As costs weigh up, buy now pay later and credit cards spike

Woman carrying heavy blocks

If you don’t live under a rock, you might have heard a thing or two about the Reserve Bank and its frontman Phillip Lowe. Since early 2022, Aussie borrowers have experienced 12 interest rate raises at the hands of the RBA, impacting all sorts of loans across the nation.

Not only are Aussies struggling with the rising cost of living in daily life, but these frequent hikes are also hurting confidence - mortgage enquiries are down by 14% in the last 12 months, for example. 

A recent study by Experian Data shows that while mortgages are not currently the apple of our eye, shorter term lending like personal loans, buy now pay later services, and credit cards are spiking right now. 

The research found that after the first eight consecutive interest rate rises, Aussies started to reach for personal loans - with February 2023 having the second highest number of enquiries for personal loans in the last two years.

You don’t need a shopping addiction and a negative bank account to enjoy buy now pay later (BNPL). BNPL services have increased a whopping 42% in the last two years, with February 2023 seeing the highest number of enquiries since the 2021 Christmas period. 

If you like your credit lending a bit more old school though, good old credit cards have also felt the midas touch this year. The enquiry volumes for credit cards have increased 54% in the last two years, and are up 31% in the last 12 months, according to Experian. 

Credit cards aren’t a one size fits all approach however, with many having different benefits, rewards and rates. If you’re looking to switch up your credit card and need some help finding the right one for you, below are some of the top options available in our Mozo database. 

Compare Credit Cards - last updated 24 April 2024

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  • Apply By 28 May 2024
    American Express Qantas Ultimate Card

    Receive 60,000 Bonus Qantas Rewards Points when you apply online by 28 May 2024, are approved, and spend $3,000 on your new Card within the first 3 months. T&Cs apply. Available for New American Express Card Members only.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $450
    Rewards program
    Qantas Frequent Flyer
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    Details
  • American Express Platinum Edge Credit Card

    Enjoy $0 Annual Card Fee (usually $195) in the first year when you apply online and are approved. T&Cs apply. New Card Members only. Offer subject to change without notice.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $195 $0 in the first year
    Rewards program
    Membership Rewards
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    Details
  • American Express Explorer® Credit Card

    Receive 50,000 bonus membership rewards points when you apply online, are approved, and spend $4,000 on eligible purchases on your new card within the first 3 months (T&Cs apply). New Card Members only. Complimentary domestic & international Travel Insurance (T&Cs apply). Up to 55 days interest free on purchases. $395 annual fee.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $395
    Rewards program
    Membership Rewards
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  • Apply By 15 May 2024
    American Express Velocity Platinum Card

    Earn 100,000 bonus Velocity Points when you apply online by 15 May 2024, are approved, and spend $3,000 on eligible purchases on your new American Express Velocity Platinum Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $375
    Rewards program
    Velocity Frequent Flyer
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  • 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).

    Purchase rate
    13.49% p.a.
    Balance transfer rate
    0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
    Annual fee
    $59 $0 in the first year
    Rewards program
    -
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    Details