1 in 3 Aussies don’t know their credit card interest 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
NAB Low Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)13.49% p.a.$59 $0 in the first year-Low Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
- Purchase rate
- 13.49% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 3%, Min $3
Read our Mozo Review to learn more about the Low Rate Card - Balance Transfer Offer
- Apply By 30 April 2024
Citi Premier
120,000 bonus points when you spend $4,000 within 90 days from card approval. Complimentary features like travel insurance and concierge.
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 6 months and then 22.24% p.a.21.49% p.a.$300 $150 in the subsequent years if you spend $48,000 on eligible purchases or cash advances in previous year., $150 in the first yearCiti Rewards ProgramPremier
120,000 bonus points when you spend $4,000 within 90 days from card approval. Complimentary features like travel insurance and concierge.
- Purchase rate
- 21.49% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 6 months and then 22.24% p.a.
- Cash advance
- 22.24% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 150.0
- Foreign exchange margin
- 3.40%
- Annual card fee
- $300 $150 in the subsequent years if you spend $48,000 on eligible purchases or cash advances in previous year., $150 in the first year
- Late payment fee
- $30.00
- Cash advance fee
- 3.5%, min $3.50
Read our Mozo Review to learn more about the Premier
Bank of Queensland Blue Visa Credit Card
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 9 months and then 21.74% p.a.0% p.a. for 9 months then 20.74% p.a.$60Q RewardsBlue Visa Credit Card
- Purchase rate
- 0% p.a. for 9 months then 20.74% p.a.
- Intro purchase rate
- 0% p.a. for 9 months
- Balance transfer rate
- 0% p.a. for 9 months and then 21.74% p.a.
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 44
- Intro fee
- -
- Foreign exchange margin
- 3.40%
- Annual card fee
- $60
- Late payment fee
- $30.00
- Cash advance fee
- 3.5%, min $3.50
Read our Mozo Review to learn more about the Blue Visa Credit Card
- Apply By 14 May 2024
Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 24 months and then 20.99% p.a.20.74% p.a.$149 $0 in the first yearVelocity Frequent FlyerVirgin Australia Velocity Flyer Card - Balance Transfer Offer
Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
- Purchase rate
- 20.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 24 months and then 20.99% p.a.
- Cash advance
- 20.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.30%
- Annual card fee
- $149 $0 in the first year
- Late payment fee
- $30.00
- Cash advance fee
- 2.7%, Min $2.70
Read our Mozo Review to learn more about the Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Bankwest More Classic Mastercard
Earn 1.5 More Rewards points per $1 spent on eligible purchases. Plus, if you meet the minimum annual spend, you'll receive a bonus 19,500 points every year.
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 6 months and then 19.99% p.a. (1.00% balance transfer fee)19.99% p.a.$100Bankwest More RewardsMore Classic Mastercard
Earn 1.5 More Rewards points per $1 spent on eligible purchases. Plus, if you meet the minimum annual spend, you'll receive a bonus 19,500 points every year.
- Purchase rate
- 19.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 6 months and then 19.99% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.99% p.a.
- Interest free days on purchases
- 44
- Intro fee
- -
- Foreign exchange margin
- 2.95%
- Annual card fee
- $100
- Late payment fee
- $25.00
- Cash advance fee
- 3%, Min $4
Read our Mozo Review to learn more about the More Classic Mastercard
^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.