Best Credit Cards for Average Credit Score in Australia

If you have an average credit score in Australia, finding the right credit card can be a challenge. However, there are several options tailored specifically for individuals with moderate credit profiles. This article explores the best credit cards available to Australians with an average credit score, considering factors such as interest rates, rewards programs, and additional benefits.

Understanding Credit Scores in Australia

Before diving into the specific credit card options, it's crucial to understand what an average credit score entails in Australia. Credit scores in Australia typically range from 0 to 1,200, with scores between 550 and 669 considered average. This range suggests that while you have managed credit reasonably well, there might be some areas for improvement.

What to Look for in a Credit Card with an Average Credit Score

When you have an average credit score, the primary focus should be on finding a credit card that helps you improve your credit rating while offering practical benefits. Here are some key features to consider:

1. Low Annual Fees: Credit cards with low or no annual fees can be particularly beneficial for those with average credit, as they reduce the cost of maintaining the card.

2. Reasonable Interest Rates: While you might not qualify for the lowest interest rates, seeking a card with a competitive rate can save you money on unpaid balances.

3. Rewards Programs: Look for cards that offer rewards on everyday purchases. These can include cashback, points, or discounts on services and products.

4. Credit Limit Flexibility: Some cards offer flexible credit limits that can be beneficial as you work on improving your credit score.

5. Balance Transfer Offers: If you have existing credit card debt, a card with a balance transfer option might help you consolidate your debt and reduce interest payments.

Top Credit Cards for Average Credit Scores in Australia

Here are some of the top credit card options available to Australians with an average credit score:

1. ANZ Low Rate Credit Card

• Annual Fee: $58
• Interest Rate: 12.49% p.a. on purchases
• Rewards: No rewards program
• Additional Features: Offers up to 55 days interest-free on purchases, and a relatively low interest rate compared to many other cards.

The ANZ Low Rate Credit Card is ideal for those who prioritize a low interest rate over rewards. It's a solid option for managing day-to-day expenses without the burden of high fees.

2. NAB Low Fee Credit Card

• Annual Fee: $30 (waived in the first year)
• Interest Rate: 19.74% p.a. on purchases
• Rewards: No rewards program
• Additional Features: Offers 0% p.a. on balance transfers for the first 12 months.

The NAB Low Fee Credit Card is a great choice for those seeking a card with minimal costs. The balance transfer offer is a notable benefit for consolidating debt.

3. Westpac Low Rate Credit Card

• Annual Fee: $59
• Interest Rate: 13.74% p.a. on purchases
• Rewards: No rewards program
• Additional Features: Up to 55 days interest-free on purchases, 0% p.a. on balance transfers for the first 12 months.

Westpac’s Low Rate Credit Card is designed for those who want to keep interest payments low while having the flexibility of a balance transfer option.

4. Coles No Annual Fee Mastercard

• Annual Fee: $0
• Interest Rate: 19.99% p.a. on purchases
• Rewards: Earn 1 Flybuys point per $2 spent
• Additional Features: Up to 62 days interest-free on purchases, and no annual fee.

The Coles No Annual Fee Mastercard stands out for its combination of no annual fee and a rewards program. It’s a suitable option if you frequently shop at Coles and want to earn rewards on your everyday spending.

5. Virgin Money No Annual Fee Credit Card

• Annual Fee: $0
• Interest Rate: 18.99% p.a. on purchases
• Rewards: Earn 1 point per $1 spent on eligible purchases
• Additional Features: Up to 44 days interest-free on purchases, and no annual fee.

Virgin Money’s No Annual Fee Credit Card offers a balance between rewards and cost-effectiveness, making it a competitive choice for those with average credit.

How to Improve Your Credit Score in Australia

While these credit cards can serve as valuable tools for managing finances, improving your credit score should remain a priority. Here are some strategies:

• Pay Your Bills on Time: Consistently paying your bills by the due date is crucial for improving your credit score.

• Keep Balances Low: Aim to keep your credit card balances below 30% of your credit limit. High balances can negatively impact your credit score.

• Avoid Opening Multiple Accounts: Opening several new credit accounts in a short period can lower your credit score. Be selective about applying for new credit.

• Monitor Your Credit Report: Regularly review your credit report to ensure accuracy and address any discrepancies.

Conclusion

Choosing the best credit card when you have an average credit score in Australia requires careful consideration of various factors, including fees, interest rates, and rewards. The ANZ Low Rate Credit Card, NAB Low Fee Credit Card, Westpac Low Rate Credit Card, Coles No Annual Fee Mastercard, and Virgin Money No Annual Fee Credit Card are all excellent options to consider.

Improving your credit score takes time and effort, but with the right credit card and responsible financial habits, you can work towards achieving a better score and more favorable credit opportunities in the future.