1 in 3 Aussies don’t know their credit card interest rate

credit-card-rate

If we were to ask you for your phone number, you could tell us in three seconds. But what about if we wanted to know your credit card interest rate?

According to new research from Defence Bank, one in three Aussies don’t know their credit card rate. Of those Aussies, four out of five didn’t realise their interest rate was above 10%, while some owed a card with a rate above 20%. 

“It’s time to break the cycle of paying unnecessarily high credit card interest rates. Australian consumers need to stop paying 20% for the convenience of a basic credit card, when genuine low-rate options exist for half the cost,” said Defence Bank chief executive officer, David Marshall. 

Concerningly, more than half (60%) of respondents admitted they don’t pay much attention to the rate on their card, while one in four carry a balance sometimes throughout the year. 

The data also found that Aussies are losing faith in rewards credit cards, with one in two believing the rewards programs are generally not good value for money. 

“We see from these results that Australians are frustrated by the rates they’re paying and the bells and whistles they either can’t use or don’t need,” says Marshall.

Christmas debt still a problem for Aussies

Aside from forgetting their credit card interest rate, the survey also revealed that one in five Aussies find it hard to pay their credit card balance after the Christmas period. 

Given the year we’ve just had, it’s not surprising that many households had to rely on their plastic to get them through the festive season. But by not taking action against your Christmas debt now, you could find yourself racking up a hefty bill down the line. 

Getting on top of your credit card debt doesn’t have to feel impossible, in fact, check out our top three tips to paying down debt:

  • Pay more than the minimum amount: Depending on the type of credit card you have, your minimum payment might range between $30 to $70 a month. But if you’ve got a big balance to pay off, not only could you spend months trying to clear your debt but also paying more than necessary in interest. 
  • Try selling stuff online: Rummage through your house to find items you no longer need or use, like an old pair of sneakers or cabinet. There’s not much you can’t sell online, so any unused item is fair game! Then once you’ve made a pretty penny, put the money you’ve made towards your debt. 
  • Consider a balance transfer credit card: If both your credit card balance and interest rate are too big to manage, a balance transfer credit card can help you get out of a sticky situation. This is a card that features 0% interest for a period of time, helping you pay down your balance interest-free.

You can compare balance transfer credit cards by checking out Mozo’s credit card comparison tool or by getting started with some offers below.

Compare balance transfer credit cards - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
Balance transfer calculator: how much money could you save?
1
2
3
4
I need to transfer
I can repay
each month
My current interest rate is
% p.a.
My current annual fee is

Transfer amount:

$

Monthly repayment:

$

Current interest rate:

%

Current annual fee:

$

Change my values

We've updated the table to show your savings!(how are they calculated?)
  • Apply By 4 October 2021
    placeholder
    Kogan Money Black Card

    Kogan Money Black Card has no annual fee and no cap or expiry date on points. It comes with a 55 interest free days on purchases and a 0% balance transfer rate for the first 12 months. Earn up to $400 in Kogan.com Credit, $50 Credit on first eligible spend in 30 days and $350 Credit when you spend $1,500 on eligible purchases in 90 days from card approval.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 12 months and then 21.74% p.a.
    20.99% p.a.
    $0
    Kogan Rewards Points
    Go to site
    Details
  • Apply By 28 October 2021
    placeholder
    PayPal Rewards Card

    Enjoy 50,000 bonus points (conditions apply). Receive 55 interest free days on purchases and 0% balance transfer rate for the first 20 months.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 20 months and then 20.99% p.a.
    20.99% p.a.
    $0
    PayPal Rewards
    Go to site
    Details
  • Apply By 10 October 2021
    placeholder
    humm90 Mastercard

    With up to 110 days interest free on your spending, this card is pretty unique in the market, and great for managing your daily spend. Plus, no foreign transaction fees overseas or online.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 36 months and then 25.99% p.a. (0% balance transfer fee)
    23.99% p.a.
    $99
    -
    Go to site
    Details
  • placeholder
    Great Southern Bank Low Rate Credit Card

    0% balance transfer rate for 20 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 25 months and then 21.74% p.a.
    11.99% p.a.
    $49 $0 in the first year
    -
    Go to site
    Details
  • Apply By 31 October 2021
    placeholder
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for up to 12 months. Low annual fee of $45 and no fees for additional cardholders.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)
    0% p.a. for 12 months then 11.99% p.a.
    $45
    -
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Card Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.