9 Different Types of Credit Cards in Australia: Explained

Choosing a credit card can feel overwhelming — Australia offers many card types, each designed for different spending habits, lifestyles, and financial goals. In this guide, we break down the 9 main types of credit cards in Australia, how they generally work, their pros and cons, and how to choose the right one for your situation.

You’ll also learn where Credit24 may fit as an alternative when you’re comparing options and want a clear repayment structure rather than revolving credit.

What are the different types of credit cards?

The term types of credit cards refers to categories based on features, benefits, fees, and intended use. Some cards can overlap categories (for example, a rewards card may also be a frequent flyer card).

Understanding the differences can help you:

• compare fees and features more confidently
• choose benefits you’re more likely to use
• reduce the chance of paying for features you don’t need
• pick a product that aligns with your financial habits and budget

1. Low rate credit cards

Low-rate credit cards focus on providing a lower ongoing interest rate (compared with many other credit card products). They’re often considered by people who sometimes carry a balance.

Typical features:

• Interest rates may be lower than many standard cards (rates vary by provider)
• Minimal extras — often “no-frills”
• Often have moderate or low annual fees
• No or very limited rewards programs

Best for:
People who don’t always pay off the card in full.

Why choose one:
A lower interest rate may reduce interest costs if you carry a balance, but the overall cost will still depend on your repayment pattern and fees.

Internal link:
Learn more about how interest is commonly charged:
How does credit card interest work: https://www.credit24.com.au/blog/how-does-credit-card-interest-work

2. No and low annual fee credit cards

These cards are designed for affordability and simplicity.

Types include:

• No annual fee (ongoing)
• First-year annual fee waived
• Low annual fee cards

These cards may have higher interest rates or fewer features to offset the low fees.

Best for:
Light to moderate spenders who don’t want to pay ongoing fees for benefits they won’t use.

Note:
Promotional “first-year free” offers may revert to standard fees in year two, so it can help to check the ongoing costs before applying.

3. Rewards credit cards

Rewards cards allow you to earn points (or cashback) for eligible spending.

Examples of reward types:

• Points-based programs
• Cashback
• Retail points (e.g., gift cards, store vouchers)

Typical earning ranges (varies by provider and product):

• Standard cards: may offer around 0.5–1 point per $1 spent
• Premium cards: may offer higher earn rates

Rewards cards often come with:

• Higher interest rates
• Higher annual fees

Best for:
People who typically pay off their balance in full each month, because interest charges and fees can reduce the value of rewards.

Internal link:
How to choose a credit card: https://www.credit24.com.au/blog/how-to-choose-a-credit-card

4. Frequent flyer credit cards

A specialised form of rewards card, designed for people who travel often and want airline points.

Major frequent flyer programs in Australia include:

• Qantas Frequent Flyer
• Velocity Frequent Flyer

Typical benefits may include:

• Earn Qantas or Velocity points
• Complimentary international travel insurance (conditions and exclusions usually apply)
• Discounted or complimentary lounge passes (may be limited)
• Priority boarding (may be limited)

Frequent flyer cards often have higher annual fees, so value usually depends on how often you travel and whether you’ll actually use the perks.

5. Balance transfer credit cards

These cards let you move existing debt from one card to another at a promotional interest rate for a set period (for example, a low or 0% balance transfer rate).

Key features:

• Promotional period (e.g., 6–36 months)
• Balance transfer fees (commonly a percentage of the amount transferred)
• Reversion rate (the rate after the promo ends)

Important considerations:

• New purchases may attract interest differently from transferred balances
• Repayment rules can vary (for example, how payments are allocated)
• Missing payments may affect promotional terms

Internal link:
Credit card refinance guide: https://www.credit24.com.au/blog/credit-card-refinance

6. Travel credit cards

These cards are tailored for Australians travelling internationally.

Typical features may include:

• Foreign transaction fees that vary by provider (some products may offer lower fees)
• Complimentary international travel insurance (conditions and exclusions usually apply)
• Airport lounge access (may be limited)
• Overseas ATM fee features (varies and may still depend on the ATM operator)
• Travel-focused reward programs

Best for:
People who travel frequently and want features that may reduce overseas costs or add travel-related perks.

7. Business credit cards

Designed specifically for business owners (often requiring an ABN).

Key features may include:

• Ability to separate business and personal expenses
• Custom credit limits (subject to assessment)
• Multiple employee cards
• Business-specific rewards
• Accounting integrations (varies by provider and software)

Best for:
Sole traders, small business owners, and companies wanting to manage expenses and track spending.

8. Student credit cards

Entry-level cards for people studying at university or TAFE.

Typical features may include:

• Low or no annual fees
• Lower credit limits
• Approval criteria designed for people with limited credit history (still subject to assessment)
• No complex rewards systems

Best for:
People starting to build credit history and learning how to manage repayments.

9. Premium credit cards

These include Platinum, Black, and Signature level cards.

Benefits may include:

• Higher reward earn rates
• Airport lounge membership
• International travel insurance (conditions and exclusions usually apply)
• Concierge services
• Exclusive event access

These cards usually have higher annual fees and may require a higher income or stronger credit profile.

Best for:
People who expect to use premium perks regularly and have a repayment plan that helps them avoid high interest costs.

What type of credit card should I get?

