3 reasons to switch credit cards this year

Ceyda Erem

20 May 2020

Switch cc content

From changing banks to refinancing your home loan, it’s not uncommon to switch things up with your finances every now and then. Some common reasons Aussies choose to do this is the chance to save a few bucks or their current deal is no longer competitive. 

However, making a change with your personal finances can also help you work toward new financial goals. So, if you think it’s time you gave your plastic a refresh, here are three reasons you might want to rethink your current credit card

Reason #1 - The annual fee isn’t worth the perks anymore 

If you own a rewards credit card, you might have previously enjoyed the premium perks like earning and redeeming points, complimentary travel insurance or airport lounge access. But the thing with rewards credit cards is that they generally come with a luxurious price tag - aka the annual fee.

Depending on the type of rewards card, annual fees can reach up to an eye-watering $400! So whether the freebies no longer appeal to you or it’s been a while since you last used your points, downgrading your credit card could be a good idea. 

If you’re keen to make the switch, you might want to consider doing this now, as the COVID-19 travel restrictions could be another reason your rewards perks are collecting dust. 

Reason #2 - Your spending habits and money values have changed 

While it might have made sense to pick up a credit card stuffed with bells and whistles in the past, now you might prefer something simpler. This could be because you’ve got a new list of financial goals and your current plastic isn’t exactly going to help you reach them.

For instance, one new goal might be to save up for a home loan deposit or grow your emergency savings stash: a credit card with a high interest rate could be tempting you to spend, draining your savings when the bill arrives. 

In this case, you might want to consider switching to a no annual fee credit card for everyday spending or emergencies. 

Reason #3 - The introductory period is close to its end 

Many low rate or balance transfer cards may come with a flashy introductory rate, or ‘honeymoon rate’ of 0%, which expires after a certain period of time. If your honeymoon rate is coming to end, it might be worth shopping around on other offers, as cards like these generally have a high revert rate. This is the interest rate the card switches to once the introductory period ends. 

If you initially took out the card to take advantage of the interest-free spending, a low rate credit card may be the pick for you. You can compare different low rate options by using Mozo’s credit card comparison tool or get started by taking a look at the options below. 

Compare low credit cards

Rates updated daily. Advertiser disclosure.

  • Apply By 31 October 2021

    Bendigo Bank Low Rate Credit Card

    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

    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.

    • 0% p.a. for 12 months then 11.99% p.a.

    • 0% p.a. for 12 months

    • 0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)

    • 13.99% p.a.

    • 55

    • 3.00%

    • $45

    • $15.00

    • 0.50%, Min $3.25

    Read our Mozo Review to learn more about the Low Rate Credit Card

    Details Close

  • Great Southern Bank Low Rate Credit Card

    0% p.a. for 25 months and then 21.74% p.a.

    11.99% p.a.

    $49 $0 in the first year

    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^

    • 11.99% p.a.

    • -

    • 0% p.a. for 25 months and then 21.74% p.a.

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.40%

    • $49 $0 in the first year

    • $12.50

    • 2.00%, Min $3.50

    Read our Mozo Review to learn more about the Low Rate Credit Card

    Details Close

  • NAB StraightUp Card ($10/month - $1,000 Credit Limit)

    No current offer

    0% p.a.

    $120 $10/month - waived if no spend & no balance owing

    Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.

    • 0% p.a.

    • -

    • No current offer

    • 0

    • 0%

    • $120 $10/month - waived if no spend & no balance owing

    • $0.00

    • n/a

    Read our Mozo Review to learn more about the StraightUp Card

    Details Close

  • St.George No Annual Fee

    2.99% p.a. for 15 months and then 21.49% p.a.

    0% p.a. for 12 months then 20.74% p.a.

    $0

    0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    • 0% p.a. for 12 months then 20.74% p.a.

    • 0% p.a. for 12 months

    • 2.99% p.a. for 15 months and then 21.49% p.a.

    • 21.49% p.a.

    • 55

    • 3.00%

    • $0

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the No Annual Fee

    Details Close

  • NAB Low Rate Card

    0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)

    12.99% p.a.

    $59 $0 in the first year

    0% p.a. interest on balance transfers for the first 32 months, plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.

    • 12.99% p.a.

    • -

    • 0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.00%

    • $59 $0 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Low Rate Card

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards