3 reasons to switch credit cards this year

Ceyda Erem

20 May 2020

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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.

  • Hot Deal Limited time cashback offer

    Westpac Low Rate

    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59

    Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.

    • 13.74% p.a.

    • -

    • 0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 3.00%

    • $59

    • $15.00

    • 2%, Min $2.50, Max $150

    Read our Mozo Review to learn more about the Low Rate

    Details Close

  • St.George Vertigo

    0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)

    0% p.a. for 7 months then 13.99% p.a.

    $55 $0 in the first year

    Enjoy 0% p.a. for 22 months on balance transfers at card application. 1.5% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Plus, 0% p.a. on purchases for 7 months. Rate then switches to applicable variable purchase rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends February 9th 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.

    • 0% p.a. for 7 months then 13.99% p.a.

    • 0% p.a. for 7 months

    • 0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $55 $0 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Vertigo

    Details Close

  • Defence Bank Foundation Credit Card

    3.99% p.a. for 6 months and then 8.99% p.a.

    3.99% p.a. for 6 months then 8.99% p.a.

    $45

    Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.

    • 3.99% p.a. for 6 months then 8.99% p.a.

    • 3.99% p.a. for 6 months

    • 3.99% p.a. for 6 months and then 8.99% p.a.

    • 8.99% p.a.

    • 55

    • 3.00%

    • $45

    • $20.00

    • 4.1

    Read our Mozo Review to learn more about the Foundation Credit Card

    Details Close

  • CUA Low Rate Credit Card

    0% p.a. for 20 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 20.

    • 11.99% p.a.

    • -

    • 0% p.a. for 20 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 Low Rate Card

    0% p.a. for 20 months and then 21.74% p.a. (2.00% balance transfer fee)

    12.99% p.a.

    $59

    0% p.a. interest on balance transfers for the first 20 months (2% fee), 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 20 months and then 21.74% p.a. (2.00% balance transfer fee)

    • 21.74% p.a.

    • 55

    • 3.00%

    • $59

    • $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