Choosing the right type of credit card often comes down to your habits, goals, and budget.

If you pay your balance in full each month
Rewards or frequent flyer cards may offer value. You might compare:

• Earn rate
• Complimentary insurance (check exclusions)
• Bonus points offers (check eligibility and end dates)
• Interest-free days (if offered, and if you meet conditions)

If you carry a balance
You might consider:

• A low-rate card, or
• A balance transfer card to reduce interest on existing debt (if you can repay within the promotional period)

Many people avoid high-fee rewards cards if they expect to carry a balance, because interest and fees can reduce the value of rewards.

If you travel often
You might compare:

• Frequent flyer cards
• Travel cards with lower foreign transaction fees
• Lounge access (and limits/conditions)

If you're building or rebuilding credit
You might consider:

• Low-fee, low-limit basic cards
• “Starter” cards offered by some providers

A common approach is to keep the limit manageable and focus on paying on time.

Internal link (helpful background reading):
How do credit cards work: https://www.credit24.com.au/blog/how-do-credit-cards-work/
Credit card limit guide: https://www.credit24.com.au/blog/credit-card-limit

Benefits of choosing the right credit card type

• Helps narrow down options faster
• Makes it easier to match features to how you actually spend
• Can support budgeting and planning
• May reduce unnecessary fees
• Can help you build stronger repayment habits over time

Drawbacks to consider

• Some card types can come with higher fees
• Rewards can encourage overspending if you’re not careful
• Premium cards may require higher income and stronger eligibility
• Balance transfer offers can become expensive if the promotional period ends before you repay
• Some products may include foreign currency costs or other charges

FAQs about credit card types

What type of credit card should I get for my first card?
Many beginners look for a low-fee or no-fee card with a modest credit limit. This can help you learn how to manage repayments without relying on a large limit.

How can I tell what type of credit card I have by the first 4 digits?
The first digits of your card (known as the BIN) generally identify the card network and category. For example, 4xxx is typically Visa, 5xxx Mastercard, and 3xxx American Express. Your provider’s app or statement usually shows your product’s details.

Can I change my credit card type with the same bank?
Often, yes — many providers allow product switching (for example, from a low-rate card to a rewards card). A credit assessment and eligibility criteria may still apply.

What’s the difference between a debit card and a credit card?
A debit card uses money you already have in your account. A credit card is a form of borrowing up to a set limit, and interest may apply if you don’t repay the balance under the product’s terms.

Are premium credit cards worth the annual fee?
It depends on whether you’ll use perks like lounge passes, travel insurance, and higher earn-rate rewards often enough to justify the fee.

How do I choose between a rewards card and a low-rate card?
If you repay in full each month, rewards might be worth comparing. If you expect to carry a balance, a low-rate card may reduce interest costs (though fees still matter).

Can I have multiple types of credit cards?
Some people choose more than one card (for example, a rewards card plus a low-fee backup). If you do, it helps to track due dates, fees, and limits carefully.

What credit score do I need for different card types?
Requirements vary by provider. Entry-level cards often have lower requirements than premium and rewards cards, which may require stronger income and credit history.

How does a balance transfer credit card work?
You move eligible debt from one card to another at a promotional rate for a set period. After the promo ends, the rate usually reverts to the standard rate. Fees and conditions commonly apply.

What’s the difference between Visa, Mastercard, and American Express?
Visa and Mastercard are widely accepted networks issued by many providers. American Express is a separate network; acceptance and fees can differ depending on the merchant and product.

Why Credit24 can be a good alternative

Sometimes, a credit card isn’t the right solution — especially for one-off expenses, emergencies, or when you prefer a structured repayment plan.

With Credit24 you can compare an option that offers:

• Loans from $500–$10,000 (subject to approval)
• A fixed repayment schedule (set out in your contract)
• Transparent fees and charges disclosed upfront
• A quick online application process
• Funds that may be available quickly once approved, including via Osko where available*
• Credit products provided under responsible lending obligations in Australia
• No revolving credit balance like a credit card

When a personal loan may be worth comparing to a credit card:

• You want a structured payoff plan
• You’re consolidating credit card debt
• You find revolving credit encourages overspending
• You want clearer repayments and an end date

Internal links (for deeper learning):
Personal loan vs credit card: https://credit24.com.au/blog/personal-loan-vs-credit-card/
Personal loan to pay off credit card: https://www.credit24.com.au/blog/personal-loan-to-pay-off-credit-card
Credit card consolidation loan: https://www.credit24.com.au/credit-card-consolidation-loan
How to transfer money from credit card to bank account: https://www.credit24.com.au/blog/how-to-transfer-money-from-credit-card-to-bank-account

Apply now: https://www.credit24.com.au/au/apply/login

Conclusion

Understanding the different types of credit cards in Australia can help you choose a product that better aligns with your spending patterns, budget, and goals. Whether you prioritise low fees, travel perks, rewards, or debt management, there’s usually a card category designed for that purpose.

If you’re comparing options and want clearer repayments rather than revolving credit, a Credit24 personal loan may be an alternative worth considering — as long as it suits your circumstances and you review the costs, terms, and eligibility requirements.

Disclaimer

IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is general in nature and does not consider your objectives, financial situation, or needs. Lending criteria, fees, and charges apply. For product details, eligibility requirements, and full terms and conditions, visit www.credit24.com.au.