase rate. The Latitude 28° Global Platinum Mastercard has long been the pick for frequent international travellers who want straightforward pricing without points complexity.
A Side-By-Side Snapshot
| Card | Best For | Annual Fee | Purchase Rate | Key Perks | Watch Out For |
|---|
| NAB Qantas Rewards Premium | Qantas point chasing | $295 | Standard rewards range | 100k bonus points offer, $150 cashback | Spend criteria and 12-month hold required |
| Qantas American Express Ultimate | Qantas points + premium perks | Around $450 | Rewards range | 2.25 pts/$1 on Qantas, travel credit | High fee if credits go unused |
| American Express Explorer | Flexible Membership Rewards | $395 | Rewards range | 2 MR pts/$1, $400 travel credit | AMEX acceptance gaps at some merchants |
| Virgin Money Velocity High Flyer | Velocity points and Virgin perks | $329 | Rewards range | Lounge passes, $129 Virgin voucher | Velocity points cap on some spend |
| ANZ Low Rate | Carrying a balance occasionally | $58 | 13.74% p.a. | Low ongoing interest | No rewards, fewer perks |
| CommBank Ultimate Awards | Overseas spend on a bank card | $35/month (waivable) | Rewards range | No FX fees, Qantas earn | Monthly fee unless spend threshold met |
| Latitude 28° Global Platinum | Frequent international travel | Modest | Competitive | No FX fees, simple structure | Fewer rewards features |
How to Pick a Card Like a Pro
Start by being honest about your spending pattern. If you pay the balance in full every month, chase rewards. If you regularly carry debt, ignore points entirely and take the lowest purchase rate you can find.
Step one: check your credit score before applying, because every application shows up on your file and multiple rejections hurt your rating. Step two: map out where you spend most of your money, whether that is groceries, flights, overseas retailers or fuel. Step three: add up the dollar value of the perks attached to each card, not the advertised headline, and ask whether you would actually use a lounge pass or a travel credit. A $450 travel credit means nothing if you never fly that airline.
One practical tip from the MoneySmart playbook: the interest-free period on purchases only applies if you pay the closing balance in full by the due date. Miss that and interest is backdated to the day of each purchase, which is how small balances become big ones.
Regional Resources and Local Considerations
Banks in New South Wales and Victoria tend to push premium rewards cards hardest, while credit unions in Queensland and Western Australia often offer low-rate alternatives with no annual fee for members. If you travel frequently between Australia and Asia, the no-FX-fee cards become much more valuable, since a typical 3 percent foreign transaction fee on a $2,000 trip adds up to a meaningful amount.
For balance transfer offers, most major banks run promotions from time to time with reduced rates for a set period, but read the fine print on the revert rate and the transfer fee, which is usually around 1 to 2 percent of the amount moved. A balance transfer only helps if you can clear the debt before the promotional period ends.
The Australian Securities and Investments Commission's MoneySmart website remains the most reliable free resource for comparing cards, and it lists current offers from licensed providers without pushing any particular product.
Action Steps
- Run the numbers: calculate your average monthly spend and decide whether points or a low rate will save you more.
- Check your credit file through one of the three main reporting bureaus before applying anywhere.
- Read the perks checklist: list which bundled insurances, travel credits or lounge passes you would genuinely use.
- Set up auto-pay for the full statement balance each month to protect your interest-free days.
- Review annually: the card that suited you last year may no longer be the best value, and banks regularly change fees and earn rates.
Choosing a credit card in Australia comes down to matching the product to your behaviour, not the other way around. Pay in full, use what you are actually offered, and revisit your choice at least once a year. The right card quietly pays for itself; the wrong one quietly charges you for the privilege.
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