Types of credit cards

Different types of credit cards in Australia

There are plenty of different credit cards on offer in Australia, and it’s important to choose the right one for you. In this article, we explore the different types of credit cards and their features and potential benefits, so you’re more equipped to make the right decision based on your financial needs and features that matter the most to you.

Low-rate credit cards

Low rate credit cards offer a lower interest rate, making them suitable for those who might carry a balance month-to-month. These cards may have fewer perks, but could save you money on interest charges, which may make them a more affordable option for many cardholders.

The Westpac Low Rate credit card

The Westpac Low Rate credit card has a low ongoing interest rate on purchases.

• You’ll pay a lower card fee compared to Rewards credit cards – which may help reduce your credit card costs
• Enjoy a low ongoing interest rate on purchases

No and low fee credit cards

If you prefer to avoid an annual fee, some types of credit cards offer no or low annual fees, so it could be a suitable option for those who pay their outstanding balance in full each month.

The Westpac Low Fee credit card

The Westpac Low Fee credit card is a straightforward credit card for those wanting to save on card fees.

• You’ll pay no annual fee as long as you make the minimum spend requirements and pay off your purchases by the monthly due date

Balance transfer credit cards

Balance transfer credit cards are designed to help you manage existing credit card debt by offering low or zero interest rates on balance transfers for a specific period.

A Westpac credit card balance transfer may be a handy tool to consolidate debt if you have multiple credit cards. You could:

• Transfer your existing credit card balances to a card with a lower interest rate to help save on interest charges, and pay down your debt faster
• Consolidate up to three non-Westpac Australian credit, charge or store cards
• Transfer a portion (typically up to 80%) of the credit limit available on the new Westpac card you’re transferring to, with a low minimum transfer amount

Don’t forget to keep an eye on any balance transfer fees as well as on the interest rate once the promotional period is over.

Rewards credit cards

A rewards credit card is designed to allow you to earn points on your everyday spend. These rewards credit cards may have a higher card fee, but come with a rewards program that lets you earn points which can be redeemed for rewards such as retail gift cards, travel perks, and cashback.

Westpac rewards credit cards

Westpac’s own credit card rewards program is called Altitude. You’ll earn Altitude rewards points that can be redeemed for gift cards, cashback, with partner airlines, or at our online store. You can also spend those points on everyday purchases using Pay with Points, anywhere Mastercard® is accepted*. Minimum balance requirements apply.

There are two types of Westpac Altitude rewards credit cards – Altitude Platinum and Altitude Black.

• Altitude Platinum lets you enjoy the benefits of Altitude rewards and offers complimentary insurance for overseas travel
• Altitude Black you’ll enjoy the benefits of Altitude rewards, plus higher points earned on eligible purchases. This credit card comes with complimentary travel insurance, airport lounge benefits, and a personal concierge service exclusive to Westpac Altitude Black cardholders

With both Platinum and Black credit cards, you can reward yourself sooner by earning extra points by shopping with Accelerated Earn partners across streaming, retail and travel.

Don’t forget to look for bonus points or introductory offers when comparing rewards cards so you can make the most of your credit card.

Frequent flyer credit cards

For seasoned and frequent travellers, frequent flyer credit cards could help you earn points directly to your chosen airline’s frequent flyer points program.

Westpac offers Altitude Qantas and Altitude Velocity frequent flyer credit cards, allowing you to earn either Qantas points or Velocity points which can be redeemed for flights, upgrades, or other travel benefits.

Westpac frequent flyer credit cards

• The Altitude Qantas Platinum or Altitude Velocity Platinum credit card comes with complimentary overseas travel insurance
• The Altitude Qantas Black or Altitude Velocity Black credit card offers complimentary airport lounge access, insurances and concierge services

Whether you choose a Platinum or Black credit card, you can earn Qantas or Velocity points directly into your frequent flyer account, or choose to spend them at Qantas Marketplace or Velocity Reward store.

Remember, every rewards program is different so it can be helpful to compare the number of rewards points you earn per dollar spent and what you can redeem them for, as well as rewards program fees.

Business credit cards

A business credit card is tailored to meet the needs of business owners. They offer features to help manage business expenses and often come with higher limits. These credit cards can help with everyday purchases and paying bills to support cash flow management and short-term financing.

Westpac offers a range of business credit cards, each with different fees and interest rates as well as number of cardholders and limits.

Business credit cards can come with complimentary insurances, including extended warranty and purchase protection, so read the fine print to determine suitability for your business’ needs. 

Westpac credit card benefits

With Westpac credit cards, you’ll get personalised cashback offers from Westpac Extras and bonus Cashback when you shop with an eligible debit or credit card via the Westpac Lounge on ShopBack.

You’ll also be able to split purchases into four payments by using PartPay on your credit card account. A minimum split amount may apply.

And for security, the digital version of your card has a dynamic CVC (the 3 digit code on the back of your card) that changes every 24 hours. Limiting the timeframe your card details can be used if your details are stolen.

How to choose the best credit card for you

Ultimately, choosing the best credit card for you comes down to your financial situation and assessing your needs as well as how you intend to use the card. As you compare credit cards, consider the interest rate, annual fees, rewards programs, and additional features, as well as the terms of each credit card account and credit provider.

Remember, you can apply for a Westpac credit card online or at any branch. 

To sum up

There’s a lot to think about when it comes to different types of credit cards. By carefully considering your financial situation, spending habits, and the potential benefits, you could choose the Westpac credit card that best suits your needs.